GLG Life Tech Corporation

GLG Life Tech Corporation

April 18, 2008 06:30 ET

GLG Life Tech Corporation Announces 20-Year Exclusive Agreement for Growth and Production of Stevia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 18, 2008) - GLG Life Tech Corporation ("GLG" or the "Company") (TSX:GLG) announced today that it has signed a 20-year agreement with the government of Juancheng County in the western Shandong Province of China, which gives GLG exclusive rights to grow high quality stevia leaf and build and operate a stevia processing factory as well as the exclusive right to purchase high quality stevia leaf grown in that region. The Juancheng County government will also organize and the company will contract the farmers in the region to grow high quality stevia leaf exclusively for sale to GLG for the same 20-year period.

The agreement calls for the growth of 20,000 mu (approximately 3,300 acres) in 2008; 50,000 mu (approximately 8,300 acres) in 2009; 100,000 mu (approximately 16,600 acres) in 2010; 200,000 mu (approximately 33,300 acres) in 2011 and 300,000 mu (approximately 50,000 acres) in 2012. With this agreement, the land now available to GLG for stevia leaf growth in 2009 increases GLG's exclusive growing areas by approximately 30%. This agreement marks the third such exclusive agreement from which GLG will benefit and is an important milestone to provide geographic diversification from its other two exclusive growing areas in the provinces of Anhui and Jiangsu. It is also important as GLG works to develop the supply of high quality stevia leaf to meet anticipated higher market demands.

GLG is obligated to make a total investment in the Juancheng region of $US 60 million over the course of the 20 year agreement to retain its exclusive rights. The first year commitment is to build a 10,000 metric ton stevia leaf processing facility between October 1, 2008 and September 30, 2009. This capacity expansion is required within GLG's current operating plan.

GLG intends to purchase 800 mu (approximately 130 acres) of deeply discounted land in the Juancheng Economic Development Zone to locate this fourth processing plant. Construction of the first phase of the leaf processing facility is expected to be completed in the fourth quarter of 2009. The Juancheng government will further provide GLG access to all necessary utilities for plant operation and ensure GLG has all certificates and permits needed for construction and operation of the facility.

Dr. Luke Zhang, Chairman and President of GLG, stated, "This agreement represents significant progress for the company as we continue to strengthen our position as a world leader in the growth and production of high quality stevia. This growing area is an integral part of GLG's operating plan given the expected increase in high quality stevia extract production for each of the next few years as well as the anticipated growth in demand for high quality stevia over the next decade."

Agricultural High Tech Development, Ltd. (AHTD), which was recently acquired by GLG, has been commercial plot testing the growth of high quality stevia in the Juancheng area for the past five years leading Dr. Zhang to further state, "The results of our research and experience in this area over the past five years give GLG great confidence that Juancheng is poised to become one of the most productive stevia areas in China over the next five years."

About GLG Life Tech Corporation

GLG Life Tech Corporation specializes in growing, refining, and producing high grade stevia extract, a natural, zero-calorie sweetener. With fully integrated stevia operations, GLG is the leading supplier of high quality stevia production in China. The Company is also engaged in the distribution of nutritional products in China and holds exclusive agreements with Weider Global Nutrition and Shandong Yong He Tang Health Products Chain Stores Ltd., whose franchise network includes over 1,200 locations. Please visit for further information.

Forward-looking statements:

Certain statements in this press release constitute "forward-looking statements". Such forward-looking statements include, without limitation, statements evaluating the market and general economic conditions and discussing future-oriented costs, expenditures and other financial or operating performances. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. While the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors include amongst others the effects of general economic conditions, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forward-looking statements. Please refer to the heading "Risk Factors" in our Annual Information Form in respect of our year-ended December 31, 2007 and the risk factors in our Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2007 for a discussion of these and other factors underlying forward-looking statement, both of which are available on SEDAR at under the Company's names. In light of these factors, the forward-looking events discussed in this press release might not occur. Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. As there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.

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