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Non-Tech : GUMM - Gumm Tech International Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (112)	4/22/1998 7:34:00 PM
From: Mike M	Respond to of 148

John- << The rule of thumb I am familiar with is that biotech companies are valued at their cumulative R&D expenditures.>> That rule of thumb doesn't make any sense in this case, does it John? On the other hand gaging value from sales and earnings does. In the final analysis all drug companies are valued according to sales and earnings...Not how much they paid for R&D...back when, especially when revenue is already materializing. <<The other prospective business activities you describe, assuming that they actually materialize, sound like contract manufacturing. Isn't that a highly competitive, low-margin business, with substantial risk of losing a contract in a given year? >> Remember contract manufacturing of a "drug delivery system" from an FDA approved facility (the only one in its existence according to the company) is not likely to be all that competitive...at least not at first. If any gum company could do the manufacturing the world's 2d largest gum manufacturer would not need GUMM. 30 to 40% of retail doesn't sound like low-margin. Contracts are signed for multiple-years.... Risk does seem to be a part of doing business, as does investing, whether short or long.

To: Q. who wrote (112)	4/25/1998 11:06:00 PM
From: Mike M	Respond to of 148

John- A good example of adult management: Former MicroAge President Joins GumTech Management Team as Consultant PHOENIX--(BUSINESS WIRE)--April 23, 1998--GumTech (NASDAQ:GUMM) Thursday announced the addition of Ken Waters to its management team as a senior business consultant. Waters will work directly with Gary Kehoe, who was appointed president of GumTech in February of this year. He will assist Kehoe with business strategy, general business advice and review of corporate and financial matters. "I am pleased to have someone with Ken's background and experience assisting me in designing and implementing a successful strategy for growth. GumTech has undergone many changes over the last year and I believe Ken will be an integral part of helping GumTech make the most of the opportunities that lie ahead." said Kehoe. From 1993 to 1996, Waters was the president of MicroAge, a Fortune 500 Service Co. and distributor of computer products and integration services. During his tenure as president, MicroAge grew from $1.5 billion to $3 billion in revenues in 18 months. Waters served as chief executive officer, COO, and president of Computerland from 1986 to 1988, managing the operations of a company having franchised and company owned stores totaling 800 with sales of $3 billion worldwide. Since retiring from MicroAge in 1996, Waters has worked as a business consultant for a small, select group of companies, including AT&T, Williams-Sonoma, Michael Jordan Golf Inc., and Simple Technology Inc. Waters has experience in manufacturing, retail and distribution in companies of many sizes. Waters holds a Bachelor of Arts from the University of California at Davis and a Juris Doctorate from Pepperdine University. According to Waters, "GumTech represents a unique opportunity. I look forward to working with Gary to help GumTech realize the full potential of its excellent research and development and manufacturing capabilities." GumTech distributes its functional chewing gum products to many of the nation's top drugstores, mass merchandisers and health food chains, and the company produces a number of products for major private label companies. Its state-of-the-art OTC registered manufacturing facility is located in Phoenix. GumTech is located at 4205 North 7th Ave. Suite 300, Phoenix, AZ 85013. E-mail: Michael@gum-tech.com. CONTACT: Owens & Associates, Phoenix Lamar Owens, 602/230-7557 e-mail oaads@dancris.com or GumTech International Inc., Phoenix Gary Kehoe or Jeff Bouchy, 602/252-1617 gkehoe@gum-tech.com KEYWORD: ARIZONA UTAH BW0216 APR 23,1998

To: Q. who wrote (112)	4/28/1998 11:52:00 PM
From: Mike M	Respond to of 148

John- More news....the evidence will get compelling soon....be glad you couldn't find stock to short....Damn lucky, I'd say! :-) GumTech to Produce "Brain Gum" for Worldwide Distribution by KR Research PHOENIX--(BUSINESS WIRE)--April 27, 1998--GumTech International Inc. (NASDAQ:GUMM) has begun manufacturing a new dietary supplement chewing gum designed to help enhance learning, memory and concentration. Brain Gum(TM) features LECI-PS(TM), a soy-based phosphatidylserine (PS) developed by Lucas Meyer company. PS is a naturally occurring brain nutrient which studies suggest plays an important role in the optimum performance of brain cells and proponents claim is more effective than Ginkgo Biloba. Brain Gum(TM) is manufactured at GumTech's Phoenix facility exclusively for KR Research Inc. and Brian Reichenberg, who distributes Kevis brand products. "Brain Gum(TM) is a fine example of one of the many formulations we have developed over the past few years, particularly in the growing natural dietary supplement market," said GumTech President Gary Kehoe. "The launch of this gum by KR Research Inc. illustrates our current efforts to find companies who possess the marketing expertise and resources to get new technologies out of the laboratory and into the marketplace where consumers can benefit." Lucas Meyer, which developed LECI-PS(TM), says that it naturally replenishes the body's stores of PS which support chemical and impulse transmission between cells by governing the activities of cell membrane proteins. This differs from Ginkgo Biloba which attempts to improve brain function by increasing blood and oxygen flow to the brain. PS has been the subject of studies since the 1970s. According to Lucas Meyer, PS has been clinically tested more intensively than Ginkgo and has shown greater potential than any other nutritional supplement for limiting or reversing cognitive decline associated with aging. More than forty human studies, over half of which were double-blind, indicate that PS may help maintain or improve cognitive functions in mature adults, particularly recollection and the ability to maintain concentration. Lucas Meyer maintains that PS is the only substance that could actually claim to reverse memory loss. The popularity of the herb Ginkgo Biloba has shown that there is a sizable market for a mental enhancement supplement. U.S. Ginkgo sales in mass market outlets plus food and drug stores were estimated at $90 million in 1997, up over 140% from the previous year. "We believe that a gum containing LECI-PS(TM) takes it a step further," said Kehoe. It is estimated that more than 15 million adults over the age of 65 are already experiencing measurable declines in their cognitive abilities, and with roughly 60 million Americans now over the age of 50, the number of adults who could benefit from Brain Gum will continue to grow. Lucas Meyer has stated that it also plans to test LECI-PS(TM) on younger adults and students. Kehoe said, "As more becomes known about the benefits of PS for the young, the potential market for brain enhancing gums could be even more significant." "Although we are only in the early stages of marketing and distribution, the initial consumer response to Brain Gum(TM) has been very promising," said Brian Reichenberg, president of KR Research Inc. "Recently the gum was highlighted in the nightly news broadcasts of ABC and CBS affiliates in over 50 major metropolitan areas. We had over 2,600 phone calls in 40 minutes. It overloaded our phones. This indicates to me that the product has lots of potential." Reichenberg successfully grew Kevis brand products in the U.S. and Canada from almost zero to $9 million in sales over two years and he stated that he feels sales for Brain Gum(TM) will increase even more quickly. KR Research plans to market Brain Gum(TM) through direct response television and radio advertising as well as distribution through drug store chains and retailers nationwide. KR Research anticipates full distribution to 15,000 drug stores to occur sometime within the next 18 months with the bulk of advertising dollars to be spent in 1999 once the product is on retail shelves. The gum packs, which contain 144 pieces, carry a suggested retail price of $60. Brain Gum(TM) can also be ordered by calling 800/IQ-BOOST. "We are excited about the growth in our private label business and will continue to search for marriages between our technologies and marketing leaders," said Gary Kehoe. "The strength of our private label business will serve as a great foundation for continued support of our own branded gum products." Mike