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New University Research, Sponsored in Part by Kemin Foods, Shows That Low Levels of Lutein May Contribute to Age Related Macular Degeneration

Patients With AMD Can Restore Lutein Levels to Normal by Taking Supplements

DES MOINES, Iowa, Nov. 19 -- New university research shows that low ocular levels of antioxidants lutein and zeaxanthin -- carotenoids found in dark green, leafy vegetables such as spinach and kale -- could contribute to age-related macular degeneration (AMD). The research also shows that AMD patients who had begun taking high-dose lutein supplements (4 milligrams or more per day) regularly after their initial diagnosis of AMD were able return those levels back to normal.

The research, led by Paul S. Bernstein, M.D., Ph.D., at the Department of Ophthalmology and Visual Sciences, Moran Eye Center, University of Utah School of Medicine in Salt Lake City, was published in the October 2002 issue of Ophthalmology (volume 109, pages 1780-1787), the peer-reviewed medical journal of the American Academy of Ophthalmology (AAO). Bernstein is a Research to Prevent Blindness Sybil B. Harrington Scholar in macular degeneration research. The National Eye Institute, Spectrotek LC, and Kemin Foods(R) L.C. also support Bernstein's research.

"This research is a major step toward large-scale clinical studies to prove the extent to which lutein and zeaxanthin protect against age-related macular degeneration," Bernstein said. "We know that these carotenoids are specifically concentrated in the macula of the human eye."(1,2)

This research compares the macular pigment levels of healthy eyes with those eyes of people with AMD. For the first time, researchers were able to objectively measure lutein and zeaxanthin levels in the eyes of living people in a large-scale clinical study. Bernstein measured macular carotenoid levels in 93 eyes from 63 patients with AMD and in 220 normal eyes from 138 volunteers using resonance Raman spectroscopy.

The researchers found that macular carotenoid levels decline with age, reaching a stable low level after age 60, the age when AMD incidence begins to rise dramatically. They also found that macular pigment levels in the eyes of AMD patients not consuming high-dose lutein supplements were 32 percent lower than elderly normal eyes.

"These results taken together lead us to believe that low macular levels of lutein and zeaxanthin represent a pathogenic risk factor for the development of AMD,"(1-6) Bernstein said. "As a safeguard, patients at risk for visual loss from AMD should consider supplementing their diets with at least 4 mg. of lutein each day along with other antioxidant nutrients."

For more information about the value of lutein, consult the Lutein Information Bureau Web site at www.luteininfo.com .

About Kemin Foods

Kemin Foods, L.C. is a global manufacturer and marketer of natural ingredients for the food, dietary supplement and personal care markets. Headquartered in Des Moines, Iowa, the company is part of Kemin Industries, which has manufacturing facilities in Iowa, Texas, Belgium, India, Singapore and Thailand. Kemin Foods is the maker of FloraGLO(R) brand lutein, the only purified, patented and proven form of lutein on the market today.

References

1. Snodderly DM, Brown PK, Delori FC, Auran JD. The macular pigment.
Absorbance spectra, localization, and discrimination from other
yellow pigments in primate retinas. Investigative Ophthalmology and
Visual Science, 1984;25:660-73.

2. Bone RA, Landrum JT, Fernandez L, Tarsis SL. Analysis of the macular
pigment by HPLC: Retinal distribution and age study. Investigative
Ophthalmology and Visual Science, 1988;29:843-9.

3. Landrum JT, Bone RA, Lutein, zeaxanthin, and the macular pigment.
Archives of Biochemistry and Biophysics, 2001: 385:28-40.

4. Bernstein PS, Katz NB,. The role of ocular free radicals in
age-related macular degeneration. In: Fuchs J, Packer L, eds,
Environmental Stressors in Health and Disease, New York: Marcel
Decker, 2001:423-56.

5. Beatty S, Koh HH, Henson D, Boulton M. The role of oxidative stress
in the pathogenesis of age-related macular degeneration. Survey of
Ophthalmology 2000;45;115-34.

6. Beatty S, Murray IJ, Henson DB, et al. Macular pigment and risk for
age-related macular degeneration in subjects from a northern European
population. Investigative Ophthalmology and Visual Science
2001;42:439-46.

GMO analytical services of the highest quality will help Brazil to succeed in Non-GM export markets

São Paulo, - GeneScan do Brasil is opening its new analytical service laboratory in São Paulo – Itu (Brazil). This state of the art facility offers detection, identification and quantification of Genetically Modified Organisms (GMO) in agricultural commodities, ingredients for food and feed and in finished food products. The new Brazilian lab facility is of special importance to the international trade and agro-food industry because Brazil is the main supplier of Non-GM soy products to the world food and feed market. Currently, the European Union accounts for 45% of the Brazilian soy products exported annually. As the EU develops even tighter rules for traceability and labeling of GM products, the demand for Non-GM material and for superior GM detection is rising. Other markets important to Brazil, such as China and Japan, also have stringent requirements with regard to GMO control and certification. GeneScan’s technological expertise and superior worldwide reputation in GMO detection will help Brazil assure continued growth in these markets.

GeneScan do Brasil is now open for business after an intense internal validation phase conducted by GeneScan Europe AG that assures the laboratory’s performance at the highest level of quality. This is another important step to complete GeneScan’s presence along the global food supply chain. Currently, the GeneScan Group operates laboratories in Europe (Germany), the USA (New Orleans), and Brazil (São Paulo). A laboratory in Australia (Melbourne), licensed to the New Zealand company AgriQuality, and a subsidiary in Hong Kong comprise this international network. All of these facilities operate on the basis of well-established, internationally recognized and validated methods that are being developed by the German mother company GeneScan Analytics
GmbH.

In order to validate the analytical procedures for qualitative and quantitative PCR (Polymerase Chain Reaction), GeneScan is cooperating with internationally recognized entities such as the European Joint Research Centre (JRC), the American Association of Cereal Chemists (AACC) and the Codex alimentarius, which has included many of GeneScan’s validated methods in its listing.

GeneScan Services for Traceability and Identity Preservation:
Reliable and worldwide-standardized analytical services, such as those offered by GeneScan, are the basis of sound GM control, but to achieve effective use of analytical results these have to be integrated into industry specific Non-GM control programs. Such programs assure the identity and availability of the specified Non-GM products.

GeneScan has developed a standard for Non-GM control that can be applied to all steps of food and feed supply chains. Based on this standard, GeneScan offers worldwide assistance with the design and implementation of individual control programs, as well as their verification and certification.

These programs can be linked with existing QM systems such as HACCP or ISO 9001, to form complete systems for Non-GM control up to the most comprehensive Identity Preservation program. Independent certification assures transparency to clients, consumers and governmental entities.

Most recently, the GeneScan scheme for Non-GM control was successfully audited and approved by Tesco Stores Ltd. Tesco Stores Ltd. is the major retailer in the United Kingdom and requires their poultry suppliers to purchase certified Non-GM soybean meal. This approval enables GeneScan to certify Identity Preservation programs for the supply of Non-GM soy feed in Tesco’s supply chain. Furthermore, Tesco approved GeneScan’s Brazilian laboratory to carry out the analytical work in support of such Non-GM control programs. This approval demonstrates the high relevance of GeneScan’s services to the international agro food business. GeneScan’s recognized and reliable Non-GM control and verification services will help the Brazilian agro food industry to further increase its presence in the international Non-GM market and to tighten commercial links to European and Asian markets.

Background information about GeneScan Europe
GeneScan Europe AG (Neuer Markt, symbol GEP, Security No. 586 150) is a system house for applied molecular biology and world market leader in the molecular biological analysis of genetically modified organisms (GMO analysis) in food, feed, and raw materials. In the field of development and production of low to medium density biochips the company is a well-established partner and supplier for research and industry and has a large patent portfolio at its disposal. The GeneScan Group is active in the operative Business Units “AgroFood”, “Diagnostics”, “Science”, and in the service Business Units “Basic Technology”, and “Production/Logistics”. GeneScan Europe AG consists of a global network of currently eight specialized and synergistically linked subsidiaries on four different continents. The GeneScan Group adheres to the ethical principles for genetic engineering elaborated by the German Industrial Association for Biotechnology (DIB).

Health & Nutrition Systems International Inc. Announces Third Quarter Results

WEST PALM BEACH, Fla., Nov. 14 /PRNewswire-FirstCall/ -- Health & Nutrition Systems International Inc. (BULLETIN BOARD: HNNS) today announced its operating results for the third quarter.

Net sales for the three months ended September 30, 2002 were $1,031,982, a decrease of $409,549 or 28%, as compared to net sales of $1,441,531 for the three months ended September 30, 2001. Net sales for the nine months ended September 30, 2002 were $3,300,697, a decrease of $945,562 or 22%, as compared to net sales of $4,247,259 for the nine months ended September 30, 2001. The decrease was primarily due to a general decline in the market for nutritional supplements.

Net loss from operations was $(26,493) for the three months ended September 30, 2002, compared to a net profit from operations of $16,900 for the three months ended September 30, 2001. Net loss was $(94,834) or $(0.03) per share for the three months ended September 30, 2002, as compared to a net profit of $11,178 or $0.00 per share for the three months ended September 30, 2001. Net profit from operations was $166,119 for the nine months ended September 30, 2002, as compared to a net loss from operations of $(439,365) for the nine months ended September 30, 2001. Net profit was $84,399 or $0.02 per share for the nine months ended September 30, 2002, as compared to a net loss of $(415,160) or $(0.11) per share for the nine months ended September 30, 2001. The decrease in profit for the three months ended September 30, 2002 was due to the decrease in sales and the increase in profit for the nine months ended September 30, 2002 was primarily due to a planned decrease in operating expenses.

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, as that term is defined in the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbor created by that act. 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.

Karen Weaver To Speak At Third International Worldnutra Conference and Exhibition on Nutraceuticals and Functional Foods In San Diego

(Chicago, IL) November 14, 2002 – Karen A. Weaver, a partner in the law firm of Weaver & Amin in Chicago, will be one of the featured speakers at the Third International Conference and Exhibition on Nutraceuticals and Functional Foods: From Laboratory to Real World and Marketplace, Monday, November 18, in San Diego, at the San Diego Marriott in Missin Valley. Weaver will discuss Functional Foods and GRAS Regulations: An FDA Perspective, during Session 2 at 1:30 p.m. in Room C.
Weaver’s presentation at Worldnutra will focus on how the Food and Drug Administration determines whether a product will be regulated as a drug or cosmetic, the science substantiating anti-aging claims and how to phrase claims that do not test the drug/cosmetic regulatory distinction. She will also address general labeling and reporting requirements.
In her practice, Weaver advises companies about FDA, FTC, USPS and customs regulatory compliance, advertising, and multi-leveling marketing matters. She represents clients before Federal and State administrative and judicial bodies, and devotes a portion of her practice to intellectual property litigation.

Weaver & Amin concentrates its practice in Food and Drug Administration, Federal Trade Commission, and related Federal and State regulatory compliance and litigation matters, contracts and business transactions, and intellectual property prosecution, maintenance, licensing, and litigation.

The firm's practice also includes the regulation of many consumer products such as cosmetics, medical devices, dietary supplements, food additives, organics, nutraceuticals, color additives, animal feeds, and biologics. A significant component of the practice involves new product labeling, clinical testing protocols, advertising, and legal and regulatory review of health claims and statements of nutritional support.

For more information contact Weaver & Amin at (312) 701-0844
or by email at [email protected].

# # # #

Editorial: Customer Relationship Management - The Customer's Perspective

By Len Monheit
[email protected]

CRM, or the theory of customer relationship management, is not a new concept developed by the high tech industry in order to sell high priced, marginal ROI software to larger companies to help them track and manage customer information and contact.

Organizations with a fundamental understanding of their customers and solid skills in relationship selling have long realized that one of the secrets to business success was to maximize both the quantity and the quality of client interactions.

This industry in particular, has been exceptional with its grassroots approach to CRM, with a focus on tradeshows, face to face interactions and personal invitations to events and activities. Many industry veterans have realized that being close to the industry pulse has led to increased market penetration for their products and services.

In an industry that’s facing new business realities and pressures, perhaps it’s time to examine strategy for customer interaction on a broader scale.

Our lives are filled with communications opportunities. In fact, there are so many potential interactions that we are overwhelmed with communications noise. Mail, television, magazines, electronic communications, billboards and radio are bombarding us with messages, seeking that moment of undivided attention to reach us as a new customer, or to cement an existing relationship. And we, the customers, have choice.

So what message is going to reach us as business or personal consumers?

In most cases, it’s the message coming from trusted sources, the message in tune with our own beliefs, the one that makes us feel comfortable, the one that stands out from the noise for any one of a number of reasons. The challenge for communicators, and therefore those practicing technology supported or more traditional Customer Relationship Management is to create this type of successful interaction, using appropriate tools and techniques.

Does CRM technology fit in?

According to ‘The Four Perils of CRM and How to Avoid Them’ by Drew Robb, CRM technology revenues will reach $20 billion a year by 2004, yet ‘many CRM projects fail and several actually drive customers away. In fact, some studies report that well over half of CRM projects fail to achieve desired returns. In the article, the author discusses poor planning, a lack of a customer focused orientation, getting on the technology cycle of buying more technology to support poor technology deployment, and confusing customer interaction with hounding as the key reasons for CRM failures.

Planning and strategy are obviously keys to any business process, yet it is amazing how consistently business decisions are driven by hype and in these cases, the race is on before your organization has reached the starting line. Many organizations fail to conceive a big picture, such as how the technology supports their business and processes including client interaction. In many cases, execution starts before customer behavior and preferences have been examined.

The second issue, customer focus is equally obvious. Just as an organization can manage to comply with guidelines by developing and documenting a poor process producing poor products (the same low quality every time), so too, a company can implement a CRM approach mirroring a poor customer service attitude. Customers will not appreciate your company, products or services, whether they are forced to deal with you in person, on the phone, electronically, or even through intermediaries.

The third factor, the technology cycle, is very much like spending bad money after good money in a never ending cycle. Many organizations feel that a few extra dollars for the next revision or release of a package will lead them to the business success they envisioned, but the implementation and process is flawed from the outset and the only result is higher cost. Pride, business inertia and crisis management means that the business cannot get out of this cycle before it’s too late.

The final factor, mistaking relationship management for hounding is typically the result of the philosophy of ‘more is better’, or ‘quantity versus quality’. Often too, companies don’t vary their mix of approaches, resulting in repetition, which increases the likelihood that the communication is perceived as noise and doesn’t make it past filters.

It seems to me that there are three key factors to a customer relationship strategy. First of all, give me value in our interactions, which you can only do if you understand what is valuable to me. Secondly, make me feel special and privileged by showing me that you appreciate my time and our relationship. Finally, make me part of a community of peers so that I can extend my involvement and network, which will give me an opportunity to grow myself and my business.

It really is all about the customer, whether you’re using technology or not.

Algry Quimica to launch Free Flowing Choline Chloride

Madrid (Spain)--15.11.02--Algry Quimica, the Spanish manufacturer of pharma and food grade choline salts announces the launch of a special Choline Chloride conditioned with Aerosil 200 pharma grade. This product is specially designed for customers who need free flowing Choline Chloride to avoid lumping and free circulation in any equipment; Infant formula, drinks and nutritional supplements are the main fields where customers will profit from this new development.

"Choline Bulk Salts have been used in Europe for many years to fortify infant milks, and during the last few years use in nutraceuticals for adults in tablets, capsules and drinks has significantly increased, especially in the US. The use of raw choline chloride has been limited in some fields due to its hygroscopicity, but this new conditioning system opens the possibility of new uses and applications", said Guillermo Rodriguez, Sales Manager of Algry Quimica.

"All of our products are pharmaceutical grade, and this new launch will continue the trend we started several years ago, offering pharma grade products to the nutraceutical market (compliant to different US and European pharmacopeias), as customers become more quality focused than ever before".

In addition, Free Flowing Raw Choline Chloride enables customers to get the highest amount of pure choline per dose, compared to other encapsulated choline products, which reduce the available content of pure choline.

More information: www.algry.com - www.cholines.com

ALGRY Quimica
Mateo Inurria 30, E-28036 Madrid SPAIN
Tel.: +34.91.343.33.26
Fax.: +34.91.345.29.47
www.algry.com - www.cholines.com

Contract Manufacturing Company, Nutritional Laboratories International (NLI), Introduces Specialty Private Label Products

MISSOULA, MONTANA - In response to a dietary supplement industry that thrives on product innovation and positioning, Nutritional Laboratories International (NLI) has introduced a line of custom-designed, specialty private label products for U.S. and International markets.

NLI has been a “turn key” contract manufacturer of dietary supplements and a provider of laboratory, product design, packaging and marketing services since 1997. A reputation for cGMP-quality manufacturing has earned NLI repeat business and the respect of the industry. New and well-established companies alike depend on NLI to manufacture their existing formulas or to help them develop new formulas.

While NLI will continue to offer custom product contract manufacturing expertise, the company is excited to offer itself up as a specialty private label product partner. With this turn-key product line, the company hopes to cater to discerning marketers looking for cost-effective, high quality specialty supplements. Instead of flooding the market with hundreds of non-descript, commodity-based supplements, NLI is concentrating its product development and marketing research efforts on creating a selection of premium products that will fill the current and future needs of marketers and consumers.

Premium supplements start with premium ingredients at clinically-supported dosages. Only quality raw materials are used in NLI’s formulas. The uniqueness of the private label products can be traced to some of the patented, proprietary and/or branded ingredients used in many of the formulas. Those ingredients include:
• PureFlex® brand Glucosamine and Chondroitin
• Lyc-O-Mato® natural lycopene extracted from non-GMO tomatoes
• CLAOne® brand Conjugated Linoleic Acid
• Suntheanine® brand 100% Pure L-theanine

The new line of private label products will be unveiled November 17-19, 2002 at the Private Label Manufacturers Association (PLMA) annual trade show in Chicago, Illinois. Visitors to the NLI booth will find 35 highly-marketable dietary supplements designed to meet the following consumer health needs:
• Joint, Cartilage and Bone Health
• Women’s Health (Bladder Control, PMS, Menopause, Breast Health, Sex Issues, Healthy Legs)
• Men’s Health (Prostate, Urinary Control, Erectile Function)
• Concerns of Aging (Specific Daily Multiple Formulations)
• Diet and Weight Control (Fat Burner, Fat and Carbohydrate Blockers, Tummy Reducer)—Ephedra Free
• Specific Health Issues (Vision, Sleep, Immune, Digestive, Energy, Stress)

NLI’s private label products are manufactured according to cGMP-quality protocols, and each product label carries the NLI cGMP quality guarantee seal. NLI’s four in-house laboratories and the company’s quality assurance department meticulously and continuously monitor quality from incoming raw materials to out-going finished goods. NLI’s quality guarantee means that consumers and marketers can be confident that they are receiving the finest, most accurately produced, consistent, and bioactive supplement possible.

Producing quality dietary supplements has always been NLI’s pledge. Included in that pledge is superior customer service. The value-added benefits of selecting products from NLI’s private label line include:
• Structure/function and health claims for label and marketing materials
• Label artwork that meets DSHEA regulations
• Assistance with label design
• Label print management
• Export certification assistance, and marketing support

Discover for yourself why NLI is truly one-stop shopping for new product ideas and opportunities. Visit us at the PLMA annual trade show (booth #5042-5043) November 17-19, 2002. Or call Ned Becker, VP Sales and Marketing, Nutritional Laboratories International, 1001 South 3rd West, Missoula, MT 59801. Phone: 406-273-5493. FAX: 406-273-5498. www.nutritionallabs.com

Natrol Announces Third Quarter Earnings

CHATSWORTH, Calif.--(BUSINESS WIRE)--Nov. 14, 2002--Natrol, Inc. (Nasdaq:NTOL), a manufacturer and distributor of nationally branded dietary supplements, today reported results for the third quarter ended September 30, 2002, announcing a net loss of $282,000 on net sales of $18.0 million. Included in the loss were expenditures of $405,000 which were made by the Company to commence the launch of its new multi-level marketing division, Annasa, Inc. No revenue was generated by Annasa in the third quarter of 2002 and fourth quarter revenue in 2002 from Annasa is expected to be nominal as the multi-level marketing Company prepares to expand nationally in the first quarter of 2003.
Net sales decreased 11.5%, or $2.4 million, to $18.0 million for the three months ended September 30, 2002 from $20.4 million for the three months ended September 30, 2002. Operating income for the third quarter amounted to $88,000 prior to the investment in Annasa. After the investment in Annasa, the Company incurred an operating loss of $317,000 vs. operating income of $1.8 million in the third quarter of the prior year.

Net sales for the nine months ended September 30, 2002 amounted to $53.4 million, 9.0% less than the $58.7 million in net sales reported during the same period in 2001. The Company incurred a net loss of $220,000 for the nine months ended September 30, 2002 as compared to net income of $2.6 million for the nine months ended September 30, 2001.

"Our quarter to quarter top and bottom lines in 2002 have been relatively stable and our cash flow has been excellent," said Elliott Balbert, Natrol's Chairman and CEO. "Despite having heavily invested in a state-of-the-art SAP computer system and our investment in Annasa we finished the third quarter of 2002 with $5 million more in cash than we began the year and net borrowing has not increased. We believe our investments will reap us significant benefits in the years to come. With respect to our core business, we have been working with our major customers to rationalize our inventory to take better advantage of growth categories such as women's products, heart health and weight loss. As a result, despite the published financial numbers, we feel we are, in many ways, a stronger business than we were at this time last year. Our challenge is to translate that strength into visible earnings improvement."

The statements made in this press release which are not historical facts including statements regarding expectations for future growth of revenue and profits and trends concerning net sales, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As a result of a number of factors, including the factors described above that Natrol may not currently foresee, Natrol's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause Natrol's actual results to differ materially from those set forth in the forward-looking statements include adverse trends in the dietary supplements industry, intense competition, adverse effects of unfavorable publicity regarding particular products or the Company's industry generally, the Company's dependence on the introduction of successful new products, the Company's ability to gain market share and shelf space in each of its distribution channels, the Company experiencing high rates of product returns, and adverse government regulation, as well as those factors set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 and in the Company's other filings with Securities and Exchange Commission.

Hauser Reports Fiscal 2003 Second Quarter Financial Results

LONG BEACH, Calif. and LONGMONT, Colo., Nov. 14, 2002 (PRIMEZONE) -- Hauser, Inc. (OTCBB:HAUS) today reported financial results for its fiscal 2003 second quarter and six months ended September 30, 2002, reflecting a second consecutive quarter of operating profitability. During the 2003 fiscal second quarter, the company sold its Shuster Laboratories division. Accordingly, the financial information presented in this news release reports the sale of that division as discontinued operations for all periods presented.
For the fiscal 2003 second quarter, total revenues were $13.8 million compared with $11.1 million in the corresponding year-earlier quarter. Income from operations was $896,000, contrasted to a loss from operations of $504,000 in the same quarter a year ago. Income from continuing operations before income tax expense and discontinued operations totaled $399,000, contrasted to a loss a year ago of $864,000. After reflecting a tax accounting treatment related to the sale of Shuster Laboratories and a loss from discontinued operations, net loss totaled $271,000, or $0.04 per share, reduced from net loss of $911,000, or $0.16 per share, in the second quarter last year.

For the first sixth months of fiscal 2003, total revenues were $27.2 million compared with $24.1 million in the corresponding year-earlier period. Income from operations was $1.1 million contrasted to a loss from operations of $1.0 million in the same period a year ago. Income from continuing operations before income tax expense and discontinued operations improved to $13,000, from a loss of $1.7 million in the year ago period. After reflecting a tax accounting treatment related to the sale of Shuster Laboratories and a loss from discontinued operations, net loss was $154,000, or $0.03 per share, compared with net loss of $1.5 million, or $0.28 per share, in the first six months of last year

"During the 2003 fiscal second quarter, we sold our Shuster Laboratories division for approximately $7.7 million and used the proceeds to pay down a substantial portion of our debt, which will significantly lower future interest expense," said Kenneth Cleveland, president and chief executive officer.

On October 31, 2002, the company entered into an agreement with Wells Fargo Bank to further amend its Amended Credit Facility by extending its due date to November 30, 2002 and reducing its credit line to $9.0 million from $10.0 million. The company is engaged in discussions, which could result in the company obtaining funds to pay the outstanding loans to Wells Fargo when due, and permit the company to obtain a new line of credit to finance operations. There can be no assurances that the requisite funds will be obtained. If alternative financing is not available to enable the company to repay Wells Fargo by November 30, 2002, the terms of the alternative financing are not acceptable to the company, or if Wells Fargo does not extend the outstanding loans, the company's ability to continue as a going concern would be in question.

Hauser, headquartered in Long Beach, California and Longmont, Colorado, is a leading supplier of herbal extracts and nutritional supplements. Hauser also provides chemical engineering services and contract research and development. Hauser's products and services are principally marketed to the pharmaceutical, dietary supplement and food ingredient businesses. Hauser's business units include: Botanicals International, ZetaPharm and Hauser Contract Research Organization.

Certain oral and written statements of management of the Company included in this Press Release and elsewhere may contain forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations. The forward-looking statements included herein and elsewhere are based on current expectations that involve judgments which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forw!
ar!
d-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

NNFA Rolls Back Retail Membership Dues to 1960's Level


NEWPORT BEACH, Calif., - In an unprecedented move designed to increase the association's share of natural products retailers, the National Nutritional Foods Association announced today that it is reducing annual dues for retail members to a flat fee of $30, effective January 1, 2003. The new dues structure, which was approved during a meeting of NNFA's board of directors here last week, will pertain to all independent stores and chains of 50 stores or less.

Most recently, NNFA retailer dues were based on a store's annual sales volume and began at $190 per year. It is estimated that NNFA, which was founded in 1936, has not charged such a nominal amount for dues since the early 1960s.

"The impetus for this change - simply put - is to grow retail membership in NNFA to a level where the association truly is the voice of the natural products industry," said R. Mark Stowe, NNFA's president. "A substantially increased retail membership will give us greater clout in legislative and regulatory arenas and provide a strong foundation for our grassroots efforts. It will also allow the association to get its message out to a much wider audience likely to utilize our services and attend NNFA MarketPlace. In addition, our supplier members have told us they find increased value in belonging to an association that represents even greater retailer numbers."

Although an innovative supplier-backed initiative implemented in 2001 brought retail membership in the association to approximately 3,600 stores, resulting in a six percent increase that year, a more aggressive growth rate was sought. In order to accomplish this goal, NNFA formed a member task force comprised of both retailers and suppliers to examine ways to attract more retail members. As part of that process, NNFA commissioned a survey of non-member retailers and member suppliers regarding their attitudes about membership in the association.

For retailers who had previously been members of NNFA, the most frequently cited reason by far for not renewing was the dues amount. Of this same group, however, more than nine out of 10 were "very satisfied" or "satisfied" with the association's products and services.

"The survey confirmed that we're providing benefits that are both relevant and important to our retail and supply members," said David Seckman, NNFA's executive director and CEO. "But it also told us that our current dues structure for retailers was out of reach for many. In addition, we learned that $30 was the amount that most retailers would be willing to pay for membership.

Adam Finney, NNFA's membership director, emphasized that the reduction in retail dues would not be accomplished by raising dues for supplier members or by decreasing association services. Rather, the association plans to compensate for any potential reduction in retailer dues levels by increasing member volume and raising advocacy contributions.

"One of the high points of the survey was that both retailers and suppliers alike said they would be willing to voluntarily contribute to an advocacy fund to educate members of Congress and the media about our industry," Finney said. "NNFA's most valued benefit to all our members is our representation of the industry in Washington, D.C. We're confident that with a more affordable dues structure and increased retailer numbers our members will be willing to support these efforts."