February 16, 2007

Cell Aquaculture signs joint venture with Malaysia

Australian company Cell Aquaculture Limited signed a formal Shareholders Agreement and License & Supply Agreement with Malaysia's Terengganu Agrotech Development Corporation, an entity owned and controlled by the Terengganu state government.

It marked a significant step forward for Cell Aquaculture, with the company well poised to capitalise on expansion opportunities into Asia's high-end premium markets, noted CAQ managing director and CEO, Geoff Leding Wilton.

Under the terms of the Shareholder Agreement, the parties have established a joint venture company to initially develop sufficient infrastructure to produce up to 700 tonnes per annum of finfish from a land based Cell(TM) production system, in the state of Terengganu.

At full capacity, the joint venture is expected to generate ongoing forecast revenues of approximately A$7.4 million (US$5.806 million) per annum from fish sales. CAQ holds 30 percent of the issued capital in the joint venture company.

The marketing strategy developed for the joint venture is primarily export based, with initial target markets being Japan, Hong Kong and Singapore. Using a lower cost base in Malaysia and the company's ability to supply high quality fresh and live product, this venture would offer exciting profit potential, Wilton said.