Hauser Selling Botanicals Division 40720

Hauser Selling Botanicals Division

LONGMONT, Colo.--Continuing its attempt to restructure afterits April Chapter 11 bankruptcy filing, Hauser Inc. will sell its BotanicalsInternational Extracts subsidiary to Zuellig Botanicals Inc. (ZBI). AnnouncedOct. 24, the sale is subject to approval by U.S. Bankruptcy Court, CentralDistrict of California, but is expected to close within 60 days and bringbetween $8.2 million and $9.2 million to Hauser. The company will use a portionof the proceeds to pay down its $8.6 million debt to its senior creditor.

Hauser noted it is seeking strategic buyers for its remaining businessunits--Hauser Technical Services and ZetaPharm Inc. On Oct. 23, Hauser closedthe sale of its policosanol assets (products, patent rights, licenses, etc.) toWyeth Consumer Healthcare for $500,000 plus future payments based on apercentage of future net sales.

ZBI is a subsidiary of the Zuellig Group, a 34-percent shareholder of Hauserthat could own approximately 43 percent of Hauser if it exercises itsoutstanding warrants. ZBI does business as BI Nutraceuticals (www.botanicals.com)in Long Beach, Calif. According to a Hauser spokesman, ZBI plans to merge theBotanicals International operations with its existing BI Nutraceuticalsbusiness.