2008 Sustainability Report

ContentsCOMPANY PROFILE ................................................................................. 3 MESSAGE FROM THE PRESIDENT ....................................................... 6 SCOPE OF REPORT .................................................................................. 8 VISION FOR SUSTAINABILITY ........................................................... 10 INDUSTRY CHALLENGES, ACTIONS AND FUTURE PLANS ........ 11 CRITICAL SUCCESS FACTORS ............................................................ 13 GROWTH ............................................................................................. 13 PROFITABILITY ................................................................................. 15 PEOPLE ................................................................................................. 18 REPUTATION ...................................................................................... 20 SUMMARY ................................................................................................ 24 ABBREVIATIONS, REFERENCES, AND TABLES ............................. 25 GRI INDEX ................................................................................................ 26 CONTACT US ........................................................................................... 28

| NOVUS International

Novus International, Inc. is a global leader in creating science-based health and nutrition solutions. Over 2,500 clients in more than 80 countries trust the Novus product family to be an integral part of their daily animal agricultural operations. The company is privately owned by Mitsui & Co. (U.S.A.), Inc. and Nippon Soda Co., Ltd. and is headquartered in the Saint Louis, Missouri, USA area. Novuss Mission is to help feed the world affordable, wholesome food.

Company ProfileAt Novus, we believe that sound research & development is the foundation for success in developing and delivering solutions to customers. We believe in Performance through Innovation, which is why we employ more than 50 scientists, engineers, nutritionists and Doctors of Veterinary Medicine to create new products and programs. In addition to our in-house expertise, Novus has developed a global network of university professors and academics, which helps to ensure that our products are grounded in science and fact. Novuss primary research & development center is located at the companys headquarters near Saint Louis, but we also employ a global network of university and industry collaborators to develop and test solutions for local needs. As Novus continues to grow, we will continue to expand our professional networks and affiliations

to deliver sustainable solutions that improve performance for our customers. We feel a deep responsibility to transfer the knowledge we gain as well as the technology and innovations we develop to people around the world who can use them to improve agricultural practices in their local communities. Novus provides products and programs for the poultry, pork, dairy, beef, equine, and companion animal industries. At the end of fiscal year 2008 (March 31, 2008), Novus had approximately 400 employees located in 20 different countries, selling close to 70 products to support livestock performance, improved animal wellbeing, food safety and the environment. Our products promote nutrition and health, and can be divided into technology platforms: amino acids, organic acids, organic trace minerals, antioxidants, vaccines, mycotoxin control, and enzymes and yeasts. For specific information about Novus, its products and solutions, please visit our Web site at www.novusint.com. Novus continues to grow through the innovation and performance

Company Profile |

l Global Headquarters l Regional Headquarters l Manufacturing Plant l Major Sales Office l Research Facility

of its key product lines and with the guidance of senior management and its Board of Directors. Under the guidance of President and CEO Thad W. Simons Jr., Novus responsibly grew sales to more than $700 million in fiscal year 2008. With the support of our parent companies and the Chairman of the Board, Shinji Tsuchyia, Novus has been successful in expanding its business by developing and providing safe, environmentally-friendly products and solutions that improve our customers business performance.

Novus Corporate Governance StatementNorth America South America Asia - Pacific Corporate governance at Novus International, Inc. is the responsibility of the Board of Directors. The Novus Board represents the interests of the Novus shareholders and stakeholders, including employees, customers and the public. The Novus Board, with the advice of the executive management team, determines the companys long-term strategy, while the Novus management team defines the companys short-term strategies and handles day-to-day business and operations. In 1998, the Novus Board of Direc-

Beaumont, Texas, USA Chocolate Bayou, Texas, USA Lincoln, Nebraska, USA Little Rock, Arkansas, USA Mexico City, Mexico Ottawa, Ontario, Canada Saint Charles, Missouri, USA

Bogot, Colombia Buenos Aires, Argentina Caracas, Venezuela Indaiatuba, Brazil Porto Alegre, Brazil Santiago, Chile

Europe

Bergamo, Italy Brussels, Belgium Gudensburg, Germany Madrid, Spain Nantes, France Warsaw, Poland

Bangkok, Thailand Beijing, China Hyderabad, India Jakarta, Indonesia Seoul, South Korea Shanghai, China Singapore Sydney, Australia Yunnan, China

Novus products responsibly serve all of animal agricultureNovuss health and nutrition products and programs serve virtually all of animal agriculture designed with our goal of sustainability in mind. Novuss programs consist of tailored, complementary combinations of products and services to maximize its customers performance, addressing concerns such as gut health and oxidative balance. These programs take advantage of the science, skills and knowledge at Novus to address concerns in all the markets we serve. the gut and metabolic processes to develop, manufacture and support multiple lines of nutritional and health products for the poultry industry. Novus serves the broiler, broiler breeder, game bird, layer, turkey, turkey breeder and duck segments. products to help producers improve the health and nutrition of dairy cows. Based on sound scientific research, our products are safe, reliable, and efficacious. Novus provides products and solutions for the transition, early-lactation, mid-lactation, late-lactation and replacement heifer markets.

Swine

Poultry

Novus has a broad range of complete production cycle programs and products to meet the needs of modern poultry production. Novus has over five decades of basic and applied research, development and manufacturing expertise in amino acids and antioxidants. We utilize our understanding of

Novus has developed a unique range of programs for pork producers to support animal health and performance. Novus can help producers improve animal wellbeing, increase performance rates, and direct feed to high-value, lean gain. Novus serves the swine nursery, growing, grow-finish, finishing and sow segments. Novus offers a diverse family of complete production cycle programs and

Beef

Dairy

Novuss complete production cycle programs and products for livestock deliver optimal animal health and performance. Novus helps producers effectively manage the health of their cattle from calf to feedlot, ultimately improving their bottom lines. Novus provides products for cow/calf operations, feedlots, stockers, backgrounders and for the receiving markets segments.

| NOVUS International

Overall growth since 2002FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 080 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 (USD 000)

Debt to Equity ratio2008 ~1.3

Sales by Region FY08Australia Latin America

North America

Asia EAME

tors approved and adopted the Novus Integrity System (NIS), containing written policies to ensure that all employees understand that good ethics and good business are synonymous when viewed from moral, legal and practical standpoints. The NIS is a constant reminder of the Boards commitment to corporate and personal integrity, and prompts every employee of the need to conduct the business of Novus within the ethical framework adopted by the Board. The

Novus Board has made clear through the NIS and other Novus policies and procedures that the company will strive at all times to make decisions that are not only lawful but also morally and ethically sound. In 2005, the Board chartered the Novus Compliance Committee, comprised of all members of Novuss senior management team as well as shareholder representatives. The purpose of this committee is to review and evaluate compliance issues and concerns throughout the Novus organization. It also focuses on prevention, detection, response and security, as well as to propose actions for the continuous improvement of Novuss business management and operations. The matters within the scope of the Compliance Committees review include all legal and regulatory matters that impact or may impact Novuss operations worldwide. The Committee also oversees compliance and conformity by Novus with the requirements of organizations in which the company maintains memberships and for standards, policies or programs to which Novus subscribes. The Compliance Committee manages compliance issues and reports to the Board on a periodic basis.

Aquaculture

Novus Aqua is dedicated to developing products with performance and innovation that exceed customers expectations in the global aquaculture market. Novus Aqua focuses its efforts on providing products and services based on sound scientific studies. We are sensitive to current and future social, economic, and environmental conditions. We offer efficient alternatives, products, and services for sustainable aquaculture and business practices. Novus products and programs address nutrition, health and the environment through water treatment, probiotics, hatchery products, fish meal replacement and sustainable antibiotic-free culture. Novus Nutrition Brands (NNB) is a segment of Novus with marketing responsi-

bilities in the equine, pet, human and other non-food animal markets. NNB is focused on developing and delivering unique, value-added products and technologies that can optimize the health, performance and longevity of individual animals or people. NNB is divided into three distinct business areas:

ingredients (i.e. MINTREX, ZORIEN and MHA).

Novus Pet Nutrition (NPN)

Arenus:

Novus Nutrition Brands

ARENUS is the umbrella brand for a line of finished dose form equine, canine and feline dietary supplements. Arenus products are marketed to horse and pet owners and are sold through veterinarians, select retail affiliates and direct to consumers via www. arenusperformance.com. The first product group sold under the ARENUS brand is STEADFAST by ARENUS, a line of structural health products. STEADFAST products leverage the science of Novuss proprietary

Novus Pet Nutrition serves pet food manufacturers and ingredient suppliers to the pet food industry. Novus Pet Nutrition products are animal health solutions that include platforms for the improvement of gut health and reduction in oxidative stress. Novus Pet Nutrition products include organic trace minerals, methionine analogues, antioxidants, omega-3 fatty acids, enzymes and others. Novus Human Nutrition has been chartered to develop and deliver unique, science-based products and services to other businesses within the human dietary supplement and food industries.

Novus Human Nutrition (NHN)

Company Profile |

Im proud to say that this is Novuss first ever Sustainability Report and that we will be following the G3 Guidelines set out by the Global Reporting Initiative. Even so, monitoring environmental, economic, and social factors were a part of our core values from the inception of our company back in 1991.

Message from the PresidentNovus is very much a customerfocused company. With a reputation built on quality and reliability, we strive to exceed customer expectations. We make every possible effort to maintain or improve our corporate citizenship on a global basis, each day earning the business of our customers and the respect of our stakeholders. We do this by supporting and promoting compliance with laws, regulations and voluntary industry standards that protect our community, workplace and the environment. Corporate Social Responsibility (CSR) or Sustainability has become an increasingly important part of doing business. We understand that for Novus to be successful, we must ensure that our sustainability values are embedded in every employees daily activities what employees want in order to improve Novuss outlook. This natural symbiosis between company and employee activities builds new, repeatable and sustainable business practices that help achieve the goal of meeting the needs of the present without compromising the ability of future generations to meet their own needs. 1 This report intends to outline our recent sustainability efforts as well as endeavors to make sure we are always acting in the best interests of our stakeholders. Sustainability at Novus is founded on the triple bottom line: social, economic and environmental factors. While the environmental and social factors are vital to satisfying the demands of stakeholders, they also must be economically justified to be sustainable. We strive to assist our customers in finding sustainable solutions to

meet the global challenges facing animal production. Animal wellbeing, efficiencies of production, food safety and environmental issues are important challenges and critical to our customers. If properly addressed, they provide benefits for all stakeholders, not just Novus. We positively influence the industry by supporting a shift towards responsible production of food through using fewer resources and offering animal protein producers options to reduce their environmental impact.

Critical Success Factors

Thad Simons Jr., President

At our annual 2008 strategic planning conference, we identified four factors critical to the future success of Novus: Growth, Profitability, People and Reputation. Novus decided to build on these four factors, developing strategies and tactics to meet our goals as an organization while providing benefits to our stakeholders in a sustainable manner. These factors are guideposts to our people and help us deliver on our ethical, social and environmental responsibilities while operating with fiscal accountability. Looking first at food safety, Novus is very serious about this concern and realizes that it is a global public health issue. Outbreaks of food-borne disease have been documented on every continent within the past decade, some with devastating social and economic consequences. Producers at every level of the food supply chain are being called upon to actively participate in the delivery of safe products to the public. At the same time, consumers want to minimize the use of antibiotic drugs. Safe food begins at the farm level. As an example, Novuss gastrointestinal health products used in drinking water and/or feed

Serious about food safety

| NOVUS International

balancing environmental concerns. We are committed to protecting the environment in all areas where we conduct business. Our organization works through scientific research and development. We do this both by using our own scientists and on a larger scale, our global partnerships with university and independent scientists and experts to create nutritional programs that reduce the environmental impact of animal agriculture.

Novus raises standards of animal wellbeing

Section headline here, please.help reduce the colonization of salmonella in poultry and swine. The animals are healthier, resulting in enhanced animal comfort and optimum production efficiency. Used in combination with our coccidiostat, poultry can be efficiently produced in a drug-free environment.

Safe sourcing of ingredientsSafe sourcing of product ingredients is particularly important for the global food chain. Novus has a high quality network of vendors supplying the ingredients for our products, and in many cases we manufacture the ingredients ourselves. Novus maintains traceability in all products we produce, so producers can rest assured that their animal nutrients are safe. Novus offers solutions for antimicrobial safety. Our antimicrobial products reduce pathogens, mold and resulting mycotoxins. To be clear, Novuss solutions for health and safety do not contain antibiotics. We enable producers to competitively increase performance and profits through the use of antibiotic-free health and nutrition programs. Novus also strives to help producers meet the nutritional demands of modern livestock while

The wellbeing of farm animals is an increasingly important public and political issue throughout the world and is important from both ethical and business perspectives. Animals in less stressful environments have better performance, a lower occurrence of disease, and higher reproduction rates. Novus collaborates with producers throughout the world to raise the standards of animal wellbeing. For example, Novus worked with a leading poultry producer to improve the quality of life for turkeys that were experiencing high rates of structural abnormalities and mortality associated with rapid growth. To approach this common challenge for poultry producers, Novus created a customized nutritional strategy. The result: More than a 40% overall decreased occurrence of foot pad lesions, leg weakness and leg fracture. With this significant increase in structural health, the animals were able to express normal behavior and had greater alertness, mobility and freedom of movement. In addition to these health benefits, the producer increased his profitability. In summary, we are delivering a triple bottom line. As we look towards the future, Novuss goals and objectives will include continuous improvements to build on our exceptional performance and creation of business practices that are truly sustainable, which will help to feed the world affordable wholesome food and achieve a higher quality of life.Message from the President |

Novus believes that doing business sustainably is an ongoing process, and we are committed to embedding and implementing sustainable practices in our everyday activities. This report covers Novus International, Inc. and its major subsidiaries from 1 January, 2007 to 30 June, 2008. It is prepared for all stakeholders, including business partners, customers, residents of our local communities, government agencies, non-governmental organizations (NGOs), and our employees.

Section headline here, please.

Scope of ReportIn this report, we describe Novuss approach to sustainability, relevant data, programs, projects and key activities we are executing. This includes Novuss activities in procurement, manufacturing, distribution and sales of products that are directly under the control of Novuss management. Often, Novus can measure, estimate and assess the benefits and burdens that result from our actions. Where sustainable benefits are available and it is appropriate for Novus to influence their capture, we can institute improvements. This report covers selected activities along the value chains that are controlled by Novus, but not directly managed by us. These are activities that Novus has identified both as important and that we can influ | NOVUS International

ence. Changes in these activities will require ongoing cooperation with our customers, suppliers, and value chain partners. These changes offer all parties opportunities to improve the triple bottom line. The specific topics within the spectrum of activities on which Novus can focus its efforts are the environment, food safety, animal wellbeing and performance. These have been four tenets of Novuss operations almost since inception and are critical to our industry and stakeholders. This report describes and reviews activities and topics that Novus has pursued, in line with our Vision, Mission and Core Values. Topics, projects and proposals for future action will expand and continue to evolve within the company. They will take into account relevant, current issues relating Novuss activities and our relationship with stakeholders. In the future, it is possible that topics and projects could be presented and

discussed with external stakeholders to ensure that we are focused on the items of greatest impact for the industries in which we operate. Over time, Novus will be able to develop a basis for deriving Key Performance Indicators (KPIs) that can be used to monitor progress in sustainability activities and reporting. Reporting will likely be based on information held (or already reported) by corporate offices and on information gathered from the businesses and operating companies that are fully owned by Novus. Acquisitions will be included in future sustainability reports when they are 100% owned by Novus before the end of our fiscal year, which is currently 31 March. Divestments during a fiscal year and activities or operations of Novuss contract manufacturers and distributors are not included in this sustainability report. A review of our agreements will be made and a future determination provided as to Novuss ability to report on third party manufacturing partners operations or activities. Statistics on social data reported, such as number of employees, relate to all Novus sites, excluding agency

staff, distributors, consultants and any other non-permanent employees working with Novus under long- or short-term contracts (e.g., consultants). Environmental parameters in this report and on our website are calculated from the data supplied by Novuss production sites. Most of the data reported has been recorded by Novus staff or corporate management teams as part of our normal management processes. Some, such as Total workforce by employment type, employment contract, and region and Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor are gathered specifically for this report. All the data was checked, collated and confirmed by Novus management. Assembly and reporting of the above data and activities constitute qualification for Report Application Level C of the current guidelines of the Global Reporting Initiative (G3). A GRI index and an Application Level Grid on pages 26-27 list the performance indicators reported in this sustainability report. Novus is also addressing issues that are external to the boundaries of its activities and includes activities such as support for advanced degrees in agricultural education, certification programs, environmental funding and partnerships, and responsible and

How Novus helps customersEnvironmentNovus strives to help producers meet the nutritional demands of modern livestock while balancing environmental concerns. We are committed to protecting the environment in all areas where we conduct business. The organization works, through scientific research and development, to create nutritional programs that reduce the environmental impact of animal agriculture. Food safety is a global public health issue. Outbreaks of food-borne disease have been documented on every continent within the past decade, some with devastating economic and social consequences. Producers at every level of the food supply chain are being called upon to actively participate in the delivery of safe products to the public.

Performance

Animal Wellbeing

Food Safety

The wellbeing of farm animals is an increasingly important public and political issue throughout the world and is important from both ethical and business perspectives. Animals in less stressful environments have better performance, a lower occurrence of disease and higher reproduction rates.

Performance can be measured in many ways and has many different definitions. At Novus, we focus on things that matter to our customers. Challenges that customers face can come from many directions: economic, the environment, competitors, regulators, consumers, and their own internal hurdles. Given the global nature of our business and variation of the issues across species we serve, Novus has many opportunities to help our customers.

Scope of Report |

As we finish our first 17 years, we have created a global organization with strong commitments to sustainable business practices. We will continue to grow and expand, all while using our Vision, Mission and Core Values as tools for aligning our activities and improving our leadership role in the industry.

Vision for SustainabilityVision Mission Core ValuesPerformance Environment Food Safety Animal Wellbeing Growth Prot People Reputation

Novuss business strategies and actions flow directly from the Vision, Mission and Core Values this includes embedding sustainable practices in every employees activities. Novus takes the industrys challenges: performance, the environment, food safety, and animal wellbeing very seriously and as such, they form an integral part of our corporate objectives regarding growth, profit, people and reputation.

Vision

To help feed the world affordable, wholesome food and achieve a higher quality of life. Make a clear difference in sustainably meeting the growing global needs for nutrition and health. Maximize long-term customer satisfaction: anticipate their needs and exceed their expectations. Provide products with demonstrable value: research leading-edge concepts and supply preferred products and services. Act with integrity: treat all stakeholders employees, customers, suppliers, business partners, our owners and the public in a fair and ethical manner. Protect our employees, the public and the environment: make health, safety, security and environmental considerations a priority in all that we do. Seek excellence from all employees: expect and support alignment, diversity, individual growth, initiative and teamwork.

MissionNovus business strategies and actions stem directly from the companys vision, mission and core values. This includes embedding sustainable practices in every employees activities.

Core Values

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Industry Challenges, Actions and Future PlansObjectives:Focus on things that matter to our customers because their challenges impede them from achieving optimal performance. Address challenges that come from many directions and stakeholders: economic, environment, competitors, regulators, consumers and customers own internal hurdles. Use and share knowledge and skills to improve performance against any number of factors, globally across all species served.

At Novus, we believe in empowering those working in animal agriculture from farm to table with the tools and knowledge to make a positive impact in their local communities and the world. Our core vision: help feed the world affordable, wholesome food and achieve a higher quality of life helps us realize scientifically-based innovations that address the key challenges facing the global animal agriculture industry. Sustainability

Highlights: 2007-08Partnered with the University of Illinois to demonstrate the value of amino acid supplementation in commercial dairy herds and concluded that quality and volume of food could be increased while lowering the cost of production. Developed the IDEA screening tool to enable producers who use Distillers Dried Grain with Solubles (DDGS) as a feed ingredient to easily and accurately test the nutritional value of the raw materials. Launched Steadfast Equine, a total structural health supplement that helps horses of all ages maintain their peak performance and wellbeing.

Directions: 2009 and Beyond

Provide innovative health, nutrition, safety and quality solutions that improve performance and deliver benefits to our customers and their stakeholders. Develop new and/or improved solutions that provide a higher ROI for our customers as well as sustainability characteristics. Continue implementing the Novus Management System so we can improve our managerial leadership, which will result in improved performance for Novus and its customers.

Performance

Objectives:

Through scientific research and development, create nutritional programs that reduce the environmental impact of animal agriculture. Help producers meet the nutritional demands of modern livestock while balancing environmental concerns, including improved use and management of inputs and waste. As feasible, protect the environment in all areas where we conduct business.

Highlights: 2007-08

Successfully passed the American Chemistry Councils Responsible Care audit of Novuss headquarters and Chocolate Bayou sites - no major findings. Invested $20 million in a new global headquarters and expansion of the Research Center, designed within the environmentally-focused framework of the U.S. Green Building Councils LEED program. Novuss blending plant in Indaiatuba, Brazil sustainably designed. Facility collects, cleans and or separates water, waste, and recyclables and minimizes energy use through smart control systems.

Directions: 2009 and BeyondLong-term plans are to continue reporting using the GRI format, and continue to attain a high-level of disclosure across Novus s own operations. Regularly review the opportunity to develop new sustainability projects in each of our world areas to develop win-win-win opportunities for Novus, our customers and other stakeholders. Continue developing and investing in solutions that reduce consumption of natural resources, improve use or conversion of nutrients and reduce waste to the environment.

Environment

Industry Challenges, Actions, and Future Plans | 11

is about finding new ways of living, working and innovating that meet individual, business, and society needs without compromising the needs of future generations. We continually work as an organization to assess how we can gear ourselves through innovative thought and action towards sustainable business practices and product offerings.

Objectives:Increase awareness and opportunities to improve management and control of food safety as it is a global public health issue. Reduce the outbreaks of foodborne disease globally, by providing appropriate preventative and intervention-type products and advice. Actively participate in the delivery of safe products to the public and help producers develop efficient systems to meet current and new regulatory food safety requirements.

Highlights: 2007-08Developed a test model with the University of Georgia for measuring the effectiveness in reducing transmission of Salmonella in broilers. The tests showed organic acids are an efficient tool for improving food safety. Grew ADVENT sales in the poultry market for control of coccidiosis. ADVENT coccidiosis control vaccine stimulates high protective immunity, reducing drug resistance and allowing antibiotic free production. Introduced CapturaTM AF, a free flowing mycotoxin binder specifically designed for the African market to control aflatoxins in animal feed.

Directions: 2009 and Beyond

Deliver quality to our customers by being present for initial new product processing and trials at our customers locations. Expand our geographic reach, especially in underserved markets, where we can improve animal agriculture and key aspects of food safety. Continue to work with our network of partners and customers to understand their issues and develop solutions and programs that will improve food safety, globally.

Food Safety

Objectives:

Ensure that our customers understand all the resources Novus has to improve the wellbeing of farm animals. Based on the local hierarchy of needs, work with producers to integrate valid, global public and political concerns as well as balance ethical and business perspectives. Develop programs that provide less stressful environments for animals and this will result in better performance, a lower occurrence of disease, and higher reproduction rates.

Highlights: 2007-08

Worked with customers in China to reduce skin infections on poultry farms by using a combination of education, advice and training, resulting in better overall health and lower mortality rates. Worked with producers to improve their sourcing by using IDEATM, a non-intrusive test kit developed by Novus, to help producers determine amino acid digestibility of proteins for animal consumption. Expanded sales of OASIS hatchling supplement, which is a hydrated nutritional formulation specially designed for the first days of life for poultry.

Directions: 2009 and BeyondOur long term plans are to continue reporting using the GRI format, and eventually reach complete disclosures in all areas. Work on establishing new tools for sharing Novuss and our industrys knowledge in a noncommercial setting. Expand training and education efforts with universities and our customers in order to raise standards as well as gain insights to key global and regional issues facing them.

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Animal Wellbeing

In order to grow responsibly, Novus identified four Critical Success Factors Growth, Profitability, People and Reputation that are the cornerstones in keeping our organization focused on factors important to our stakeholders.

Critical Success FactorsGrowthContinually assess and develop our portfolio of products, customers and suppliers, and implement performance-enabling programs and technologies to achieve a long-term competitive position.

At Novus, we are constantly looking for new ways to grow our company responsibly and in line with our critical success factors. We endeavor to expand our product line with new products in new markets, and become even more sustainable in all that we do. The companys growth will involve: partnerships and/or licensing agreements, acquisitions, organic development and geographic expansion. As part of organic growth, our Research and Development department diligently works to create new products that are environmentally friendly yet deliver the best quality and economic returns possible. Our Marketing, Sales and Operations teams are exploring viable opportunities to meet the needs of currently underserved markets around the world. They do this by working with

partners to develop and innovate value chains, discovering new ways of improving the food supply. Our teams also identify methods to upgrade food quality and nutritional value in emerging economies. One example of growth is through our partnership with Martek Biosciences Corporation. Novus sells their high-quality, all-vegetarian source of omega-3 fatty acids used for enrichment in food production. The product is a dried, non-GMO, wholecell algae that offers an eco-friendly sustainable supply instead of relying on fish oil. It has a higher efficiency of DHA incorporation than fish oil. This makes it a more environmental source of DHA enrichment, and it still delivers the proven human health benefits of DHA.

Increase Animal-Based Food Supply-To increase animal productivity while lowering operating costs. To demonstrate the value of amino acid supplementation, Novus partnered with the University of Illinois to conduct field demonstrations in commercial dairy herds. The goal of the study was to explore the effect of simple methionine supplementation. The study concluded that a producer could generate a 5:1 increase in milk and milk components by following the Novus program. The program can help increase the quality and volumeCritical Success Factors | 13

Corporate Council on AfricaThe Corporate Council on Africa (CCA) is at the forefront of strengthening and facilitating commercial relationships between the United States and the African continent. CCA works closely with governments, multilateral groups and businesses to improve Africas trade and investment climate, and to raise the profile of the continent within the U.S. business community. CCAs June program, Investing in Agriculture Links in Africa, brought together potential business partners and provides Novus an opportunity to develop a sustainable business in nations that will need to improve food quality and supply for nearly 1 billion people. As a gold sponsor for the event, Thad Simons and United States Secretary of Agriculture Edward T. Schafer Novus hosted a workshop titled, Education and Knowledge Building in Agriculture Production. Novus brings together partners that are investing in reducing risk and expanding their business presence in Africa. At Novus, we work to empower emerging markets by transferring our knowledge in the latest research and technologies related to animal health and nutrition, explains CEO Thad Simons. The Corporate Council on Africa is providing a platform for this type of open knowledge exchange. We applaud their efforts and are proud to be in partnership. of food while lowering the cost of production. This makes wholesome food accessible to a greater number of people. Improving performance in animal agriculture and thus foods affordability and accessibility is particularly important today, with increasing hunger becoming a more important global issue every year. Novus has practical experience in improving overall performance and reducing structural problems, increasing yield in both poultry and pork industries.

not-for-profit organization formed to build trust and confidence in the U.S. food system. It was formed to serve as a resource where consumers and other stakeholders could find accurate, balanced information about the food system and engage in constructive dialogue on important issues affecting the production and supply of food in the United States. Globally, todays food systems are comprised of many interdependent segments, from the farmers and ranchers who grow and raise our food, to the processors and food companies that package food products, to the restaurants and retail outlets that make it available to consumers. The food system is constantly changing and we want to provide information that helps consumers understand those changes and a forum for stakeholders to discuss them. Novus and the CFI believe the entire system can learn from individual companies or associations that have embraced sound principles and model best practices in agriculture. Sound principles and best practices can help the entire system improve performance and reduce the number of food safety incidents. Novus acts as a guide and offers products, principles and best practices that enable food chain participants to meet regulatory challenges in their operations, and achieve profitable and responsible business solutions. Our involvement in the CFI underscores Novuss commitment to provide sustainable solutions that positively influence the food chain, environmentally, socially, and economically.

Improving performance in animal agriculture and thus foods affordability and accessibility is particularly important today.

Food Safety

- Helping build consumer trust and confidence in contemporary food systems by sharing practical information with customers and consumers to help them understand how to prevent the spread of disease. Novus is an active participant and Board Member of the Center for Food Integrity (CFI). The CFI is a

Improved Sustainable Environment-Help producers meet nutritional demands of modern livestock while balancing environmental concerns. Minerals in the diet of farm animals are essential for optimum nutrition and performance, but they pose real environmental challenges. Many nutritionallyimportant minerals are very diffi-

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cult to absorb through an animals digestive system. Novus created special formulations of organic trace minerals (OTM) that have high digestive absorption rates. Novuss OTMs are more bioavailable to the animal at the point of absorption compared to other sources of trace minerals. This product provides higher mineral availability to the animal, better performance and a significant positive financial impact for the farmer. Users reduce the amount fed to their animals, while getting better performance and a calculated ROI of about 5:1 from using Novuss OTM solutions. Novuss mineral programs achieve farmers goals of animal performance and profitability with a positive environmental impact with reduced levels of minerals that enter the environment.

Reduced EnerGy ConsumptionIn 2007, Novus identified that one of its products, a key product in the performance management area, had more benefits than its intended use of moisture management through emulsification. Working with a German customer, we found that the products emulsifying action helped reduce their energy consumption at the feed mill. The resistance of the feed produced in the mixer/pelleter was lower and there was less wear and tear on their equipment.

profitablilityImplement improved business processes, measures and supporting systems that will move Novus closer to its customers and deliver increased year-over-year market value.

Novus has implemented quality programs and maintains traceability for the products we produce, so producers can rest assured that the Novus products ingested by animals are safe.Amino acid nutrition is extremely important in protecting the environment. Novus works with customers to develop feed formulations that deliver specific nutrients required by livestock. When the feed achieves this, the precise dosing results in a reduction in the amount of manure produced and minimizes the impact on the environment. Novus is co-sponsor of the Responsible Nutrition Project with Sindiraes, a trade organization in Brazil. This project brings together producers, academia and allied industry partners around nutritional strategies to reduce environmental impact of pork and poultry production. A Responsible Nutrition Guide combining the findings of the groups research and practical suggestions to reduce nitrogen, phosphorus and trace mineral pollution is being finalized and is expected to be published in early 2009.

Profitability is a key ingredient to sustainability as it is part of the triple bottom line that includes social and environmental factors. -Create solutions that help producers get the maximum value of by-products from renewable fuel production. Novus is developing technologies to help customers get maximum value of the by-products from renewable fuel production. Novus developed a screening tool to enable producers who use Distillers Dried Grain with Solubles (DDGS) as a feed ingredient to easily and accurately test the nutritional value of the product. DDGS, the by-product of corn-derived ethanol production, offers both opportunities and challenges for livestock producers. DDGS are an inexpensive livestock feed alternative, but their nutritional content is highly variable. In order to optimize muscle gain for a producers livestock, Novus developed a test kit that helps determine amino acid digestibility of DDGS. The result is more precise formulation of diets that improve profitabilityCritical Success Factors | 15

Renewable Fuel Sources

by lowering feeding costs while reducing nitrogen excretion into the environment. Additionally, Novus offers a line of enzymes to make the DDGS more digestible. Novus also recognizes that the issue of non-fossil energy sources is an important concern facing our global community. We have made

Novus: An Active Member of Key AssociationsNameACC ADSA AFIA AGQM CCA CFI FAMI-QS Asbl FEFANA GAA NASC NCC NPPC PFI PSA SSAFE UEP WAC WAF WAS

DescriptionAmerican Chemistry Council American Dairy Science Association American Feed Industry Association Arbeitsgemeinschaft Qualittsmanagement Biodiesel e.V. (Biodiesel Quality Management Association) Corporate Council on Africa Center for Food Integrity Feed Additive and Premixture Quality System European Association EU Feed Additives & Premixture Association Global Aquaculture Alliance National Animal Supplement Council National Chicken Council National Pork Producers Council Pet Food Institute Poultry Science Association Safe Supply of Affordable Food Everywhere, Inc. United Egg Producers World Affairs Council World Agricultural Forum World Aquaculture Society

Role/ActivityMember Member Member and Committee Member Member Member Board Member Member Member Member Member Allied Member Member Associate Member Member Member Allied Member Member Board Member Member

The use of local by-products and feedstuffs can help producers greatly reduce their operating costs. However, one of the challenges is assuring the quality and nutritional value of these products. Novus helps by applying a deep knowledge of food quality control with the use of antioxidants. Our technologies help producers leverage local resources. One example: Novus is helping aquaculture producers develop programs to support communitybased fish meal production. The rapid growth of aquaculture as an industry has spurred the demand for, and price increases of, fish meal. Novus offers sustainable solutions that allow our customers to reduce fish meal use and offer improved animal nutrition. Novuss platforms to improve lean muscle gain and gastrointestinal health of aquaculture resulted in the development of a product that partially substitutes fish meal without compromising performance. The fish meal is supplemented with a Novus product that is a source of methionine, organic calcium and organic acid to optimize overall performance at a lower cost. By leveraging Novuss products and approach, fish meal that is both consistent in quality and affordable can be produced at the local level. Producers can also enjoy the business benefit of significantly reduced feed expenses because the transportation and possible importation costs are reduced.

alternative fuels an area of strategic development and created a unique biodiesel stabilizer based on our deep knowledge of antioxidants. Novuss biodiesel stabilizer prevents oxidation from exposure to air, heat, light, trace metals, and temperature variations - allowing customers to utilize biodiesel over a longer time period. This makes biodiesel a more practical alternative.

Fresh Water Conservation

Use of Local By-products-Help producers greatly reduce their operating costs through the use of local by-products and feedstuffs that are of high quality with nutritional value.

- Create new technologies to protect water and its conservation. Aquaculture represents the fastest growing sector of global food production and is highly dependent on the use of fresh water. Novus is contributing to the conservation of fresh water through our new aquaculture initiative that helps producers lessen the environmental impact of aquaculture. For example, Novus developed an amino-acid based dietary supplement that makes feed highly digestible for carp, the most farmed fish species in the world. With the Novus solution, the level of undigested food passing into the water from

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Novus Receives NASCs Best Manufacturing Practices Certification

Arenus joined the National Animal Supplement Council (NASC) in November 2006 and successfully completed the initial Best Manufacturing Practices Certification audit from NASC in June 2008. Arenus received an A in the audit, which is the highest possible rating. The NASC is a voluntary certification organization that provides guidance to the companion animal health products industry for compliance with regulatory standards. Members must demonstrate compliance by: using accurate labels with complete ingredient listings, not making unsubstantiated claims on labels or in advertisements, manufacturing products under rigorous quality standards, and ensuring the safety of the the ingredients by tracking adverse events. Even though this certification is not obligatory to sell supplements in the companion animal industry, Novus completed this rigorous audit.

fish as pollution is reduced. From a business perspective, producers enjoy higher performance in their fish populations and improved feed costs through optimized rations. The result: better returns for farmers and less of an impact on the environment. Novus is also working on a complementary product line to improve water quality at the pond that will further contribute to fresh water conservation. Novus also sees opportunities to improve conservation at its own facilities. Working together with the city of Indaiatuba, Brazil, Novus installed a system for collecting rainwater to be treated and reused by our plant and municipality. We are expecting to collect over 80,000 liters of rainwater per year.

Responsible Care ManaGement System (RCMS)-A managed approach to environment, health, safety and security. Novus is RCMS-certified by the American Chemistry Council (ACC). Novus passed the RCMS, third-party audit of our Chocolate Bayou, Texas and Headquarter facilities. An RCMS framework helps deliver results in community awareness and emergency response, security, distribution, employee health and safety, pollution prevention, process safety and product stewardship.

CertificationsChocolate Bayou, TexasFAMI-QS GMP+ ISO14000 ISO9001 NASC Safe Feed/ Safe Food 4 4 EUREPGAP Iso22000 (HACCP) Critical Success Factors | 17 4 4 4 4 4 4 4 4 4 4

Little Gudensburg, Brussels, Rock, Germany Belgium Arkansas4 4 4 4 4

Indaiatuba, Shanghai, Headquarters, Brazil China Missouri4 4 4

Environmental Health, Safety, and Security (EHS&S)

Product Stewardship ProGramProduct stewardship goes beyond just complying with environmental, health, safety and security (EHS&S) regulations. It expands the focus of an EHS&S program to include minimizing product risk from inception, past the point of sale to ultimate disposal. It emphasizes interaction with the customer to assure proper use and to learn more about possible health or environmental impacts. Our code provides a way to manage a product through its life cycle. It also encourages continuous improvement in the EHS&S fields, always looking for better ways to make a safer product, to educate our customers and to encourage their feedback about our products. Novus has a product stewardship risk evaluation and management system in place. Our practice is to evaluate products through all stages of their life cycle to be sure that they: Deliver benefits to the end user. Are safe and environmentally sound. Meet product regulatory requirements of the countries in which we do business. Novus conducts a formal Product Safety Assessment on most new or modified products. These assessments address matters such as determining a clear understanding of product characteristics and expected uses. The assessment also includes conducting a review of available health, safety, environmental, exposure and regulatory information. The nature of Novuss business is such that many of our feed ingredient and vaccine products have been evaluated by the U.S. Food and Drug Administration (FDA), the U.S. Department of Agriculture (USDA), the Association of American Feed Control Officials (AAFCO) or other appropriate agencies in the United States and other countries in which we manufacture or market such products. Regulations on the use of such

Novus has a strong commitment to environmental responsibility, health, safety, and security. We responsibly design our manufacturing process, operational and transportation-related procedures with a focus on safety. Our record of protecting the public is bolstered by our strong ties to the communities in which we operate, and an active and open communication effort. We are dedicated to providing a safe and healthy workplace for all of our employees. The dedication of Novus to protecting employees and maintaining the highest safety standards was recognized in 1996 when the U.S. Occupational Safety & Health Administration (OSHA) awarded our Chocolate Bayou manufacturing facility with the OSHA Star Award. This award, OSHAs highest honor, recognizes outstanding safety and health standards. The Chocolate Bayou plant has retained OSHA Star status every year since 1996. Novus believes that all injuries, as well as safety, environmental, security and transportation incidents, are preventable. As such, our goal for all is zero. Our manufacturing and research and development facilities have had no reportable environmental releases since the inception of Novus in 1991. There have been no reportable transportation incidents in the history of the company.

products have been established based on thorough evaluations of EHS&S data. Potential risks are characterized, regulatory compliance is assured, and risk management practices are established where necessary and appropriate as an integral part of the decision on whether and how a product is marketed. The results of the Product Safety Assessment are communicated through Material Safety Data Sheets (MSDS), labels, and supplemental product stewardship information as applicable. Novus continues to monitor products even after they are marketed. As new health and safety data or new product use and exposure information become available, the information is analyzed and adjustments are made to the Product Safety Assessment, if needed.

peopleProvide a healthy worklife balance and accelerate development of employee programs that provide current and future opportunities for personal, professional and corporate growth, while adhering to our core values and management systems.

People are the core of our organization. We empower our employees so we all have a shared sense of commitment to responsible behavior and business practices. In doing this, Novus endeavors to maintain open, honest and fair communication for the benefit of all stakeholders. Novus actively seeks out opportunities and tries to create an environment within the company that challenges norms and keeps employees thinking forward in order to deliver fresh ideas.

LearninG & Individual DevelopmentManager Once Removed (MoR) Mentoring Process Novus takes the individual development of its employees very seriously and therefore has instituted the MoR Mentoring Process. MoRs

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Some examples of forwardthinking elements of sustainable design and construction found in our new global headquarters: Raised floor system that is salvaged from another project. Landscape design requiring zero irrigation, equating to thousands of gallons of water saved each year. Skylights and floor-toceiling windows to maximize the use of natural light. The use of rapidly-renewable and recycled materials throughout. A storm water system that will greatly reduce the environmental impact of runoff and quality to streams and eventually the Missouri River. Many interior finish materials manufactured with rapidly-renewable materials and certified wood products. 5,000 square feet of solar panels currently, the largest array in the state of Missouri.

are accountable for establishing development plans for their Subordinates-once-Removed (SoRs). MoRs are directly concerned with the talent pool and the long-range development of their SoRs. Through this mentoring process, MoRs work with each SoR individually with regard to that persons work future and career development, training and education, beyond that needed in his or her present role. SoRs discuss their aspirations and career opportunities within the company with their MoR, rather than their immediate managers. Novus Learning System We took steps over the past year to finalize the Novus Learning System and implement it throughout the company. Our goal is to establish a learning culture that provides growth opportunities to benefit individuals at Novus worldwide. We believe our system will enable our employees to be successful, while acting with integrity at all times. Novus held a week-long workshop with all of our managers and world area directors to discuss the new Novus Management System. This allowed management to learn new effective leadership techniques that will help our company culture flourish. Furthermore, our integrity system ensures that all of our employees

are acting fairly and honestly. Novuss new global headquarters is our symbol to the world and an expression of our sustainable efforts. The 90,000 square foot structure consolidates Novuss headquarters and the Novus International Research Center. The structure is designed within the environmentally-focused framework of the U.S. Green Building Councils Leadership in Energy and Environmental Design (LEED) certification. The global headquarters will accommodate many established and forward-thinking elements of sustainable design and construction. Our new global headquarters is also designed to give our employees the world-class facilities they deserve. Our building will capitalize on natural sunlight and circulates fresh air, conditions which appear to lead to a decline in illness and enhanced employee satisfaction. Studies have concluded that workers perform better with natural sunlight.2 This is just another step towards providing our people the best health standards available.

LEED BuildinG

Renewable EnerGy Credits (RECs)As a part of our ongoing commitment to implementing new sustainable projects, Novus has invested inCritical Success Factors | 19

Renewable Energy Credits (RECs). Novus has purchased 100% of the energy we use in renewable energy credits at our new global headquarters in the Saint Louis, Missouri, area. We want to do our part as a global company by investing in renewable energy; therefore we buy the corresponding amount (1.4 million kilowatt-hours (KWH) per year) of renewable energy we spend at the facility. Each KWh of clean, renewable electricity reduces the need for an additional KWH of what is often pollution-causing conventional electricity. The energy we buy is then put back into the power grid, providing environmental benefits for everyone from this displacement of conventional power.

cated to providing whatever support we could to the victims of the tragedy. Novus employed a matchgiving campaign with its employees that provided over $US 45,000 to the relief effort for those affected by the catastrophes.

reputationExpand on our positive image by initiating and supporting activities and programs that demonstrate Novuss integrity and aspirations to meet corporate objectives ever-more responsibly, in a sustainable manner.Novus has earned a positive image in the industry by our dedication to sustainability principles, by growing through science that creates products and services that help improve health and nutrition world-wide.

Direct Energy Consumptionfrom January 2007-June 2008Total Energy Usage Million BTU 1,166,995 Total Energy Usage Million KJ 1,231,180 Energy Use per KG of production (KJ per KG) 3,045

Novus InteGrity System

Total CO2 Emissions in Metric Tonsfrom January 2007-June 2008Direct CO2 Emissions Indirect CO2 Emissions from Electrical or Steam Supplier 8,722 54,704

Support for Communities

Novus has a matching program with its employees for contributions given to charities. We decided that contributions for the year would go to the United Way, which gives out money to various charities around the St. Louis community. People donate to the United Way for many reasons, but primarily to support our entire community by caring for one another. The United Way uses volunteers and paid personnel to manage how the funds are distributed and to ensure that the supported organizations use the money effectively. In 2007, Novus and its employees donated over $US 82,000 to the United Way. The disasters that fell upon Myanmar and China in May 2008 were a reminder that we must act as a united community to help those in need. As a global company, we have operations in Asia and were dedi-

It is fundamental to the philosophy of the Novus Vision that good ethics and good business are synonymous when viewed from moral, legal and practical standpoints. The Novus Integrity System (NIS) and its critical components are essential to our pursuit of the Novus Vision. The NIS, the Novus Management System, and Novuss employee policies are reminders of Novuss and each of its employees commitments to corporate and personal integrity. Commitment to each other, to our customers, and to the public are key parts of our effort to make Novus a company we can all be proud of. The trust and respect of all people fellow workers, customers, suppliers, the community, friends and the general public are assets that cannot be purchased. They must be earned every day. That is why all of Novuss business must be conducted according to the highest ethical, moral and legal standards. The modern business environment can present complex issues that challenge each of us to determine the right course of conduct. Since the Novus Integrity System cannot address every issue that will

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Top: 2008 students from China engaging in field work Above: Dr. Ma Deying, 2008 Novus Research Fellowship award recipient

arise, it is intended to provide the company with guidelines that will assist us in meeting these challenges. We strive at all times to make decisions that are not only lawful, but also morally and ethically sound.

Novus Sponsors Research and Shares KnowledGe World-WideThrough partnerships with scientists and universities on a global scale, Novus engages in knowledge transfer that helps scientists and universities address local issues as well as to help Novus gain insights into world agriculture. Researchers in countries such as China and India help Novus learn through Novus grants on how to solve local challenges. Novus can then use such understanding to determine how its products can help nations advance animal health and nutrition in a responsible way.

Graduate Scholars ProGramsNovus Graduate Scholars (China) The Novus Graduate Scholars (NGS) program was initiated in 2006 as a commitment by Novus to fund

four, two-year graduate scholarships at each of eight leading animal nutrition and health programs at universities across China. The program is intended to contribute to the development of up-and-coming scientists in animal agriculture and further our knowledge-sharing commitment. The goal: Create scientificallybased innovations to address key challenges facing animal agriculture. We feel a deep responsibility to transfer knowledge and technology to people around the world who can use it to improve farming practices in their local communities. Purposes: Encourage students in animal agriculture to develop strong research programs, helping them gain an international perspective of agriculture. Help Novus learn more about agriculture in China. Gain understanding of the university system, the professors and the students. Develop a network of technical collaborators to work with Novus in creating solutions for Chinas animal agriculture challenges. Novus Research Fellowship (China) The Novus Research FellowshipCritical Success Factors | 21

(NRF), awarded annually, is a twoyear grant made through a university department. This award was created to support the development of internationally competitive research programs with promising young scientists in China specializing in the field of animal nutrition and health. To qualify for the award, applicants must submit research proposals that are evaluated by a panel of renowned scientists.

encourages the continued growth of agriculture-related studies in the region. Auburn Research Award This annual award is presented to an Auburn University graduate student for research excellence in one or more areas of animal nutrition, metabolism, growth and development of health and disease. The 2007 award is being offered to Elias J. Bungenstab, who is currently researching the effects of poultry litter fertilization in forage-based cattle feed. Elias exemplifies the type of candidate Novus is proud to present this award to. He not only gets assistance in his pursuit of a Ph.D., but is developing a sustainable solution for the beef cattle industry.

Novus Contributes to ImprovinG Animal WellbeinG Standards- Help producers find ways to increase the wellbeing of farm animals; animals in less stressful environments have better performance, a lower occurrence of disease, and higher reproduction rates. Animal wellbeing is an increasingly important public and political issue around the world from both an ethical and business perspective. Novus collaborates with producers throughout the world to raise the standards of animal wellbeing. As previously mentioned, Novus worked with a leading poultry producer in China to improve the quality of life for animals that were experiencing structural health issues related to growth weight. In Southeast Asia, Novus has leveraged its expertise in poultry production and wellbeing to reduce problems associated with skin infections that can dramatically impact both quality of life and animal health and performance. Through our experienced and highly trained staff we were able to identify problems that led to a high incidence of skin infections and provide training, advice, and nutritional tools to reduce skin infection problems by 15%. By reducing the incidence of skin infections on-farm, these chickens had

2008 Novus staff and internship participants

The recipient of the 2008 NRF award was Dr. Ma Deying from the Institute of Animal Nutrition, Northeast Agriculture University in Harbin, China. Dr. Deyings winning proposal is related to alternatives to in-feed antibiotics in commercial poultry operations. Joint Research Agreement & Student Scholarships Bombay Veterinary College (India) Novus is sponsoring three veterinary students to conduct a two-year research project on organic trace mineral nutrition in poultry production with local needs. Our partnership with Bombay Veterinary College links the scientific talents of Novus with one of the oldest institutions in Asia, says Simons. This is a great opportunity for both partners to collaborate in a way that is mutually beneficial and22 | NOVUS International

better overall health with much less mortality. High water quality is important for humans and animals alike. In China, Novus has taken a special interest in this need and created a program for education and implementation of water quality plans with Nanjing Agricultural University. As a key member, a Novus presentation at the 2008 Animal Ecology Society Conference promoted the water quality program as it relates to animal wellbeing, health and subclinical loss. Novus now retains

Novus has made it a priority to make communication with stakeholders an integral part of how we do business.

executive membership with the National Animal Ecology Society, and has plans to continue to foster the growth of this program. Globally, the quality of animal feed can be a major concern for animal wellbeing. Animal feed that has spoiled or is contaminated with naturally-occurring toxins can dramatically impact wellbeing and performance by making animals sick, more prone to diseases, or lead to developmental or structural problems. Novus has developed a suite of technologies that identify high quality ingredients, eliminate harmful substances from animal feeds, and preserve and protect feed from environmental factors that can damage the nutrients inside. Through these products and our expertise at applying them, Novus has had a positive impact on animal wellbeing and performance around the world.

Communication with StakeholdersWe understand that Novus has a responsibility to listen to all of its stakeholders in how we do business. For that reason, Novus has made it a priority to make communication with stakeholders an integral part of

all we do. Our goal is to improve our understanding of their needs and to make sustainability a reality in the world in which we operate. We are currently working with a number of organizations to discuss sustainability issues. For example, we recently held our first sustainability roundtable and continue to take part in the World Agricultural Forum. Novus participated in the 2007 World Agricultural Forum (WAF) held May 8 to10 in St. Louis. Our mission at Novus aligns with the WAF goals and we are proud to support this unique and valuable organization, says Novus CEO Thad Simons. The WAF Congress meets every two years in St. Louis, uniting global leaders of industry, government, civil society, and academia to identify solutions to enable sustainable agri-systems capable of contributing to global economic development. The theme of the 2007 congress was Creating Prosperity through Investments in Agriculture and key discussions focused on infrastructure development, trade, water and bioenergy. As an official sponsor and exhibitor, Novus held its first-ever sustainability roundtable as part of the WAF . Novus held the think tank with over 40 executive-level members of the global animal agriculture industry and two members of the International Finance Corporations (IFC) agribusiness department. The roundtable helped establish the need for a balance between helping customers reduce their environmental footprint and reducing our own. As part of our continued commitment to furthering the WAFs mission, Novus provides financial assistance and helps provide oversight in bringing in new members to carry out agricultural economic development throughout the world. We work towards improving the quality of life within the communities we do business, because we are also a part of them.

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Publishing a sustainability report is new for Novus, but there is nothing new about Novuss dedication to corporate responsibility and sustainability. Weve been an active participant and supporter of sustainability efforts since our company was formed 17 years ago. Over that period, our Core Values have not changed. We remain dedicated to the triple bottom line of environmental, social and economic factors in all products we produce and solutions we provide for our customers and stakeholders.

SummaryNovus exists because our stakeholders and health and nutrition customers exist. As a result, Novus continues to develop and provide innovative solutions that address the environmental, social, and economic issues they face in a sustainable manner. One huge issue facing both Novus and the entire food production system from poultry to aquaculture is that global population is on the rise. In order to remain sustainable, Novus must aspire to develop innovative products, programs, and solutions that positively impact the triple bottom line.

As demand for animal protein increases on a global scale, acting responsibly will have a positive influence on the environment, food safety, animal wellbeing and the performance of our customers as well as our own performance. Furthermore, acting responsibly will result in sustainable, long-term benefits for generations to come. Because of actions we have taken to position our company in the past, we are able to respond to our goal of the triple bottom line today and into the future on a global scale. Looking at additional actions we are implementing today, Novus looks forward to reporting on its performance again in 2009 and beyond.

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Abbreviations, References and TablesABBREvIATIONS AAFCO: American Association of Feed Control Officials CFI: Center for Food Integrity CSR: Corporate Social Responsibility DDGS: Distillers Dried Grain with Solubles DHA: Docosahexaenoic acid, an omega-3 essential fatty acid EHS&S: Environmental, Health, Safety & Security FDA: U.S. Food and Drug Administration: GMO: Genetically Modified Organism GRI: Global Reporting Initiative GMP+: Good Manufacturing Practices plus Hazard Analysis Critical Control Point (HAACP) IFC: International Finance Corporation ISO: International Organization for Standardization, a worldwide organization that develops many different kinds of standards 9001: ISO 9001 is a procedural and documentation system that assures customers that a company has a good Quality Management System. 14000: ISO 14000 is a procedural and documentation system and provides requirements for environmental management systems for organizations wishing to operate in an environmentally sustainable manner. REFERENCES:1 2

LEED: Leadership in Energy and Environmental Design MoR: Manager Once Removed MSDS: Material Safety Data Sheets NGS: Novus Graduate Scholars NHN: Novus Human Nutrition NIS: Novus Integrity System NNB: Novus Nutrition Brands NRF: Novus Research Fellowship NGOS: Non-Governmental Organizations OSHA: U.S. Occupational Safety and Health Administration OTM: Organic Trace Minerals REC: Renewable Energy Credits ROI: Return on Investment SoR: Subordinate Once Removed

Gro H. Brundtland. Heschong Mahone Group, Inc. Windows and Offices: A Study of Office Worker Performance and the Indoor Environment CEC PIER 2003.

TABLES:

Employee DataTotal Employees Female Employees Male Employees Senior Management 401 149 (31%) 252 (69%) 31 people (8%)

Employees by RegionNorth America EAME Latin America - S Latin America - N China Australia Singapore APEC 180 58 30 17 63 6 7 40 45% 14% 7% 4% 16% 2% 2% 10% Glossary and Abbreviations | 25

*Novus International does not condone or allow child labor or any forced or compulsory labor in any of its operations around the world

GRI IndexVision and Strategy1.1A Message from the President Pages 6-7

Profile2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10Name Primary products Operational structure of the company (divisions, subsidiaries) Location of headquarters Countries of operation Nature of ownership Markets served Scale of organization Significant changes Awards received Novus International, Inc.; Page 3 Company profile: Pages 3-5 Pages 3-5 Saint Charles, MO; Pages 3, 21-22 Company profile: Page 4 Page 3 Company profile: Pages 3-5 Company profile: Pages 3-5 New headquarters; Page 19 None

Report Parameters3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.10 3.11 3.12Reporting period Previous report Reporting cycle Contact point Process for defining report content Boundary of the report Any specific limitations of the report Basis for reporting on subsidiaries Explanation of any restatements from previous reports Significant changes from previous reports GRI contents index 1 January, 2007-30 June, 2008; Pages 8-9 This is Novuss first Sustainability Report ever; Pages 8-9 Annual; pages 8-9 Contact us: Page 28 Pages 8-9 Pages 8-9 Pages 8-9 Page 9 None None This page

Governance4.1 4.2 4.3 4.4 4.14 4.15Governance structure Chairman of Board different than CEO Board Structure How shareholder and employees provide recommendations to the board List of stakeholder groups engaged by organization Basis for identifying stakeholders to engage Pages 4-5 Yes; Page 5 Page 5 Via executives; Page 5 Page 16 Page 23

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GRI IndexKey Performance IndicatorsEconomic Disclosures EC2 EC7Financial implications due to climate change Local recruitment Reference Feed International, July/August 2008. Page 25 , The Novus policy is to hire locally in each area of the world we are located.

Environmental Disclosures EN3 EN16 EN19 EN23Direct energy consumption Direct and indirect greenhouse gas emissions Emissions of ozone-depleting substances Total number and volume of significant spills Page 20 Page 20 Page 20 Page 20 , No significant spills at our facilities. Small incidents related to transportation have been resolved quickly and in an environmentally responsible manner.

Social Disclosures Labor Practices and Decent Work LA1 LA4Total workforce data Collective bargaining agreements Page 25 Novus has no employees covered by collective bargaining agreements. Page 25 Page 25 Page 5 , Deloitte and Touche LLP completed an anti-fraud assessment and found no deficiencies as of 31 March, 2008. Page 5 , The Novus Integrity System addresses Prohibited Payments and the Foreign Corrupt Practices Act. All employees receive training on the NIS policies, and are required to certify each year that they know of no violations with respect to the NIS policies. Novus expressed concern regarding Docket ID No. EPA-HQ-OAR-2008-0380. We advised the U.S. Environmental Protection Agency (EPA) to take a balanced position on the Renewable Fuel Standard (RFS) mandate for the production of ethanol derived from grain. Novus suggested that the U.S. EPA should consider Governor Perrys (Texas) petition and study his request to reduce the RFS by 50% for 2008. Competition between corn for ethanol for food or fuel was becoming intense and mandating levels of fuels derived from grains could have led to an allocation away from food, when demand for food was growing rapidly as well. Pages 17-18 , 100% of our products are registered through government agencies throughout the world.

Human Rights HR6 HR7 Society SO2 SO3Analysis of risks related to corruption Child labor Forced or compulsory labor

Employees trained in anti-corruption policies and procedures

SO5

Participating in public policy development and lobbying

Product Responsibility PR3Product and service information and disclosures

GRI Index | 27

Contact UsIf you have comments on Novuss Sustainability Report, or would like further information, please follow the links on our web site, www.novusint.com. Alternatively, you can contact the Sustainability Report Team by sending an e-mail to sustainability@novusint.com, or in writing at:

Novus International, Inc. 20 Research Park Drive St. Louis, MO 63304 United States of America Attn: Sustainability Team

Please provide your name, affiliation and postal and/or email address. Copies of Novuss Sustainability Report can be obtained electronically at www.novusint.com

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