Advanced Nutraceuticals Negotiates for York Acquisition 38832

Advanced Nutraceuticals Negotiates for York Acquisition

HOUSTON--Advanced Nutraceuticals Inc. (NASDAQ:ANIIC) announcedMay 9 that it is in negotiations with privately held York Pharmaceutical Inc. toacquire its over-the-counter pharmaceutical manufacturing operations and certainrelated net assets. After the acquisition is finalized, Kansas City, Kan.-basedYork will relocate to ANIICs Gulfport, Miss. manufacturing facility. Thecombined facility will manufacture such products as liquid antacids, analgesictablets, cough and cold syrups, antifungal powders and sundry consumer products.

The proposed transaction will include ANIIC convertible preferred stock andadditional potential stock subject to terms of an earn-out; all terms of thetransaction are subject to completion of due diligence and approvals of each ofthe companies board of directors. Gregory Pusey, chairman of ANIIC, statedthat, This would be another step of our consolidation and integration programin the nutraceutical and pharmaceutical industry.

ANIICs subsidiary, Hauppauge, N.Y.-based Bactolac Pharmaceutical Inc.,manufactures ANIICs vitamin, mineral and nutritional supplement products.ANIIC also reported that its deal to sell its subsidiary Nutrition for LifeInternational 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.