Expanded Product Line offers Innovative New Products and Broad Range of Applications

CENTENNIAL, CO , March 25, 2014 - Penford Corporation (NASDAQ: PENX) a leader in ingredient systems for food and industrial products, announced today that it has completed the acquisition of Gum Technology Corporation, a gum and hydrocolloids blending, services and distribution company serving primarily the food and beverage industries.

"Gum Technology's product line, culture, and approach to the market are aligned with Penford's and with our efforts to build our specialty ingredients businesses.  Both teams are enthusiastic about opportunities to create value for customers through technology, product innovation and technical service," said Tom Malkoski, Penford Corporation CEO.  "With our expanded product line, we can offer customers a choice of innovative new products and a broad range of applications."

As a business unit of Penford Food Ingredients, Gum Technology will continue to offer a range of gums and other hydrocolloids throughout North America and Asia. Gum Technology's products are found in a wide variety of food products including beverages, sauces, bakery, frozen foods, jams and fruit fillings, spice blends, dairy applications, and nutraceuticals. They will be marketed under the current brand names, which have strong name recognition and an outstanding reputation throughout the industry.

Penford Corporation's non-GMO portfolio is the foundation for new specialty ingredient systems using Gum Technology's Coyote Brand® gums and GumPlete™ stabilizer systems.  Penford's product portfolio includes clean label and modified starches from potato, corn, rice and tapioca, PenFibe® dietary fibers and PenDure™ vegetable-based proteins.

Penford also plans to explore new opportunities to expand its industrial bio-products business through innovative starch-gum composite products.

About Penford Corporation

Penford Corporation develops, manufactures and markets specialty ingredient systems for a variety of food and industrial products. Penford operates six manufacturing facilities and three research and development centers in the United States.

For more information on products and sales, please contact Jennifer Stephens, Marketing Manager (303) 643-1689.

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