GLG Announces Distribution Agreement Signed with Sugar Producer Grupo Azucarero Mexico

The synergies between our two companies’ natural sweetener portfolios renders significant potential for the blending of stevia and sugar to create a new market category.

Jul 20 2010 --- GLG Life Tech Corporation, the vertically-integrated leader in the agricultural and commercial development of high quality stevia, announces the signing of a five-year agreement with Grupo Azucarero Mexico (GAM) for the marketing and distribution of GLG’s stevia extract products in Mexico.

GAM is the largest private producer of sugar in Mexico, following only the Mexican government. The company owns and operates sugar mills and packaging plants throughout Mexico and specializes in the production, processing and distribution of sugar cane, as well as in the elaboration and sale of sugar-based derivates and products.

Key highlights under the terms of this agreement include:

* Initial term of five years with an option to extend the term for another five years subject to the satisfaction of certain conditions and upon mutual agreement of the parties
* Mutual exclusivity between the two companies, subject to certain limitations, including GAM’s obligation to achieve set GLG product purchases levels, which will be established by mutual agreement year by year
* Marketing support, as well as sales and technical training, to be provided by GLG to GAM
* GAM to market GLG’s full line of products including the BlendSure product line, Rebpure, Rebsweet within Mexico
* Opportunity for future collaboration of the two companies in agricultural and industrial processing for GLG stevia extracts

Dr. Luke Zhang, CEO of GLG stated, “We see great market opportunity with leaders such as GAM whose experience, expertise, and leadership provide foundation and stability for long-term collaboration. The synergies between our two companies’ natural sweetener portfolios renders significant potential for the blending of stevia and sugar to create a new market category. We are very pleased with this agreement and look forward to a successful, valuable partnership with GAM.”

CEO of GAM Juan Cortina Gallardo said, “We are very pleased to have found a terrific partner in GLG, one that is going to help us address our customers´ needs in finding an alternative to offer natural, low-calorie products into their end products. We truly believe GLG to have the best alternative with respect to quality and flavor given the extensive research and development into leaf varieties.”