Oslo, Norway, 4. April 2000

Nutri Pharma ASA, the Norwegian biotechnology company, today announced that it has signed an agreement with Skåne Dairies, a leader in the Swedish dairy market, to develop a cholesterol-lowering yoghurt containing its active compound, Abacor®. The aim of the agreement is to develop and launch the Abacor® yoghurt in Sweden, with possible extension into Denmark and Finland. This will be a high profile launch in the Swedish market of a unique cholesterol-lowering yoghurts. Since the size of the yoghurt market in Sweden is close to SEK 1bn, this product development promises excellent commercial potential.

Skåne will obtain all rights for sales and distribution for the Abacor® yoghurt in Sweden, and will additionally be responsible for development of the ready-to-eat Abacor® yoghurt. Nutri Pharma retains full ownership of its patented Abacor® technology and will supply Skåne with the active ingredients as required. Both companies have emphasised the importance of marketing this product through an integrated communications programme which includes both consumer advertising and PR, and a medical marketing programme.

Abacor® is a patented combination of soy-isolates and soy-fibres, with high fixed levels of phytooestrogens. Clinical studies have shown that intake of Abacor® lowers LDL cholesterol by 15-20% after four months. One month after the end of each study, all patients had returned to pre-treatment cholesterol levels, demonstrating that the effect is tied to the intake of the product, and that the beneficial reduction in cholesterol levels can only be maintained with continued intake of Abacor®.

"This agreement is a strategic cornerstone in the continued growth and extension of the Abacor® brand," said Michael Oredsson, Nutri Pharma´s CEO. "Skåne´s reputable expertise in the Swedish dairy market is the ideal complement to Abacor´s® core strengths in combining optimal efficacy with great taste".

Skåne, based in Malmoe, Sweden, is a major producer of a broad range of dairy products and fruit juices, as well as a range of functional foods. The company has enjoyed international success with Pro-viva, a pro-biotic product supporting gastrointestinal health, and has a close collaboration with Danone to sell their products in Sweden. In addition to this commercial venture, Skåne are about to form a new technological joint venture with Danone. A market leader in Sweden, with a turnover in excess of SEK 2.5bn, Skåne enjoys close co-operation with all major chains with a country-wide distribution.

"This alliance creates a powerful combination of strong science and marketing expertise that focuses on consumers´needs – a key driver of the functional foods market," said Rolf Bjerndell, Managing Director of Skåne. "Skåne and Nutri Pharma´s complementary skills will enable delivery of a superior product to ensure complete consumer acceptability."

Nutri Pharma ASA, based in Oslo, Norway, was founded by Dr Lars Høie, MD, PhD (Appl) and Trond Syvertsen (MBA) in 1993. The company is focusing on innovative functional foods based on propriety soy-technology, and is committed to addressing the growing incidence of prevalent lifestyle disorders, including elevated cholesterol levels, obesity and type 2 diabetes. Nutri Pharma´s soy-technology is secured with a portfolio of patents and other intellectual property rights. The company has recently signed a marketing and distribution agreement with the General Nutrition Corporation in the US and Canada. In April 1998, the company raised US$15 million in a private financing round in London and Oslo. Nutri Pharma´s weight-loss product Nutrilett® has held a market-leading position in the Nordic Countries since its launch in 1989 with aggregated sales of $150 million, and the company is about to roll-out Abacor®, a range of cholesterol-lowering functional foods. The company has recently announced that it has submitted an application to list on the Oslo Stock Exchange.

For further information, please contact:

Michael Oredsson, CEO Nutri Pharma ASA.TEL: +45 3338 4000
David Speechly, PhD, MBA. Noonan/Russo Ltd.TEL: 0171 726 4452