June 5, 2010

Global DHA leader Martek Biosciences Corporation has signed a deal to supply Feihe Dairy in China with DHA and ARA for the American Dairy-owned operation's new infant formula and follow-on milks.

The deal comes as Martek announced sales increased 34% in Q2 to reach US$124 million for the quarter - US$18 million of which came from its end-product acquisition - Amerifit.

The DHA (docosahexaenoic acid) and ARA (arachidonic acid) Chinese supply deal follows a May deal signed with China's biggest dairy Mengniu for children's milk.

"Featuring life'sDHA and life'sARA, Xinfeifan Baby Formula Milk Powder is designed to meet the nutritional requirements of child growth and development," said You-bin Leng, Feihe Dairy chairman and CEO.

Of its Q2 financial performance, Martek CEO Steve Dubin said: "The improving economy, new launches of products with Martek's life'sDHA, growing international markets for Martek's products and sales of Amerifit's branded consumer health products all contributed to Martek's record quarterly results.

"This year as a whole is looking strong from a revenue perspective, although revenues for the balance of 2010 are projected to be somewhat uneven on a quarter-to-quarter basis due to customer plant shutdowns for maintenance and other timing matters."

He said extra brands would be launched through Amerifit over the next 18 months.