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New Offshore Marketing Configuration for BLIS Technologies

News Release

For immediate release

March 19, 2015

New Offshore Marketing Configuration for BLIS Technologies

NZX-listed BLIS Technologies Limited has announced a reconfiguration of its offshore marketing arrangements in line with its strategy of broadening its product offering beyond ingredients and into finished products of BLIS K12TM and BLIS M18TM oral health probiotics.

US-based Stratum Nutrition had been distributing BLIS ingredients in North America, Europe and Asia since 2012. Following a recent review of the ingredient sales and marketing strategy in conjunction with Stratum Nutrition a new arrangement has been signed where Stratum Nutrition will now focus solely on North America - the US and Canada – while BLIS will manage all other markets.

BLIS Technologies chief executive Dr Barry Richardson said the change in relationship between BLIS and Stratum Nutrition is a natural evolution as elements of the BLIS strategy begin to fall into place.

Dr Richardson said the company’s new Dunedin manufacturing plant is operational making lozenges and nutritional formulations for the local market under the BLIS brand as well as supplying finished products to overseas markets.

“Stratum Nutrition is primarily an ingredient business whereas our company has been steadily adding a range of finished product. We want to retain the expertise of Stratum in that North American ingredients market but become more directly involved in finished product markets in Europe and Asia. At this stage we have no intent to develop a North American presence in finished product. We have enough to do in Europe and Asia.”

Working with Stratum, BLIS has been experiencing growth in ingredient sales in North America. Dr Richardson said the company’s increasing ingredient sales over the past 12 months is due to North American consumer product sales with BLIS K12TM although BLIS M18TM is also starting to get attention as well.

“Both Stratum and ourselves are agreed it will be of greater benefit for BLIS if Stratum continues to focus strongly on the US and Canada to build ingredient sales there. Stratum will continue to have an exclusive arrangement for these markets as we believe they are ideally positioned to grow ingredient sales in that sector and we have a good working relationship.”

The new arrangement includes a Stratum Nutrition-funded clinical trial of BLIS K12TM or BLIS M18TM either in North America or Canada. Clinical trials in Italy and India have consistently reinforced the efficacy of BLIS K12TM and BLIS M18TM.

Richardson said the reconfiguration presents an opportunity to become more intimately involved in our European and Asian markets. This includes bringing on board a new business manager for the Asia Pacific region, Dr Paul Donohoe, to improve penetration into Asia Pacific regions, especially Japan, Taiwan and South Korea.

“The timing is right. We have good existing relationships but now we will go much more deeply into understanding those consumer markets.”

END

About BLIS

BLIS Technologies Limited was formed to commercialise BLIS (Bacteriocin-Like Inhibitory Substances) producing probiotic bacteria developed in research by Professor John Tagg from the University of Otago. BLIS K12TM and BLIS M18™ are patented oral probiotics providing advanced protection for the upper respiratory system, gums and teeth. These special strains of Streptococcus salivarius have been scientifically proven in oral applications.

The company has developed unique consumer products for throat health, halitosis and probiotic support for the body. Further information and product details can be found at www.blis.co.nz.


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