To: Eric Fader who wrote (2822 ) 10/25/2000 2:00:57 PM From: StockDung Read Replies (1) | Respond to of 5582 Eric, why don't you enlighten us about "phenylpropanolamine"? "We chose Gum Tech to formulate the product because of their advanced research and development department and broad experience in using chewing gum as a delivery system for OTC and dietary supplement products. They helped us develop a great product by suggesting additional ingredients for the product, and we are very pleased with Gum Tech's ability to formulate a truly great tasting gum despite the bitter taste of the phenylpropanolamine." GUM TECH ANNOUNCES AGREEMENT WITH HERITAGE CONSUMER PRODUCTS -------------------------------------------------------------------------------- for New Acutrim Diet Gum PHOENIX, Nov. 30 /PRNewswire/ -- Gum Tech International, Inc. (Nasdaq: GUMM) announced today that it has signed an agreement with Heritage Consumer Products to manufacture a gum form of the popular Acutrim(R) brand appetite suppressant. Developed by Ciba-Geigy in 1983, the Acutrim brand diet pill is currently the second most popular appetite suppressant in the United States and is distributed in all channels of retail outlets throughout the United States. The diet pill contains phenylpropanolamine (PPA), an over-the-counter (OTC) medication which helps suppress appetite and manage cravings. Privately held Heritage Consumer Products, which purchased the Acutrim(R) brand in August 1997, specializes in revitalizing already established consumer brands. Founded in 1997 and led by CEO Jay Swayze, Heritage Consumer Products has already achieved notable success revitalizing other nationally known brands such as Fiberall and Allerest. Swayze noted that the new Acutrim(R) Gum was the subject of a double blind research study. According to Swayze, "the purpose of the study was to test the effectiveness of the gum product as an appetite suppressant and weight loss product. We were very excited to learn that study participants who used the gum as directed over a three week period showed a mean weight loss of 4.75 pounds. In addition, the study indicated that the gum works very quickly, blunting olfactory/visually stimulated appetite by 31% in one minute and 50% within five minutes." According to Gum Tech President Gary Kehoe, "Our formulation of the diet gum product includes the pill's active ingredient, PPA, that works very effectively in our gum delivery system. We also added some additional ingredients to combine the best of the natural dieting supplements with the best of the OTC diet medications. The product is truly unique and very effective." "We believe that a gum is the perfect line extension for the Acutrim(R) brand," said Jay Swayze, Heritage's CEO. "Our intention is to boost sales by offering customers a choice of delivery systems while capitalizing on Acutrim(R)'s already widespread brand recognition." "We chose Gum Tech to formulate the product because of their advanced research and development department and broad experience in using chewing gum as a delivery system for OTC and dietary supplement products. They helped us develop a great product by suggesting additional ingredients for the product, and we are very pleased with Gum Tech's ability to formulate a truly great tasting gum despite the bitter taste of the phenylpropanolamine." Kehoe added, "We believe that this product represents a significant opportunity for Gum Tech. The market for weight loss products like Acutrim(R) is over 600 million dollars a year in the United States alone. Acutrim(R) has the household recognition to showcase our advanced formulation capabilities, which produced a great tasting gum that works. Heritage has the expertise to get the product into the hands of consumers." "Our relationship with Heritage is another example of our continuing success developing partnerships with well-established marketing companies," Kehoe concluded. Gum Tech develops, manufactures, and distributes specialty chewing gum products designed to provide health benefits to consumers. The company supports its own line of branded gums and partners with major food, pharmaceutical, or marketing companies to develop and manufacture gum products under contract manufacturing agreements. Gum Tech operates one of the most advanced chewing gum manufacturing plants in the U.S. and is the only stainless steel gum manufacturing facility registered with the Food and Drug Administration to manufacture gum with over-the-counter drug products. Gum Tech is located at 246 East Watkins Street, Phoenix, Arizona 85004. (Nasdaq: GUMM) E-mail: brown@gum-tech.com Gum Tech Forward-Looking Statement: Gum Tech's future results of operations and other forward-looking statements contained in this document, in particular statements concerning plant efficiencies and capacities, capital spending, research and development and other expenses involve a number of risks and uncertainties. In addition to the factors discussed above, other factors that could cause actual results to differ materially from anticipated results include the following business conditions and the general economy; competitive factors, such as a rival gum manufacturer's pricing and marketing efforts; availability of third-party material products at reasonable prices; risk of nonpayment of accounts receivable; risk of inventory obsolescence due to shifts in market demand; timing of product introductions; and litigation involving product liabilities and consumer issues. SOURCE Gum Tech International, Inc. 11/30/98 /CONTACT: Colleen Tiffany of The Logan Consulting Group, Inc., 716-244-7660, logangpr@aol.com; or Brown Russell of Gum Tech International, Inc., 602-252-1617, brown@gum-tech.com/ /Web site: www.gum-tech.com/ (GUMM) CO: Gum Tech International, Inc.; Heritage Consumer Products ST: Arizona IN: HOU HEA SU: Copyright © 1998, PR Newswire, all rights reserved.