SCOTTSDALE, Ariz., Apr 28, 2004 -- Desert Health Products, Inc. (DHPI) (Frankfurt Stock Exchange:DEH) headquartered in Scottsdale, Arizona, announced today that it entered into a ten-year joint venture with Hebei YiXian Food Company of China to jointly invest in a new cooperative company in China. The new company will provide to the Chinese marketplace a new generation of nutritional drink.
Hebei YiXian Food Company of China was established in 1975 and has over 700 employees. The total investment by both parties in the joint venture is RMB 3,800,000, of which approximately 70% will be contributed by the Chinese company, with 30% to be contributed by DHPI, which is the estimated value of DHPI's Chinese approved trademark and technology.
The objective is to take full advantage of Hebei's manpower, resources and superior marketing ability in China, to process and market a new generation of nutritional drink, with estimated sales of a minimum of 15,000,000 bottles per year.
According to Johnny Shannon, Chairman and CEO of DHPI, "We are very proud of the tremendous work that has gone into this joint venture agreement by Ms. Zhong Jianjian, Chief Agent and Office Manager in our Beijing, China office. The Chinese partner estimates that Desert Health's royalty on the 15,000,000 bottle sales will translate into over USD 100,000 per year, and will establish an important value on our Class 5 trademark and logo in the international marketplace."
Desert Health is an international distributor of nutrition and dietary supplements, engaged in the sale and distribution of branded and store brand (private label) vitamins, nutritional supplements, skin care and animal care products. DHPI has global distribution capabilities and offers a choice of turnkey or customized private label options.
Safe Harbor Statement: This release contains statements that are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current estimates and projections about Desert Health Products, Inc.'s business, which are derived in part on assumptions of its management, and are not guarantees of Desert Health Products, Inc.'s future performance, as such performance is difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. Such factors include, but are not limited to, those described in Desert Health Products, Inc.'s Annual Report on Form 10-KSB for the year ended December 31, 2003, and its Quarterly Report on Form 10-QSB for the three-month period ended September 30, 2003, which are filed with the U.S. Securities and Exchange Commission. Readers of this release are referred to those filings. Desert Health Products, Inc., does not intend to update any of these forward-looking statements after the date of this release.