Royal DSM Acquires Lipid Technologies Provider

02/10/06 Royal DSM N.V. announces the acquisition of Lipid Technologies Provider AB (LTP), a Swedish company with a technology platform based on formulated lipids. LTP develops lipid delivery systems for functional foods (including dietary supplements) and pharmaceuticals, using lipids extracted from natural resources such as oat oil. LTP's main product is a satiety ingredient branded Olibra which, according to substantiated evidence, has the effect of reducing calorie intake. In the area of weight management, satiety products are gaining in importance. Eating healthier and less is increasingly seen as a natural and credible way to manage weight.

"The acquisition of Lipid Technologies Provider fits seamlessly with DSM's strategic drive, Vision 2010 - Building on Strengths, in which we focus on market driven growth and innovation, with nutrition being one of the main areas," says Feike Sijbesma, member of DSM's Managing Board.

Rob van Leen, DSM's Chief Innovation Officer: "LTP and DSM are already researching new products and solutions in the area of weight management. This step, in combination with DSM's other activities in this market, lays a broad foundation to create more innovative products that help consumers in changing their lifestyle towards a sustainably healthier life."

DSM Venturing invested in LTP in September 2003 and gained 27% ownership over time. Mid 2005 DSM Food Specialties entered into a global Marketing and Sales agreement with LTP, which gave DSM the exclusive right to market Olibra (branded Fabuless by DSM) in the dairy foods market. In line with the company's ambition to further grow in innovative health ingredients and build leadership in the area of weight management, it was a natural step for DSM to acquire the remaining shares of LTP, at a purchase price of EUR 18 million. Moreover, LTP's technology platform will support future opportunities for new applications, including outside weight management. DSM Venturing's LTP investment is considered as a 'proof-of-principle' of the added value of corporate venturing to DSM's open innovation strategy.

Fabuless / Olibra is a revolutionary weight management ingredient. Using the concept of satiety - the body's natural appetite control mechanism - it helps consumers manage their food intake, and hence makes weight management that little bit easier. Its patent-protected combination of oat oil and palm oil (both naturally occurring dietary lipids) is thought to give a satiety feeling lasting for hours after a meal.