ENZY Enzymotec Ltd. - Ordinary Shares (delisted)

Enzymotec Ltd. (Nasdaq:ENZY) (the "Company"), a developer, manufacturer and marketer of innovative bio-active lipid ingredients, reports that it was informed today that AarhusKarlshamn AB, or AAK, a Sweden-based, global producer of specialty oils that is Enzymotec's joint venture partner in Advanced Lipids AB, submitted a claim for arbitration against the Company seeking certain declaratory relief with respect to the joint venture agreement.

As disclosed in detail in the Company's filings with the Securities and Exchange Commission, AAK is of the view that the Company's disclosures in connection with its initial public offering violated the non-disclosure obligations related to Advance Lipids contained in the joint venture agreement. The Company believes that its disclosures in connection with its initial public offering were in compliance with the joint venture agreement. The Company held various discussions with AAK on this matter over the past few months and did not reach an agreement. AAK has now submitted a request for arbitration to the International Chamber of Commerce in the Netherlands seeking a determination of the arbitrators that the Company's disclosure of information was an intentional, material breach of the joint venture agreement. The request indicates that AAK believes AL is exposed to likely damage in the future as a result of the level of disclosure that the Company made about it; however, it does not provide any specific instance of this having occurred. The request does not state a measure of damages, seek termination of the joint venture agreement or seek to determine what harm, if any, was caused to Advance Lipids or AAK. In addition, the request for arbitration seeks declaratory relief as to the correct interpretation of certain provisions of the joint venture agreement concerning the period of time during which the buy-sell mechanism included in the agreement may be triggered.

The Company believes that the claims made by AAK are without merit and intends to vigorously defend its position. Under the joint venture agreement, pending such dispute, the parties are required to continue to conduct the operations of the joint venture in accordance with the agreement.

Forward Looking Statements

This release may contain forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences the following risks: we depend on third parties to obtain raw materials, in particular krill, necessary for the production of our products; a high proportion of the sales of our InFat product is sold to end users by a single company in China; we are subject to a degree of customer concentration and our customers do not enter into long-term purchase commitments with us; we may be required to pay royalties on sales of our krill products in North America and Australia; we have in the past, and may in the future, become subject to litigation regarding intellectual property rights or other matters; our offering of products as ''medical foods'' in the United States may be challenged by regulatory authorities; we rely on our Swedish joint venture partner to manufacture InFat, and certain matters related to the joint venture are the subject of disagreement; we are dependent on a single facility that houses the majority of our operations; we may be impacted by delays in manufacturing as we expand our capacity; we may not be able to expand our production or processing capabilities or satisfy growing demand; our gross profits may be adversely affected if we are only able to obtain lower quality krill meal; our ability to obtain krill may be affected by conservation regulation or initiatives; our product development cycle is lengthy and uncertain, and our development or commercialization efforts for our products may be unsuccessful; we are subject to significant and increasing government regulations regarding the sale and marketing of our products; we may not be able to protect our proprietary technology or prevent its unauthorized use by third parties; and other factors discussed under the heading "Risk Factors" in the Company's Form 20-F filed with the Securities and Exchange Commission on February 13, 2014. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

About Enzymotec Ltd.

Enzymotec is a leading global supplier of specialty lipid-based products and solutions. The Company develops, manufactures and markets innovative bio-active lipid ingredients, as well as final products, based on sophisticated processes and technologies.

CONTACT: Company Contact:
         Enzymotec Ltd.
         Oren Bryan
         Chief Financial Officer
         Phone: +972747177177
         ir@enzymotec.com
         
         Investors Contact (US)
         ICR
         Katie Turner
         646-277-1228
         Katie.Turner@icrinc.com
         
         John Mills
         310-954-1105
         John.Mills@icrinc.com