Opta Oat Fibers Used Primarily as Texturizing Agents, Not Just as Source of Dietary Fiber

Business Wire, Jan 21, 1999

BEDFORD, Mass.--(BUSINESS WIRE)--Jan. 21, 1999--Opta Food Ingredients, Inc. (Nasdaq:OPTS) today announced that, based on recent publicity of a study finding no conclusive role of fiber in the prevention of colorectal cancer, it would like to clarify the role of its fiber ingredients in formulated food products and state the fact that it believes this study will have no significant impact on Opta's fiber business.

"We would like to take this opportunity to clarify that Opta Oat Fibers are sold primarily as texturizing agents, to reduce breakage in fragile baked and fried goods like taco shells and chips, and to improve texture and extend shelf life in baked goods like hamburger buns," said Lewis C. Paine, III, President and Chief Executive Officer of Opta. "While the use of our fibers does contribute to the total dietary fiber content of the foods they are used in, they are sold for their very specialized functional attributes. Because of this, we expect this study to have no impact on our sales of Opta Oat Fibers."

The study, done by a team from Harvard University and Brigham and Women's Hospital in Boston, appears in today's issue of The New England Journal of Medicine, and has received widespread publicity over the past day. While the findings are important to consider as a part of the growing body of research on the role of fiber in cancer prevention, they do not dismiss the well-proven and accepted benefits of dietary fiber in prevention of many other diseases. Fergus Clydesdale, Ph.D., Chairman of the Department of Food Science at University of Massachusetts at Amherst, added "In addition to the potential health benefits of fiber regarding heart disease and many other types of cancer, it must be remembered that fiber provides several texturizing and structural benefits to food products themselves."

Opta Food Ingredients, Inc. is a leading innovator, manufacturer and marketer of proprietary food ingredients that improve the nutritional content, healthfulness, texture and taste of its customers' food products. Opta's food ingredients are used by more than 150 food companies, including five of the 10 largest U.S. consumer packaged food companies and three of the world's largest quick service restaurant chains.

Note: This press release contains forward-looking statements based on management's current expectations. Factors which could cause actual results to differ from such expectations are discussed in the company's periodic reports filed with the Securities and Exchange Commission (including Reports on Form 10-K and Form 10-Q) and include the size and timing of significant orders, as well as deferral of orders, over which the company has no control; the extended product testing and launch cycles of the company's potential customers; the variation of the company's sales cycles from customer to customer; increased competition posed by food ingredient manufacturers; changes in pricing policies by the company or its competitors; possible delays in securing production equipment and retrofitting production facilities and processes; the company's success in expanding its sales and marketing programs and its ability to gain increased market acceptance for its existing product lines; the company's ability to timely develop and introduce new products in its pipeline at acceptable costs; the potential for significant quarterly variations in the mix of sales among the company's products; and general economic conditions.