Announcement
GENERAL: ATM: JOINT VENTURE WITH FREEDOM IN AUSTRALIA AND JAPAN
08:27am
ATM
14/05/2007
GENERAL
REL: 0827 HRS A2 Corporation Limited
GENERAL: ATM: JOINT VENTURE WITH FREEDOM IN AUSTRALIA AND JAPAN
Auckland, 11 May 2007 - A2 Corporation Limited (NZAX: ATM) ("A2C") announced
today that in association with Freedom Nutritional Products Limited (ASX:
FNP) ("FNP") both companies had signed an agreement for the formation of a
joint venture company which will be the granted rights for the production and
sale of a2 milk(TM) products in Australia and Japan.
This announcement of the 50/50 joint venture partnership with FNP is further
to disclosures made on 14 December 2006 and 2 April 2007. A2C's current
operations in Australia will be transferred into the new entity called A2
Dairy Products Australia Pty Ltd ("A2DP"), with the transaction to take
effect from 1 June 2007.
Anthony Lawler, CEO of A2 Corporation says FNP brings significant dairy
industry knowledge, retail grocery expertise, extensive management
experience, as well as access to milk supply through its majority
shareholder.
"FNP currently distributes an extensive range of functional foods including
the brands Freedom and So Natural. FNP also has the exclusive rights to the
Thorpedo brand of food and nutritional products which is widely distributed
in Japan," say Lawler.
Lawler also says that as part of the transaction, FNP will contribute an
initial cash investment to support the development of the joint venture
company. A2C will also be entitled to royalties from the JV granted over a2
milk products.
"Ongoing capital requirements to be jointly funded by the respective
partners, and the joint venture partner's investment," says Lawler.
The Chairman of A2C Mr. Clifford Cook stated, "This JV presents a significant
opportunity to accelerate the expansion and growth of the A2 business in
Australia, and entry into Japan. We believe there is a natural fit between
A2C and FNP's focus on functional and nutritional products."
Mr. Geoff Babidge, CEO of FNP stated that, "The A2 joint venture represents a
significant step in FNP's strategy to invest in unique and specialised
nutrition segments we have identified for future growth, as well as
strengthening our Australian and potentially Japanese presence".
a2 milk(TM) fresh dairy milk is currently distributed through major retailers
in over a 1,000 stores in Australia.
ENDS
For more information please contact:
Anthony Lawler, CEO A2 Corporation, Ph +64 9 5233 129
Geoff Babidge, CEO Freedom Nutritional Products Limited Ph + 61 2 8396 5504
Julien Leys, JML Communications, Mobile +64 9 21 655 598
About A2 Corporation
A2 Corporation owns and licenses intellectual property that relates to the
production, manufacture and marketing of A2 Milk(TM) and A2 Milk(TM)
products. A2 Milk(TM) is naturally produced to contain maximum amounts of a
milk protein variant that is associated by a number of studies with potential
benefits in some individuals. A2 Corporation does not produce A2 Milk(TM),
but licenses its intellectual property to suitable partners around the world.
A2 Corporation receives royalty income from sales of A2 Milk(TM) products and
testing for A2 cattle.
For more information please visit our website - www.a2corporation.com
About Freedom Nutritional Products Limited
Freedom Nutritional Products Limited (ASX: FNP) is an emerging public company
focused on building a leading position in functional and nutritional products
in Australia and targeted international markets through a focus on brand
development, product innovation, sales, marketing and distribution. FNP
provides a wide range of foods and beverages that encourage better health and
vitality.
End CA:00147557 For:ATM Type:GENERAL Time:2007-05-14:08:27:59
Click here
to view related attachments.
