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Tuesday June 12, 10:54 am Eastern Time
Press Release
SOURCE: Spherix (Biospherics Incorporated)
First Tagatose Plant Planned; Major Market Seen
Spherix and Arla Foods Reveal Details; First Market Estimates
BELTSVILLE, Md., June 12 /PRNewswire/ -- Spherix (formerly Biospherics Incorporated), (Nasdaq: BINC - news), Beltsville, Maryland, today confirmed and extended certain information on its low-calorie sugar, tagatose, recently qualified for sale in the U.S. On June 7, the Danish newspaper, Berlingske Tidende, reported that Arla Foods, the Danish licensee of Spherix's unique product, plans to invest over $100 million in a high-tech plant to produce the naturally occurring sugar from milk. The paper reported that the world's second largest volume producer of milk, Arla, expects initial revenues of $60 million. The article added that, with worldwide patents, the expectations for future sales are far greater. Arla's tagatose project director, Henrik Andersen, was quoted as saying, ``We have reached an important milestone in that we already have a license to sell tagatose in the U.S.''

Arla said its first plant would be built in Jutland, Denmark, with delivery of tagatose to customers expected by early 2003. The dairy giant says it has already introduced tagatose to major food companies.

Tagatose tastes virtually the same as table sugar, but with less than one- third the calories. Because it has essentially the same bulk as table sugar, tagatose works in a wide variety of products, addressing a large market unavailable to low-calorie sweeteners. Moreover, recent tests have shown that a small amount of tagatose added to diet sodas made with high-intensity sweeteners greatly improves the taste and mouth feel of the drink. This opens an unanticipated market for tagatose, paving the way for diet sodas to break out of their static sales of the past several years. The fact that clinical trials have demonstrated that tagatose may be safely used by diabetics, and actually inhibits the rise in blood glucose, also adds significant market potential. Moreover, the product does not cause tooth decay.

Arla is discussing project partnering with several major corporations. Tagatose provides new marketing development for the company known around the world mostly for the sale of dairy products and milk proteins, currently at $4 billion per year.

Dr. Gilbert V. Levin, CEO of Spherix and Director of its BioSpherix Division that developed tagatose, said, ``I am very pleased to confirm Arla's commitment to our product. While tagatose sales estimates by market experts are much larger than those projected by the Danish newspaper, only the future can tell.''

Certain statements contained herein are ``forward looking'' statements as defined in the Private Securities Litigation Reform Act of 1995. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission, including the filing on Form 8-K made on March 3, 1999.

Under its motto, ``A World of Solutions,'' Spherix's mission is to create value and increase shareholder wealth through innovations that benefit our clients and the human condition. Spherix offers innovations in information technology, knowledge management, and biotechnology.

The company Internet address is http://www.spherixinc.com .

SOURCE: Spherix (Biospherics Incorporated)

http://biz.yahoo.com/prnews/010612/dctu030.html