To: DanZ who wrote (2588 ) 8/9/2000 9:27:59 PM From: Mike M Read Replies (2) | Respond to of 5582 Dan, I wonder if this means a journal publication is near: Gum Tech International Approves Plan to Focus on Drug Delivery Technology Company Will Leverage Recent Successes With Zicam and Swedish Match Joint Venture PHOENIX, August 9 /PRNewswire/ -- Gum Tech International (Nasdaq: GUMM) today announced that its Board of Directors has approved a proposal to expand the Company's business strategy to target the drug delivery technology business. The announcement was made at the Company's Annual Shareholders Meeting, which was held here today. Gum Tech, which originated as a functional chewing gum company, markets the popular homeopathic cold remedy Zicam(TM) through a joint venture with Gel Tech LLC, of which Gum Tech is a 60 percent owner. Launched in 1999, Zicam(TM) was an instant market success, selling out at over 42,000 retail outlets nationwide. Prior to the Zicam(TM) launch, Gum Tech's primary focus was the development and manufacture of innovative delivery systems for bioactive compounds through functional chewing gums. Recently, Gum Tech announced a joint venture with Swedish Match AB (Nasdaq: SWMAY; Stockholm: SWMA) to develop, manufacture, market and distribute non-tobacco nicotine products worldwide, thus significantly broadening the Company's gum business. The Company -- which holds the right to acquire the remainder of Gel Tech -- plans to change its name to reflect this new business direction. "Today's decision formalizes the Board's desire to re-articulate the Company's overall strategy and mission," said Brown Russell, Chairman of the Board of Gum Tech. "This refocusing not only reflects the success of our Zicam(TM) nasal gel product, but also evolves from the broadening of our business for developing gum-based delivery systems. We have become a market leader in two drug delivery systems with key competitive advantages in each." Mr. Russell added that Gum Tech has gained valuable experience both in successfully developing and launching major new products as well as in entering into agreements with large, multi-national companies, such as Swedish Match, to market those products on a mass scale. "The opportunity in the drug delivery arena is significant," Mr. Russell said. "One estimate sees the market growing to approximately $80 billion by the year 2005 from its current $22 billion size, and states that the industry is just entering a 'Golden Age'." The refocusing program will comprise the following initiatives: -- The existing Board of Directors will be expanded through the addition of new directors who have established connections and expertise in the pharmaceutical and investment industries. -- The existing Gum Tech/Gel Tech management structure will be reorganized -- and enhanced, as appropriate -- to facilitate research and development in the delivery system area. -- New research scientists will be hired, as appropriate, and a new scientific advisory board will be created. -- New business relationships and/or research agreements will be developed by leveraging current relationships within the industry, as well as new relationships within the Board of Directors. -- The Company will consider acquiring or merging with existing drug delivery companies. "Drug delivery finds itself in a lucrative 'market-pull' situation," Mr. Russell said. "The pharmaceutical industry as a whole is clamoring for new technologies to be made available to deliver active ingredients that can increase compliance, efficacy and profits. We intend to capitalize on the opportunities represented by this trend as rapidly as possible." For additional information, please contact Lynn Romero, Manager of Investor Relations, 602-252-2627, ext.320, lromero@gum-tech.com. Gum Tech is located at 246 East Watkins Street, Phoenix, Arizona 85004. Gum Tech Forward Looking Statement: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's ability to develop and market new products using innovative drug delivery systems, the belief that pharmaceutical companies and consumer product companies will use new delivery systems as part of their strategy for long-term growth, the pharmaceutical industry's demand for new drug delivery systems, and the estimated growth in the drug delivery market. These forward-looking statements are based on the Company's expectations and are subject to a number of risks and uncertainties, many of which cannot be predicted or quantified and are beyond the Company's control. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include the possible inability of the Company or its joint ventures to develop and produce products using innovative drug delivery systems that are acceptable to the market, delays in developing and producing any products utilizing innovative delivery systems, the discovery and implementation of competing delivery systems that may prove more acceptable to the marketplace, the reliance on the Company's joint venture partners who may not have the same objective as the Company, and the possibility that estimated demand for products in the drug delivery market will not grow as quickly as anticipated. Other factors that could cause actual results to differ materially from the Company's expectations are described in the Company's reports filed pursuant to the Securities Exchange Act of 1934. SOURCE Gum Tech International CO: Gum Tech International; Gel Tech LLC ST: Arizona