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Articles from 2004 In March


Company News

CFO tapped at Balchem
Frank Fitzpatrick has been promoted to the position of chief financial officer of New York-based Balchem. Fitzpatrick joined the company in 1997. His responsibilities have grown to include risk management, the information technology platform and all financial compliance issues of the SEC and Sarbanes-Oxley Act.

Sales VP rides to Blue California
Ingredients manufacturer Blue California has appointed Cecilia McCollum as vice president of sales and marketing. McCollum has worked for many years in the nutraceuticals industry, most recently at Cyvex Nutrition. Blue California specialises in the manufacture of botanical extracts and other speciality ingredients.

Cardinal sings for sales chief
Cardinal Nutrition, a Washington company that manufactures methylsulfonylmethane (MSM), has hired Wayne McCune as its director of sales. He has 20 years of sales and marketing experience in the nutraceutical and pharmaceutical industries. Cardinal Nutrition operates the world?s only facility dedicated to the production of licensed MSM; the facility is also NNFA-GMP certified.

DSM launches restructuring
As part of its restructuring programme that includes increased marketing efforts and launching new research projects, DSM Nutritional Products will be cutting about 420 jobs at its Sisseln and Birsfelden, Switzerland, sites during 2004-06.

Parent company DSM will shed another 500 jobs in support services and manufacturing in Geleen, Netherlands, as part of an effort to trim more than $60 million per year for the next two years. DSM Nutritional Products—the former Roche division Vitamins & Fine Chemicals—was acquired by DSM in September 2003.

Same game, new name
British Columbia?s Inovatech has announced the renaming of its Nutrition Division to Vitalus Nutrition. The management and operations of the division will not change, and it will continue to serve worldwide markets. Vitalus Nutrition manufactures speciality proteins, with an emphasis on value-added dairy proteins such as whey protein isolates and concentrates.

Natrol Announces 2003 Results

CHATSWORTH, Calif., Mar 31, 2004 (BUSINESS WIRE) -- Natrol, Inc. (Nasdaq:NTOL) today announced its results for the fourth quarter and year ended December 31, 2003.

For the year ended December 31, 2003, the Company reported income from continuing operations of $19,000. Losses from discontinued operations and the net loss for the year were $1.5 million. This compares to income from continuing operations in 2002 of $1.4 million before the loss from discontinued operations of $688,000 and before the effect of a charge from a cumulative change in accounting principle. During 2002, the Company adopted SFAS No. 142, which addresses 'Goodwill and Other Intangible Assets.'In adopting SFAS 142, the Company wrote off $11.0 million of its goodwill from prior acquisitions, which, net of income tax effects, resulted in a $6.8 million charge to earnings and a net loss of $6.1 million.

Net sales in 2003 increased 3.4%, or $2.4 million, to $72.7 million from $70.3 million in 2002.

For the three months ending December 31, 2003, net sales increased approximately 3.2% or $.5 million to $17.4 million from $16.9 million for the three months ended December 31, 2002. Income from continuing operations for the three months ended December 31, 2003 was $12,000 as opposed to $957,000 for the three months ended December 31, 2002. The loss from discontinued operations was $414,000 for the three months ended December 31, 2003 as compared to a loss from discontinued operations of $327,000 for the three months ended December 31, 2002. The Company's net loss for the three months ended December 31, 2003 was $402,000 as compared to net income of $630,000 for the three months ended December 31, 2002.

'The 2003 year was a transition year for us,'noted Elliott Balbert, Natrol's President and Chairman. 'We focused our energies on new concepts initiated in 2002 which did not deliver expected results. By year's end, we made the right decisions that were necessary to regain our focus and hopefully establish new momentum. We discontinued our multi-level marketing business, Annasa, as well as our direct marketing business, Tamsol. We also completed the consolidation of administrative and brand support functions for our Prolab subsidiary into the main Natrol facility in order to reduce overhead and make our Prolab brand a stronger contributor to our overall growth strategy and bottom line. These were hard decisions but we are confident these decisions solidify our business. Fortunately, our core Natrol, Laci Le Beau and Prolab brands are well regarded. We are now focused on these brands and are determined to make meaningful progress in 2004. Our balance sheet remains strong. Our debt at year-end was limited to mortgage debt on our headquarters and our main shipping facility. Our debt to equity ratio at year-end was favorable. Our current cash position weakened in 2003 primarily due to losses from our discontinued operations and the reclassification of $5 million of our cash as a restricted cash asset as part of an insurance program that effectively reduces our insurance cost by more than $1 million on an annualized basis when compared to the prior program. Within the last few days, we received $2 million as part of a legal settlement which will be reflected on the financial statements for the quarter ending March 31, 2004 as a reduction in goodwill. The cash improves our working capital and gives us increased confidence that we have the resources to help our business grow. We remain positive about our industry and optimistic about our future prospects.'

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, the Company'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, 2002 and in the Company's other filings with Securities and Exchange Commission.

Bio-One Acquires Canadian Nutritional Supplement Company

ORLANDO, Fla., Apr 1, 2004 -- Bio-One Corporation (BICO) announced today that it has acquired 100% of Interactive Nutrition International, a manufacturer and distributor of branded, specialty, nutritional supplements. Based in Ottawa, Canada, Interactive Nutrition International distributes a comprehensive line of award-winning nutritional supplements for athletes and general consumers. The purchase price was US$23,400,000 with US$11,500,000 paid at closing and the balance payable over five years.

Interactive Nutrition International, which had $12 million in revenues in 2003, has built an outstanding reputation for consistent high-quality product development while marketing products in Canada, Hong Kong and the United States. Currently, 90% of the company's revenues are generated in Canada. The remaining 10% of revenue is generated in the United States and China.

Bio-One President and CEO Armand Dauplaise said, "Interactive Nutrition International has built a strong business based on quality products. Eli, Pamela and Joseph Nesrallah have done a brilliant job of building their company since they started it in 1995. They have agreed to continue managing the business. We believe that synergy with other companies that we have acquired and are in the process of acquiring will greatly help facilitate their growth."

About Interactive Nutrition International

The stated mission of Interactive Nutrition International is to enable people to live their lives to the fullest by realizing their health and fitness goals. The company specializes in providing research, development and custom formulation of premium nutritional supplement private-label formulas including OTC pharmaceutical grade private label formulations. The company uses only premium ingredients and blending for allopathic, homeopathic, OTC and nutritionals. The company's products have won numerous Top Product Awards from Alive Magazine. SoyOne(TM) Protein for Women won a gold medal for Best Women's Supplement. SoyOne(TM) Nutrition Bars won a bronze medal award for Best Nutrition Bar. ISOWhey(TM) protein powder won a silver medal for Best Sports Supplement two years in a row. Two company products have recently undergone clinical testing in Moscow's Research and Practice Center of Sports Medicine. The clinical studies concluded that Creatine Blast(TM) and Total Whey(TM), part of the company's Maximum Performance Series, displayed significant benefits over respective placebo groups. The company is a cGMP (Current Good Manufacturing Practices) manufacturer, which operates in a 40,000-square-foot facility in Ottawa.

About Bio-One

Bio-One Corporation is a nutritional supplements company serving the preventive and alternative healthcare segments. The company intends to acquire additional companies in order to provide quality nutraceuticals to consumers through vertical integration of manufacturing, distribution and marketing. Since September 2003, the company has acquired PNLabs, American Nutritional Exchange and Interactive Nutrition International.

Bio-One Corporation is committed to its mission of the continuing pursuit of excellence in serving its customers, suppliers, team members and shareholders. Bio-One is confident that it will accomplish its mission and goals through the application of its management philosophy, which is to treat others the way they would want to be treated themselves.

Certain statements released by Bio-One Corporation that are forward- looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. These include, but are not limited to, economic, competitive, governmental, technological and other risks detailed in the company's registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Vital Living Announces Record Sales for Year Ending 2003

PHOENIX, Mar 31, 2004 (BUSINESS WIRE) -- Vital Living Corporation, (OTCBB: VTLV), today announced its operating results for the year ending December 31, 2003.

Year End Results:

For the year ended December 31, 2003, the Company generated record operating revenue of approximately $2,855,000 compared to operating revenue of approximately $261,000 for the same period last year, an increase of approximately 1000%. The net loss for the twelve months ended December 31, 2003, was approximately ($30,621,000), or ($0.96) per share, compared to a net loss of approximately ($3,950,000), or ($0.28) per share, for the same period a year ago. Excluding non-cash charges, the net loss for the twelve months ended December 31, 2003 was approximately ($4,024,000) or ($0.13) per share compared to a loss of approximately ($3,169,000) for the year ended December 31, 2002, or ($0.22) per share. Total Stockholders'Equity at December 31, 2003 was approximately $41,805,000 or $1.31 per share, up from approximately $5,658,000 or $0.40 per share at December 31, 2002, an increase of 639%.

The increase in revenue was a result of the combination of several strategic acquisitions that have proved to be synergistic with the Company's strategy of securing proprietary brands and formulations with established distribution channels into several markets. The increase in Stockholders'Equity resulted primarily from the transaction with E-Nutraceuticals in which the Company secured the rights to utilize SKYEPharma PLC's (Nasdaq: SKYE) FDA approved Geomatrix(R) drug delivery technology with Nutraceuticals worldwide. In addition, Vital Living also has the rights to market this drug delivery technology for pharmaceuticals that would be sold in China and Taiwan.

Stuart Benson, CEO of Vital Living, stated, 'Our fourth quarter demonstrated our continued improvement in top line sales. The numbers do not yet reflect the significant sales we expect to achieve from the exploitation of the technologies we licensed from SKYEPharma PLC, as well as the roll-out of X-FAT(R), the Company's new liquid dietary supplement that helps prevent fat from entering the bloodstream. The power behind our X-Fat(R) product is Kytasorbe(R), the only patented liquid suspension of the natural fat absorber, chitosan. X-Fat(R) is free of ephedra and stimulants. We anticipate continued improvement in operating numbers for the Company.'

About Vital Living

Vital Living, http://www.vitalliving.com, develops or licenses nutraceuticals and pharmaceuticals and markets them for distribution through physicians, medical groups, chiropractic offices and other retail outlets. Vital Living develops and tests its nutraceuticals in collaboration with leading medical experts in the nutraceuticals field and has designed them to be incorporated by physicians into a standard physician-patient program in which patients supplement doctor-prescribed pharmaceuticals with its nutraceuticals. Vital Living provides unique, safe, and efficacious naturally derived nutritional products, utilizing advanced drug-delivery technologies, including the Geomatrix(R) technology through its affiliation with SkyePharma PLC. The Geomatrix(R) technology has been provided exclusively for Vital Living's pharmaceutical development in China, and the development of nutraceuticals. The Company's initial areas of focus are cardiovascular health, through its product Essentum(R) which is currently undergoing clinical trials and being endorsed by the Arizona Heart Institute and prescribed throughout the United States, and weight loss, through its product X-Fat, the Company's patented dietary supplement that uses Kytabsorbe, a liquid form of the natural fat absorber, Chitosan. Vital Living also owns MAF BioNutritionals, Christopher's line of over 300 products and Doctors for Nutrition.

Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the Company expects, believes or anticipates will or may occur in the future. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the Company's ability to continue to successfully market and provide its products and services and maintain their effectiveness, the continuation of the arrangements with the Company's product development partners, the ability of the company to meet its financial projections, and general economic conditions. Such statements are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.

VitaCube Systems Holdings, Inc. Raises $2.3 Million in Private Placement

DENVER, Apr 01, 2004 (PRIMEZONE via COMTEX) -- VitaCube Systems Holdings, Inc. (VCBE) , a high-end nutritional supplement company, announced that effective March 31, 2004, the Company completed an initial closing of a minimum $2.3 million private placement. The Company sold 7,689,750 shares of its common stock for an aggregate cash purchase price of $2,306,924. A final closing is expected in mid-April. The Company intends to use the proceeds from the offering to initiate and advance its newly launched Network Marketing division and for working capital and general corporate purposes.

MDB Capital Group LLC ("MDB") acted as placement agent and our investment banker in connection with the financing. MDB received no cash consideration, but received reimbursement of its actual out of pocket costs and a warrant to purchase shares of common stock at the same price as the private placement shares. The amount of shares subject to the warrant will be determined at the time of the final closing. MDB's principals have substantial experience in assisting public network marketing companies and MDB will continue to act as investment banker to VitaCube.

In connection with the closing of the private placement, the Company's two founders agreed to convert $2,086,629 (including accrued but unpaid interest) of subordinated notes and a bridge loan into 6,955,430 shares of the Company's stock. In addition another creditor agreed to convert $100,000 of debt into 333,333 shares of the Company's common stock. The effect of the initial closing and the conversion of the debt into equity was to increase the Company's capital by over $4,300,000, reduce the Company's total debt to under $700,000 of trade payable, and increase the Company's cash position by approximately $2,300,000.

"We're thrilled to have cleaned up our balance sheet and secured this new round of funding, providing the Company with necessary capital to execute our plan of making VitaCube a leader in the health and wellness industry," said Sanford Greenberg, VitaCube's President and Chief Executive Officer. "This transaction will give current and prospective distributors further confidence in the VitaCube brand."

Anthony DiGiandomenico, Partner of MDB, commented, "We are pleased to bring our years of experience in working with and assisting public network marketing companies to VitaCube. We feel they are well positioned to launch their networking platform in April and look forward to working with them on the execution of their business model."

SIAR Capital, an independent investment fund that invests primarily in emerging growth companies invested in the private placement. Jack Silver of SIAR Capital commented, "We concluded after due diligence on VitaCube that it has the strategy, management, and market opportunity to be successful. We are excited to have invested in VitaCube.

"We are pleased with the confidence demonstrated by this investment," said Mr. Greenberg. "We are looking forward to working with SIAR Capital and our other new investors."

VitaCube Systems Holdings, Inc., is a provider of high quality meal replacement powder and premium nutritional dietary supplements. The Company's commitment to product integrity and the health needs of its customers has earned VitaCube a loyal following of over 350 world-class athletes that include:

-- Two Time World Champion Denver Broncos coach Mike Shanahan

-- 2001 World Series Co-MVP Curt Schilling, pitcher for the
Boston Red Sox

-- 4-Time Cy Young Award Winner, Randy Johnson, pitcher for
the Arizona Diamondbacks

-- Tampa Bay All-Pro quarterback Brian Griese

-- 2002 Olympic snowboard bronze medallist J.J. Thomas

-- Los Angeles Dodgers home run leader and First Baseman
for the Oakland A's Eric Karros

This release contains forward-looking statements regarding the Company's future plans, operations and prospects. The Company's actual results could differ materially from the results anticipated in these forward looking statements as a result of uncertainties, including risks relating to the amount of funding actually received at the final closing, the success of our network marketing division, demand for our products, pricing, competition, our distributors, government regulation, and other factors identified in the Company's filings with the Securities and Exchange Commission. Certain statements in this release regarding the Company's agreements are in accordance with the guidelines established by the Federal Trade Commission for endorsements in advertising.

Omega-3 Fats May Reduce Odds of Negative Gene Expression

DENVER, Apr 1, 2004 -- New peer-reviewed research shows that consumption of fatty fish or long chain omega-3 polyunsaturated fatty acids (n-3 LC-PUFAs) may reduce the adverse affects of genetic abnormalities. For example, a study on atherosclerosis linked genetic mutations to inflammatory responses, which may be ameliorated by dietary n-3 LC-PUFA intervention. This and other recent research findings are summarized in the March 2004 issue of the PUFA Newsletter.

"This study shows the importance of PUFAs in gene expression, particularly in people with altered genotypes," said Joyce Nettleton, D.Sc., R.D., editor, PUFA Newsletter. "They raise the hope that dietary or supplement intervention with PUFAs may relieve some of the adverse consequences of inheritance."

A landmark study showed that genetically modified mice could synthesize omega-3 PUFAs from linoleic acid, an omega-6 fatty acid. Normally, mammals cannot perform this fatty acid conversion. Even though the mice were fed a diet deficient in n-3 LC-PUFAs, their tissues were abundant in them compared with unmodified mice.

"These transgenic mice should prove useful for unraveling the details of omega-3 PUFA function, and possibly, increasing the omega-3 fatty acid content of food animals," Nettleton noted.

Recent studies also indicate that the risk of type 1 (juvenile) diabetes, age-related macular degeneration, bipolar disorders, attention and activity disorders in children, and allergic responses in infants predisposed to allergies may be lowered with n-3 LC-PUFA or fatty fish consumption. For example, infants who consumed cod liver oil during their first year of life were significantly less likely to develop type 1 diabetes than those who did not consume the oil.

Another study shows that cognitive function in middle age may increase with n-3 LC-PUFA intake.

"This study adds to the battery of studies showing a link between moderate fish consumption and reduced risk of cognitive decline," Nettleton said. "Folk wisdom has long advised, 'use it or lose it' to maintain mental function. One might add, 'use it' to eat fish regularly."

Sponsored by DSM Nutritional Products (formerly Roche Vitamins Ltd.), the quarterly PUFA Newsletter is available online at www.fatsoflife.com and by complimentary electronic subscription at www.fatsoflife.com/subscribe.asp .

Kemin Introduces Vegetarian Floraglo ® Lutein 5% VG Granules

New product for formulators is also non-GMO and kosher

DES MOINES, IOWA (April 1, 2004) – Spurred by customer interest in a vegetarian option, Kemin Foods L.C. has introduced the market’s first vegetarian lutein ingredient in a dry form.

FloraGLO Lutein 5% VG Granules are also preservative-free, gelatin-free, BSE-free, kosher (Orthodox Union regulations) and contain only natural ingredients. The product is also free of genetically-modified organisms (GMO) and derived from non-GMO material. The free-flowing, dry product is recommended for use in nutritional supplements. Application testing for inclusion in food and beverage products is under way.


“We are pleased to now offer our purified, patented FloraGLO Lutein to supplement brands that require vegetarian ingredients,” said Rodney Ausich, Ph.D., president of Kemin Foods. “The added benefits of natural, GMO-free granule ingredients make this an appealing product within the growing natural and whole foods segment.”


Market data has shown growth in the U.S. vegetarian foods market of 113 percent from 1998-2003, with annual growth rates between 8 percent and 16 %.*

FloraGLO Lutein 5% VG Granules contain no synthetic ingredients, no preservatives, and no corn or soy ingredients, which may be important to those with certain allergies. All ingredients are approved for use in the United States, Europe and Japan.

All ingredients in FloraGLO Lutein 5% VG Granules are GRAS (Generally Recognized As Safe) among a variety of food and beverage categories in accordance with Section 201 of the Food, Drug and Cosmetic Act. More information is available by contacting Kemin Foods customer service at 866-536-4666.

About Kemin Foods and FloraGLO Lutein
Numerous peer-reviewed studies link the important eye-health benefits of the natural antioxidant lutein with reducing the risk of age-related macular degeneration and cataracts. Newer science also has suggested lutein may promote healthy skin. Sourced from marigold flowers and purified from marigold flower oleoresin, FloraGLO Lutein is the world’s leading patented, purified lutein. Products with FloraGLO Lutein contain the same lutein naturally found in spinach, kale and other green leafy vegetables, as well as eggs.

Lutein, present in many areas of the eye including the macula and lens, appears to filter high-energy blue wavelengths of visible light—from both natural sunlight and indoor light. Lutein also appears to quench free radicals that may lead to oxidative stress that can damage cells in these tissues. Studies indicate that daily intake of 6 mg to 10 mg may be beneficial. Lutein’s light-filtering, antioxidant qualities may help protect the outer and inner layers of skin through use of oral and topical skin-care products.

Kemin Foods is ISO 9001:2000 certified and headquartered in Des Moines, Iowa, USA. It is an affiliated company of Kemin Industries Inc., with manufacturing facilities in Iowa, Texas, Belgium, India, Singapore, China and Thailand. To learn more about Kemin Foods and FloraGLO brand lutein, visit www.FloraGLOlutein.com or www.luteininfo.com.

* Source: Mintel International Group Ltd., Nov. 2003; Research and Markets, Sept. 2003

###

KGK Synergize Inc. Completes Successful Equity Private Placement Financing

LONDON, ON, March 31, 2004 - KGK Synergize Inc. (“KGK” or the “Company”), a nutraceutical contract research and product development corporation located in London, ON, is pleased to announce the closing of an equity private placement of common shares. Janus Corporate Finance, a division of JR/Janus Merchant Brokers Ltd. (“JCF”) acted as the exclusive financial advisor to the Company. The size, terms and conditions of the transaction are not disclosed.

Ms. Najla Guthrie, co-founder and current President/CEO of KGK stated the following: “Throughout our history, our business model has been to reinvest the profits accumulated from the Contract Research division into developing new and innovative nutraceutical products in the areas of anti-cancer, cardiovascular, type II diabetes and anti-inflammatory. While this initiative has been successful to date, having licensed and supported the launch of SytrinolTM, a dietary supplement for cholesterol-lowering, we have many additional pipeline products in the clinical trial phase that have been delayed due to financing issues. This new capital will be used to support these products from the clinical trial phase through to commercialization.”

“SytrinolTM, which has been proven in three separate clinical trials to significantly lower LDL cholesterol and triglyceride levels in humans, is a perfect example of our business strategy to conduct rigourous scientific studies on our natural products before bringing them to market” Guthrie adds. SytrinolTM has been licensed by KGK to Chicago based SourceOne Global Partners for the dietary supplement market and has been launched in major US and European markets, carried by major industry players such as GNC and Jarrow Formulas.

The financing was arranged and structured by the Janus Corporate Finance division of JR/Janus Merchant Brokers Ltd., a Toronto based corporate finance and M&A advisory firm focused exclusively on mid-market transactions. “We rarely see management of this high caliber in emerging businesses; and when it is combined within an industry of such compelling fundamentals as are evident in nutraceuticals, the opportunity for investment success can be quickly and easily identified” said Michael J. Walker, President of JCF.

Other non-financial professionals assisting the Company in this transaction included Muirfield Advisors Inc. and McCarthy Tetrault, both of London, Ontario

# # #

About KGK Synergize Inc.:
KGK Synergize Inc. (London, ON) has been built on a solid scientific research foundation. Owned and operated by internationally renowned scientists in the field of nutraceuticals and functional foods, KGK brings a unique level of understanding, service and commitment to contract research that is unparalleled.

Offering a wide range of services from pre-clinical studies to clinical trials, KGK provides full research services with tremendous time and financial efficiency, having in-house labs, a product development division, and a location that provides access to some of North America’s best facilities and staff. Visit their website at ww.kgksynergize.com.

Study IndicatesTopical Cream Significantly Reduces Arthritis Symptoms

Imagenetix announced the publication of its clinical study in The Journal of Rheumatology

San Diego, CA - April 1st, 2004 - Imagenetix, Inc. (OTC/BB: IAGX) -- A new study conducted by the University of Connecticut found Imagenetix's topical cream, Celadrin®, may significantly benefit those suffering from arthritis. The results of this clinical study were published today in The Journal of Rheumatology, a publication that provides an international forum for rheumatological topics in published format.

In the study, all of the patients who applied Celadrin® (a complex of cetylated fatty acids) as opposed to the placebo cream, demonstrated significant improvement in all five physical function measurements. Patients were assessed for physical function, pain levels, range of motion, postural sway, timed up and go from a chair, timed stair climbing and medial step-down. For every measure, the difference between the Celadrin® cream group and placebo cream group was significant, including reduction in pain and stiffness, improvement in supine range of motion of the osteoarthritic knee, less postural sway and reductions in time in both the up and go and the stair climbing tests.

According to William Kraemer, Ph.D., from the University of Connecticut, "The scientific findings were quite impressive and are very encouraging. Osteoarthritis is a complex condition which is typically treated using nonsteroidal, anti-inflammatory drugs. These findings show that a topical cream, can be a very effective and viable alternative. It is exceptionally impressive that 100% of the patients using Celadrin® topical cream reported significant benefit when compared to the placebo group, with no reported side effects."

"The benefits shown in this unique and landmark research continue to scientifically validate the strong efficacy profile of Celadrin® topical cream", said Robert Hesslink, Jr., Sc.D., Imagenetix Director of Research and co-author of the study. "The findings demonstrate that persons who suffer with arthritis, and who live with tremendous mobility restrictions and pain can benefit from Celadrin® topical cream.

Celadrin® is a novel compound developed through a proprietary process. Celadrin® is an all-natural ingredient which has been clinically shown to provide joint health, flexibility and improved quality of life on a cumulative basis with no reported side effects.

About Imagenetix, Inc.
San Diego based Imagenetix, Inc., (OTC/BB: IAGX) www.Imagenetix.net, is an innovator of scientifically tested, natural-based, proprietary bioceutical products developed to enhance human and animal health on a global basis. The company develops, formulates, and private-labels proprietary and leading health products to be marketed globally through multiple channels of distribution. For patented products, Imagenetix explores licensing arrangements with appropriate pharmaceutical partners.

Safe Harbor Statement
This document contains 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. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services. These factors and others could cause operating results to vary significantly from those in prior periods and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company expects to file with the Securities Exchange Commission.

Key Industry Event - Dietary Supplements and Athletic Performance: Challenges & Opportunities

The National Football League / National Football League Players Association Supplement Certification Program Administered by NSF International

Discussion of key regulatory, political, analytical and certification issues affecting use of dietary supplements in athletics.

April 22, 2004
Hilton Salt Lake City Center
Salt Lake City, Utah

Dietary supplements used for sports and athletic performance is a multi-billion dollar industry. Yet in recent years, leading sport organizations have essentially outlawed the use of dietary supplements as a result of doping scandals, misbranded products containing banned substances, and continuing controversy surrounding the use of ephedra and androstenedione. Athletes who take dietary supplements to increase performance do so at the risk of testing positive and suffering serious consequences to their professional or amateur careers. However, the benefits provided by high quality, well manufactured dietary supplements for sport performance are clear. The need to address and resolve these issues was recently highlighted in the President’s State of the Union address when he stated:

“The use of performance-enhancing drugs like steroids in baseball, football, and other sports is dangerous, and it sends the wrong message—that there are shortcuts to accomplishment, and that performance is more important than character. So tonight I call on team owners, union representatives, coaches, and players to take the lead, to send the right signal, to get tough, and to get rid of steroids now.”

The President’s mandate to resolve the specific issue of steroids and sport is now accompanied by the introduction of several major bills in Congress to amend DSHEA by treating certain classes of dietary supplements as either controlled substances or to require far greater FDA oversight of such products. The U.S. Anti-Doping Agency (USADA), which has responsibility for testing Olympic athletes, has recently expressed great concerns about the potential longterm health effects of certain dietary supplements when used by younger athletes. In the midst of this public controversy, the National Football League (NFL) and the National Football League Players Association (NFLPA) have developed a program with NSF International to test and certify dietary supplements, functional foods and related products under the new NFL/NFLPA Supplement Certification Program.

It is likely that this program will have enormous influence on how dietary supplements are tested and certified as acceptable for use in professional and amateur sports.

This one-day seminar will lay out each of the key features of the official NFL/NFLPA Supplement Certification Program including:

• Criteria for formula evaluation, Good Manufacturing Practices, clinical testing for metabolites, chain of custody procedures, and state-of-the-art analytical testing requirements.
• An examination of the current regulatory and political issues surrounding dietary supplements for use in sport and athletics.
• Insights as to how athletes are deciding what dietary supplements to use and why.
• Advice to coaches, athletes and athletic directors on best practices to use dietary supplement safely and with confidence.
• An evaluation of how the certification program will affect the commercial and competitive sales environment for dietary supplements.

Who should attend?
• Any company selling dietary supplements, functional foods or beverages for athletic or sport performance.
• Advertising agencies representing manufacturers and marketers of dietary supplements, beverages and functional foods for athletes.
• Senior managers, R&D staff, marketing and sales executives, insurance and risk managers, legal and regulatory staff, analytical and quality assurance staff of any company manufacturing dietary supplements, functional foods and beverages for athletes.
• College / high school coaches & athletic directors.
• Independent analytical laboratories.
• Dietary supplement ingredient producers & suppliers.
• Professional sport organization executives.

About the Sponsors:

NSF International, The Public Health and Safety Company™, is the world leader in standards development, product certification, education, and risk-management for public health and safety. A non-profit, nongovernmental organization, NSF was founded in 1944 and is headquartered in Ann Arbor, MI. Certification with NSF allows the use of the highly recognized NSF Certification Mark on your product. NSF’s certification service also includes product testing, Good Manufacturing Practices (GMP) inspections, and ongoing monitoring.

At the request of the National Football League (NFL) and the National Football League Players Association (NFLPA), NSF has developed stringent criteria for product certification under the NFL/NFLPA Supplement Certification Program. In addition to requiring NSF certification to dietary supplements or functional foods criteria, the program requires each product lot to undergo analytical testing to ensure the absence of any substances banned by the NFL/NFLPA.

Utah Natural Products Alliance (UNPA) represents the leading dietary supplement companies in the state of Utah. Our members are some of the world’s most respected natural healthcare companies. Utah is the largest dietary supplement manufacturing center in the world, with annual sales of Utah-based companies exceeding $2.5 billion. World class production and quality control systems are a basic segment of UNPA membership, as are rigorous raw materials specifications, in-process controls, and analytical testing methods.