Advanced Nutraceuticals Negotiates for York Acquisition

HOUSTON--Advanced Nutraceuticals Inc. (NASDAQ:ANIIC) announced May 9 that it is in negotiations with privately held York Pharmaceutical Inc. to acquire its over-the-counter pharmaceutical manufacturing operations and certain related net assets. After the acquisition is finalized, Kansas City, Kan.-based York will relocate to ANIIC's Gulport, Miss. manufacturing facility. The combined facility will manufacture such products as liquid antacids, analgesic tablets, cough and cold syrups, antifungal powders and sundry consumer products.

The proposed transaction will include ANIIC convertible preferred stock and additional potential stock subject to terms of an earn-out; all terms of the transaction are subject to completion of due diligence and approvals of each of the companies' board of directors. Gregory Pusey, chairman of ANIIC, stated that, "This would be another step of our consolidation and integration program in the nutraceutical and pharmaceutical industry."

ANIIC's subsidiary, Hauppauge, N.Y.-based Bactolac Pharmaceutical Inc., manufactures ANIIC's vitamin, mineral and nutritional supplement products. ANIIC also reported that its deal to sell its subsidiary Nutrition for Life International Inc. should be approved by its shareholders on or about May 31.

Calls to ANIIC had not been returned by press time. For more information, visit www.advancednutraceuticals.com.