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HOLISTA COLLTECH LIMITED Capital/Financing Update 2011

Jan 30, 2011

65044_rns_2011-01-30_9b02bdef-d7e6-4a47-8336-ebc315c6a63f.pdf

Capital/Financing Update

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Holista CollTech Limited (ASX:HCT / ABN 24 094 515 992) PO Box 567 Wembley,WA 6913 Australia P +618 9426 3900 F +618 9426 3909 www.holistaco.com

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MEDIA RELEASE – ASX-Listed Holista Files Patent on Low Sodium Salt

ASX-Listed Holista Files Patent on Breakthrough Low Sodium Salt; Complements Low Glycemic Index Bread and Low Fat Chips Patents

Kuala Lumpur/Perth, 31 January 2011 – Australian Securities Exchange-listed (ASX: HCT) Holista CollTech Limited (“Holista” ), with operations in Malaysia and Australia, announced today that it has filed a provisional patent for a breakthrough process which will enable the global food industry to produce healthier, low sodium products that do not compromise taste and consumer acceptance.

The patent seeks to protect a process developed by Holista to blunt the “metallic after taste” commonly found in low-sodium salt due to its high potassium content. The process, using natural ingredients, has major implications for global fast-food chains and food manufacturers seeking to offer healthier products.

Holista’s CEO Dato’ Dr. Rajen Marnickavasagar (“Dr. Rajen”) said, “With growing incidences of heart disease, diabetes and obesity, the processed and fast-food industries are under tremendous pressure. Until now, most healthier alternatives have failed to gain consumer acceptance because of the taste factor, such as the metallic taste in all low-sodium products.”

Holista’s low-sodium salt patent uses natural ingredients that are certified as “Generally Regarded As Safe” (GRAS) by the United States Food and Drug Administration and are sourced sustainably from India. Holista is now developing the supply chain to scale up to meet the expected high demand for the ingredients while keeping the price relatively low, ensuring the costs to customers are minimal.

The patent filed in Kuala Lumpur is a one-year provisional patent before the company files an international patent next year.

According to Marketresearch.com, “low-sodium/salt” and “no sodium/salt foods and beverages” accounted for 2.8% of the United States Food and Beverage Market in 2009, which was estimated at approximately US$600 billion. The market is expected to grow substantially on tighter regulations on salt levels.

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Holista CollTech Limited (ASX:HCT / ABN 24 094 515 992) PO Box 567 Wembley,WA 6913 Australia P +618 9426 3900 F +618 9426 3909 www.holistaco.com

The low sodium salt patent complements the two earlier patents flied by the company:

  • Low Glycemic Index patent for processes and ingredients for flour-based products such as breads or pizzas, which reduce by 40 percent the speed and peak at which glucose is absorbed into the bloodstream.

  • Low fat chip/fries patent that uses natural ingredients and prevents the “fat pull” during the frying process, resulting in fries with 40% less fat that are crispier and healthier. They are also less likely to become soggy, lessening the need to throw them away after frying. .

The potato chips food category ranks amongst the top 10 sub-sectors with highest demand for low-sodium/salt and no-sodium salt foods.

“Our range of patents will help overcome the challenges to reduce the sodium intake, glycemic index and fat absorption, amongst others. Together, this suite of products offers a compelling proposition to global fast-food chains and food manufacturers,” he said.

“We expect to roll out our low glycemic index, low fat and low sodium salt patents internationally to fast food chain or multinational companies which are in the processed food business within the next 12 months,” Dr Rajen added.

The company now owns 14 patents, local and international and has completed the food ingredient patents for the low GI and low fat chips/fries.

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About Holista CollTech Limited

Listed on the Australia Securities Exchange (ASX:HCT) since 2004, Holista CollTech Ltd is a research-driven biotech company dedicated to delivering scientifically enhanced, engineered and first-class natural health supplements and wellness products for the general consumers. The Group develops, manufactures and commercialises “health-related” products to address the unmet and growing needs of natural medicine and is the only company producing sheep (ovine) collagen using its patented extraction methods.

Holista’s main operations are in Malaysia where it specialises in the research and development (R&D) and commercialisation of ovine collagen. Its other operating subsidiaries include Total Health Concept Sdn. Bhd. which distributes health supplements in Malaysia and South East Asia.

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Holista CollTech Limited

(ASX:HCT / ABN 24 094 515 992) PO Box 567 Wembley,WA 6913 Australia P +618 9426 3900 F +618 9426 3909 www.holistaco.com

Holista has filed several global patents, two of which have been granted. To advance R&D in nutritional products, the Group is collaborating with world-leading institutions such as the University of Western Australia, Oxford Brookes University (UK), National Centre for Natural Products Research (US), Indian Institute of Integrative Medicine and University of Hamdard (India) and Tsinghua University (China).

The Group has a customer base of 45,000 and access to more than 1,700 distribution points.

For more information, visit www.holistaco.com

PR/Investor Relations Contacts:

Holista CollTech Limited (Malaysia) Yasmin Cheah [email protected] Tel: +603 7965 2729

WeR1 Consultants (Singapore)

Amy Yeo, [email protected] or May Barza, [email protected] Tel: +65 6737 4844