GLG Life Tech Plans to Develop Stevia Growth in Paraguay

Rebiana recently received GRAS status in the United States for use in food and beverages. The Company has operations in Canada as well as agricultural and processing facilities in China in the provinces of Anhui, Jiangsu, Shandong and Heilongjiang.

29 Sep 2009 --- GLG Life Tech Corporation, the vertically integrated leader in the agricultural and industrial development of high quality stevia extracts, has signed a non-binding Letter of Intent with the Paraguayan Export and Investment Promotion Agency to enter negotiations for the development of stevia growth and production in Paraguay and to create a mutually beneficial business relationship for economic development in the country related to the growth and production of stevia.

The LOI is part of the global strategy adopted by the Company to geographically diversify its stevia growth and production operations outside of China. Objectives within the LOI include:

1. To develop agribusiness contracts with stevia farmers for the growth and harvest of GLG patented stevia seed strains

2. To develop a joint research and development program focusing on new and improved stevia plant strains as well as the continual development of advanced cultivation techniques for high Rebaudioside A (RA) yielding stevia plants

3. To construct a stevia processing facility for the purpose of producing stevia extract products to be sold within the South American marketplace as well as for export to other regions

Each party has agreed to certain responsibilities to further these objectives and has initiated action immediately upon signing.

REDIEX Director Sebastian Bogado states, "We are very pleased to sign a letter of intent with GLG to formalize the steps for their continued exploration toward investment in Paraguay. We strongly believe Paraguay is the right country with whom to partner since it is where Ka'a Hee (name of the stevia plant in the indigenous Guarani language) was first discovered, classified and used as a natural sweetener. Paraguay's rich biodiversity coupled with GLG's technology and know-how will surely prove a perfect match to further develop the Paraguayan stevia industry and to help the country further its objective of positioning itself as a leader in the global stevia industry."

Chairman and CEO, Dr. Luke Zhang states, "We are pleased to be invited by this important division of the Paraguayan government to develop both agricultural and industrial projects related to the growth and production of high quality stevia. Paraguay is strategically positioned to offer value and support for GLG's establishment in South America due to the country's extensive experience and history with stevia. The GLG management team has been involved in stevia seed R&D, leaf growth and high grade stevia extraction for over a decade. We feel our expertise, patented stevia seeds and proprietary technology will be important in helping to further the stevia industry in Paraguay as well as strengthening our position as the leader in innovation, development, supply and production of the world's first all natural, zero calorie sweetener."

GLG Life Tech Corporation is a global leader in the supply of high purity stevia, an all natural, zero-calorie sweetener used in food and beverages. The Company's operations cover each step in the stevia supply chain including non-GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest, proprietary extraction and refining, marketing and distribution of finished product. GLG advanced technology and extraction technique make it one of the world's leading producers of high purity stevia extracts, including rebiana made with 97% Rebaudioside A. Rebiana recently received GRAS status in the United States for use in food and beverages. The Company has operations in Canada as well as agricultural and processing facilities in China in the provinces of Anhui, Jiangsu, Shandong and Heilongjiang. China is responsible for an estimated 85% of the world's current stevia production. GLG stevia processing capabilities include 41,000 metric tons of raw stevia leaf and 1,000 metric tons of high grade stevia extract. The Company holds a strategic partnership and preferred supplier agreement with Cargill, Incorporated to supply 80% of its global stevia extract demand and 100% of any stevia sourced from China. In addition, the Company's global sales and marketing arm, GLG-Weider Sweet Naturals, works with companies around the world to bring stevia extract supply solutions for food, beverage, pharmaceutical and nutraceutical applications.

REDIEX is the Export and Investment Promotion Agency for Paraguay and is a division of the Ministry of Industry. Since 2005 REDIEX has been responsible for the implementation of Paraguay's National Exports and Investment Plan, done through the broad participation of key players in the Paraguayan Government, its business sector and civil society. REDIEX has helped to establish and set in motion an agenda of public policies that improve the competitiveness of Paraguayan companies for both goods and services including within the stevia industry.

A new Rabobank report recently noted that the plant-based sugar substitute stevia is increasingly being used by food and beverage companies, and should continue to gain market share. “Because stevia-based sweeteners are plant derived and naturally occurring, they can be incorporated into products with all-natural claims. To date, no other commercially available high intensity sweetener can fill this gap,” said Rabobank analyst Stephen Rannekleiv. “While success seems imminent, and we expect annual U.S. sales of Reb A to reach approximately $700 million within 5 years, numerous hurdles must still be overcome.”

The French government recently approved the use of rebaudioside A in food and beverages in France. This approval is the first for an EU market and allows the food and beverage industry to formulate with rebiana, high purity rebaudioside A, for the next two years.