Twinlab Moving Manufacturing to Utah

HAUPPAGUE, N.Y.--Twinlab Corp. announced plans to restructure its operations in hopes of improving the company's financial performance and operating results. The company will consolidate its manufacturing and distribution facilities into its Nature's Herbs FDA-registered facility in American Fork, Utah. Twinlab's corporate offices and some operations related to purchasing and R&D will remain in New York.

"We believe that the consolidation of our manufacturing and distribution facilities will allow us to reduce our overall cost structure, enhance operational efficiencies and customer service, and better position the company for future opportunities," said Ross Blechman, chairman, president and chief executive officer of Twinlab (www.twinlab.com).

The company expects to incur restructuring and related charges of up to $20 million ($10 million of which will be non-cash), which will affect the third and fourth quarter results in fiscal 2002. It added the move should result in annual cost reductions in excess of $6 million. Twinlab's stock has been on a steady decline for the last year; it closed at $0.44 per share today, up 33 percent from yesterday's $0.33.