Metabolife Reports Sales Growth

Metabolife Reports Sales Growth

SAN DIEGOIn an operatingreport filed in bankruptcy court, Metabolife International Inc.(www.metabolife.com) disclosed its August 2005 operating results, which statedthe company exceeded budgeted gross sales expectations by more than $1.1 millionsince its June 2005 bankruptcy filing. The company further noted it beatnormalized EBITDA projections for the same period by more than $800,000, or 2.4times what was budgeted. Management attributed the results to strongrelationships with retail partners, who jointly promote Metabolife products.

From Wal-Mart, Target and Kmart in the mass class of trade,to Walgreens, Rite Aid and CVS and in the drug class of trade, our tradingpartners continue to see the value of the Metabolife brand and our high-qualityproducts, said Scott Moberly, director of sales.

This is in contrast to reports from IdeaSphere Inc., which hadpreviously bid to acquire the non-ephedra assets of the bankrupt company.IdeaSphere rescinded its offer after reportedly learning Metabolife had not beenoperating normal business as required by the purchase agreement. Among thebusiness failures, IdeaSphere Inc. claimed Metabolife lost several mass retail clients, such asCostco; spent a mere $34,000 of its projected $900,000 in marketingand advertising support; and has much as 30 percent of its inventory beyond ornear expiration.

While we had a signed asset purchase agreement with anearlier bidder, the bidder failed to perform, citing unfounded allegations that[Metabolife] had not operated fully during the months of July and August,said Bob Herrmann, president of Metabolife. However, in its August operatingreport, Metabolife told the court it has maintained full operations andcontinues to support its products during its bankruptcy case. Herrmann added hiscompany is in discussion with numerous parties interested in bidding for theassets, and management plans to support its trading partners both before andafter any asset sale.