Algae Tec : AEB secures commercial supply and collaboration agreement with North America’s largest aquarist supplier

19th February 2018

ASX Announcement

AEB secures commercial supply and collaboration agreement with North America's largest aquarist supplier

•  Seachem Laboratories Inc. is market leader in the international manufacturer and supply of aquarium industry products with more than 2,500 dealers and outlets in the USA alone

•  AEB to develop and supply aquarist product line exclusively for distribution through Seachem's extensive distribution network

•  Initial product range to be labelled under Seachem's premium line - AquavitroTM

•  Seachem agreement to underpin North American sales strategy - targeting revenue of over US$1m per annum

•  Collaboration agreement to jointly develop and commercialise new product range for supply to global aquarium industry market

•  AEB has developed a range of innovative nutritional algae-based products for the c.a US$300m aquarist market under its FeedMe™ brand

Plant-based health and wellbeing company Algae.Tec Limited ("the Company" or "AEB") (ASX: AEB) is pleased to report that it has entered into an exclusive commercial supply and collaboration agreement with North America's largest aquarist supplier Seachem Laboratories Inc. ("Seachem").

Under the agreement, AEB will manufacture and package an exclusive line of aquarist products for sale through Seachem's established and large network of distribution outlets and retail customers in North America, and internationally.

AEB has the right of first offer to supply Seachem for all other products that may be used in Seachem formulations. Both parties have also established a Collaboration Program for the joint development and commercialisation of new products for supply into global aquarist and aqua feed markets respectively.

About Feedme™ Algae

In 2017 AEB successfully developed a series of innovative nutritional algae-based products for the aquarium industry under its FeedMeTM brand. These products have been sold in a limited number of retail stores for the purpose of market development and product trials.

Customer feedback has been excellent, noting high quality, product consistency and superior performance in revitalising corals (health and colour), increasing water purity and providing nutrition to fish and other aquatic life with enhanced growth and vitality.

There are a number of additional algae-based products and formulations currently in development and testing by AEB for application to the aquarium industry and sales through the Seachem network.

Figure 1: Seachem's Bottling Plant and Premium Products - AquavitroTM

Figure 2: Coral enhanced colour / health with Feedme™ Algae products

AEB's Chairman and Managing Director, Malcolm James, commented, "We are very pleased to be partnering with Seachem to further develop our market-leading range of high quality aquarium industry products.

"The development of a new line of algae-based aquarist products, in addition to the Company's nutraceutical products, provides the business with increased exposure to an exciting and rapidly growing global market.

"Seachem is a major player in the global aquarist market and we expect this partnership to significantly increase revenue from our aquarist / aqua feed division this year."

Seachem's Vice President, Mr. Jim Rogers commented, "We are pleased to be working with AEB and believe their expertise in development and production of high quality algae and other related products will be a significant benefit to our business in the international aquarium industry moving forward."

-ENDS-

For further information please contact:

Malcolm James

Executive Chairman & Managing Director

Algae.Tec Limited

T: [phone]

E:[e-mail]

Follow us on Twitter @AlgaeTec_

Released through Sam Burns, Six Degrees Investor Relations, M: [phone]

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About Algae.Tec Limited (ASX. AEB)

Algae.Tec Limited is a plant-based health and wellbeing company which produces a wide range of plant-derived products for supply to a wide range of markets, including nutraceutical, aquaculture and animal feed applications.

About Seachem Laboratories Inc.

Seachem Laboratories, Inc. is the leading supplier of quality shelf and live products covering the spectrum of aquarium requirements in freshwater, seawater, reefs and ponds, as well as herpetological and avian husbandry. Since 1980, Seachem has built a reputation based on quality products and service to the aquarist markets in the USA and globally, including Australia.