Arthur D. Little Announces Alliance With Dutch R&D Organization, TNO, to Develop New "Functional Food" Products.

CAMBRIDGE, Mass.--(BUSINESS WIRE)--July 23, 1998--Arthur D. Little, Inc., a global strategic consulting firm, and TNO, a leading Dutch research and development organization, are joining forces to form an alliance expected to produce an estimated $10 million in revenues in the development of new nutraceutical food products over the next five years. (Nutraceuticals, also known as functional foods, are foods which offer consumers increased health benefits, reaching beyond those obtained from general nutrition.) The joint venture--Strategic Food So--launched in response to the growing global demand for the rapid development and market introduction of nutraceutical products, was formalized this week by the two companies at a reception at NUTRACON 98, an industry trade show in San Antonio, Texas.

The primary focus of the joint venture is to apply world-class thinking and technology to assist food, pharmaceutical and ingredient companies to attain a leading position in the emerging nutraceutical market.

"Strategic Food Solutions brings together two of the world's most noted research and product development powerhouses," explains Riz Rizavi, Executive Director of the new venture. "Arthur D. Little is widely recognized for its work in the area of innovation and in the development of food, chemical and other products, while TNO is a well-established European leader in food and ingredient research and efficacy testing. Together, we will focus our energy on the rapid development and market positioning of novel nutraceutcial products designed specifically to meet the needs of this industry. Market estimates for the near-term growth of the world nutraceutical industry are in the $3 billion range."

Rizavi continues, "The demand for nutraceutical products is driven by key social and economic changes evolving in today's marketplace. People are more concerned about their personal health and most prefer nutritional foods to medicine. . Food and pharmaceutical companies both foresee the potential for significant growth in marketshare at the food-drug interface." An example of a successful nutraceutical-driven product is the extraction of healthy phytochemicals, plant-based components from fruits; vegetables or grains and adding them-- undetected--into commonly consumed consumer snack foods.

Arthur D. Little's extensive work in the area of nutraceuticals for clients such as Slim-Fast and the National Cancer Institute have resulted in numerous breakthrough products including: -0-

     --A chewable confection type delivery system for calcium;
     --Various cholesterol-lowering fat substitutes;
     --Desert bars with high concentrations of nutrients; and
     --Nutrient-enriched beverages.

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TNO's work in the areas of ingredient innovation, clinical, safety, efficacy, and nutritional evaluation includes: -0-

     --Monitoring fitness and health of the military;
     --Improvement of calcium intake to prevent bone decalcification;
     --Safety testing of a high-intensity sweetener; and
     --Food ingredient innovation studies

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Arthur D. Little is an employee-owned global strategic consulting firm with more than 3,300 professionals in 30 countries. The firm works with clients to link product and service innovation management, business process management, and knowledge management with strategy to improve business performance.

TNO is one of the largest R&D organizations in Europe, and primary fields of activity include industrial technology, food, defense, health care, environment, building and construction and geology.

For further information on Strategic Food Solutions, please call 617-498-7480 at Arthur D. Little's corporate headquarters in Cambridge, Massachusetts, or view the Strategic Food Solutions web site at www.strategicfoods.com.

    CONTACT: Arthur D. Little, Inc.
              Brian Kenny / Alyssa Burns
              [phone] / [phone]
              [e-mail]/[e-mail]
               or
              TNO
              Helena B. Bastiaanse
              31-30-694-4714
              E-mail:[e-mail]