http://www.glglifetech.com/Media_Center/Press_Releases/?newsID=49 Press Releases: GLG Life Tech Corporation
Vancouver, B.C. March 31, 2008 - GLG Life Tech Corporation (TSX: GLG) (?GLG? or the ?Company?), a world leader in the production of high quality stevia, announced financial results for the quarter and fiscal year ended December 31, 2007.
GLG?s financial performance was positively impacted by several factors, most notably a significant increase in the shipment of stevia extract correlated to the key signing of a renewable five-year supplier contract with Cargill, a major multinational food company. In May of 2007, Cargill announced it would produce the world?s first commercial scale natural, zero-calorie high intensity sweetener, rebiana. GLG is a strategic supplier to Cargill for high quality stevia extract for its rebiana product. The two companies have worked in close partnership to develop a superior supply chain including leaf supply and extract manufacturing. GLG anticipates company-wide growth in 2008 and beyond as its stevia manufacturing assets continue to encounter high demand from its major customer.
?We are extremely pleased to report our 2007 results and outlook for 2008,? stated Dr. Luke Zhang, GLG?s Chairman of the Board and President. ?2007 has been a pivotal year for GLG as the world has taken notice of the importance of stevia as an all natural, zero calorie sweetener. We have assembled a strong set of assets, contracts and personnel designed to move GLG into the forefront of the world?s leading stevia extract producers. Our revenue and EBITDA growth from the stevia business was significant in 2007 and we expect it to continue to increase significantly as we complete planned capacity upgrades and are able to increase our supply of product to our strategic customer in 2008. Further, we expect continued growth for the foreseeable future as the stevia sweetner market develops. Looking forward, 2008 will be a year of focused execution on our business plan in which our strong management team is committed to meeting our outlook targets.?
2007 Business Highlights
* Renewable Five Year Supply Agreement with Major Customer Signed: In July 2007, the Company signed a renewable five-year supply contract with Cargill, of Wayzata, MN, for the supply of high-grade stevia extract. * Stevia Seedlings Company Acquisition: In December 2007, the Company completed its acquisition of Agricultural High Tech Developments Limited ("AHTD") upon which it acquired patent-pending, high Rebaudioside A (RA) yielding seedlings as well as key employees with significant knowledge and experience to further the Company?s R&D program. In addition, the acquisition gave GLG control of approximately 80% of the highest quality stevia seedlings currently available in China and successfully provided a significant measure of control over a critical step in the production process to provide the purest levels of stevia product. * Investment Agreements with Mingguang and Dongtai Governments: In August 2007, American GLG Group (owned by Dr. Luke Zhang), a related party of the Company, signed preliminary investment agreements with two government authorities, the Mingguang People?s Government and the Dongtai People?s Government of China. The Company has established two subsidiaries to carry out these agreements which give GLG exclusive facility construction, harvesting and refining rights for 10 years in the two top stevia growing regions in China. * Completion of $34.5 Million Private Placement: GLG completed a paramount private placement in December 2007 that provided it with the necessary funding to commence the first phase of its capacity build program. * TSX Listing: On September 30, 2007, the Company submitted an application to list on the TSX Exchange (Main Board). The Company's shares were listed and began trading on the TSX on December 11, 2007 and ceased trading on the CNQ exchange on December 12, 2007. This important milestone for GLG expanded its capital raising capabilities and its potential shareholder base.
2007 Financial Results Highlights
Revenues: Reached $9.2 million in 2007, representing a 549% increase over 2006 revenues, while fourth quarter revenues rose to $3.7 million compared with fourth quarter 2006 revenues of $0.994 million.
Stevia Revenues: Surged to $8.2 million in 2007, an increase of 987% over 2006 levels. Fourth quarter stevia revenues came in at approximately $3.4 million compared with $0.753 million in the same period in 2006.
Procurement Revenues: Rose to $0.96 million in 2007, a 47% increase compared to 2006, while fourth quarter procurement revenues came in at $0.37 million versus $0.24 million in the same period in 2006.
Consolidated Gross Margins: Climbed to $2.7 million in 2007, a year-over-year increase of roughly 209%. Fourth quarter gross margin totaled $0.9 million compared with fourth quarter 2006 results of $0.478 million.
Net Income: Totaled $0.632 million in 2007, a 202% gain compared to 2006 net income. Fourth quarter net income was $0.393 million versus $0.28 million in the same period last year.
EBITDA: Topped $1.5 million in 2007, an increase of 654% compared with 2006 figures, while fourth quarter EBITDA registered $0.478 million compared with $0.264 million in the same period in 2006.
2008 Outlook
The rapid growth in demand for the Company?s stevia products is expected to accelerate in 2008, as the majority of its high-grade stevia extract will be distributed to its major customer and demand for lower-grade stevia products continues to expand. GLG will undertake its largest capital expenditure program to date with the goal of expanding its high grade stevia extract capacity from 200 to 1,500 metric tons, a 650% increase from its year end position in 2007. GLG?s competitive advantage of patent-pending seedlings with higher Rebaudioside A content, vertically integrated operations, proprietary processing technology and favorable labor costs are expected to strengthen the Company?s existing position as one of the largest low-cost/high-quality producers of stevia extract worldwide. Additionally, the Company plans to launch a consumer products division to provide a variety of stevia sourced products around the globe.
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