Good Grains International, Inc.

Competitive Advantage

In order to capture a share of the market, the Company will focus on oilseed product uses targeting human consumption.

The following table compares the protein content of various staple foods, demonstrating the extraordinary strength and viability of the Sweet White Lupin bean.

Table 4

Comparison of Protein Content of World Staple Foods

Staple Food Category	Protein (grams) per 1000 Calories of Food	Protein (grams) per 100 grams of Food
Lupin	92.29	35.9
Soybeans	84.62	34.1
Eggs	79.14	12.9
Hamburger	66.79	17.9
Cheese	62.81	25.0
Milk	52.85	3.5
Peanut	46.10	26.0
Wheat	42.42	14.0
Millet	30.28	9.9
Potatoes	27.63	2.1
Corn	25.57	8.9
Rice	20.83	7.5

*Data provided by the Handbook of Nutritional Contents of Food

As indicated above, soybeans are the best source of protein among the world's staple food sources. The recognition of this fact by the food industry, by consumers and producers, has allowed soybeans to capture the dominant share of the edible oilseed market.

The Sweet White Lupin bean is superior to the "miracle food" soybean in many categories and comparative nutritional characteristics, important to human health and to the human diet. These include digestible protein, calories, fat and carbohydrate content, amino acid content and fiber.

Table 5

A Comparative Essential Amino Acid Profile

Source	Arginine	Lysine	Histidine	Threonine	Valine	Methionine	Isoleucine	Leucine	Phenylalaline
Lupin	4.13	1.61	.68	1.17	1.30	0.24	1.41	0.32	1.10
Cassava	0.29	0.07	0.07	0.03	0.04	0.03	0.03	0.31	0.03
Corn	0.43	0.25	0.26	0.35	0.44	0.17	0.35	1.21	0.48
Rice	0.57	0.27	0.14	0.24	0.44	0.16	0.31	0.56	0.33
Wheat	0.59	0.37	0.29	0.38	0.57	0.18	0.47	0.87	0.61
Triticale	0.47	0.88	0.64	0.57	0.21	0.67	1.21	0.76	0.84

To emphasize its comparative viability, the above chart demonstrates the dramatic superiority of Sweet White Lupin over several principal, non-soybean sources of essential amino acids.

Table 6

Nutritional Composition Per 100 Grams of Food

Per 100 Grams of Food	*Lupin Beans (grams)	**Soybeans (grams)
Protein	35.9	34.1
Calories	389.0	403.0
Fat	9.1	17.7
Carbohydrates	19.4	33.5
Fiber	10.0	4.0

*Lupin data provided by International Nutrition and Genetics Corporation
**Soybean data provided by the Handbook of Nutritional Contents of Food

As indicated above, Sweet White Lupin is superior to the soybean in each of the above critical categories. Sweet White Lupin beans are equal to or higher than soybeans in digestible protein, lower in calories, nearly 50% lower in fat and carbohydrates, lower in -cholesterol and contain twice the amount of fiber.

Another of Sweet White Lupin's advantages over soybeans is that Lupin is very low in digestive inhibitors such as Trypsin and Chymotrypsin, Lectins and Saponins and therefore do not require expensive processing or heating to 180 degrees before they can be consumed. Trypsin, quite common in the soybean, is known to interfere with digestion, causing problems for sensitive as well as healthy people and animals, resulting in gas, intolerance, allergies and other unpleasantries. Studies by Romana (1983) indicate that the digestibility of Lupin protein and oil is superior to the digestibility of soybean protein and oil. The further presence of phytic acid in soybeans binds itself to minerals such as calcium and zinc in the diet, reducing their bio-availability. High levels of Saponins and Lectins present in the soybean and negligible in Lupins act as gastric irritants (Table below). As indicated (previous table), Lupin seed is high in dietary fiber, a characteristic typically associated with cholesterol lowering ability.

Table 7

Anti -Nutritional Factors in Lupins and Soybeans

Digestive Inhibitor	L. Albus I (Lupin)	G. Max 2 (Soybean)
Phytate (%)	0.79	1.59
Trypsin inhibitors (mglg)	0.13	17.90
Saponins (mg/kg)	nd	19000
Totalphenolics (%)	0.37	0.57
Lectins	-ve	+ve
Oligosaccharides	6.69	5.70
Alkaloids	0.01	nd

*Petterson and Mackintosh (1994)
*Petterson et al (1986)
*nd: not determined

In the processing of soybean meal, the natural oils and fibrous seed coat are removed, and the proteins are structurally altered by heating, in order to deactivate the Trypsin inhibitors, Lectins, and other heal-labile compounds that interfere with digestion. It is generally agreed that chemical processing and high temperature baking devitalize foods by leaching vitamins, minerals, amino acids and other essential nutrients. Baking and processing is unnecessary in Sweet White Lupins because the interfering compounds are not present in any significant amounts.

All legume seeds contain certain sugars, which plants store for the benefit of their seedlings. These sugars may or may not be easy to digest. Soybeans, like pinto, navy and lima beans, store the complex sugars, raffinose, stachyose and xylose. Human and most higher animal digestive enzymes are unable to break down such sugars easily, thus they are not absorbed into the system. Instead, they are attacked in the intestinal tract by microorganisms, producing flatulence or intestinal gas. This is the case with peas, lentils, and a host of familiar gassy legumes. As Hippocrates pointed out, Lupins are not a gassy bean. Their sugars are mostly simple and are easily broken down and absorbed. Flatulence caused by pet food products is a growing concern for the pet food industry, and some companies have expressed their interest in switching from soy to Lupin meal. Similarly, due to ease of digestion, Lupin meal is a compelling new ingredient for use in baby foods and infant formula, and specialized foods for senior citizens, in efforts to boost nutrition, while reducing digestive stress. Such qualities are likely to be beneficial to all people.

The Sweet White Lupin bean, by virtue of its own quality and make-up, is an equal or superior alternative to the soybean for human consumption and may be used as a direct replacement for existing soybean extracts, derivatives and value-added industrial and commercial food ingredients. Principal soy end-products include soybean oil, soybean flour, soybean fiber and soy protein isolates. Though less complicated, less costly and requiring fewer steps, the processes used in the production of Lupin oil, Lupin flour, Lupin fiber and other Lupin extracts and derivatives are nearly identical to the processes used in the production of the soy industry's principal products.