A2 Announces Joint Venture With Freedom

A2 Announces Joint Venture With Freedom In Australia And Japan

Auckland, 14 May 2007 – A2 Corporation Limited (NZAX: ATM) (“A2C”) announced today that in association with Freedom Nutritional Products Limited (ASX: FNP) (“FNP”) both companies had signed an agreement for the formation of a joint venture company which will be the granted rights for the production and sale of a2 milk™ products in Australia and Japan.

This announcement of the 50/50 joint venture partnership with FNP is further to disclosures made on 14 December 2006 and 2 April 2007. A2C's current operations in Australia will be transferred into the new entity called A2 Dairy Products Australia Pty Ltd (“A2DP”), with the transaction to take effect from 1 June 2007.

Anthony Lawler, CEO of A2 Corporation says FNP brings significant dairy industry knowledge, retail grocery expertise, extensive management experience, as well as access to milk supply through its majority shareholder.

“FNP currently distributes an extensive range of functional foods including the brands Freedom and So Natural. FNP also has the exclusive rights to the Thorpedo brand of food and nutritional products which is widely distributed in Japan,” say Lawler.

Lawler also says that as part of the transaction, FNP will contribute an initial cash investment to support the development of the joint venture company. A2C will also be entitled to royalties from the JV granted over a2 milk products.

“Ongoing capital requirements to be jointly funded by the respective partners, and the joint venture partner’s investment,” says Lawler.

The Chairman of A2C Mr. Clifford Cook stated, “This JV presents a significant opportunity to accelerate the expansion and growth of the A2 business in Australia, and entry into Japan. We believe there is a natural fit between A2C and FNP’s focus on functional and nutritional products.”

Mr. Geoff Babidge, CEO of FNP stated that, “The A2 joint venture represents a significant step in FNP’s strategy to invest in unique and specialised nutrition segments we have identified for future growth, as well as strengthening our Australian and potentially Japanese presence”.

a2 milk™ fresh dairy milk is currently distributed through major retailers in over a 1,000 stores in Australia.

ENDS

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