BioGaia

Regulatory Filings • Jun 24, 2008

Press Release 24 June 2008

BioGaia extends partnership with Verman

BioGaia has signed a further collaborative agreement with BioGaia's Finnish partner, Verman OY, for the Russian market. Verman will distribute BioGaia's probiotic chewable tablets and drops in the gut health sector in Russia. Verman, who has worked with BioGaia's products since 2004, is one of BioGaia's most successful distributors.

The agreement means that Verman gets a non-exclusive right to distribute and sell BioGaia probiotic chewable tablets and BioGaia probiotic drops under Verman´s own brand Rela on the Russian market. Today Rela is the best selling brand within the probiotic sector in the Finnish pharmacy market. Verman will open their own office in Moscow during Autumn 2008, from where they will steer the Russian business activities.

"We are very happy with our close and successful collaboration with Verman and look forward with confidence to being a part of Verman´s strategic and exciting venture in the Russian market." comments Peter Rothschild, President BioGaia AB.

Latest press releases from BioGaia:

2008-04-29	BioGaia in strategic alliance with BERICAP
2008-04-23	Annual General Meeting of BioGaia
2008-04-22	BioGaia Interim report 1 January – 31 March 2008

For additional information contact:

Peter Rothschild, Managing Director, telephone: +46 8 - 555 293 00, Jan Annwall, Deputy Managing Director telephone: +46 8 - 555 293 00 -----------------------------------------------------------------------------------------------------------------------------------------------

BioGaia is a biotechnology company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri (Reuteri), which has probiotic, health-enhancing effects. The class B share of the Parent Company BioGaia AB is quoted on the Small Cap list of the Nordic Stock Exchange in Stockholm.

www.biogaia.com