Martek Biosciences Corporation has signed a worldwide license agreement with Nestec Ltd. for Martek's technology relating to docosahexaenoic acid (DHA) and arachidonic acid (ARA) in infant formulas. The agreement provides for an initial cash payment, consisting of a license fee, inventory prepayment and ongoing royalties based on Nestle's sales of infant formula containing Martek's oils.

Martek manufactures oils that contain the long-chain polyunsaturated fatty acids, DHA and ARA, both of which are found in breast-milk. Some clinical studies have demonstrated benefits for those infants receiving DHA and ARA supplemented formula. Martek's proprietary blend of DHA and ARA is the only source of these nutrients that the FDA has cleared for use in U.S. infant formula, and is currently being sold by the Company's licensees in supplemented formulas in over 60 countries around the world.

"Martek is pleased to add Nestle as a licensee for Martek's technology," said Henry "Pete" Linsert, Jr., Chairman and CEO of Martek Biosciences Corporation. "With the inclusion of Nestle, Martek has all of the major international infant formula companies under license, providing infants everywhere better access to DHA and ARA supplemented formula."