Started commercial chitin production

Navamedic's 100%-owned subsidiary ChitiNor AS has constructed a chitin factory adjacent to Nergård Reker AS at Senjahopen. The construction process has been finalized within budget, and total investments are less than NOK 10 million. ChitiNor AS will receive grants of NOK 2 million and an additional loan of NOK 2 million from Innovation Norway.

Navamedic will not make internal use of its chitin production from the start. In March 2006 a letter of intent (LOI) was signed with Lytone Enterprise Inc. in Taiwan, for the sale of the first full year' chitin production. The LOI has a value of approximately NOK 7 million based on the USD/NOK rate at the time of signature.

For further information, please contact:

Øyvind W. Brekke, CEO Navamedic ASA


E-mail: oyvind [dot] brekke [at] navamedic [dot] com


Office: +47 67 11 25 40


Mobile: +47 91 19 81 64

Bernt-Olav Røttingsnes, CFO/IRO Navamedic ASA


E-mail: bor [at] navamedic [dot] com


Office: +47 67 11 25 44


Mobile: +47 91 34 70 21

About Navamedic ASA:


Navamedic is a Norwegian speciality pharmaceutical company focusing on the development and production of glucosamine HCl (hydrochloride) based medicines. Glucosamine is a generic active ingredient which relieves pain and improves function in patients with mild to moderate osteoarthritis. The product has a favourable safety profile. Osteoarthritis is a chronic disease which affects a large and growing share of the world`s population. Navamedic aims to become a leading company in the glucosamine industry, with a competitive advantage in proprietary production technology. Navamedic`s product Glucomed/Flexove has been approved across 25 EU/EEA states by European Medicines Agency (EMEA), as the first and only glucosamine based medicine against osteoarthritis. The company`s products are sold through a network of sales, marketing and distribution partners. For more information, please see www.navamedic.com