Balchem Corporation Suspends Sales of AminoShure-L, 52% Lysine

Balchem Corporation BCPC has decided to suspend sales of its AminoShure®-L, 52% lysine. Although there are no safety concerns relating to the Product, recent research indicates that the lysine bioavailability of the Product is lower than originally projected and does not meet our internal expectations. Even though dairy nutritionists and producers have reported positive results when using the Product, we are taking this action to conduct additional research and aggressively pursue Product improvements. We will reintroduce the Product when it meets our performance standards, which may affect the timing of our recently announced Covington, Virginia expansion. The Company's first quarter 2012 sales of this Product were approximately $2,100,000 and were included in the Animal Nutrition and Health segment in our financial statements.