BioGaia has signed an agreement with HSO Pharma, Austria giving the company exclusive rights to market BioGaia´s probiotic tablets and drops in Germany.    
 
BioGaia and HSO entered into a distribution contract for the Austrian market at the end of 2005. HSO is selling BioGaia´s products since July through pharmacies in Austria. This cooperation has now been extended to comprise also Germany.

The products will be sold through pharmacies in Germany; the tablets under the BioGaia brand and the drops under the HSO Pharma brand. The launch will take place during next year.

"We have experienced a successful cooperation with HSO in the Austrian market. We look forward to extend it further in the German market. The launch of BioGaia´s products in Germany is important for BioGaia. The German market is big and the potential for our products is significant" says Peter Rothschild, President BioGaia AB.

HSO Pharma is experienced in probiotics and is focusing on marketing of innovative products for gut, vaginal and oral health.

BioGaia´s probiotic drops are today sold through pharmacies in 10 countries whilst the tablets are sold in 12 countries. New Contracts have been signed for a further 17 countries for the drops and 15 countries for the tablets. Launch for these markets is expected to take place during 2006 and 2007.

Latest press releases from BioGaia:
2006-08-16 BioGaia signs agreement with Ewopharma
2006-08-30 BioGaia´s probiotic oil drops halve hospital stay
2006-08-24 BioGaia AB Interim report 1 January – 30 June 2006

For additional information contact:
Peter Rothschild, president, telephone: +46 (0)8 - 555 293 00
Jan Annwall, executive vice president, telephone: +46 (0)8 – 555 293 00

BioGaia is a biotechnology company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri (Reuteri), which has health-enhancing effects. The class B share of the Parent Company BioGaia AB is quoted on the small cap list of the Stockholm Stock Exchange.