Bellevue, WA, September 1, 1998 - Penford Corp. Tuesday said it distributed 11 million shares of its unit Penwest Pharmaceuticals Co. Inc. as it completed a planned spin-off of the drug research wing to Penford shareholders.

Penwest researches, develops and sells drug delivery technologies and makes and distributes excipients that are used in binding, disintegrating and lubricating tableted products.

The spin-off represents the culmination of the plan announced last year by Penford Corporation to foster the growth potential of its pharmaceuticals business and, separately, its specialty paper chemicals and food ingredients businesses, which will be the continuing businesses of Penford Corporation.

The distribution occurred Monday to shareholders of record on Aug. 10, the company said in a statement. Penwest is listed on the Nasdaq National Market under the symbol PPCO.