Frontier Ip Regulatory News (FIPP)

REACH

AIM: FIPP

1 February 2021

Frontier IP Group Plc

("Frontier IP" or the "Group")

Frontier IP supports technology to eradicate detectable TCA from natural cork stoppers

Frontier IP, a specialist in commercialising intellectual property, notes the following release from the world's leading producer of cork products, Corticeira Amorim ("Amorim"), announcing a breakthrough technology to remove the major cause of cork taint in wine from natural corks. The move is a result of collaboration with the Group's partner university, NOVA University of Lisbon - NOVA School of Science and Technology ("FCT NOVA").

Frontier IP supported the Centro de Fisica e Investigação Tecnológica ("CEFITEC") research unit of FCT NOVA in engaging with Amorim to commercialise the new technology. The Group played an important role in negotiating the terms of the commercial agreement, including the licensing terms.

FCT NOVA's technology, branded "Naturity" by Amorim, removes the leading cause of the unpleasant tastes and odours found in corked taint, a chemical compound 2,4,6-trichloroanisole ("TCA") as well as other volatile compounds from natural corks. Naturity is based on a process that combines temperature, water and pressure without affecting the performance and integrity of the cork.

Amorim has separately developed a second technology able to reduce TCA from micro-agglomerated stoppers. These are made from tiny granules of cork bound together with specialist food-binding agents. Natural corks are made from a single piece of cork.

The technology was invented by Professor Orlando Teodoro, an expert on vacuum processes, and Professor of Engineering Physics at FCT NOVA.

Frontier IP and FCT NOVA announced their partnership to maximise the value of the university's research in September 2016. Under the terms of the agreement, Frontier IP receives an equity stake in companies created by FCT NOVA, as well as a share of the licensing revenue generated. Since the agreement was signed, three spin out companies have been created in other fields.

Neil Crabb, Frontier IP Group Chief Executive Officer, said: "It is encouraging to see this technology coming to market with the world's leading producer of cork products. More generally, we are pleased with the strong progress being made with FCT NOVA and look forward to reporting further developments from our partnership, both in terms of portfolio companies and future industrial collaborations."

Professor Orlando Teodoro, FCT NOVA, said: "The technology is a notable example of Engineering Physics which aims to transfer standard technologies in research labs to the industry, solving real problems or improving industry competitiveness and innovation. The outside view we brought to the problem was the key to its solution."

Amorim statement begins:

Amorim reveals breakthrough technologies to eradicate detectable TCA

· The world's greenest, most efficient anti-TCA technologies are launched simultaneously for both natural whole corks and technical cork stoppers

Amorim, the world's leading producer of cork products, announced today the launch of Naturity and Xpür, technologies designed to remove detectable TCA from natural corks and to create a new segment of micro-agglomerated stoppers, respectively.

Research for the patent-pending Naturity technology began in 2016 with the NOVA School of Science and Technology, and is based on the principles of thermal desorption through a proprietary, non-sequential use of pressure, temperature, purified water and time. No artificial elements are used in the process, which facilitates the extraction of 150+ volatile compounds, including TCA. Launching in USA and worldwide, Naturity expands non-detectable TCA performance in the natural cork product segment, while further strengthening the operational deliverables of NDTech, the advanced screening service that individually analyzes and removes any natural cork with more than 0.5 nanograms per liter (ng/L) of TCA*.

Extensive bottling trials with various wineries have yielded exemplary results in measuring the treatment's impact on cork performance, with additional third-party validation trials to be conducted as soon as possible with the Geisenheim Institute in Germany and the Campden & Chorleywood labs in the UK.

Another development announced today is Amorim's Xpür technology, developed to expand the non-detectable TCA performance for micro-agglomerated stoppers. Xpür improves upon the conventional supercritical CO2 application developed several decades ago, reengineering and upgrading the concept with 21st-century technology. Amorim's new, innovative take on the system uses only 25% of the energy and just 10% of the CO2 previously required.

Furthermore, Xpür achieves results of TCA reduction levels to 0.3 ng/L in treated micro-agglomerated stoppers, while leaving the physical-mechanical properties of cork intact. As a result, Amorim's range of micro-agglomerated corks features the highest possible percentage of cork and do not require additional chemical solutions to maintain cork's natural properties, namely the all-important compressibility and expansion rates.

Xpür will be employed in the treatment of technical stoppers Neutrocork Premium and QORK - the latter employing an innovative binding agent made using 100% polyols from vegetable origin, and which is expected to reduce the amount of single-use plastic stoppers in the world by several million units.

Commenting on this important landmark, António Amorim, Chairman and CEO, noted that: "These technologies come as a result of robust financial investments, time, and dedication to R&D from our team. Despite the obstacles of 2020, we were able to fulfill the promise we made to have non-detectable TCA performance for all the cork stopper segments by the end of the year. This is our commitment to our 30,000 customers around the world - to guarantee the quality and consistency of their products and ensure that consumers' preference for cork will only grow stronger."

Amorim statement ends

ENQUIRIES

ABOUT CORTICEIRA AMORIM

Corticeira Amorim is the world's largest cork processing group with annual sales topping 780 million euros. Founded in 1870, the company currently has dozens of business units distributed across five continents. It exports numerous products to more than 100 countries and has a diversified network of 30,000 customers. With strong sustainability credentials and a negative carbon footprint, Corticeira Amorim provides a set of solutions, materials and applications to some of the world's most technological, disruptive and demanding activities, such as the aerospace, automobile, wine and spirits, construction, sports, energy and interior and product design. www.amorimcork.com

ABout frontier IP Group

Frontier IP unites science, finance and industry to build businesses based on outstanding research. It identifies strong intellectual property and accelerates its development through a range of commercialisation services. A critical part of the Group's work is involving relevant industry partners at an early stage of development to ensure technology meets real world demands and needs.

The Group looks to build and grow a portfolio of equity stakes and licence income by taking an active involvement in spin-out companies, including support for fund raising and collaboration with relevant industry partners at an early stage of development.

ABOUT FCT NOVA

The NOVA School of Science and Technology (FCT NOVA) is one of the three largest and most prestigious schools of Engineering and Sciences in Portugal.

FCT NOVA, with about 8000 students, is located in one of the best university campuses, and is distinguished by a culture of the excellent teacher-student relationship and intense academic life. It conduced to a scientific performance that allows the school to integrate the main technological international university networks and participate in key consortiums with European and US universities.

FCT NOVA hosts CEFITEC, which is the Center for Physics and Technological Research, as one of its research units. CEFITEC's research is focused on Experimental and Engineering Physics in topics of surface science, vacuum metrology, optics, solid state sensors and molecular physics.

The Innovation, Research & Impact Strategy Office (IRIS) cooperates with Frontier IP supporting the research & innovation cycle of FCT NOVA scientific community, from the idea to its market application, fostering sustainable knowledge generation to increase the School's societal and economic impact.

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