SCOLR Offers Stockholders Rights to Preferred Stock

SCOLR Offers Stockholders Rights to Preferred Stock

REDMOND, Wash.--On Nov. 1, SCOLR Inc. (OTCBB:SCLL), formerlyNutraceutix Inc., adopted a stockholder rights plan under which all stockholdersof record as of Nov. 12, 2002, receive the right to purchase a new series ofPreferred Stock. Each right will entitle SCOLR shareholders to purchase oneone-thousandth of a share of Series A Junior Participating Preferred Stock at aninitial exercise price of $15.

According to the company, the Rights Plan is intended to guard againstabusive takeover tactics, including "creeping tender offers" throughopen-market or private purchases. The company's board of directors may amend theplan or redeem the rights at a price of $.001 per right at any time a person hasbecome the beneficial owner of 15 percent or more of SCOLR's outstanding commonstock. The rights will expire on Nov. 1, 2012, unless earlier exchanged orredeemed.