LAB Research signs exclusive agreement to extend Korean market

Sep 17 2009

LAB Research Inc. ("LAB", "LAB Research" or the "Company"), (TSX: LRI), a Canadian-based global non-clinical contract research organization, today announced that it has extended its Korean market coverage through a new exclusive agency agreement with Safe Chemicals Co., LTD., a South Korea based consulting company ("Safe Chemicals"). This agreement complements the existing arrangement with Eastern Trading Co., Ltd. ("Eastern Trading") which has been formally and successfully representing LAB Research on a non-exclusive basis to the pharmaceutical market in Korea since 2006.

Under the terms of the agreement, Safe Chemicals has been granted exclusive representation rights to promote LAB Research and its complete service offering to the chemical and agrochemical markets in Korea. In addition, Safe Chemical will also be granted non-exclusive rights to service the pharmaceutical and other Korean markets. This agency agreement will accelerate the commercialization of LAB Research Hungary's services to a targeted Korean clientele while also helping to promote the expanded service offering of each of LAB Research Canada, LAB Research Denmark and LAB Research Hungary to the local pharmaceutical and biotechnology clients.

"Following the proven and growing commercial success of our Japanese agency agreement, we are very pleased to partner with Safe Chemicals to promote our expanded capabilities and service offering to the Korean market. We believe Safe Chemical has the right reputation, expertise and market knowledge to truly help promote LAB Research's services to the local chemical and agrochemical clientele. By combining the efforts of Safe Chemical and Eastern Trading we hope to increase the awareness of the LAB Research brand in Korea and also help sustain a presence in each of its local market segments. We hope to replicate in Korea, the success we have reached in Japan. Less than a year following the signing of our Japanese Agency agreement we have established business relationships with more than 50 different Japanese companies contributing to so far close to $ 1.0 million in contract sales. The Korean market represents significant potential for our European and North American operations." commented Luc Mainville, President and Chief Executive Officer of LAB Research. This is yet another important step completed in achieving our global business development objectives and in positioning LAB Research globally as a high quality and flexible medium-size full service Contract Research Organization." added Mr. Mainville.