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Non-Tech : GNCI General Nutrition
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To: Roger Bodine who wrote (54)4/29/1999 3:34:00 PM
From: Marc Phelan   of 110
 
General Nutrition Sells Nature's Fresh Unit to Wild Oats; Will Focus on Fast-Growing Supplement Business
-- Continued Focus on Building GNC Brand -- Proceeds Will Reduce Debt -- Rite Aid Strategic Alliance is Ahead of Schedule
PITTSBURGH, April 28 /PRNewswire/ -- General Nutrition Companies, Inc. (Nasdaq: GNCI - news) today announced that it has sold its Nature's Northwest natural grocery unit to Wild Oats Markets, Inc. (Nasdaq: OATS - news) for $57 million - $40 million in cash and the assumption of a note for $17 million. The company noted that Nature's contributed 4% of fiscal 1998 revenues and that the sale would have no effect on its earnings. GNCI acquired Nature's Northwest in August 1996. Nature's Northwest currently has six stores, all in the Portland, Oregon area. In addition, General Nutrition is in negotiations to provide Wild Oats' stores with a complete line of private label supplements.

William E. Watts, President and CEO, said, ''Nature's is a great company, and we've learned a lot from them about new ways to address the needs of the self-care customer. This decision reflects our continuing commitment to focus on the core GNC brand.'' Watts also noted that ''GNC and Rite Aid are ahead of schedule in their commitments to open at least 1,500 GNC stores within select Rite Aid stores over the next three years. Full-scale rollout of the stores- within-stores program will begin in May.''

The company said that all of the proceeds from the divestiture of Nature's Northwest will be used to reduce debt and that the sale will also reduce capital spending needs in fiscal 1999 and 2000 by approximately $27 million.

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