August 1, 2007/North Bergen, New Jersey –- William Ludlum, president, Frutarom USA Inc., announced that Frutarom Industries Ltd. in Israel has acquired Raychan Food Industries Ltd., an Israeli company known for the development, production and marketing of flavor compounds as well as the marketing of food ingredients.

Ludlum pointed out that Raychan’s capabilities are in synergy with Nesse, the international group that was acquired and integrated into Frutarom during the early part of 2006. He said, “Like some of our other acquisitions, Raychan’s resources complement segments of the marketplace where Frutarom is aggressively pursuing a strong presence. Raychan’s strengths in savory and functional products that provide product development solutions are enhancing the growing competencies of our flavor division.”

Ludlum added, “The savory flavors segment is fast growing with an annual rate of 4%-6% in developed countries and even more in emerging markets. This growth is largely attributed to an ongoing and expanding increased consumer demand for convenience foods. Raychan enhances our ability to bring even more new ideas to manufacturers of savory products both in the U.S. and around the world.”

It was explained that up to this point, Raychan had a limited presence in Eastern Europe, Turkey and the United States. The integration of Raychan’s products and technologies into Frutarom maximizes the outreach that each of the companies had previously in the international marketplace.

“We’re maximizing the cross selling opportunities, both commercial and operational, that the acquisition has created,” said Ludlum, “expanding what is available to both Frutarom customers and manufacturers of food, beverage and nutritional products who relied on Raychan’s resources.”

Ori Yehudai, president and chief executive officer of the Frutarom Group, summed up the impact of the most recent expansion of Frutarom’s competencies, “The acquisition of Raychan is the third by Frutarom this year, following the acquisitions of Belmay and Jupiter, British companies that were integrated into Frutarom earlier in 2007. This pattern continues the implementation of Frutarom’s vigorous growth strategy to become ‘the preferred partner for tasty and healthy success.’”

From the August 27, 2007, Prepared Foods e-Flash