Hauser Reduces Credit Amid Investment by Zatpack

Hauser Reduces Credit Amid Investment by Zatpack

BOULDER, Colo.--Hauser (NASDAQ:HAUS) amended its credit facility with WellsFargo Bank N.A. to reduce the borrowing amount, a move that was permitted onlyafter Zatpack Inc. agreed to purchase a $3 million Subordinated Promissory Notethat is subordinate to the credit facility. With the new facility, Hauserreduced its borrowing amount from $24.5 million to $17 million by March 31,2001.

The note purchased by Zatpack, which owns 46 percent of HAUS shares, willaccrue at 6.5-percent interest, is payable in three years and has five-yearwarrants attached. Under these warrants, Zatpack can purchase 992,789 shares ofHauser's common stock at about $.59 per share. The proceeds from the sale of thenote will be used by Hauser to repay some of its outstanding debt.