07-06-20 BioGaia signs agreement for China


Press Release                                                                   
20 June 2007                                                                    



                       BioGaia signs agreement for China                        


BioGaia has reached an agreement with BioLife New Zealand Ltd. which gives      
BioLife the rights to sell BioGaia´s newly-developed sachet, potion packs,      
containing colostrum and Reuteri, in China. The product will be sold through    
food stores and pharmacies.                                                     

The product contains colostrum powder and BioGaia´s probiotic Reuteri culture.  
Colostrum is the milk that mammals produce during the first days after birth.   
This milk has a different composition than normal milk. In particular, it has a 
higher concentration of proteins and certain minerals and it also contains      
higher levels of anti-infection substances.                                     

BioLife China, with Head Office in Guangzhou, sell colostrum products from New  
Zealand in 20 provinses in China. The company, with a yearly turnover of        
approximately 150 million kronor, introduced colostrum products in China in 1998
and have around 50 % of this market.                                            

The product will be manufactured at BioGaia´s fifty-percent owned company TwoPac
AB in Eslöv and launch is expected during the second quarter of 2008.           

”This is a new product in a difficult market but we believe that BioLife has    
great possibilites to succeed in China. With the new machinary we will have the 
opportunity to manufacture sachets with different ingredient mixes for other    
markets”, says Peter Rothschild, President, BioGaia AB.                         





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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                 
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 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