XL TechGroup company, TyraTech, signs exclusive global agreement with Kraft Foods, Inc.
06 December 2006
XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, announces that its portfolio company, TyraTech LLC (“TyraTech”), the developer of an entirely new class of natural, safe and effective insecticides and parasiticides, has signed an exclusive co-development agreement with Kraft Foods Inc. (“Kraft”, NYSE:KFT) , for development of compounds used in functional foods and beverages intended to help prevent human parasitic infection in the developing world.
Under the terms of the agreement, TyraTech will receive an upfront exclusivity fee in addition to payments for each milestone successfully completed at designated stages of the long-term project. TyraTech will also receive royalties based on product sale revenues when new products are launched into key markets.
The agreement gives Kraft, a global leader in branded foods and beverages, rights to TyraTech's innovative technology platform, allowing the rapid development of new formulations initially targeted at human parasites which afflict more than 2 billion people worldwide according to the World Health Organization.
While there are a range of treatments currently in use that are effective in killing some parasites, none can be used regularly to prevent future infection. As a result, some people become re-infected shortly after treatment, and the cycle of infection continues unabated. By contrast, TryaTech's novel screening platform has the potential to identify combinations of natural ingredients that are highly effective and safe such that they can be used on an on-going basis to stop the cycle of re-infection.
Considering the wide-scale incidence of parasitic infection in people around the world, the need for a functional food to combat parasites on an ongoing basis is an entirely new market with significant potential. Once commercialized, these foods will offer a unique and affordable solution that can easily fit into consumers' normal lifestyle habits.
Lance Friedmann, Sr. Vice President, Health & Wellness and Sustainability, Kraft Foods, said: “Functional foods are a fast-growing area of interest. Our investment in this technology, combined with our expertise in formulating and marketing affordable, good tasting foods, has the potential to allow us to further expand our presence in developing markets, by delivering meaningful benefits to consumers in those countries. This agreement is just one example of Kraft's commitment to build our brands worldwide and to helping people live healthier lives.”
John Scott, CEO of XL TechGroup, said: “This agreement, with one of the pre-eminent worldwide consumer products companies, provides a tremendous opportunity. The business and humanitarian opportunities are significant, and represent an important expansion of the TyraTech platform into a large market with a massive unmet need. This latest agreement, taken in the context of TyraTech's significant progress within the insecticide space, offers substantial continued endorsement of our market-changing, disruptive technologies.”
For further information:
| XL TechGroup Inc. | |
| John Scott / Harold Gubnitsky | Tel: +1 321 409 7403 |
| hgubnitsky@xltg.com | www.XL TechGroup.com |
| Chris Munden, Director of Investor Relations | Tel: +44 (0) 20 7398 7720 |
| cmunden@xltg.com |
XL TechGroup media enquiries:
| Abchurch Communications | |
| Heather Salmond / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
Kraft foods media enquiries:
| Sarah Delea | Tel: +44 (0) 20 8580 2413 |
| Sdelea@Krafteurope.com | www.kraft.com |
NOTES TO EDITORS
About XL TechGroup
XL TechGroup is in the business of significant value creation. Working with major international corporate and technology partners such as AES, Procter & Gamble and leading universities, XL TechGroup first identifies global unmet market needs and then targets and exploits these by the systematic creation of successful, disruptive technology businesses. These are built from scratch, and are then funded and developed by XL TechGroup through to the point of a trade sale or a stock market listing.
XL TechGroup's unique and proven methodology selects the best opportunities in order to create one-to-two new companies annually, where each company is expected to achieve a valuation of at least US$400 million within four years from its creation. While an XL TechGroup company might perform a stock market listing at an earlier point in this four year timeframe, XL TechGroup would retain its controlling interest and would continue to assist with the company's development.
XL TechGroup's companies to date are: AgCert International plc (www.agcert.com), TyraTech LLC (www.tyratech.com), DxTech LLC (www.dxtech.com) and PetroAlgae LLC.
XL TechGroup has also established GenXL LLC as a joint venture to capture the value of those prospects that do not quite meet the US$400 million, four year criteria but still demonstrate considerable potential worth. Over and above XL TechGroup's core business model, GenXL will review a significant flow of opportunities from both XL TechGroup and GEN3 in order to generate new companies, standalone product lines and technology licensing opportunities or an appropriate mix of these.
For further information, see www.xltechgroup.com
About TyraTech LLC
TyraTech LLC, which was created by XL TechGroup in July 2004, is developing a new class of highly effective, non-toxic pesticides and anti-parasitic compounds using cloned insect and parasite chemoreceptors, designed to identify highly effective formulae that utilise approved, safe, natural oils. Its development is progressing rapidly, particularly in human healthcare applications. TyraTech, which is 64.8% owned by XL TechGroup, is continuing discussions with companies in North America, Asia and Europe as well as numerous national public health programs about the licensing and distribution rights for its proprietary formulations in relation to natural insecticide and personal care products. www.tyratech.com
About Kraft Foods Inc.
Kraft Foods (NYSE:KFT) is one of the world's largest food and beverage companies. For more than 100 years, we've helped people around the world eat and live better. Millions of times a day, in more than 150 countries, consumers reach for their favorite Kraft brands including Kraft cheeses, dinners and dressings, Jacobs, Gevalia and Maxwell House coffees, Oscar Mayer meats, Nabisco brand Oreo cookies and Ritz crackers and chips, Philadelphia cream cheese, Planters snack nuts, Post Honey Bunches of Oats cereals, and Crystal Light and Tang refreshment beverages. Consumers continue to expand their list of Kraft favorites by adding our Tassimo hot beverage system, South Beach Diet product line, and a growing range of better-for-you Sensible Solution products to their shopping baskets.
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