Health Sciences Group Addresses Lackluster 2005

Health Sciences Group Addresses Lackluster 2005

LOS ANGELES--Health Sciences Group Inc. (OTCBB:HESG) reviewed its 2005 performance, balancing management's disappointment with results with details on the healthy switch from commoditized products to the proprietary brands Shugr, a zero-calorie sweetener, and Sequesterol, a cardiovascular health formula. Despite the initial penetration of Shugr into various major mass market retailers, the company (www.hsciences.com) noted price concerns as well as distribution shortfalls. It plans to address these concerns by developing sales and broker networks, and adopting more targeted, lower cost packaging. To these ends, the company also noted its recent distribution agreement with DNP International, which is expected to boost Shugr sales. Additional efforts are underway to secure international distributor agreements, including OGE in Japan, but Shugr would need approvals from various countries. Also underway is a re-production of a Sequesterol infomercial, originally delayed in order to broaden the cardiovascular focus of the formula beyond just cholesterol. Test marketing for the infomercial is expected to commence this June.