U.S. District Court Issues Injunction Against MM USA In Suit Brought By Degussa Bioactives

Degussa BioActives filed a Complaint on February 15, 2002 against Muscle Marketing USA, Inc. asking the federal U.S. district court in Los Angeles, California, to force Muscle Marketing to stop making false claims about powdered creatine, a nutritional supplement that enhances exercise performance. In its Complaint, Degussa BioActives had identified what it regards as scientifically false and deceptive statements and claims made by Muscle Marketing USA about creatine powder.

Degussa BioActives is pleased to announce that it has been fully successful in the litigation and that Muscle Marketing, its affiliates, and anyone acting in participation with them have been precluded, by court injunction, from making such statements and claims about creatine powder and its stability, safety, and effectiveness.

An Injunction was entered by the Court on January 13, 2004, providing as follows:

“In the United States District Court for the Central District of California
Case no. 02-01390 RGK (Ex)

Degussa BioActives Sales US, Inc., Formerly Known as Traco Labs, Inc. Plaintiff v. Muscle Marketing USA Inc., et al., Defendants.

Order for Permanent Injunction

It is hereby ordered, adjudged and decreed that Defendants Muscle Marketing USA, Inc. and Mostafa Omar, their officers, agents, servants, employees, consultants, or commercial affiliates and all those persons in active concert or participation with them (collectively, “MMUSA”), be and they are hereby permanently enjoined and restrained throughout the world from the following:

1. Making, publishing, or in any way disseminating, or causing others to do so, statements, articles and/or advertising, including website publications, disparaging, characterizing, commenting on, or referring in any way to creatine powder products, including their safety and efficacy. MMUSA shall make no statements comparing its creatine products, including creatine serum product(s), with any creatine powder products, including without limitation CREAPURETM creatine monohydrate powder marketed by Degussa BioActives U.S., L.L.C., with respect to safety, efficacy, side effects, or in any other respect. MMUSA shall remove from all labeling and marketing copy any comparison of Serum v. Powder, such as that which presently appears on labels of MMUSA’s Creatine Serum products, on other liquid creatine products, and elsewhere.

2. MMUSA shall comply with the following:

a. MMUSA shall immediately remove all website and MMUSA-created literature relating to this action;
b. MMUSA shall cancel and withdraw from publication all prohibited media advertising within 90 days; and

3. MMUSA and Mostafa Omar, without admitting any wrongdoing, have agreed to this injunction.

Dated: Jan 8, 2004
The Hon R. Gary Klausner
United States District Judge”

Degussa BioActives is gratified that the above Injunction was issued with world-wide reach and is binding not only on Muscle Marketing USA and Omar but all those acting in concert or participation with them.

As a market leader for powdered creatine, under the CREAPURETM brand, Degussa BioActives will not tolerate others making claims about creatine powder or liquid forms of creatine which have been proven to be false by well-accepted studies. Degussa BioActives will continue to protect consumers from deceptive and misleading statements.

Degussa Food Ingredients with its business lines BioActives, Texturant Systems and Flavors & Fruit Systems is a Business Unit of Degussa, a multinational corporation consistently aligned to highly profitable specialty chemistry. With sales of €11.8 billion and a workforce of some 48,000, it is Germany's third-largest chemical company and the world market leader in specialty chemicals. In fiscal 2002, the corporation generated operating profits (EBIT) of more than €900 million. Degussa's core strength lies in highly-effective system solutions that are tailored to the requirements of its customers in over 100 countries throughout the world. Degussa‘s activities are led by the vision "Everybody benefits from a Degussa product – every day and everywhere".

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