AgraQuest Partners with Alpharma to Bring New Technology to Animal Nutrition Sector

Supply Agreement Will Provide Alpharma with AgraQuest Technology to Develop New Poultry Product

DAVIS, Calif. and BRIDGEWATER, N.J. (September 11, 2009)—AgraQuest, Inc. and Alpharma Animal Health announced today that they have agreed to terms for a supply agreement in which AgraQuest will supply their proprietary strain of Bacillus subtilis. This input will be used as a key ingredient in a new poultry nutrition product under development by Alpharma. Terms of the agreement were not disclosed.

Alpharma Animal Health, a wholly owned subsidiary of King Pharmaceuticals (NYSE: KG), is a global leader in the development, registration, manufacturing and marketing of pharmaceutical products for food-producing animals. AgraQuest, an innovator in biological and low-chem pest management solutions, is most closely associated with developing and marketing disease and pest control products for commercial crop production. This agreement represents AgraQuest’s first step outside of its traditional agrochemical base for intellectual property held by the company.

With consumers demanding a wide range of choices in poultry products, Alpharma sees the agreement as a crucial step in developing new and innovative alternatives for helping to ensure poultry health and nutrition.

“This agreement supports our efforts to develop and commercialize novel technologies to address a variety of health challenges, improve animal performance and help ensure the safety of food,” said Layne Asay, Director of Strategic Marketing, Alpharma. “Alpharma has always been committed to providing the world with a safe, abundant and affordable food supply, and we are pleased to be able to work with AgraQuest as a partner in achieving that goal.”

For AgraQuest, the agreement is part of a strategic expansion of research and development efforts into new markets outside of crop protection.

“Our team has long known that we have developed technologies that have practical applications in segments other than agrochemicals,” said Mike Miille, President and COO of AgraQuest and head of AgraQuest’s BioInnovations division. “We are very excited about our relationship with Alpharma. Their reputation and leadership in the animal health and nutrition sector provides AgraQuest with an excellent partner for the full development of our technology. We expect this to be only the first of a number of partnerships with leading companies in markets such as animal health and nutrition, food safety and preservation, seed treatment, consumer home and garden, and professional products.”

Alpharma plans to launch the new product using AgraQuest’s technology during the fourth quarter of 2009.