This Year's Highlights

• Allylix's founder, Dr. Joseph Noel, of The Salk Institute determined the structure of a terpene synthase. Using this structure, Dr. Noel and Allylix scientist, Dr. Greenhagen developed a technology platform to produce commercially valuable terpenes.
• Allylix developed a commercially scaleable fermentation process for its first product, the citrus flavor and fragrance nootkatone. The Company will begin scale-up of this fall to commercialize nootkatone in the first quarter of 2008.
• Allylix discovered its first novel fragrances. Allylix is finalizing development of the fermentation process for the first of these novel fragrances which will be commercialized in the first half of 2008.

Anticipated Highlights

• Allylix will commercialize its first two products in the first half of 2008 and a third product in the second half of 2008.
• Allylix anticipates completing its first strategic partnership by the end of 2007 and a second strategic partnership in the first half of 2008.

Corporate Mission

Allylix has developed proprietary technology that allows it to produce a group of natural products called terpenes at low cost. In nature, terpenes are produced by organisms in minute quantities to serve a number of different functions. Some are flavors and fragrances, while others are anti-fungal and anti-viral and still others are insect repellents. Because of this, terpenes have significant commercial value to the flavor and fragrance, insect repellent and pharmaceutical industries. Despite their significant commercial value, historically terpenes have been under exploited because they are too costly to produce with existing technology.

Allylix?s technology platform allows it cost effectively discover and produce a wide range of terpenes. Its initial product pipeline includes six products- one flavor: nootkatone; four fragrances and an insect repellent. Combined, these first six products offer potential peak revenues of over $200 MM/year. The Company will have its first two products on the market in early 2008, its third product in mid 2008, the fourth and fifth products in 2009 and its sixth product in 2010.