PureCircle Set to Lead USA Supply of High-Purity Reb A

19 Dec 2008

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19/12/08 PureCircle, the world's leading developer and producer of high-purity Rebaudioside A (Reb A) announces that the United States Food & Drug Administration (FDA) issued a no objection letter with respect to Reb A. This indicates the FDA has no objection to the conclusion that Reb A at a minimum specification of 95% is Generally Recognized As Safe (GRAS) among qualified experts for use in beverages, foods and tabletop sweeteners. This response from the FDA clears the way for high-purity Reb A, the first all-natural zero calorie sweetener, to be adopted as a key ingredient in mainstream food and beverage production.

PureCircle is the world's largest supplier of high-purity Reb A with the industry's leading vertically integrated supply chain, to secure the consistent, reliable supply of high-quality, high-purity Reb A to manufacturers who want to offer their customers healthy, natural, great tasting products. High-purity Reb A has a superior taste profile and displays excellent pH and temperature stability making it suitable for use as a sweetener ingredient across all food and beverage applications.

Commenting on the GRAS announcement, Magomet Malsagov, Chief Executive said:

"The importance of GRAS status for high-purity Reb A cannot be overstated, this marks the opening of the largest market for Reb A. Food and drink manufacturers will now be able to use it as a sweetener ingredient -- either as a complement to sugar or as a healthy substitute for synthetic sweeteners -- across their entire product ranges."

"As the world's leading supplier of Reb A, PureCircle is well placed to meet the expected surge in demand from the world's largest food and beverage market."

"Our Reb A supply chain is already the world's largest and we are making further investment with 50,000 MT of leaf extraction capacity coming online in March 2009 and joint venture partnerships with stevia plantations in Paraguay, Thailand, Laos, China and Kenya."

"Through the combination of PureCircle's first-mover advantage, diversified supply chain, leading technology, strong market position and strategic partnerships, the company is poised to lead the natural sweetener market into a new era."

The FDA's issuance of a no objection letter with respect to Reb A opens the U.S. market for PureCircle who will offer complete application and formulation assistance for products developed with high-purity Reb A as an ingredient, including under the PureVia brand. The announcement also confirms, at a minimum specification of 95%, the purity levels of Reb A which are approved in the U.S., clearly differentiating Reb A from the traditional stevia extract market.

Earlier in the year, PureCircle announced contract extensions with Cargill and major new contracts with PepsiCo and Whole Earth Sweetener Company for the supply of high-purity Reb A in beverages, foods and tabletop sweeteners worldwide. PureCircle has a license agreement giving it the right to sell high-purity Reb A under the PureVia brand in categories and customers to be determined.

Uniquely, PureCircle can offer food and beverage manufacturers the opportunity to use the PureVia endorsement as the ultimate natural sweetness and healthy lifestyle solution to win consumer appeal. Additionally, PureCircle will continue to be free to sell the non-branded ingredient to customers across all categories and geographies.

PepsiCo has announced the launch of zero-calorie SoBe Lifewater and Tropicana's new light orange juice Trop50, and Whole Earth Sweetener Company has launched PureVia Tabletop Sweetener using Reb A. Cargill and Coca- Cola have also announced the launch of their respective range of products.