Enzymotec Ltd. Granted Patents in U.S. for Compositions and Processes Related to Infant Nutrition and China for INFAT® Uses Promoting Development of Beneficial Gut Flora and Reducing Infant Crying Duration

MIGDAL HA'EMEQ, Israel, March 29, 2016 -- Enzymotec Ltd., (Nasdaq:ENZY), a developer, manufacturer and marketer of innovative bio-active lipid based nutritional ingredients and medical foods, announced today that the Company has been granted two patents, one by the United States Patent Office and the second by the Chinese Patent and Trademark Office.

The U.S. patent covers certain substitute milk fat compositions and the processes related to their production as it pertains to infant nutrition. The Chinese patent covers the use of INFAT® in promoting the development of beneficial gut flora in subjects at risk of developing an imbalance and in reducing the frequency and duration of infant crying. INFAT® is a clinically-proven fat ingredient that closely resembles the composition, structure and nutritional value of natural fat found in human breast milk that is necessary for proper infant health, development and comfort.

“We are pleased to be granted these two patents that will supplement our already robust intellectual property portfolio as we continue to execute on our strategy to lead the market through innovation. We believe that we offer a distinct advantage to our infant nutrition customers as the industry leader in lipids technology," commented Mr. Avner Avissara, CEO of Advanced Lipids and Enzymotec’s VP of Sales for Infant Nutrition, Nutrition Division. "We look forward to continuing to develop and advance the benefits of INFAT® and add value for our customers."

Previously published clinical data demonstrated that infants fed with formula containing INFAT® developed a more beneficiary gut bacteria profile compared to a control formula. Beneficial gut bacteria promote good health and development and an ability to prevent infections. Additional clinical data indicated that babies nourished with infant formula containing INFAT® cry less and for a shorter duration in comparison to babies fed with infant formula not containing INFAT®.

About Enzymotec Ltd.

Enzymotec is a leading global supplier of specialty lipid-based products and solutions. The Company develops, manufactures, and markets innovative bio-active lipid based nutritional ingredients and medical foods, driven by a deep core of cutting-edge, proprietary technologies intended to improve people’s health.  For more information, visit www.enzymotec.com.

About Advanced Lipids

Advanced Lipids is a joint venture of AAK and Enzymotec. For more information, visit www.advancedlipids.com

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions that convey uncertainty of future events or outcomes and the negatives of those terms.  Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, potential market opportunities and the effects of competition.   Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Some of the important factors that could cause or contribute to such differences include the following: a high proportion of the sales of the InFat product is to our customers who then use it in their infant formula products sold to end users in China and therefore our revenues are subject to the effects of Chinese market trends and competition from locally produced products that are not subject to import taxes; growth in the Chinese economy has moderated and this slowdown and related volatility could adversely impact demand for our products in China; we are subject to a degree of customer concentration and our customers do not enter into long-term purchase commitments with us; the demand for products based on omega-3, and, in particular, premium products such as krill oil, has declined in the past and may continue to decline, which, together with a significant increase in capacity by competing manufacturers, may continue to cause intense competition and price pressures; Chinese regulations relating to infant formula are under re-examination, and any regulatory changes affecting the ability of our customers to market infant nutrition products containing InFat could adversely affect our business; we rely on our Swedish joint venture partner to manufacture InFat and certain matters related to the joint venture are the subject of a pending arbitration with said partner; A significant portion of the sales of our InFat product is to a single company. If this company were to suffer financially or reduce its use of InFat our business could be materially adversely affected; Our offering of products as "medical foods" in the United States may be challenged by regulatory authorities; our product development cycle is lengthy and uncertain, and our development or commercialization efforts for our products may be unsuccessful; Our inventories include sensitive compounds which may face spoilage or obsolescence; Potential future acquisitions of companies or technologies may require management’s time and attention, disrupt our business and not yield the returns expected; Variations in the cost of raw materials for the production of InFat may have a material adverse effect on our business; we are dependent on a single facility that houses the majority of our operations; we depend on third parties to obtain raw materials, in particular krill, necessary for the production of our products; we anticipate that the markets in which we operate will become more competitive and we may be unable to compete effectively; we may have to pay royalties with respect to sales of our krill oil products in the United States or Australia and any infringement of intellectual property of others could also require us to pay royalties; Unfavorable publicity or consumer perception of our products, the supplements that contain them as ingredients and any similar products distributed by other companies could have a material adverse effect on our reputation, the demand for our products and our business; we depend on third parties to obtain raw materials, in particular krill, necessary for the production of our products; we are generally reliant upon third parties for the distribution or commercialization of our products; We may not be able to maintain or increase market acceptance for our products; We are subject to risks relating to the operation and expansion of our production or processing facilities and capabilities; Disruption to our IT system could adversely affect our reputation and have a material adverse impact on our business and results of operations; We are not able to predict the results of clinical trials, which may prove unsuccessful or be delayed by certain factors;  our ability to obtain krill may be affected by conservation regulation or initiatives; We could be subject to product liability lawsuits, which could result in costly and time-consuming litigation and significant liabilities, and other factors discussed under the heading "Risk Factors" in our annual report on Form 20-F for the year ended December 31, 2015 filed with the Securities and Exchange Commission on March 3, 2016.

You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

The Ruth Group
Tram Bui / Lee Roth
(646) 536-7035/7012
[email protected]
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