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Articles from 2002 In August

Go For Gold

Go For Gold
Corn has well-known nutritional benefits—but it's important to make sure you know what you're getting

By Mitchell Clute

Corn has come a long way since it was first domesticated in Mexico more than 6,000 years ago from a wild grass called teosinte. Its kernels, dried and often ground, have long been a dietary staple across many cultures. Corn is the only major grain crop native to the Americas and was so important to indigenous peoples that the Mayan creation story claims human flesh came from the sacred maize.

Today, corn trails only rice as the most popular grain crop worldwide. In the United States, it's the single largest crop in terms of total bushels produced annually; 9.5 billion bushels were harvested in 2001, according to the Kansas Corn Council. That's an earful of good news because, from a health standpoint, corn has solid nutritional credentials.

Kernel Of Health
Corn is packed with vitamins and minerals. "One advantage of corn over other grains is that yellow corn does contain beta-carotene, while all other grains are devoid of it," says Melissa Diane Smith, a certified nutritionist based in Tucson, Arizona. One cup of yellow corn contains about 10 percent of the U.S. recommended daily intake of vitamin A, which accounts for corn's sunny color. (White corn, though delicious, contains no beta-carotene.)

Corn also contains vitamin C—especially nutrient-dense baby corn, frequently used in Asian cooking—and is an excellent source of several minerals, particularly potassium and magnesium. Each ear also offers about three grams of protein and fiber, making it a great fiber source for kids. (Offer your children fresh corn on the cob or a bran muffin and see which they choose!)

Still, as any well-read vegetarian knows, corn by itself is not a complete protein source because it lacks significant levels of the nine essential amino acids, particularly lysine and tryptophan, that the body must obtain through food. Consequently, it's best to balance a corn-based vegetarian meal with another vegetable or legume, such as squash or beans.

Hidden GMOs
While knowing corn's nutritional profile may encourage you to include more of this golden grain in your diet, a more pressing concern to modern consumers is the likelihood that the corn you eat has been genetically modified. Beyond fresh corn on the cob, corn and its derivatives are found in nearly every food product available, as a common thickener (cornstarch), sweetener (corn syrup), and more. A careful look at package ingredients will reveal corn in places you never expected. What may also surprise you is that, according to Consumers Union, more than 35 percent of the U.S. corn crop now contains genetically modified organisms (GMOs). Of this amount, more than half is so-called Bt corn, bred to contain a pesticidal genetic trait taken from the naturally occurring soil bacterium, Bacillus thuringiensis.

Many scientists believe that GMOs could create long-term problems to consumers, including the risk of allergic reaction and subtle alterations in foods' nutritional values. Organic farmers have an additional concern, that insects may become resistant to Bt, taking away the usefulness of one of the few natural pesticides available to them. Another major challenge facing organic farmers is genetic drift from cross-pollination—a nearly unavoidable occurrence because corn pollen can travel miles, either with the wind or via pollinating insects. Further complicating the issue, government regulations place the burden of avoiding contamination on the organic farmer, not on his or her GMO-growing counterpart.

Because the use of GM corn is so ubiquitous, the only way to assure you're not getting GM products is to buy organic. When shopping, look for products labeled "made with nongenetically modified ingredients," and seek out organic corn on the cob, whether from a natural foods store or at a local farmers' market. Kernels should be firm and unwrinkled; larger, tougher kernels mean that the natural sugars in sweet corn have already converted to starch.

Stalk Your Sources
As every cook knows, few things are as satisfying as biting into the perfect ear of corn. But even when fresh cobs cooked on the grill are a distant memory, you're still eating corn in nearly every food you buy, from baking powder to soft drinks to cereal. Check product labels for corn-derived ingredients (see "Get an Earful"). Use contact information from labels to call manufacturers and find out what safeguards they use to assure sourcing for non-GM corn. Patronize companies that are careful to avoid GM products. It'll make you a smarter shopper and can help assure a healthier family and a healthier planet.

Mitchell Clute is a freelance writer, musician and avid chef.

Get An Earful

Many common ingredients may include corn-derived components, including:

  • Baking powder
  • Caramel
  • Confectioner's sugar
  • Dextrin and maltodextrin (thickening agents)
  • Dextrose (glucose)
  • Golden syrup (treacle)
  • Malt, malt syrup, malt extract
  • Modified food starch
  • Popcorn
  • Vanilla extract
  • Vegetable broth, vegetable oil

Delicious Living

September 1, 2002

September 1, 2002

Sports Drinks Aren't Just For Sports Anymore

United States

Mintel Consumer Intelligence reports that the popularity of sports and energy drinks in the US is on the rise, especially among teenagers.

Sports drinks are now commonly considered beverages that can be consumed any time of the day, Mintel found, with 60 per cent of American adults and 75 per cent of teenagers viewing sports drinks as beverages they can drink in the same way they would drink juice, soft drinks or water, and not just after physical activity. About half of the adults surveyed said they had consumed sports drinks, compared with 79 per cent of teenagers.

The increase in the number of sports drinks on the market had led to consumers looking more avidly for novelty and variety in the sports beverages they purchase. Teenagers are more likely to recognise different benefits across brands than adults.

Mintel found that new flavours and enhanced water products are blurring the line between bottled water and sports drinks. It predicted these newer products would further broaden the appeal of sports drinks, in both use of existing products and in helping introduce new consumers (especially women) to sports drinks.

Although starting from an unsubstantial base, female teenagers were seen as a group with potential for strong growth. They responded more positively than teenage boys to the range of new flavours that hit the market in 2001-02.

Mintel estimates the retail market for sports drinks will near $3 billion in 2002, an eight per cent increase over 2001, and rising to $4.1 billion by 2007.

In the EU, meanwhile, a legislative proposal would mandate energy drinks such as Red Bull to carry the term "high caffeine content" on their labels in the same field of vision as the name of the product. This proposal, which is not expected to become law until at least mid-2004, applies to drinks that contain more than 150mg of caffeine per litre.

The new law would not apply to tea and coffee drinks, whose generic name already implies a high caffeine content.

Turning point: Natural remedies for perimenopause symptoms




Irregular Periods & Heavy Bleeding

A daily serving of soy-based foods has beneficial, estrogenlike effects. Natural micronized progesterone, which is synthesized from soybean and/or wild yam (Dioscorea villosa), can help stabilize erratic cycles with fewer side effects than synthetic hormones.

Report heavy bleeding to your doctor. Test blood for anemia. Rule out hypothyroidism, fibroids, polyps and cancer.

Hot Flashes & Night Sweats

Try taking 40 mg (two tablets) of black cohosh (Cimicifuga racemosa) solid extract, plus vitamin E (800 IU/day). Regular exercise and plant-based estrogens may help. One study of standardized extract of red clover (Trifolium pratense) (40 mg/day) showed a 75 percent reduction in hot flashes.

Avoid black cohosh if pregnant or bleeding heavily. Ask your doctor about vitamin E if you have diabetes, high blood pressure, a rheumatic heart condition, or if you are taking anticoagulants or blood thinners.

Sleep Disturbances

Exercise, relaxation techniques, and valerian (Valeriana officinalis) extract help. Avoid caffeine and alcohol after 5 p.m. Taking micronized progesterone half an hour before bed also may help. Several studies show that kava (Piper methysticum) (45 to 70 mg/day) may induce sleep.

Do not take kava with alcohol or antidepressants.

Cognitive Issues (Irritability, forgetfulness, poor concentration)

Try stress reduction techniques, including exercise. Ginseng (Panax ginseng) (100 mg/1­2x per day) has a supportive, estrogenlike effect. Ginkgo biloba extract (30 to 60 drops/3x per day) may improve memory.


Low Libido & Vaginal Dryness

Ginseng (100 mg/1­2x per day) also has tonic properties. Black cohosh solid extract (40 mg/day) may alleviate dryness.

Rule out vaginal infections and low thyroid hormone levels. Avoid black cohosh if pregnant or bleeding heavily.

Forbes Medi-Tech Announces Record Second Quarter Revenues

Vancouver, British Columbia - August 29, 2002 - Forbes Medi Tech Inc. (TSE:FMI and NASDAQ:FMTI) today announced its financial results for the three and six-month periods ended June 30, 2002. In 2001 the Company changed its year-end from July 31 to December 31, so the comparative period for this quarter and half year is the three and six months ended July 31, 2001. All amounts, unless otherwise specified, are in Canadian Dollars.

Results and Revenues

The Company is pleased to report record phytosterol revenues of $2.6 million for the three months ended June 30, 2002 and $5.0 million for the six months ended June 30, 2002. Included in these amounts are record direct product sales and royalties of $2.1 million and $4.0 million, respectively. The increased sales resulted primarily from sales of non-food grade sterols from the Company's share of the Phyto-Source joint venture.

For the second quarter of fiscal 2002, net income was $3 million ($0.14 per share), compared to a net loss of $3.6 million ($0.17 per share) for the three-month period ended July 31, 2001. For the six months ended June 30, 2002, the Company had a net income of $0.9 million ($0.04 per share) compared with a net loss of $6.6 million ($0.31 per share) for the six months ended July 31, 2001. These significant improvements, from a net loss to a net profit in both the three and six month periods, resulted primarily from a one-time $6.1 million gain realized on the purchase of Reducol(tm) rights (as discussed in June 25, 2002 news release) for an amount significantly below the deferred revenue liability on the Company's financial statements. Reductions in general and administrative (G&A) expenses and research and development (R&D) expenses also contributed to the improvement.


The Company's net R&D expenditures totaled $0.9 million in the second quarter of 2002, compared to $1.2 million in the three-month period ended July 31, 2001. The reduction in R&D is attributed to a decrease in non-core expenditures outside the FM-VP4 development program. G&A costs were down to $1.6 million for the first quarter 2002, compared with $2.2 million for the three months ended July 31, 2001. Included in G&A expenses for the second quarter 2002 are $0.25 million related to foreign exchange and $0.2 million related to financing from 2001. Cost of sales increased by $0.2 million, consistent with the $0.3 million increase in sales. Included in product development and marketing costs for the second quarter 2002 is $0.5 million related to fine chemicals costs prepaid in 2001. Subsequent to June 30, 2002 the Company has continued to reduce discretionary expenditures.

The Company's net R&D expenditures totaled $2.0 million in the first half of 2002, compared to $3.2 million in the six-month period ended July 31, 2001. G&A costs were down to $2.7 million for the first half of 2002, compared with $3.6 million for the three months ended July 31, 2001. Cost of sales increased by $1.5 million from the six months ended July 31, 2001 to the six months ended June 30, 2002 consistent with the increase in sales of $1.9 million over the same periods.

Liquidity & Capital Resources

The Company's working capital decreased from $3.6 million at March 31, 2002, to a working capital deficiency of $0.7 million at June 30, 2002, which is calculated after deducting $2.3 million of royalties payable to Novartis by June 30, 2003. Excluding such royalties, the Company's working capital was $1.6 million at June 30, 2002. The Company's cash and cash equivalents reduced from $1.5 million at March 31, 2002 to $0.3 million at June 30, 2002. Subsequent to June 30, 2002 the Company received $0.9 million related to other receivables and the sale of its Amqui pilot plant in Quebec. Working capital increased by $0.75 million as a result of the Amqui plant sale. As of August 29, 2002 the Company has $0.45 million in cash and approximately $2.5 million in receivables.

During the three months ended June 30, 2002, the Company used $0.3 million in operating activities compared with $1.8 million in the three-month period ended July 31, 2001. Investing activities during the quarter ended June 30, 2002, used cash of $0.1 million compared with generating cash of $3.0 million in the quarter ended July 31, 2001. At June 30, 2002 the Company was committed to investing an additional $2.0 million (US$1.35 million) in Phyto-Source LP, which is 50%-owned by the Company. It is anticipated that this funding may be made by an offset against amounts owed by the joint venture to Forbes. The net effect of this would be to reduce current receivables and current payables by $1.0 million.

During the six months ended June 30, 2002, the Company used $4.2 million in operating activities compared with $8.2 million in the six-month period ended July 31, 2001. Investing activities during the first half of 2002 generated cash of $0.4 million compared with $6.4 million in the six months ended July 31, 2001. During the first half of 2002 the Company expended $0.7 million on capital assets, compared with $2.7 million in the six months ended July 31, 2001. Financing activities during the first half of 2002, used cash of $1.7 million, mainly related to the payment of demand loans using proceeds from the sale of phytosterols, compared with $1.0 million in the six months ended July 31, 2001 primarily used to repay notes payable.


The Company recently announced it is undertaking a non-brokered private placement at a price of $0.65 per unit, each unit consisting of one common share plus .08 of a common share purchase warrant. At the same time, the Company announced it was undertaking two concurrent offerings through brokerage firms in Toronto and New York, independent of the non-brokered private placement. All offerings are subject to regulatory approval.

The Company has previously announced the requirement to seek additional debt or equity financing by September 30, 2002 to meet its planned expenditures. Based on existing sales contracts and financing commitments received to date, the Company believes it will have the necessary capital to operate beyond September 30, 2002. The Company will provide updates if and when further sterols sales contracts are entered into and financings are closed.


Based on existing contracts alone, at August 29, 2002, the Company is anticipating that its share of phytosterol sales for calendar 2002 will be a minimum of approximately $7 million (US$5 million), compared with approximately $5 million (US$3 million) for calendar 2001. Sales volumes of phytosterols for calendar 2002 for the Company and the Phyto-Source joint venture, based on existing contracts alone, are anticipated to be a minimum of 300 tonnes (net 200 tonnes to the Company) compared with 180 tonnes (net 130 tonnes to the Company) in calendar 2001.

Conference Call

A conference call and webcast to discuss these financial results will be held on September 4, 2002 at 1 p.m. PST. (4:00 p.m. EST). To participate in the conference call, please dial 416-695-9753 or 1-877-461-2814. For those investors unable to participate in the call, the live webcast can be accessed through the Company's website at The call will also be available for replay until September 30, 2002 by calling 416-695-9731 or 1-888-509-0081.

Second Quarter Report

This news release includes by reference the Company's Second Quarter Report, including the full Management Discussion & Analysis (MD&A) as well as the complete second quarter 2002 financial statements. The MD&A and financial statements are being filed with applicable Canadian and U.S. regulatory authorities.


About Forbes Medi-Tech Inc.

Forbes Medi-Tech Inc. is a biopharmaceutical company dedicated to the research, development and commercialization of innovative pharmaceuticals and nutraceutical products for the prevention and treatment of cardiovascular and related diseases. By extracting plant sterols from wood pulping by-products, Forbes has developed cholesterol-lowering agents to be used as pharmaceutical therapeutics, dietary supplements and functional food ingredients.

The NASDAQ National Market and the Toronto Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of the content of this News Release. This Press Release contains forward-looking statements concerning anticipated revenues, expenditures and financing needs of the Company and other information in future periods. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "estimates," "potential", "projects", "plans", "possible" and similar expressions, or statements that events, conditions or results "will," "may," "could" or "should" occur or be achieved. These forward-looking statements are set forth principally under the headings "Financing" and "Outlook", but occur elsewhere in this Press Release as well. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company and other results and occurrences may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, the Company's need for additional funding, which may not be available to the Company on acceptable terms or at all; uncertainty as to whether the Company's current equity offerings will be successful or if successful, that the amount raised will be sufficient to sustain the Company's operations; uncertainty that the Phyto-Source LP manufacturing facility will function as planned; uncertainty as to whether the Company will be able to complete any new major long-term sterol contracts; the need to control costs and the possibility of unanticipated expenses; uncertainty as to the Company's ability to generate projected sales volumes and product prices; uncertainty as to the successful conclusion of sales discussions currently underway, and of those anticipated, with third-party purchasers; the need for performance of contract obligations by buyers of products; and other risks and uncertainties identified in this Press Release. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. See also the Company's reports filed with the Toronto Stock Exchange, the Ontario and B.C. Securities Commissions, and the U.S. Securities and Exchange Commission from time to time for other cautionary statements identifying important factors with respect to such forward-looking statements. The Company does not assume any obligation to update any forward-looking statements contained herein.

Event Review: American Association of Naturopathic Physicians

American Association of Naturopathic Physicians Annual: Yes Date: August 14-17, 2002 Salt Lake City, Utah, USA Comparison to previous year: (same, more, less) unconfirmed numbers Number of : Exhibitors 103 Attendance for: Seminars 26, seminars well attended and well presented

Tradeshow floor traffic slow


Quality of interactions on show floor good, fewer people than anticipated. Some exhibitors made contacts with people they wanted to see, others did not.

Attendee feedback:
Saw companies and products, as well as competitive offerings and new products.

Hot and new products/services: (Partial List)

Pharmax--new company with offices in state of Washington, selling very high quality probiotics and other supplements made in England.

Lane Labs--Viracle--product intended to support Healthy Lip/Skin Tissue

Pharmax--Four Pillars of Nutritional Supplementation

  1. Vitamins & Minerals
  2. Fatty Acids
  3. Antioxidants
  4. Probiotics

Show Layout:
Well organized, excellent.

Show Organization and Management:
Very Good.

Improvements suggested and overall comments:
Get more attendees into exhibit hall.

Attendee Critical Issues:
Seminars were excellent but several key seminars were at same time.

Number of Sessions: 26

Overall Quality was excellent. Topics were extremely relevant for the naturopathic physicians. Several continuing education classes with credit for ND's who attended the seminars.

Key Issues:
Where are the practices going for ND's? How can they integrate to bring in new clients?

Speaker Feedback:
Speakers pleased with level and interest of attendees.

Attendee Feedback:
Sessions were of high quality and great for continuing education.

Critical Discussion Points Raised:
What is the role of the ND's in the future as part of the alternative and mainstream medical systems and can they be integrated and accepted?

Major topic was the reason that the American Medical Association is going after ND's.

Event Summary and Specifics:
seminars listed in a book, as well as speaker materials. Tapes also available on key note and two other addresses. Keynote address was by Tieranona Low Dog, MD on "The Good, The Bad and The Ugly: The Future of Herbal Medicine in the United States". This session was well attended and presented in a timely and concise manner.

Show Management Comments:
Very happy with the attendance but need to improve the way that attendees walk the exhibit area.


Editorial: Start With the Basics - A Better Approach

By Len Monheit

The phrase ‘Getting Back to Basics’ is often used when a company or individual comes up against an unexpected obstacle or situation and needs to rethink strategy. The term itself can imply regression, and is often associated with a defeat. A much more positive approach is to consider building from fundamentals or first principles, leading to the expression ‘Starting with the Basics’, a concept that frequently eludes many otherwise brilliant and forward thinking professionals.

In sales, representatives are encouraged to baseline forecast, to start from a blank page instead of assuming a fixed percentage of year-over-year growth. The advantage from the manager’s perspective is that it can force the territory manager to think and project the sales activity with clear vision—when done correctly and from a clean slate, this sometimes leads to higher sales projections. Often though, preconceptions get in the way and the result ends up looking strangely like an overall five to ten percent increase over previous year results.

This same temptation to build on previous situations and a historical perspective only is common in many processes and planning exercises in business. I’m not saying that this operation doesn’t have a place and a role, and in fact it does force ‘retro’ analysis. I would like to suggest, however, that it’s only a piece of the puzzle, an over the thumb calculation that needs to mesh with the clean page approach.

We see examples in day-to-day, quarter-to-quarter and year-to-year activities. Examples include everything from how we approach our day’s objectives to how we distribute marketing promotion dollars. It often includes the approach to technology including websites and internal communications and very frequently incorporates project management, promotional materials, event participation and other activities and relationships. You’ve heard me speak before about challenging the status quo. (Jay do you know when this may have been?)

The business environment we presently face and the tools at our disposal have never been exactly as they are today. Why then, should our operations and activities be based on yesterday’s environment? The ability to think outside of the box has been prized by leading corporations and leads to innovation and leaps in productivity and capability, yet many organizations don’t encourage this approach in areas where significant benefit can be realized.

As time constraints make it ever more difficult to just keep up with the daily grind and expectations, there is frequently even less opportunity to be creative in approach to situations. There is no excuse though, for failing to focus on the basics and challenge preconceptions that may not really exist anymore. Some examples would include:

  • Examination of your quoting process to eliminate redundancy

In many cases, a cumbersome process has evolved and efficiency could be gained as well as better data management.

  • Examining both ‘push’ and ‘pull’ strategies for communication.

Traditionally, internal and external communications were both push type communications. You blasted your message to the recipients. Now, with advancing technology capability, as well as the Internet and Intranet environments, companies have the ability to provide recipients that opportunity to selectively pull information from them. Examples of this approach in action are companies that notify a distribution list that a new press release has been added, or that a report has been posted and can be downloaded or accessed. The entire nature of the interaction and relationship has changed.

  • Starting with the basics and your target audience and their behaviors as your prepare your marketing plan

Although I’m obviously biased and in favor of using the Internet as a strategic communications vehicle, the proper strategy involves a combination approach and needs to consider the best means to reach your particular audience. There are still a number of people who maintain that the Internet is ineffective for business and maintain a print-only strategy when statistics prove that clients use the Internet to seek and gather information, and that the Internet influences buying decisions.

  • Reconsider your events and tradeshows starting with the basics

As industry sectors converge, the number of relevant events has increased dramatically. Costs are rising and decisions need to be made regarding tradeshow and event participation, including the level. These choices are difficult, and frequently not all monetarily driven as participation in some events may be more for political consideration rather than business opportunity. At the very least, the decision maker must acknowledge this last fact if this is the rationale for participation.

Where is your target audience and client base likely to be? Are the right people going to be there? Is there growth and new business opportunity if this is your strategy? Are your existing clients attending in good numbers where your booth is an excellent home base for dialog? If I was a new company, where would I need to be and why?

These and other questions need to be asked as you plan for 2003. The most successful organizations incorporate the questions and answers into their planning process and make decisions based not only on historical information but on an examination of as many influences and opportunities as they can possibly consider. These organizations start with the basics and finish with success.

Eating Soy During Adolescence May Reduce Breast Cancer

LOS ANGELES, Aug. 28 -- Eating soy foods on a regular basis-especially during adolescence-might lower the risk of breast cancer, according to preventive medicine researchers at the Keck School of Medicine of USC and colleagues.

Asian-American women who consumed soy foods on a weekly basis during their teen years and adulthood had about half the risk of developing breast cancer compared to similar women who ate little soy during the same time periods, according to a study in the September issue of Carcinogenesis.

Risk also was somewhat lowered for women who ate soy regularly during the teen years but consumed little during adulthood. However, preliminary data suggest little added benefit for women who ate little soy during adolescence but a high amount of soy during adulthood.

"There has been a lot of talk and controversy about the Asian diet and connections between soy food intake and breast cancer. We wanted to look at soy very carefully, to better understand if soy by itself is protective or if the level of soy consumption is just a marker for acculturation," says Anna H. Wu, Ph.D. professor of preventive medicine at the Keck School of Medicine.

Wu and colleagues conducted a case-control study of breast cancer among Chinese, Japanese and Filipino women in Los Angeles County, specifically looking at the importance of soy. From 1995 to 1998, they interviewed 501 Asian-American breast cancer patients and compared them to 594 healthy Asian-American women.

The researchers asked about eating habits, including how many times each week during adolescence they ate tofu. They also asked about the frequency and amounts of whole soy foods, such as tofu, soymilk, miso and fresh soybeans, usually eaten during adulthood.

Intake was highest among Chinese (26.8 milligrams of isoflavones a day), intermediate among Japanese (18.4 mg of isoflavones a day) and lowest among Filipinas (9.3 mg of isoflavones a day). Migrants ate a little more soy than American-born women did. Most of the Chinese and Filipino women in this study-more than 90 percent-were born in Asia, compared to less than 30 percent of the Japanese women.

When women were grouped by how often they ate soy during adolescence and adult life, researchers found that women who were high consumers during both time periods had a 47 percent reduction in risk. Those who ate little soy during adult life but were regular soy consumers during adolescence showed a 23 percent reduction in risk Women who were low consumers during adolescence and high consumers during adulthood showed little reduction in risk. However, the number of such women was small, and researchers note that larger studies must be conducted to confirm this result.

So how does soy work? Scientists are not sure, but they have some ideas.

Animal studies indicate that early life exposure to genistein-the main isoflavone in soybeans-seems to help protect against chemically induced breast tumors. Getting genistein early in life may help the mammary glands develop in a favorable way.

Eating soy might also lead to lower levels of estrogen circulating within the body, some theorize. And some studies show that genistein seems to inhibit some enzymes that are important in metabolizing estrogen.

Regardless of the protective mechanism, Wu notes that if the mounting soy research shows promise, many may ask, "How much soy is enough?" There may be a point at which eating more soy does not further reduce risk, she says. Researchers are still seeking to understand the relationship between soy food dose and risk reduction, though in this study the greatest risk reduction was seen among women with the highest level of consumption: 12.68 mg or more of isoflavones per 1000 kilocalories during adulthood and eating soy foods four or more times a week during adolescence.

Isoflavone levels in soy foods vary considerably, but a serving of store-bought tofu-a quarter of a box-contains about 10 mg of isoflavones, Wu says.

Wu notes that a much larger study is needed to sort out the benefits of adult soy food intake and what levels of soy intake are most helpful. Her study looked only at traditional soy foods, not at genistein or other isoflavones that may be contained in pills and supplements.

Reference: Anna H. Wu, Peggy Wan, Jean Hankin, Chiu-Chen Tseng, Mimi C. Yu and Malcolm C. Pike, "Adolescent and adult soy intake and risk of breast cancer in Asian-Americans," Carcinogenesis. September 2002, Vol. 23, No. 9, pp. 1491-1496.

The Hain Celestial Group Reports Fourth Quarter and Fiscal 2002 Results And Other Events

Fourth Quarter Revenue Grows 21%, with strong growth of existing brand portfolio and acquired brands

Earnings from operations of $0.11 per share after restructuring and one-time items; Reported loss per share of $0.38

Fourth Quarter includes $21.3 Million of Charges from Expected Sale of Irwindale, CA Health Valley facility and Previously Announced Discontinuation of Supplements Business and Weight Watchers' License

CEO Irwin Simon and CFO Ira Lamel to certify financial statements

MELVILLE, N.Y., Aug. 29 /PRNewswire-FirstCall/ -- The Hain Celestial Group (NASDAQ: HAIN) , the leading natural and organic food company, today announced results for the Fiscal 2002 fourth quarter ended June 30, 2002. Excluding restructuring and one-time items, Hain Celestial reported operating earnings of $0.11 per share compared with $0.08 per share in the prior year quarter. Including restructuring and one-time items, Hain Celestial had a net loss of $12.8 million, or $0.38 per share. In the prior year quarter, the Company earned $2.7 million, or $0.08 per share.

Fourth quarter sales grew 21% to $95.4 million, compared with net sales of $79.1 million in the prior year period. The increase in revenue reflected higher unit volume from the Company's existing portfolio of brands and the contribution of acquisitions. Commenting on the sales growth, Irwin D. Simon, Chairman, President and Chief Executive Officer, said, "I am pleased with our brands' strong growth during the quarter, with particularly good contributions from our snack brands of Terra and Garden of Eatin', Yves Veggie Cuisine, Health Valley and our business in Europe. In this quarter, we also recorded some major distribution gains in the super-mass category of the retail channel, which includes large-scale merchandisers, club stores and food service. We achieved the 21% revenue growth despite a switch in distributors by Wild Oats, one of our major natural customers, which reduced our sales by approximately $3 - 4 million as the terminated distributor stopped buying for Wild Oats and reduced inventories. This impacted our earnings by approximately $ 0.02 per share. We expect that our sales over the next year will recover as the new distributor fully meets Wild Oats' orders."

For the full fiscal year ended June 30, 2002, Hain Celestial reported earnings, including restructuring and one-time items in the fourth quarter, of $3 million, or $ 0.09 per share, compared with $23.6 million, or $ 0.68 per share in the prior year. Net sales grew to $396 million, a 14.5% increase over prior year sales of $345.7 million.

Commenting on the 2002 fiscal year, Mr. Simon said, "This was a challenging year of transition for our business. We are very proud of our accomplishments during the year, particularly in light of an economic slowdown, inventory reductions, the tragic events of 9/11 that affected our entire nation, and the second warmest winter on record. During 2002, we made the decisions necessary to position Hain Celestial to meet the rapidly growing demand for natural and organic food in the super-mass category of the retail channel. We are now ready to better realize that opportunity in 2003. At the same time, our accomplishments during the year -- including the opening of our new Terra Chips manufacturing facility, the acquisitions of Lima and Bio Marche, the agreement to sell the Health Valley manufacturing operations, and numerous significant management changes -- have enabled us to better meet growing demand from our other important partners -- our existing natural and retail customers. These steps, combined with a very strong balance sheet positions us well to achieve our planned results in 2003 -- our tenth anniversary year."

Restructuring and One-time Items

In the fourth quarter:

The Company announced that it has entered into an agreement (subject to customary consents and conditions) relating to the sale of its Irwindale, CA manufacturing facility to one of its existing, high quality co-packers. Under the agreement, the co-packer will acquire all manufacturing assets located at the facility and assume the lease on the property. The co-packer will manufacture product for the Company's Health Valley, Breadshop's, Casbah, and Nile Spice brands. In total, charges for items related to this agreement equaled approximately $12.9 million, or $ 0.24 per share, including $1.6 million associated with inefficiencies of the facility that are expected to be eliminated. In connection with the agreement, the Company recorded a restructuring charge of $11.3 million to reduce manufacturing assets and inventories to their net realizable values. The Company also anticipates that in the future an additional amount may be charged to this restructuring, related to potential employee costs and other expenses which could not be charged in the fourth quarter under accounting rules. The Company expects this potential charge to total approximately $2 million, and to substantially occur in Fiscal 2003. Of the aggregate in expected restructuring charges of $13.3 million, $9.2 million are non-cash charges.

Mr. Simon said, "We are pleased that we have resolved our manufacturing operations issues at the Irwindale facility. This 23-year old facility has operated at levels substantially below its effective capacity and has constrained the operating profitability of our Health Valley, Breadshop's, Casbah, and Nile Spice brands. We have eliminated the competitive disadvantage that this facility imposed on pricing and cost competitiveness and its limiting effect on new product and brand introductions. We are particularly excited that we will now be able to expand the growth potential of Health Valley, one of the most recognizable natural foods brands. We look forward to launching new Health Valley cookies, cereals, snack bars and other line extensions."

The Company anticipates that over time the cost of products produced by the co-packer at the Irwindale Facility will be reduced resulting in increased margins for those products.

In June 2002, the Company announced charges of $8 - $10 million related to the discontinuation of the supplements business and the termination of the Weight Watchers' license agreement. Charges related to the supplements business inherited with the acquisition of Celestial Seasonings, amounted to approximately $7.9 million, or $ 0.14 per share. Charges related to the Weight Watchers' license amounted to approximately $2.1 million, or $ 0.04 per share. Approximately $8.7 million of these charges are for non-cash items. While planning the discontinuance of these businesses during the quarter, the Company slowed shipments to customers to reduce future returns and other issues. This caused a sales shortfall from plan of approximately $ 0.7 - 1 million, or approximately $ 0.01 per share.

The Company has continued start-up activities relating to its numerous previously announced new business development opportunities, including its continuing discussions with both Barilla in Italy and Shin-Shin in Japan, to conclude the joint ventures announced in June. Further, the Company's Yves brand became the supplier of veggie burgers to McDonald's in Canada. At the same time, the Company began start-up activities in Europe intended to result in the future sale of numerous Hain Celestial products to the European markets using Lima as its base. As a result of these activities, the Company incurred charges of approximately $1.8 million, or $0.03 per share, which under accounting rules could not be deferred into future periods, despite the fact that those charges provided no current benefit.

The Company also incurred logistics and other consulting fees and management reorganization costs, which amounted to approximately $0.5 million, or $ 0.01 per share.

In sum, the aggregate reported net loss for the fourth quarter is $ 0.38 per share. Health Valley items total $0.24 per share, supplements and Weight Watchers' items total $0.19 per share, new business development activities and consulting and management reorganization charges total $0.04 per share, and the distributor change by Wild Oats had a $ 0.02 per share impact, all of which combined results in the operating income of $0.11 per share.


The Company announced that Mo Siegel, founder of Celestial Seasonings and Co-Chairman of the Board of Directors, has decided to retire from the Company. Irwin Simon commented on this event, "We thank Mo for his many contributions to The Hain Celestial Group. His return to the Company two years ago was an important factor in the successful integration of our two companies. We wish Mo every success in the future."

The Company also announced that Fran Daily, former CFO of Heinz North America, has joined the Company as Executive Vice President - Strategic Planning and Development. Fran will work on various projects for the Company, and will act as a liaison with H. J. Heinz to promote programs between the two companies. The Company previously announced the appointment of David Yale to lead its snacks brands, and that Daniel Glickman, former Secretary of Agriculture, had joined the Board of Directors.

Reaffirming Fiscal 2003 Guidance

Mr. Simon concluded, "With 2002 behind us, we are focused on 2003, and look forward to achieving the guidance we previously provided of $0.78 - $0.84 per share on revenues of $450 - $470 million. Our first quarter 2003 operations should return results of $0.14 to $0.17 per share, before continuing Health Valley restructuring and new business development charges."

The Company also announced that both Irwin Simon, CEO, and Ira Lamel, CFO, will sign and file the required certifications of the Company's financial statements when submitted as part of the Company's annual filing in September as required by the new regulations of the Securities and Exchange Commission.

About The Hain Celestial Group

The Hain Celestial Group, headquartered in Melville, NY, is a natural, specialty and snack food company. The Company is a leader in 13 of the top 15 natural food categories, with such well-known natural food brands as Celestial Seasonings (R) teas, Hain Pure Foods(R), Westbrae(R), Westsoy(R), Arrowhead Mills(R), Health Valley(R), Breadshop's(R), Casbah(R), Garden of Eatin(R), Terra Chips(R), Yves Veggie Cuisine(R), The Good Dog (R), The Good Slice(R), DeBoles(R), Earth's Best(R), Nile Spice, and Lima & Biomarche(R) in Europe. The Company's principal specialty product lines include Hollywood(R) cooking oils, Estee(R) sugar-free products, Kineret(R) kosher foods, Boston Better Snacks(R), and Alba Foods(R). The Hain Celestial Group's website can be found at

Statements made in this Press Release that are estimates of past or future performance are based on a number of factors, some of which are outside of the Company's control. Statements made in this Press Release that state the intentions, beliefs, expectations or predictions of The Hain Celestial Group and its management for the future are forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in forward-looking statements is contained from time to time in filings of The Hain Celestial Group with the U.S. Securities and Exchange Commission. Copies of these filings may be obtained by contacting The Hain Celestial Group or the SEC.