Innovators and Entrepreneurs of MSP April 24, 2014

1. The Health & Nutrition Markets Commercialization of Value Driven Products Innovators and Entrepreneurs of MSP April 24, 2014

2. Commercializing an Ingredient Start Up • An Insatiable Market • The Right to Succeed • The Commercialization Scope of Work • Commercial Successes

3. An Insatiable Market

4. Nutraceuticals – An Insatiable Market One of the fastest growing industries in the world is the nutritional supplement group, or more broadly known as Vitamins, Minerals and Supplements, or VMS. Producing about $32 billion in revenue for just nutritional supplements alone in 2012, it is projected to double that by topping $60 billion in 2021 according to the Nutritional Business Journal. According to Partnership Capital Growth partner Brian Smith, a leading industry expert since 2000, the reason for the growth is it has gone mainstream. “Ten years ago, it was just the muscle heads and the weekend warriors. Now, it’s the full spectrum with men and especially women,” he said. Additionally, the Cosmecetical market has grown over the past 5 years at an 11% clip – to a level of $5 Billion annually. Companies in this industry manufacture cosmeceuticals, which are cosmetics with pharmaceutical capabilities. Some of the most popular products include wrinkle-reducing moisturizers and creams that even skin tone. According to Euromonitor, the functional food and beverage market has reached the level of $176.7 Billion in global sales, representing 5% of the total food market worldwide. Consumer demand for nutritious food solutions and unique delivery systems for efficacious ingredients is driving the market.

5. Uncovering the Right to Succeed

6. Creating a Right to Succeed • The following key steps are instrumental in developing the Nutraceutical and Food and Beverage markets for nutritive and/or functional ingredients… • Performing a comprehensive analysis of the product’s core functionality • Identifying the range of relevant product applications that best leverage the ingredients inherent value • Isolating a Value Proposition with measurable value drivers • Creating Go To Market and Entry strategies across a wide variety of relevant markets • Executing on a comprehensive strategic marketing plan aimed at maximizing exposure and extending reach to the target market. • Selling the relevant markets through the execution of targeted sales and marketing strategies and game changing strategic alliances • Ultimate success is directly related to sound, relevant applications development work and the creation of a marketable value proposition that clearly demonstrates value to the end user. “ The people at Ingredient Technologies have been instrumental in identifying and correlating our product performance to achieve the maximum inherent value of our ingredients. With their help we have broadened the core applications for our products and identified new opportunities for growth .” Carl Pacifico Business Development Director Balchem Corporation

7. The Commercialization Scope of Work

8. The Scope of Work

9. The Scope of Work

10. The Scope of Work

11. The Scope of Work

12. The Scope of Work

13. The Scope of Work

14. Commercial Successes

15. Relevant Commercial Successes • Shoreline Fruit, LLC • Developed the Strategic and Tactical Plan to Enter the Food and Nutraceutical Markets for the Leading Marketer of Tart Cherries in North America • Developed Raw Material Extract Products with Standard Antioxidant Levels From Raw Material Bi-Product (Anthocyanins, Polyphenols) • Executed the Plan and Achieved Global Distribution within first Year with Annual Estimates of $2-$3 Million in Sales by Year 2 • Developed Multiple Product and Applications from Tart Cherry • Concentrate • Powder Extracts • Chewable Tablets • Animal Health Products • Etc.

16. Relevant Commercial Successes • BioEnvelop Agro • Developed the Business Model to Launch a Line of Nutraceutical and Pharmaceutical Products From Dairy Protein Based Gel Technology • Commercialized Multiple Products from their Technology Platform • Edible Film • Drug Delivery • Bari-Kade Film • Teeth Whitening System • Drinkable Gels • Achieved Revenues of $3.5M in First Year • Led by Sales of Melatonin Strips to Jamieson Labs • Company was Sold to a Canadian Pharma Company – Paladin Pharmaceutical

17. Relevant Commercial Successes • Tersus Pharmaceuticals • Developed the Business Model to Launch a Purified Palmitoleic Acid Product called Provinal™. • Set up International Distribution for Tersus to Quickly Penetrate the Dietary Supplement and OTC Pharma Markets • Achieved $1,000,000 in Sales in Initial Year of Operation • Product Shows Significant Lipid Management Benefits in Raising HDL, Lowering LDL, and TG • Product Featured on Dr Oz in late 2013.

18. Relevant Commercial Successes • CK Nutritional Ingredients • Supported Company’s Business Development Efforts in the US Market • Company based in Toronto, CA • Market a Number of Specialty Nutraceutical Ingredients • Balchem Corporation • Applications Development & Strategic Sales Support in Food and Nutraceuticals • Balchem is a Public Company with Sales in Excess of $100M • IT Played a Critical Role in Developing New Opportunities for their Products • BioSym Technologies • Developed Market for North America for Nutraceutical Raw Materials • Assisted in the Development of Fermentation Based CoQ10 Compound • Spearheaded Strategic Alliance with leading Distribution Company • Estimated Sales of Over $12M in 2nd Year on CoQ10 • In Negotiation to Market Technology Licenses

19. Corporate Contacts Ingredient Technologies has successfully sold ingredients to the world’s industry leaders in Nutraceuticals, Food, and Pharmaceuticals.