WEST PALM BEACH, Fla., Aug. 19 -- Health & Nutrition Systems International Inc. (OTC Bulletin Board: HNNS) announced today the sale of its brand Acutrim(R) to Amerifit, Inc. a Delaware corporation. For more information about Amerifit Inc. visit: www.amerifit.com.
The specific terms of the transaction were not disclosed as per the agreement. The sale of Acutrim was consistent with the Company's strategy to focus on its core brands. Management decided that the cost to resuscitate and position the Acutrim(R) brand would not generate a sufficient return for the Company. HNNS will use the proceeds generated by this transaction to reduce its promissory note that is currently outstanding with Garden State Nutritional.
The Acutrim(R) brand was acquired in January 2001, and comprised 22% of the Company's sales for that year. For 2002, Acutrim(R) sales were 18% of the Company's sales. For the first six months of 2003, Acutrim(R) accounted for 7% of the Company's sales.
HNS develops and markets weight management products in over 25,000 health, food and drug store locations. The Company's products can be found in CVS, GNC, Eckerd's, Rite Aid, Target, Vitamin Shoppe, Vitamin World, Walgreens and Wal-Mart. The Company's HNS Direct division distributes to independent health food stores, gyms and pharmacies. For more information, visit: http://www.hnsglobal.com/.
Detailed results from this quarter can be obtained at www.freeedgar.com.
This news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, as amended, and is subject to the safe harbor created by these sections. These forward-looking statements concern the Company's operations, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. Such factors and risks include, among others, the factors described in the Company's filing with the Securities and Exchange Commission, the recent terrorist attacks on the United States, possible responses by the U.S. government, general economic conditions, consumer confidence and changes in consumer preference, introduction of products that compete with the Company's products, and the availability and deployment of capital. Finally, recent government action and the surrounding publicity regarding ephedra-containing products may make it difficult for us to obtain and maintain product liability insurance for our products containing ephedra at current premiums. Certain of these factors and risks, as well as other risks and uncertainties are stated in more detail in the Company's annual report on Form 10-KSB. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why the actual results could differ from those projected in the forward- looking statements.