HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Nov. 11, 2002--Twinlab Corporation (Nasdaq:TWLB), a leading manufacturer and marketer of high quality, science-based, nutritional supplements, announced today that it will discontinue selling ephedra-containing supplements effective March 31, 2003 and will focus its efforts on meeting consumer's needs with clinically proven, non-ephedra products in the diet and energy category.
"We were recently granted a U.S. patent on one of our weight loss formulations which puts us in a unique position to respond to the growing consumer demand for efficacious ephedra-free products," stated Ross Blechman, Twinlab's Chairman, President and Chief Executive Officer. "We are excited to move forward aggressively in the ephedra-free diet and energy category using our technological expertise to answer consumers' weight loss needs."
Twinlab has launched a line of patented and clinically tested ephedra-free products under its leading national brands, including Ripped Fuel, Diet Fuel and Metabolift. In a recent clinical study, the Company's ephedra-free product formula illustrated significant weight loss results and an average 13% body fat decrease in study participants. The brands will be supported with an aggressive advertising and promotion plan to generate significant consumer awareness and trial.
"We believe this is a sound business decision in the current climate of escalating insurance costs, and regulatory uncertainties, and are confident that our long history of providing safe and effective products, combined with our superior product technology, will make this a positive move for the Company, its customers and consumers," added CEO Blechman.
Except for historical information contained herein, this release contains, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: (i) the impact of competitive products; (ii) changes in law and regulations; (iii) adequacy and availability of insurance coverage; (iv) limitations on future financing; (v) increases in the cost of borrowings and unavailability of debt or equity capital; (vi) the effect of adverse publicity regarding nutritional supplements; (vii) uncertainties relating to acquisitions; (viii) the inability of the Company to gain and/or hold market share; (ix) exposure to and expense of resolving and defending product liability claims and other litigation; (x) consumer acceptance of the Company's products; (xi) managing and maintaining growth; (xii) customer demands; (xiii) the inability to integrate and consolidate its manufacturing and distribution facilities and achieve cost savings and operational efficiencies; (xiv) dependence on individual products; (xv) dependence on individual customers, (xvi) market and industry conditions including pricing, demand for products, levels of trade inventories and raw materials availability, (xvii) the success of product development and new product introductions into the marketplace including the Company's line of ephedra-free products; (xviii) lack of available product liability insurance for ephedra-containing products; (xix) slow or negative growth in the nutritional supplement industry; (xx) the departure of key members of management; (xxi) the absence of clinical trials for many of the Company's products; (xxii) the ability of the Company to efficiently manufacture its products; as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations department.
Additional Twinlab information is available on the World Wide Web at: http://www.twinlab.com.