Xylitol Canada Inc.

Xylitol Canada Inc.

October 18, 2012 08:00 ET

Xylitol Canada Announces Expansion to State of the Art 30,000 Square Foot Denver Facility

Increasing demand from larger retailers allows for 35% expansion in capacity

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2012) - Xylitol Canada Inc. ("Xylitol Canada", or the "Company") (TSX VENTURE:XYL) is pleased to announced the expansion of its state of the art manufacturing and distribution facility located on the outskirts of Denver, Colorado. New and larger customers, combined with increased demand from existing customers, requires the Company to secure an adjoining warehouse and manufacturing space, resulting in a 35% increase in plant square footage.

"The year to date has provided us with growth in sales, however larger retail customers have a longer sales cycles. We moved into our new Colorado facility in August of 2011, and just over a year later we are pleased to announce this significant increase in our plant capacity. As our sales staff has continued to secure larger customers and accounts, we now have the demand necessary to justify this expansion. We are also using this opportunity to increase efficiency by securing state of the art equipment that will automate packaging tasks for some of our larger customers, " commented CEO Andrew Reid.

Tennant improvements have already begun on the adjoining property, and the Company will take possession of the additional plant footage on or about November 1, 2012. Located in Aurora, CO, the US facility is located in the heart of the manufacturing and distribution corridor which is local to many vendors such as Landsberg, and a number of our customers including two of the largest natural food distributors in the United States.

About Xylitol Canada Inc.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America.

Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is an all-natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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