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Healthnotes® Experiences Record Sales in 2006; Gains Momentum in Retail and Expands to New Markets

PORTLAND, Ore.—February 27, 2007—Healthnotes, Inc., the leading provider of healthy living marketing programs for retailers, announces record sales and revenue for its fiscal year ended December 31, 2006, with nearly a 50% increase in sales and total contract value. Healthnotes increased its market share throughout the grocery, drugstore, and super center classes of trade and added several leading retailers to its customer list, including Meijer, Inc., Giant Food Stores (based in Carlisle, part of Ahold USA, Inc.), and SUPERVALU, Inc.

At Meijer, Healthnotes was part of a highly successful department-wide remodel, while at Giant Food Healthnotes was included in the widely recognized Shopping Solutions program. In second quarter, Healthnotes expects to release results of a large scale study demonstrating increased retail sales from the Healthnotes Connect™ program.

“We’re pleased to be working with Healthnotes to provide our customers the help they need in making purchase decisions across the store,” stated Steve Kaczynski, president for bigg’s (a division of SUPERVALU, Inc.). “By placing Healthnotes kiosks in our stores and integrating their content on our website, we are providing a comprehensive program that our customers value while growing sales in nearly all healthy living categories and strengthening our position as a leader in wellness.”

In addition, Healthnotes maintained over a 97% renewal rate in its core retail market and grew relationships with key customers, including The Kroger Co., Raley’s, and Wild Oats Markets, Inc. Healthnotes enters the year in a strong position and projects significant growth during 2007 and 2008.

“Healthnotes is building on a strong history in retail and a solid foundation of health and wellness expertise to expand into more mainstream supermarkets and add footprints throughout the store, especially in fresh food departments,” stated Dr. Schuyler Lininger, Healthnotes president and CEO. “Our strong 2006 underscores our commitment to partner with leading retailers to strategically build out their health and wellness programs and help consumers make educated, empowered purchase decisions storewide.”

Expanded opportunities in new industries
While Healthnotes has strengthened its position in retail, new markets have emerged, reflecting increased consumer demand related to health and wellness worldwide. Healthnotes is now an integral part of consumer education initiatives for Revolution Health Group and Singapore Airlines. Each of these reflects new ways to deliver Healthnotes expertise to consumers, whether on a consumer health portal (Revolution) or as part of an airline entertainment network (SIA).
Dr. Lininger added, “Much of the credit for our success goes to the new senior management team, now in place for a year. Their experience in growing companies and bringing products of value to market is vital as we continue to expand our business and further strengthen our position as a proven marketing platform for grocery and pharmacy retailers.”
About Healthnotes Connect™
Healthnotes Connect is a comprehensive, in-store wellness marketing program for supermarkets, pharmacies, and natural product stores. Healthnotes drives incremental sales by delivering department-specific, fully integrated health, food and lifestyle information and targeted, contextually relevant advertising, promotions, and seasonal content across a network of interactive touchscreen kiosks.

Healthnotes is also available for integration on retailers’ websites through Healthnotes WebConnect™. Because it is written for a consumer audience, it can be repackaged and leveraged for other consumer education initiatives, including employee wellness programs, supplement manufacturer websites, healthcare practitioners, and online health sites.

About Healthnotes, Inc.
Healthnotes, Inc., was founded in 1987 on the premise that informed consumers become loyal customers. The leading provider of reliable, consumer-friendly health and wellness information, Healthnotes® drives more than 50 million consumer visits annually across thousands of retail locations and websites worldwide, including six of the top seven U.S. grocery retailers. Healthnotes solutions empower consumers to make educated decisions and drive product sales, both in-store and online. Visit for more information and to view online product demos.

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HEALTHNOTES is a registered trademark of Healthnotes, Inc.

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