BioGaia

M&A Activity • Sep 6, 2007

Press Release 6 September 2007

BioGaia signs agreement in South America

BioGaia has signed an agreement with the Chilean pharmaceutical company Corporación Farmacéutica Recalcine. The agreement gives Recalcine exclusive rights to sell BioGaia´s Probiotic Tablets and Drops in ⁵ countries in South America: Chile, Peru, Bolivia, Ecuador and Paraguay.

Recalcine, the number one pharma company in Chile & Peru has an extensive presence in the region, with sales in more than 15 countries, a sales force of 900 reps covering the whole territory and the most advanced manufacturing plant in Latin America producing nearly all-pharmaceutical formulations. The products will be sold under the BioGaia brand. The registration process will start immediately and launch will take place as soon as approval is obtained, which is estimated to be during 2008.

"With this new contract we strengthen our position in the growing Latin American market. We see this agreement as an initial step into a fruitful partnership with Recalcine" says Peter Rothschild, President BioGaia AB.

"After a long evaluation to select the best probiotic to complement our product portfolio, BioGaia comes as the perfect match to our organisation with strong technological innovation and solid clinical documentation on their products. Also, Biogaia represents a great company interested in further developing their business in the region. We believe this alliance has ^a great future ahead"comments Alejandro Weinstein, President CFR Corporation.

Latest press releases from BioGaia:

2007-08-23 Interim report 1 January – 30 June 2007 2007-08-16 BioGaia signs further agreement with Ferring Pharmaceuticals 2007-08-09 BioGaia signs agreement for oral health products in South Africa

For additional information contact:

Peter Rothschild, President, telephone: +46 8 - 555 293 00, Jan Annwall, Executive vice President, 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