Nutrition 21 Receives Commitment from Rite Aid Corporation for its Chromax® Product First Time Chromax Brand To Be Sold in Retail Stores PURCHASE, N.Y., January 13, 2006 – Nutrition 21, Inc., (NASDAQ: NXXI) today announced that it has received a purchase order from Rite Aid Corporation for the Company’s Chromax® chromium picolinate product. Rite Aid will distribute Chromax chain-wide at its 3,400 plus stores. This is the first time the Chromax brand will be in retail stores. Nutrition 21 is working to secure purchase orders and similar product placement at other major food, drug and mass (FDM) retailers.
“Our direct distribution strategy is on schedule. The Rite Aid commitment is a significant initial step in our transition from primarily a wholesale ingredients supplier to also a supplier of branded finished goods,” said Paul Intlekofer, COO, Nutrition 21. “We think that our shift in business models should positively impact the company’s financial results by the second half of 2006.”
“It’s not surprising that Rite Aid is receptive to creating an end-benefit destination on the shelf for chromium picolinate similar to Bone Health for calcium. Public attention to the insulin-related benefits of chromium picolinate is expanding. It is one of five featured “Super Nutrients” in this week’s Newsweek magazine. The article highlights chromium for its role in helping people with type 2 diabetes and pre-diabetes boost their insulin sensitivity and improve sugar metabolism. The Insulin Health positioning also coincides with a new intense focus on the crisis of insulin resistance and type 2 diabetes in this country. Just this past week, the New York Times ran a four-part series on this topic,” added Mr. Intlekofer.
The Company will support its strategy for direct retail sales of Chromax and the chromium picolinate category with a comprehensive marketing and communications program. About Nutrition 21
Nutrition 21 is a nutritional bioscience company and the maker of chromium-based supplements with health benefits substantiated by clinical research. The Company markets Chromax® chromium picolinate, http://www.chromax.com/, which is the most-studied form of the essential mineral chromium. Nutrition 21 also developed Diachrome®, http://www.diachrome.com. Nutrition 21 holds 36 patents for nutrition products and uses, 27 of which are for chromium compounds and their uses. More information is available at http://www.nutrition21.com. Safe Harbor Provision
This press release may contain certain forward-looking statements. The words “believe,” “expect,” “anticipate” and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on the Company's current expectations and are subject to a number of risks and uncertainties, including without limitation: the effect of the expiration of patents; regulatory issues; uncertainty in the outcomes of clinical trials; changes in external market factors; changes in the Company's business or growth strategy or an inability to execute its strategy due to changes in its industry or the economy generally; the emergence of new or growing competitors; various other competitive factors; and other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended June 30, 2005 and subsequent reports on From 10-Q. Actual results could differ materially from the results referred to in the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements contained in this press release will in fact occur. Additionally, the Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements. # # # |
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