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GLG Life Tech Corporation Announces 2011 Guidance

VANCOUVER, British Columbia, Feb. 1, 2011 (GLOBE NEWSWIRE) -- GLG Life Tech Corporation (Nasdaq:GLGL) (TSX:GLG) ("GLG" or the "Company"), the vertically-integrated leader in the production of high quality stevia, announces its financial guidance for 2011 that includes both its stevia sweetener business and its new consumer products business. This is a pivotal year for the Company as it continues to grow its stevia business and launch its consumer products joint venture AN0C TM.

The Company's guidance for 2011 is as follows:

$Canadian Millions Lower End Upper End
     
Revenue $160 $200
     
Earnings Before Interest Tax & $30 $39
Depreciation (EBITDA) (1)    
     
Capital Expenditures (CAPEX) $5 $10
     
A breakdown of 2011 guidance by the Company's two main business segments (stevia sweeteners and consumer products) is as follows:
     
$Canadian Millions Lower End Upper End
     
Stevia Revenue $90 $100
AN0C Revenue (2) $70 $100
     
Stevia EBITDA $30 $33
AN0C EBITDA (3) $0 $6
     
Stevia CAPEX $5 $10
AN0C CAPEX $0 $0
     
(1)  EBITDA is a non-GAAP financial measure. GLG calculates it by adding to net income before taxes (1) depreciation and amortization expense as reported on the cash flow statement, (2) other income (expenses), (3) stock-based compensation expense, and (4) non-controlling interest. This might not be the same definition used by other companies. 
(2)  At 100% Consolidation
(3)  At 80% Consolidation to reflect 20% minority interest in joint venture

Stevia Revenue Forecast

The stevia sweetener business is expected to grow 50 to 60% from 2010 with the largest portion expected to come from China. The Company has assumed the initial delivery of the healthy sugar order to the China Sugar Reserve will commence in the fourth quarter of 2011 and the full delivery of the first unit in 2012. Key growth markets outside of China include the US, Mexico, South America, the Middle East, India and Australia. Other key assumptions include raw sugar prices remaining in the range of $600 to $800 per metric ton and the RMB to USD exchange rate declining approximately 3% in 2011. The Canadian dollar to the US dollar exchange rate is assumed to be at par for the year. Revenue in the first half of 2011 is expected to be similar to the amount generated in both 2009 and 2010 and is expected to account for approximately 20 to 25% of the full year revenue forecast.

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