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Expanding Australian Sales And Launch In EU

Certified Organics To Expand Australian Sales And Launch In European Union

Statement made by David Warrick, Managing Director, Certified Organics Limited

Certified Organics has received two important regulatory approvals that will lead to further growth in sales of its weed killer in Australia, and the first commercial sales of its pine based agent in the European Union.

The Australian approval covers the sale of Organic Interceptor™ in concentrated form, and complements the approval for domestic use the company has held since last year.

The significance of the latest Australian approval is that we will now gear up for a major spring launch to the Australian home and garden market.

We introduced the New Zealand home and garden market to Organic Interceptor™ in the third quarter of 2002, and sales in the fourth quarter exceeded $400,000.

We have also been advised by the Australian Patent Office that our patent application for Organic Interceptor™ has been granted.

The European Union approval is to sell our patented pine extract as a biocide, which kills growth such as moss, lichen and discolouring algae.

The European initiative has been headed by our German partner, Spiess-Urania, Germany’s leading agro-chemical supplier.

Spiess sees our biocide as a major strategic opportunity as an alternative to traditional chemicals. Spiess is currently finalising its marketing plans for the rapid launch of Organic Interceptor™, including determining off-take quantities. It has indicated it anticipates its order will be substantial.

The breakthrough we have achieved in Europe has been possible because our product is naturally based, and with the aid of Spiess’ market knowledge we have achieved a favourable assessment of it as a biocide in less than three months.

We are continuing to work with Spiess to form a task force which will then go the next step, which is to have Organic Interceptor™ registered for use as a weed killer. This approval process is likely to take two to three years.

We have also made our first sales of Organic Interceptor™ to Korea, a 2 tonne trial quantity, which will be used by the Haesom company for pre-marketing activities.

Korea has a rapidly expanding organics sector. Representatives of Haesom who visited us in January saw great potential in a certified organic weedkiller.

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