Naturex acquires Berkem’s " actifs innovants " division

Avignon, FRANCE – January 8th, 2008 – Naturex announced today the acquisition of Berkem’s “Actifs Innovants” division. This business consists of clinically tested and trademarked plant extracts for the pharmaceutical, nutraceutical, cosmetic and food industries. This acquisition includes leading brands and products developed by Berkem over the past 10 years. Among a comprehensive line of innovative botanical extracts with demonstrated efficacy backed by clinical studies, it particularly includes Svetol®, the famous green coffee extract for weight loss. The synergies are strong between Berkem’s “Actifs Innovants” division and Naturex’s activities, both in terms of products and customers. Beyond strengthening Naturex’s Health and Nutrition division – a major area of focus and investment – Berkem’s “Actifs Innovants” division expertise will enhance Naturex's innovative product development and promotion abilities. These innovative extracts will be manufactured by Naturex factories and sold in Europe, the Americas and Asia through Naturex’s worldwide sales network.

Berkem’s “Actifs Innovants” division generated a turnover of EUR 3.8 million in 2007 with a 34 % EBITDA margin. Naturex acquired Berkem’s “Actifs Innovants” division for EUR 9.5 million, equivalent to 7.3 times EBITDA. This figure highlights the fact that this acquisition is immediately accretive for Naturex. This acquisition has been financed by using a EUR 35 million credit line established for acquisitions in November 2006.

Jacques Dikansky, President and C.E.O. of Naturex, declared “this acquisition will boost our ability to bring more and more innovative health product concepts that will set the market trends, with the competitive advantage to offer health claims supported by all the required scientific proofs, from certificates of authenticity to clinical studies.“

Olivier Fahy, President and C.E.O. of Berkem added “our Actifs Innovants division is a great fit with Naturex, its integration will enable it to pursue and accelerate its growth thanks to Naturex’s means in terms of R&D and sales network”.

Naturex is a very dynamic player on the natural plant extracts scene. Most recently, the company acquired Chart Corporation, a US company specializing in the production of natural flavouring ingredients for the beverage and flavour industries. Furthermore, Naturex expects to expand its global network in 2008 by establishing a subsidiary in China and opening a sales office in Japan as well as one in Germany which will also cover the Benelux countries.

About our companies

Naturex develops,manufactures and markets natural ingredients for the food, dietary supplement and nutraceutical, pharmaceutical, and cosmetic industries. Headquartered in Avignon, France, the group has an international reach, with over 90% of its sales generated in 30 different countries outside France, 60% of which in North America. Naturex has production facilities in France, Morocco, the United States and Italy, a subsidiary in the United Kingdom, and a representative office in Singapore.

Berkem is specialized in fine chemistry and vegetal extraction. The Berkem Group develops industrial processes in order to offer toll manufacturing services through its Phytobiotek division. The 12 acre Gardonne production site in France, is certified ISO 9001:2000 and classified for its contribution to environmental protection.

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