WEST PALM BEACH, Fla., July 25 -- Health & Nutrition Systems International Inc. (BULLETIN BOARD: HNNS) announced today the Amendment of its Exclusive Contract, Security Agreement and Promissory Note with Garden State Nutritional a division of Vitaquest International.
The new agreement provides that HNS will repay the New Promissory Note for a total sum of $1,300,000 with an interest rate of 4.50% for a term of 21 months. HNS promises to make quarterly payments of approximately $130,000 beginning November 1, 2003, and on the first Business Day of each February, May and August thereafter, until such principal, with accrued interest is paid.
The Manufacturing Agreement continues to give Garden State Nutritional the right to be Health and Nutrition Systems' sole supplier of products. The terms of this agreement are net payment within 60 days of shipment with a line of credit of $450,000.
The Company has pledged all of its Assets to secure the Note and the extended terms.
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.