Biotec Foods Sues Recently Purchased Vitarich Labs for Conspiracy and Trademark Infringement

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Biotec Foods filed suit against Vitarich Labs for conspiracy to violate their U.S. Trademarks and allegations of corporate identity theft.

Biotec Foods, a division of Agrigenic Food Corporation, a Huntington Beach based manufacturer, packager and distributor of the renown Biotec Foods, Biomed Foods and Biovet International brands of dietary supplements, has filed a lawsuit in the United States District Court for the Central District of California alleging that Vitarich Laboratories, a Florida based manufacturer, packager and distributor of nutraceutical products, and its founder Kevin J. Thomas, along with ten other related-party defendants, have conspired to violate Agrigenic's registered and common law trademarks in spite of an existing US District Court order and injunction which prohibited the activity.

Vitarich was recently purchased and brought into the fold of Argan Inc, (OTCBB; BSE: AGAX.OB; AGX) a publicly traded holding company. According to documents filed with the Securities and Exchange Commission, Argan Inc, paid approximately twelve million dollars in cash and common stock to Vitarich company founder, Kevin J Thomas in order to purchase the company.

The newly filed lawsuit charges Kevin J. Thomas, the former chairman and CEO, of Vitarich Laboratories, Inc., and ten related defendants with conspiracy to violate Agrigenic Food Corporation's U.S. Trademarks, Cyberpiracy and False Designation of Origin, and includes allegations of corporate identity theft and fraud.

A related contempt proceeding is scheduled to be heard as early as Monday, January 10th, 2005 in the U.S. District Court located in Los Angeles, CA. Thomas and other defendants are expected to attend the hearing.

Agrigenic Food Corporation is a closely held firm operating through its related party service corporation, Arise Direct Marketing, Inc., located in Huntington Beach, CA.

Robert Kavanaugh, Agrigenic's company president stated, "The lawsuit is related to a contempt proceeding now before the Court, and was filed to address the unlawful conspiracy discovered while preparing to prosecute the contumacious trademark infringements which have frustrated our company's growth since at least 1999."

Agrigenic Food Corporation has posted the full text of the complaint and related pleadings including the evidence supporting their allegations on their website located at http://www.biotecfoods.com/lawsuit.

Kavanaugh further stated, "Without the invaluable assistance from our loyal customer base, the facts of this case may never have been known to us. We are deeply indebted to our customers for their continued support."

Vitarich Labs was purchased by Argan, Inc., on August 31, 2004. None of Argan Inc., officers or directors was implicated in any of the allegations of wrongdoing.

Vitarich Labs has experienced substantial growth over the past few years, growing from $7 million worth of revenue in 2000 to approximately $17 million over the past 12 months.

Formed in 1992, Vitarich Labs supplies over 800 brand name nutritional supplements for distribution to retail outlets.

Biotec Foods, a division of Agrigenic Food Corporation, grows and processes nutritionally dense food concentrates in bulk form for sale to distributors and manufacturers and for sale as finished goods to retailers using their own trademarks including Cell Guard, Ageless Beauty, Extra Energy Enzymes, Pacific Sea Plasma and Anti-Stress Enzymes. Agrigenic Food Corporation also manufactures and distributes their Biomed Foods and Biovet International line of supplements.

The complete docket file for both the original civil action and contempt proceeding (Case No. CV 99-02283-CAS-MANx) and the newly filed civil action (Case No. CV 04-10585-DT-CTx) are available on-line through the United States District Court for the Central District of California's public access to court electronic records (PACER) system. For more information about PACER, contact the PACER Service Center at http://www.pacer.uscourts.gov.

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Robert Kavanaugh