Probi acquires license for new probiotic strains – strengthening its offer in functional food

Probi has signed an agreement with the Swedish biotech company, Probac, to
acquire a license for two probiotic strains for use in food applications,
primarily dairy products. The license covers the global market, excluding the
Nordic countries. The IP rights for two additional patented strains are included
in the agreement, and these will be used for future product development.

Through the agreement, Probi strengthens its offer within the area of Functional
Food with specific strains for dairy products. The strains licensed from Probac
are based on probiotic research that shows positive effects on the
gastrointestinal tract and the immune system. The strains are currently used in
the Verum™ range of dairy products, including yoghurt and soured milk, produced
by the Norrmejerier dairy company, which owns the rights for the Nordic market.

“We regard this acquisition of new probiotic strains as a great opportunity to
grow our Functional Food business area by adding the dairy segment to our
offer,” says Peter Nählstedt, CEO of Probi.

The new strains will complement Probi’s existing offer of clinically documented
probiotics within the gastro, immune and iron absorption areas. Probi’s strains
are used in both Consumer Healthcare products and Functional Food products,
including chilled beverages such as ProViva and GoodBelly.

“There is a strong global market potential for functional food with probiotics.
These strains have been used in the Verum dairy products for quite some years
with proven success, and they will give us the opportunity to develop new
product applications,” concludes Peter Nählstedt.

The agreement also includes the IP rights for two thermostable strains, which
will enable Probi to extend its offer into new applications in new and growing
market segments for probiotics.

This information falls under the obligatory disclosure provisions of the Swedish
Securities Market Act and/or the Financial Instruments Trading Act.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Nählstedt, CEO, Probi, tel +46 46 286 89 23 or mobile +46 723 86 99 83, e
-mail: peter.nahlstedt@probi.se

ABOUT PROBI
Probi AB is a Swedish publicly traded bioengineering company that develops
effective and well-documented probiotics. Through its world-leading research,
Probi has created a strong product portfolio in the gastrointestinal health and
immune system niches. Probi’s products are available to consumers in more than
30 countries worldwide. Probi’s customers are leading food, health- product and
pharmaceutical companies in the Functional Food and Consumer Healthcare
segments. In 2015, Probi had sales of MSEK 216. The Probi share is listed on
NASDAQ OMX Stockholm, Small Cap. Probi has about 3,500 shareholders. For more
information, please see www.probi.se.