Announcement

GENERAL: ATM: SUCCESS FOR A2 IN SOUTH KOREA 01:59p.m. 
ATM
31/10/2007
GENERAL

REL: 1359 HRS A2 Corporation Limited

GENERAL: ATM: SUCCESS FOR A2 IN SOUTH KOREA

FOR IMMEDIATE RELEASE

SUCCESS FOR A2 IN SOUTH KOREA

Auckland, 31 October 2007 - A2 Corporation Limited (NZAX: ATM) ("A2C")
announced today it has executed an exclusive licensing agreement with Lotte
Milk to launch fresh a2 Milk(TM) in the South Korean market.

Lotte Milk is one of the five largest dairy companies in South Korea with a
wide range of fresh milk, yoghurt and other dairy products.

Anthony Lawler, CEO of A2 Corporation says that the fresh milk arrangement
with Lotte is a major step forward into Asia for the Company. "The agreement
with Lotte is very exciting as it will provide us with a substantial presence
which will be used as a springboard to other Asian markets".

As part of the arrangement a2 Milk(TM) products will be launched on the South
Korean market in the middle of 2008. Lotte Milk has committed to converting a
substantial proportion of their fresh milk volume to a2 Milk(TM) (with the
objective of reaching 60% within three years). Lotte Milk has also committed
to a guaranteed minimum royalty for an initial two year period, plus a
substantial guaranteed marketing spend.

"This opportunity also extends to the potential to consider yoghurt and other
Lotte Milk dairy products in addition to their fresh milk range." noted
Lawler.

Lotte Milk will be backing this investment with a multi-million dollar
marketing budget to promote the benefits of a2 Milk(TM) to Korean consumers.
Cliff Cook, Chairman of A2C states that "the commitment to marketing
expenditure by Lotte is one of the most pleasing aspects of the arrangement
as it will ensure that Lotte a2 Milk(TM) will be a strong premium milk brand
in South Korea. Cook also added "that the launch next year of a2 Milk(TM) in
South Korea is delivering on the previous commitments from A2 Corporation to
open markets in Asia".

Lotte a2 Milk (TM) will be distributed throughout South Korea via
supermarkets, discount stores and convenience stores. Lotte already has a
sizeable market share in the flavoured milk and yoghurt categories and the a2
Milk(TM) proposition gives Lotte the opportunity to clearly differentiate
their milk products and significantly increase its presence in the fresh milk
category.

ENDS

For more information please contact:
Anthony Lawler, CEO A2 Corporation, Ph +64 21 577 384
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.

For more information please visit our website - www.a2corporation.com

About Lotte Milk

Lotte Milk was established in 1978 and is a member of the Daesun group of
companies. It is one of the five largest dairy companies in Korea and they
offer a wide range of dairy products including fresh milk, flavoured milks
and yoghurts such as Bifidus Drinking Yoghurt and RB135 Yoghurt.

Lotte Milk wishes to take the opportunity with A2 Corporation to launch a new
and unique healthy Lotte milk product to the South Korean market.

For further information please visit the Lotte website - www.lottemilk.co.kr
End CA:00156002 For:ATM Type:GENERAL Time:2007-10-31:13:59:13

Click here to view related attachments.