GLG Life Tech Corporation Announces Financial Results

GLG Life Tech Corporation Announces Financial Results

VANCOUVER, British Columbia, March 31, 2014 (GLOBE NEWSWIRE) -- GLG Life Tech
Corporation (TSX:GLG) ("GLG" or the "Company"), a vertically-integrated leader
in the agricultural and commercial development of high quality stevia and
other natural sweeteners, announces financial results for the quarter and year
ended December 31, 2013. For further information of the Company's financial
performance in 2013, please see the Company's annual consolidated financial
statements for the year ended December 31, 2013 and 2012, the Company's
Management Discussion and Analysis for the year ended December 31, 2013 and
its Annual Information Form which have been filed on SEDAR.

2013 FISCAL YEAR HIGHLIGHTS

New sales strategy implemented in 2013 results in improved gross margins

In 2013 the Company refocused its sales strategy on developing international
sales of high purity stevia extracts and recurring monthly revenues compared
to its 2012 sales strategy that focused on non-recurring and infrequent sales
of low purity stevia extracts to other stevia companies primarily located in
China. The re-focus in strategy has successfully resulted in a significant
improvement at the gross margin level with an increase of $3.3 million year
over year. This improvement on gross margin was made on 24% lower stevia
revenues in 2013 compared to 2012 in 2013.

In 2013, the Company increased the percentage of international sales for the
twelve months ending December 31, 2013 to 30% from approximately 7% in 2012.
The Company decreased its sales to other China based stevia companies in 2013
from the levels made in 2012, which is the core reason for the 24% decline in
stevia revenues in 2013. International sales increased significantly from $1.6
million for fiscal 2012 to $4.8 million in fiscal 2013 or an increase of 195%
year over year, compared to China based revenues that declined from $20.1
million in fiscal 2012 to $11.3 million in fiscal 2013 or a decrease of 44%.
This change in sales strategy towards higher purity stevia extracts to
international customers was an important driver towards improved gross margins
as in 2012 a number of the lower purity sales were sold below cost.

Further reductions in cash based SG&A expenses achieved in 2013

Cash based selling, general and administration expenses fell to $1.5 million
for the three months ended December 31, 2013 or a reduction of 48% from $2.9
million for the comparable period in 2012 as management continued to focus on
reducing cost in its operations.

Cash based selling, general and administration expenses fell to $5.8 million
for the twelve months ended December 31, 2013 or a reduction of 29% from $8.2
million for the comparable period in 2012 as management continued to focus on
reducing cost in its operations.

Non-cash based SGA up in the fourth quarter 2013 and full year 2013 compared
to 2012

Non-cash General and Administrative expenses for impairment of accounts
receivable, stock based compensation and amortization charges increased to
$4.2 million for the three months ended December 31, 2013 from ($0.2) million
in 2012 driven by impairment of accounts receivable in 2013.

Non-cash General and Administrative expenses for impairment of accounts
receivable, stock based compensation and amortization charges increased to
$6.9 million for the twelve month period ended December 31, 2013 from $1.5
million in 2012.

Other Expenses were down significantly in the fourth quarter of 2013 and flat
for the full year 2013 compared to 2012

Other expenses for the three months ended December 31, 2013 was $1.6 million,
a $3.9 million or 71% decrease compared to $5.5 million for the same period in
2012.Other expense decreases are driven by decrease of asset impairment
losses of recognized during the fourth quarter of 2013 compared to the $3.6
million of impairment charges recognized for the same period in 2012 (decrease
of $4.1 million between two periods).

Other expenses were virtually flat for the twelve period ended December 31,
2013 at $15.3 million compared to $15.2 million in the comparable period
2012.Other expenses included impairment of inventory for obsolescence of $8.1
million for the full year 2013 compared to $8.5 million incurred in
2012.Interest expenses were $7.2 million for the full year 2013 compared to
$6.9 million incurred in 2012.

Sale of non-core business AN0C finalized in 2013

In September 2013, the Company finalized the sale of its 80% interest in Dr.
Zhang's All Natural and Zero Calorie Beverage and Foods Company ("AN0C") to
the minority 20% interest holder, China Agriculture and Healthy Foods Company
Limited("CAHFC"), as part of the Company's disposal of its AN0C segment. As
part of the transaction and to settle amounts owing by AN0C agreement, the
Company issued a three year, zero interest unsecured convertible note to CAHFC
with principal amount of $4,295,533 that is convertible into the common shares
of GLG at a price of $1.80 per share.

71% reduction in net loss in Q4 2013

For the three months ended December 31, 2013, the Company had a net loss
attributable to the Company of $3.4 million compared to a net loss of $11.8
million for same period in 2012. This equated to a decrease of $8.4 million
loss or a 71% reduction in net loss.This reduced loss was achieved through a
combination of the impacts on gross margin from new sales strategy and the
sale of non-core assets (AN0C beverage business).

24% reduction in net loss for the full year 2013

For the twelve months ended December 31, 2013, the Company had a net loss
attributable to the Company of $26.4 million compared to a net loss of $34.8
million for same period in 2012. This equated to a decrease of $8.4 million or
24%. This reduced loss was achieved through a combination of the impacts on
gross margin from new sales strategy and the sale of non-core assets (AN0C
beverage business).

Net loss from continuing operations down 43% for the fourth quarter of 2013

For the three months ended December 31, 2013, the Company had a net loss from
continuing operations of $5.5 million compared to a net loss attributable to
the Company of $9.6 million for same period in 2012.The decrease of $4.1
million loss was driven by: (1) an increase in gross profit of $3.2 million,
and (2) a decrease in other expenses of $3.9 million. These items were offset
by an increase in G&A expenses of $3.0 million.

Net loss from continuing operations flat for the full year 2013

For the twelve months ended December 31, 2013, the Company had a net loss from
continuing operations of $29.8 million, a reduction of $0.2 million in losses
compared to the $30.0 million loss for the comparable period in 2012.The
decrease in net loss was driven by: (1) by an increase in gross profit of $3.3
million.This item was offset by an increase of G&A expenses of $3.1 million.

NON-GAAP Financial Measures

The Company made significant progress in 2013 on two key Non-GAAP financials
measures, gross profit (loss) before capacity charges and Earnings Before
Interest Taxes and Depreciation (EBITDA).

Gross Profit (Loss) before capacity charges

This non-GAAP financial measure shows the gross profit (loss) before the
impact of idle capacity charges are reflected on the gross profit margin.GLG
had only 50% of its production facilities in operation in 2013 and idle
capacity charges have a material impact on the gross profit (loss) line in the
financial statements.

Gross Profit (Loss) before capacity charges for the three months ended
December 31, 2013 was $3.3 million or 79% of fourth quarter revenues, compared
to $0.2 million or 3% of fourth quarter revenues for the same period in
2012.Gross Profit (Loss) before capacity charges improved from the comparable
period due to the sourcing of lower cost stevia extract materials in the
fourth quarter as well as production cost improvements experienced during the
quarter. Gross margin before capacity charges for the twelve months ended
December 31, 2013 was $4.4 million or 28% of twelve month revenues, compared
to $1.2 million or 6% of twelve month revenues for the same period in
2012.Gross Profit (Loss) before capacity charges improved from the comparable
period due to the sourcing of lower cost stevia extract materials in the
fourth quarter as well as production cost improvements experienced during the
year.

Improvement in Earnings before Interest Taxes and Depreciation ("EBITDA") and
EBITDA Margin also achieved in 2013

EBITDA for the quarter ended December 31, 2013 was $1.4 million or 34% of
revenues, compared to negative $4.0 million or negative 48% of revenues for
the same period in 2012.EBITDA improved by 82 percentage points for the three
month period ended December 31, 2013 driven by lower material costs,
processing cost improvements as described earlier as well as reductions in
cash based SG&A costs achieved during the fourth quarter of 2013.

EBITDA for the twelve months ended December 31, 2013 was negative $4.4 million
or negative 28% of revenues compared to negative $11.8 million or negative 53%
of revenues for the twelve months ended December 31, 2012.EBITDA improved by
27 percentage points for the 12 month period ended December 31, 2013 driven by
processing cost improvements as described previously in addition to reductions
in cash based SG&A costs achieved during 2013.

Financial Resources

                                   
In thousands Canadian $    31-Dec-13 31-Dec-12
Cash and Cash Equivalents $5,133    $3,582
Working Capital           ($29,445) ($33,854)
Total Assets              $87,796   $103,065
Total Liabilities         $101,164  $95,377
Loan Payable ( < 1 year)  $40,663   $59,883
Loan Payable ( > 1 year)  $38,935   $8,673
Total Equity               ($13,367) $7,688

The Company increased its cash position by $1.6 million as at December 31,
2013 from the start of the year.The Company has a working capital deficit of
$29.4 million as of December 31, 2013 compared to a working capital deficit of
$33.9 million for the comparable period in 2012.The negative working capital
has been driven by the total of $46.5 million of inventory impairment charges
that it has recognized since year ended December 31, 2011.The Company has
pursued the following actions to manage this situation during 2013. The
Company has paid down short term loans by $5.1 million and refinanced this
debt with longer term debt from banks and through loans from its its Chairman
of $7.3 million in 2013.The Company has also reduced accounts payable by $8.2
million and negotiated with its creditors on extended payment terms.

The Company has also optimized production at two plants during 2013 to
minimize additional investment in inventories and has focused converting
existing inventories into cash.As discussed below in the cash flow section,
the inventory account has been reduced by $13.0 million for the twelve months
ended 2013. The Company has also focused on improvements to accounts
receivable collections and credit management.

New Loan Agreements Signed in 2013

During the year ended December 31, 2013, the Company has signed loan
refinancing agreements with Agricultural Bank of China, Bank of China,
Construction Bank of China and Bank of Communication. The agreements detail
the repayment of all existing short term loans totaling $57,719,279 (RMB
328,509,279) with the four banks. The Company will repay $37,888,446 (RMB
215,642,094) during the year ended December 31, 2014, $19,830,833 (RMB
112,867,185) during the year ended December 31, 2015.

Results from Operations

The following results from operations have been derived from and should be
read in conjunction with the Company's annual consolidated financial
statements for the three and twelve month periods ended December 31, 2013 and
2012. The Company has reclassified certain of the figures presented for
comparative purposes to conform to the financial statement presentation
adopted in the current period.

                                                                  
In thousands
Canadian $, except 3 Months Ended Dec 31 % Change Year Ended Dec 31   % Change
per
share amounts      2013       2012               2013      2012      
Revenue            $4,138     $8,277     (50%)    $16,022   $21,139   (24%)
Cost of Sales     $2,276     $9,640     (76%)    $17,724   $26,110   (32%)
% of Revenue       55%        116%       (61%)    111%      124%      (13%)
Gross Profit       $1,862     ($1,363)   (237%)   ($1,702)  ($4,972)  (66%)
(Loss)
% of Revenue       45%        (16%)      61%      (11%)     (24%)     13%
Expenses          $5,668     $2,683     111%     $12,780   $9,690    32%
% of Revenue       137%       32%        105%     80%       46%       34%
Loss from          ($3,806)   ($4,046)   (6%)     ($14,483) ($14,662) (1%)
Operations
% of Revenue       (92%)      (49%)      (43%)    (90%)     (69%)     (21%)
Other Income       ($1,608)   ($5,521)   (71%)    ($15,277) ($15,220) 0%
(Expenses)
% of Revenue       (39%)      (67%)      28%      (95%)     (72%)     (23%)
Net (Loss) before  ($5,414)   ($9,567)   (43%)    ($29,760) ($29,882) 0%
Income Taxes
% of Revenue       (131%)     (116%)     (15%)    (186%)    (141%)    (44%)
Net (Loss)         ($3,431)   ($11,789)  (71%)    ($26,430) ($34,820) (24%)
% of Revenue       (83%)      (142%)     (42%)    (165%)    (165%)    0%
Net (Loss) from
continuing         ($5,461)   ($9,646)   (43%)    ($29,808) ($29,965) (1%)
operations
% of Revenue       (132%)     (117%)     (15%)    (186%)    (142%)    (44%)
Net gain (loss)
from discontinued  $2,030     ($2,143)   (195%)   $3,378    ($4,856)  (170%)
operations
% of Revenue       49%        (26%)      75%      21%       (23%)     44%
Loss per share
(LPS, Basic &      ($0.10)    ($0.36)    (71%)    ($0.79)   ($1.06)   (25%)
Diluted)
Loss per share
from continuing    ($0.16)    ($0.29)    (44%)    ($0.89)   ($0.91)   (2%)
operations (LPS,
Basic & Diluted)
Loss per share
from discontinued  $0.06      ($0.07)    (193%)   $0.10     ($0.15)   (169%)
operations (LPS,
Basic & Diluted)
Other
Comprehensive
Income (Loss) from $2,082     $305       582%     $4,803    ($2,983)  (261%)
continuing
operations
% of Revenue       50%        4%         47%      30%       (14%)     44%
Other
Comprehensive
Income (Loss) from $21        $54        (62%)    $89       ($58)     (253%)
discontinued
operations
% of Revenue       1%         1%                 1%                 1%
Total
Comprehensive      ($1,328)   ($11,430)  (88%)    ($21,538) ($37,861) (43%)
Income (Loss)
% of Revenue       (32%)      (138%)     106%     (134%)    (179%)    45%

For further information of the Company's financial performance in 2013, please
see the Company's annual consolidated financial statements for the year ended
December 31, 2013 and 2012, the Company's Management Discussion and Analysis
for the year ended December 31, 2013 and its Annual Information Form which
have been filed on SEDAR.

Outlook

The Company plans to focus on four key components to expanding its sales in
2014.

1. Continued focus on increasing its international customers of high purity
stevia extracts:  The Company has already received purchase orders as of March
31^st that exceeds 50% of 2013's full year revenues from international
customers ($4.8 million in fiscal 2013).

2. Focus on developingthe Chinese market through its partnership with COFCO:
The Company currently has a number of formulation projects underway with COFCO
NHRI and a number of COFCO's key subsidiaries.

3. Expansion of natural sweetener product line to include Luo Han Guo (LHG)
(Chinese Monk Fruit) in 2014:The Company is currently working with key
customers for LHG and does expect to be in production in the fourth quarter of
2014 after the harvest of its first fruit.The Company continues to prepare
all aspects of its operations for the formal launch of its production
including agriculture, regulatory filings and production preparation.The
Company plans on utilizing of its current idle plants to produce Luo Han Guo.

4. Sales of other complimentary natural ingredients through its GLG Naturals+
product line in 2014 The Company is currently quoting customers on a number
of these products to existing and new potential customers and expects this
product-line to be generating revenues in 2014.

Agriculture Outlook

The Company has arranged planting of its H3 Leaf in China in 2014.Analysis of
its H3 and H4 leaf compared to other competitors' leaf available in China
clearly show its lead in providing a seed that generates a significant amount
of steviol glycosides in the leaf (13 to 15% range), a high percentage of
rebaudioside A (65 to 70% range) and a larger weight per acre planted than any
other varieties available in China.The weight per acre is a very key metric
to interest farmers to grow stevia in China compared to other alternative
crops or competing stevia seedlings.

The Company is also pleased to report on the success of its non-GMO hybrid
breeding program which has resulted in a number of new strains that it plans
to develop that have individual advantages such as:

  *higher amounts of total steviol glycosides and higher amounts of RA
  *higher amounts of targeted glycosides such as Rebaudioside D, Rebaudioside
    C and Rebaudioside M.The Company has seen some new seedling varieties
    with double to triple amount of these strategic glycosides.
  *The Company will continue on to the next step to bring these proprietary
    seedlings to the next stage of development and availability for planting
    within the next 3 to 5 years.

The Company is of the view that the Consumer's preference will always be
"naturally sourced from a stevia leaf" glycosides compared to those
originating from a different process such as fermentation.

About GLG Life Tech Corporation

GLG Life Tech Corporation is a global leader in the supply of high purity
stevia extracts, an all-natural zero-calorie sweetener used in food and
beverages. The Company's vertically integrated operations cover each step in
the stevia supply chain including non-GMO stevia seed breeding, natural
propagation, stevia leaf growth and harvest, proprietary extraction and
refining, marketing and distribution of finished product. For further
information, please visit www.glglifetech.com .

Forward-looking statements: This press release contains certain information
that may constitute "forward-looking statements" and "forward looking
information" (collectively, "forward-looking statements") within the meaning
of applicable securities laws. Such forward-looking statements include,
without limitation, statements evaluating the market, potential demand for
stevia and general economic conditions and discussing future-oriented costs
and expenditures. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes" or variations
of such words and phrases or words and phrases that state or indicate that
certain actions, events or results "may", "could", "would", "might" or "will"
be taken, occur or be achieved.

While the Company has based these forward-looking statements on its current
expectations about future events, the statements are not guarantees of the
Company's future performance and are subject to risks, uncertainties,
assumptions and other factors which could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. Such factors include amongst others the effects of general
economic conditions, consumer demand for our products and new orders from our
customers and distributors, changing foreign exchange rates and actions by
government authorities, uncertainties associated with legal proceedings and
negotiations, industry supply levels, competitive pricing pressures and
misjudgments in the course of preparing forward-looking statements. Specific
reference is made to the risks set forth under the heading "Risk Factors" in
the Company's Annual Information Form for the financial year ended December
31, 2013. In light of these factors, the forward-looking events discussed in
this press release might not occur.

Further, although the Company has attempted to identify factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

As there can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements, readers should not place undue reliance
on forward-looking statements.

CONTACT: Stuart Wooldridge, Investor Relations
         Phone: +1 (604) 669-2602 ext. 104
         Fax: +1 (604) 662-8858
         Email: ir@glglifetech.com

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