aheadofthestreet.com
Scottsdale Scientific, Inc., through it's wholly owned subsidiary, NutriCology, Inc./Allergy Research Group is an
innovative leader in research and the formulation of nutritional supplements. Scottsdale Scientific, Inc. is a multi-national
company positioned to profit in the $92 billion annual Neutraceutical market.
NutriCology Inc./Allergy Research Group, Scottsdale's wholly owned subsidiary was established in 1979. The company
is the pioneering leader in the nutritional health and life enhancement supplement market. This established company is
now under taking important initiatives to increase revenues and earnings rapidly over the next few years.
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Scottsdale Scientific, Inc.
7332 East Butherus Drive - Suite 101
Scottsdale, Arizona 85260
(888) 607-5399 or (602) 948-7444
e-Mail: stds@primenet.com
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STOCK PRICE AND INFORMATION
Ticker Symbol: STDS
Recent Price: 1 7/8
52 Week Range: 1 5/16 - 5 7/16
Shares Outstanding: 15,030,000
Float: 5,000,000
Scottsdale Scientific, Inc. has several elements and factors that point to very strong performance in the industry. The
company is recognized worldwide for the quality, purity, and efficacy of its nutritional supplement line. This is
exemplified by over 6,000 physicians and health care practitioners who purchase the products and recommend them to
their patients. The company has the management, innovative products, and industry reputation to capitalize on industry
trends and growth. Furthermore, Scottsdale Scientific, Inc. has expanded capacity and established new distribution
channels, including the Internet nutricology.com that will support management's aggressive growth plans and
should produce an acceleration of revenues and earnings over the next few years.
GROWTH INDUSTRY
* The nutritional supplement market is a rapidly growing sector of the health and wellness market. It is growing at an
annual rate of 20 - 30%.
* Neutraceuticals are a $92 Billion annual business (Nutrition Business Journal, Dec. 1998)
* 113 million Baby Boomers alone, spend billions annually on their health.
* Amazing projected growth in Online Sales of Nutritional Supplements and natural products in the nutrition industry.
$12 million in 1997 $40 million in 1998 $160 million projected for 1999 Over $500 million by 2001 (Nutrition Business
Journal)
* The majority of the world's population use alternative medicine as their primary source of medical care.
* Rapid increase in number of doctors recommending antioxidants and other nutritional supplements.
* HMO's, such as Kaiser Permanente and Oxford Health, have initiated programs of reimbursement for alternative
healthcare in order to reduce costs and improve patient quality of life.
STRONG MANAGEMENT TEAM
Scottsdale Scientific recently announced a management rotation to better utilize strengths of the company's
management team. Dr. Stephen Levine, founder of Allergy Research Group and chairman of the board of Scottsdale
Scientific, has resigned his post as chief executive officer and chose to become president of Allergy Research Group's
research and development company. This transition allows Levine to devote his full energies in research and
development and co-chairing Scottsdale Scientific's scientific advisory board which exposes him to the very latest
methodologies being utilized.
Dr. Levine is recognized as one of the leading researchers and developers of life enhancing nutritional products. Dr.
Levine is also recognized as an author of the internationally recognized book on antioxidants and free radical pathology,
"Antioxidant Adaptation, Its Role in Free Radical Pathology" which is considered to be the leading resource on these
subjects.
Marianne Sum, president and chief operating officer of Scottsdale Scientific, has resigned her post of COO and
assumed the Chief Executive Officer position as well as retaining the presidency. As she stated, "These management
internal shifts are customary and to be expected in a healthy, dynamic organization as it comes into its maturity in the
public arena. Dr. Levine and I have spent the last 14 months gaining confidence and experience in our respective
divisions."
We have spoken with Marianne Sum prior to developing this report and are impressed with her vision and competence to
take this company through the next stages in the company's expansion. Her plans for domestic and international growth
are very solid and we have confidence in her ability to position this 20 year-old company for accelerated growth into the
next millennium.
For more info on current/new management: biz.yahoo.com
TAPPING NEW MARKETS AND DISTRIBUTION SOURCES
The company supplies products to more than 6,000 physicians and health care practitioners in the United States.
Physicians, health care practitioners and consumers have the assurance that Scottsdale Scientific can meet their
needs with the over 250 quality nutritional products available. To assist the consumer, the company offers a technical
support team with extensive background in the nutrition supplement field to answer any questions or inquiries the
customer may have (1-888-563-1506).
Also available is a 50 page catalog including (but not limited to): Vitamin C Products, Multiple Vitamins/Minerals,
Essential Fatty Acids, Superfood Concentrates, Live Cell Therapy, Supplements for Immunological and Autoimmune
Disorders.
The company has divided sales into multiple market channels:
1. Allergy Research Group (Professional product line label) - Physicians, Nutritionists, Chiropractors and health care
professionals.
2. NutriCology, Inc. (Wholesale/Retail product line label) - wholesale accounts such as Health Food Stores and direct
catalog sales.
3. Private labeling to other health and wellness companies.
The company is now expanding beyond its core market to tap markets internationally and penetrate the domestic
market through the internet and other retail distribution systems.
SCOTTSDALE SCIENTIFIC EXPANDING DISTRIBUTION WORLD-WIDE
The company has entered the multi-billion dollar European Nutraceutical market (Nutraceutical's are nutritional products
with potential therapeutic value). The expansion into this market has been endorsed in the European community by the
St. George Cancer Clinic., a world renowned cancer research center.
September 17, 1998- Scottsdale Scientific Announced distribution agreement with United Kingdom based, Nutri-Link,
Ltd.
nutricology.com
August 11, 1998- Scottsdale Scientific announced a multi-million dollar international distribution agreement. The
agreement gave Scottsdale Scientific access to 7,000 distributors in 50 cities throughout South America.
nutricology.com
May 04, 1998 Scottsdale Scientific secured two international distributors
nutricology.com
These distribution agreements exemplify the company's commitment to expand its product line world wide.
USE OF THE INTERNET
Ed Lau, Scottsdale Scientific's newly promoted General Manager states, "This move into the Internet Commerce will
greatly increase our presence in the high-tech and retail marketing sector while increasing the sales and profitability of
our company. It is essential to make our products available through the e-commerce network, as well as implement a
strategic marketing campaign to ensure the success through this alternative method of purchasing our products."
nutricology.com
Jan. 12, 1999 Scottsdale Scientific, announced expanded retail distribution over the Internet at
nutricology.com
"Since the TOTAL IMMUNEô product was introduced, in early December 1998, the reception in the health care arena
has been overwhelming," said Marianne Sum, CEO of Stottsdale Scientific. The Internet provides the most widespread
distribution and marketing system to expand the company's activities to the retail consumer. "Orders are coming in from
Singapore, Japan, Australia, New Zealand, United Kingdom, Germany, Brazil and the U.S. Furthermore, the company
has planned an aggressive Internet marketing campaign to include every feasible aspect of the world-wide web." More
details regarding the internet marketing initiatives should be announced shortly.
EXPANDED CAPACITY TO HANDLE INCREASED DEMAND FOR PRODUCTS
July 21, 1998- Scottsdale Scientific relocated to new state of the art facility in Hayward, California. Scottsdale Scientific,
Inc., through their wholly owned subsidiary, NutriCology Inc., relocated to a new 25,000 sq. ft. modern facility in
Hayward, California, replacing the aging and antiquated 12,000 sq. ft. building in San Leandro, California.
This new facility enables Scottsdale Scientific to efficiently service the exponential growth the company has been
experiencing. Operational improvements are projected to save the company millions of dollars over the next 5 years.
INNOVATIVE PRODUCTS / INDUSTRY LEADERS
NutriCology was the first in the U.S. to introduce numerous specialty products including melatonin, a neurohormone,
germanium sesquioxide (a trace mineral), AntiOx(tm), a broad spectrum antioxidant and Buffered Vitamin C. Buffered
Vitamin C was tested at the Haight Ashbury Clinic in San Francisco as a nutritional supplement for its value (associated
with medical treatment) for opiate and stimulate abusers.
Specialty products already introduced include:
March 2, 1999 - Scottsdale Scientific introduced Total Heart and Total Nerve the Latest Addition to the company's line of
immunological targeted supplements. Total Heart(TM) is a unique cardiovascular formula specifically created for those
people who are very active by their profession, such as sports figures or for those people who want a higher energy level
and who need tissue damage repaired. The formulation includes all the supplements needed for proper diet and early
intervention in heart conditions.
Total Nerve(TM) offers overall protection through nutritional supplements that help improve the blood and oxygen supply
and supports the immune system as well as the brain. Total Nerve(TM) is a specific formula of vitamins, minerals,
herbs, hormones, amino acids (proteins) essential fatty acids, and digest enzymes. These ingredients help maintain
homeostasis in the body and relate well to both the brain and cardiovascular system.
biz.yahoo.com
Scottsdale Scientific, in conjunction with the World Renowned Cancer Klinik St. George of Bad Aibling, Germany
introduced the first pre and post care Nutritional Supplement - Total ImmuneTM. Total Immune is an all in one dietary
supplement powder containing over 60 nutrients, herbs and immunostimulants. Dr. Douwes, founder of Klinik St.
George, recognized the necessity of pre-care detoxification and post-care nutrient support as part of his therapies. Dr.
Douwes' Kliniks, located in Germany and Las Vegas, Nevada, are the world's largest cancer centers where alternative
and complementary cancer therapies are utilized along with extensive detoxification protocols and chemotherapy.
The market for these products extends from new-borns to the elderly, a 300 million market in North America. The Total
Nutrient Line alone will grow the company's sales over 25% by year end 2000 and contribute to the company's
profitability.
RECOGNITION AND REPUTATION WITHIN THE INDUSTRY
May 27-30, 1998 - Scottsdale Scientific, Inc. was invited to co-host the "International Conference on Advanced Medicine
in Immune Disorders and Cancer", in Bad Aibling, Germany.
Scientists and physicians from around the world attended the conference to learn of the latest breakthroughs and
findings concerning immunity and newly available clinical treatments. The conference was also sponsored by the
"German Society for Orthomolecular Medicine" and the world renowned "Klinik St. George" of Bad Aibling, Germany.
The Klinik St. George is the foremost cancer treatment facility hospital in Germany and is well respected internationally
for its continuous research in the field of innovative and natural cancer therapies.
nutricology.com
nutricology.com
March 8, 1999-- Scottsdale Scientific announced the establishment of the company's elite Scientific Advisory Board
biz.yahoo.com
Dr. Levine, founder of Allergy Research Group and chairman of the board of Scottsdale Scientific, also co-chairs
Scottsdale Scientific's scientific advisory board which exposes him to the very latest methodologies being utilized. He is
recognized as one of the leading researchers and developers of life enhancing nutritional products. Dr. Levine is also
wrote the internationally recognized book on antioxidants and free radical pathology, "Antioxidant Adaptation, Its Role in
Free Radical Pathology" which is considered to be the leading resource on these subjects.
SUMMARY:
Long term track record of sales growth and numerous new product line introductions make Scottsdale Scientific, Inc.
(OTC BB: STDS) a very attractive play in the alternative medicine and nutritional supplement industry. Because of
demographics and changing health care consumption patterns, the industry is poised to continue its rapid growth for the
foreseeable future. Scottsdale Scientific should benefit from this sector growth and through the expanded distribution
channels, including its use of the Internet.
It should be noted, an independent firm, Gilbert & Chatterton initiated coverage of Scottsdale Scientific last April with a
Buy recommendation at $3.50, significantly above current price levels. Since then, the company has had a year of
positive corporate developments and new product line introductions.
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Contact:
Investor Relations
Phone: (888) 607-5399
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DISCLAIMER
© Copyright 1999, Business Financial Network, Inc. All rights reserved.
Business Financial Network, Inc. is not a Registered Investment Advisor or a Broker / Dealer. This communication
reflects opinions from Scottsdale Scientific, Inc. (the Company). Readers are advised that this electronic publication is
issued solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy.
The opinions and analysis included herein are based on sources believed to be reliable and in good faith but no
representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. This
information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as
advice designed to meet the investment needs of any particular investor. The foregoing discussion contains
forward-looking statements which are based on current expectations and differences can be expected.
The information contained herein has been provided by the Company to Business Financial Network, Inc. for information
purposes only; in addition, the information contained in this report is not intended to be a complete discussion of
information regarding some of the current and/or intended business activities of the Company.
Readers are urged to consult with independent financial advisors with respect to an investment in the shares mentioned
herein. Investors should review a complete information package on the Company, which should include, but not be
limited to, the Company's annual report, quarterly report, press releases, as well as all regulatory filings. All information
contained in this report should be independently verified with the Company mentioned herein. Any opinions expressed in
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Business Financial Network, Inc. has been paid a fee of 28,000 free trading shares of Scottsdale Scientific, Inc. (OTC
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nasdr.com. Readers can review all public filings by the Company at the SEC's EDGAR page. The NASD has
published information on how to invest carefully at its web site. |
