Aqua Bio Technology — Regulatory Filings 2016

Mar 29, 2016

ABT to develop skin care ingredients based on olive biomass

ABT to develop skin care ingredients based on olive biomass

Aqua Bio Technology ASA and Zembra Ltd of UK have signed a letter of intent for

the commercialization of biomass from olive oil production. Based on a license

agreement, ABT will initiate product development aimed at offering yet another

sustainable technology to the cosmetics industry.

Zembra has identified several applications for biomass from the production of

olive oil. The olive residue is traditionally considered as waste. However, the

potential value of the material is now being recognized. Zembra has identified

several new applications, such as horticultural soil conditioning, biofuel and

olive oil biomass used as a hand cleaning agent.

According to the letter of intent, ABT will start a testing procedure in order

to establish the potential of Zembra's substance in skin care products. More

specifically, ABT will investigate the exfoliating properties of olive oil

biomass, i.e. the ability to remove dead skin cells. If proven successful, olive

oil biomass might replace the small plastic beads often used in skin care

products today. These beads are not sustainable and represent an increasing

environmental problem, as they accumulate in the oceans after being washed off.

The collaboration with Zembra reflects ABT's strategy of in-licensing and

commercializing third party biotechnology. Over the next months, ABT will carry

out testing of the olive oil biomass in order to establish its safety profile

and efficacy in relation to skin care applications.

The agreement does not include any initial payments. ABT will carry the costs

related to the testing of Zembra's technology for skin care applications, and

Zembra will receive payments when the product has reached commercial use.

The letter of intent with Zembra is ABT's second in-licensing agreement this

year. An agreement with AlgoSource of France for the commercial development of

their algae technology for skin care applications was announced on 16 March.

For further information, please call Arvid Lindberg, CEO, telephone

+47 9824 5410

Aqua Bio Technology (ABT) has launched several cosmetic ingredients used in skin

care products globally. Skin care is the fastest growing segment in the

cosmetics industry, where ABT's ingredients have established a foothold. In

addition to ingredients from its own technology, ABT also commercializes novel

technologies/ingredients for partners, for use in skin care products. Aqua Bio

Technology is listed on the Axess market of the Oslo Stock Exchange.

Zembra Ltd. is exploiting abundant and low cost waste biomass to derive a

diverse range of creative commercial products using biorefining concepts. A key

focus of Zembra is to exploit the leftover dried biomass following commercial

scale extraction of olive oil. Zembra has co-developed mechanical and green

bioprocessing and extraction to fractionate crude olive mill waste into a number

of product streams.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1997901]