GLG Life Tech Progressing on Stevia Seed Propagation Program

The Company has successfully reached another milestone in its stevia seed propagation program and that the Company’s Huinong Three (“H3”) proprietary stevia varietal propagation is on schedule.

Oct 25 2011 --- GLG Life Tech Corporation, the vertically-integrated leader in the agricultural and commercial development of high quality stevia and all-natural and zero-calorie food and beverage products, announces the results of its 2011 Agriculture R&D Program.

The Company has successfully reached another milestone in its stevia seed propagation program and that the Company’s Huinong Three (“H3”) proprietary stevia varietal propagation is on schedule. We can now confirm that H3 will be available for planting in the 2012 growing season. These new seeds provide GLG with a significant cost reduction in its production of high-purity stevia extracts. This is due to both the very high levels of rebaudioside A (“RA”) naturally found in these plants and the higher leaf yields produced from the larger H3 plants. The H3 plants have approximately 76% RA in the plant leaf, which is 26% higher than the first generation (H1) seeds. In addition, the H3 plants will generate 46% more leaf per acre than the earlier H1 plants. RA is the sweetest component of the stevia plant and the primary glycoside used to meet the market demand for stevia sweeteners.
 
GLG is also announcing its next generation plant varietals. The Huinong Four (“H4”) is on track to be commercially available for distribution to its contract farmers for the 2012 stevia growing season. The H4 proprietary strain results show a 16% increase in leaf yield over the H3 plants, while maintaining a similar 76% RA content. This will result in further reductions to overall production costs. The H4 seeds will play an important role, as parents, in the advancement of the Company’s next generation of seeds – the H6 strain. 
 
The GLG Agricultural R&D team has also developed a new Huinong Five (“H5”) plant strain this year, which has a seed capable of producing a high amount of stevioside (STV). The H5 plant strain’s STV content of approximately 70% makes it the highest STV seed available in the world today, with a leaf yield between the H2 and H3 strains. H5 will help GLG further reduce its production costs of its BlendSure line of products, which has already received its GRAS certification and a Letter of No Objection from the FDA earlier this year.
 
GLG Chief Agricultural Scientist Mr. Qibin Wang stated, “I am very pleased with the recent developments of our agricultural R&D program. Under Dr. Luke Zhang’s leadership, we have progressively achieved several very significant milestones, with H4 and H5 following on the heels of the H1, H2 and H3 proprietary stevia plant varietals. We will continue to innovate agriculturally and to develop non-GMO, high yielding stevia strains that are natural, sustainable, and provide value for our future growth.”
 
GLG Chairman and CEO Dr. Luke Zhang commented, “GLG remains in the forefront of the stevia industry with these important agricultural achievements. Advancements such as these underline the importance of our vertical integration from seed to shelf and our control over the stevia supply chain. Leaf costs account for approximately 65% of the cost to produce high purity stevia extracts so our agriculture advances have the most significant impact on reducing our product costs. We expect that global stevia demand will continue to increase in the future as the cost of stevia extracts decreases, and flavor and aftertaste challenges are overcome. GLG has all the tools to address taste and cost challenges that have impacted stevia’s adoption in the past. We are confident that stevia demand from the global market will increase now that the aftertaste issue has been resolved by our recently established AN0C Stevia Solutions Company, comprised of stevia and Food & Beverage formulation specialists who work together and have a deep understanding in both stevia and product formulations. We expect to continue to lower our product costs through our dedicated agricultural R&D program. GLG is in the leading position to provide our customers both good-tasting stevia solutions and low cost stevia-based sweeteners.”