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MICROCAP HOT TOPICS

August 27, 2013

Coca-Cola Study Results Suggest Potential Benefit to Plandaí Biotechnology

A research study conducted by Coca-Cola (NYSE – KO) in 2011 indicated that drinking polyphenol rich juice may have benefits associated with a positive change in a major protein that affects arterial health.  These findings should be viewed as a positive event and corroborating third-party evidence from the world’s leading beverage producer and thus a boon to Plandaí­ Biotechnology (OTC QB – PLPL - $0.75 – Spec Buy).   Plandaí­ plans to introduce highly bioavailable extract products under the Company’s Phytofare™ line that specifically contain these polyphenols which can be used in juices and other beverages.

Polyphenol s are derived from natural extracts and have been the subject of extensive research due to high antioxidant activity and demonstrated capability to eliminate free radicals, or polluted cells.  They are commonly found in green tea extracts, or green tea gallate catechin extracts, and carotenoid botanical extracts found in tomatoes and other ‘colorful’ vegetables. 

The aforementioned study was conducted in a partnership with the University of Glasgow and Mosaiques Diagnostics, GmbH.   Results demonstrated that the levels of 27 polypeptides, which are protein or amino acid chains in the arteries and elsewhere, increased by nearly 4 times in experimental candidates that consumed the polyphenol rich juices over time.  Seven of the 27 polypeptides are known urinary markers for coronary artery disease.  Researchers stated that the seven coronary artery disease markers moved closer to a ‘healthy state’ for those candidates who consumed the polyphenol-rich juices.  The bottom line is that the study demonstrated that drinking green tea extract or carotenoid extract appears to improve arterial function at the molecular level.

To that end, Plandaí­’s Phytofare™ Catechin Complex and Carotenoid Complex have been formulated with a proprietary process that will enable the release of more of these polyphenol compounds versus the competitors.  This product differentiation is created with superior bioavailability, or the measurement of an amount of a compound that is absorbed into the bloodstream.  Normal extracts produce 1-10% bioavailability, while the Phytofare™ extract products have demonstrated 70% on average for bioavailability.

Plandaí­ is on target to begin production of the Phytofare™ Catechin Complex in powder form, topical cream, gel tabs, and a liquid by the end of 1Q14.  The liquid form can be used in beverages while the other forms can be incorporated into various supplements and nutriceuticals offering a host of superior health benefits including that discussed in the example above.  Additionally, the Company has partnered with several distributors in the US, Europe and Africa to sell market and distribute Plandai's Phytofare™ extracts commence in 1Q14 as well.

Plandaí’s aggressive marketing campaign will reap major benefits as the message that beverages and other products that utilize the Phytofare™ products can provide superior levels of healthy ingredients, such as the polyphenols mentioned above.  This differentiation should help the Company expand its market share and generate strong results in 2014.

For more information, refer to our previous PLPL Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com

Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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