EXHIBIT 99.1
ADVANCED NUTRACEUTICALS, INC.
ANNOUNCES PROPOSED ACQUISITION OF OPERATIONS OF YORK PHARMACEUTICAL
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Houston, May 9, 2001 - Advanced Nutraceuticals, Inc (Nasdaq symbol: ANIIC),
announced today that it is in advanced stages of negotiations to acquire the
over the counter pharmaceutical manufacturing operations and certain related net
assets of York Pharmaceutical, Incorporated ("York"). York is a privately held
entity with its corporate headquarters in Kansas City, KS. Upon finalization of
the acquisition, the acquired operations and assets of York would be relocated
to ANI's 132,000-sq. ft. manufacturing facility in Gulfport, MS, which is in the
same line of business.
The proposed acquisition would consolidate in one facility, two established
over the counter pharmaceutical manufacturers with over one-hundred years of
combined experience in producing high quality, price competitive products. The
proposed transaction would be consummated with ANI convertible preferred stock
and additional potential stock subject to the terms of an earn-out. Terms of the
transaction are subject to finalizing certain matters before an agreement would
be entered into, as well as completion of due diligence and approvals of each of
the companies' Boards. The combined facility will continue to offer a broad
range of products including liquid antacids, analgesic tablets, cough and cold
syrups and elixirs, acetaminophen elixirs, baby and medicated powders,
antifungal powders and other consumer products. ANI, through its Bactolac
Pharmaceutical, Inc., subsidiary in Hauppauge, NY, manufactures a comprehensive
assortment of vitamin, mineral and nutritional supplement products.
Gregory Pusey, Chairman of Advanced Nutraceuticals, commented, " We are
optimistic about the expanded sales, customer and product base the acquisition
of York would bring to our operation in Gulfport, MS. This would be another step
of our consolidation and integration program in the nutraceutical and
pharmaceutical industry."
ANI had previously announced the agreement to sell its NFLI related
subsidiaries engaged in the network marketing business. Closing of the NFLI sale
is subject to approval of the ANI shareholders, among other items, and is
anticipated to occur on or about May 31, 2001.
Advanced Nutraceuticals, Inc. is a holding company that conducts operations
through Nutrition For Life International, Inc. and Bactolac Pharmaceutical, Inc.
Nutrition For Life International, Inc. develops, markets and sells an extensive
product line of nutritional supplements and other consumer products through its
network of independent distributors. Bactolac Pharmaceutical, Inc. and ASHCO, a
division of Bactolac Pharmaceutical, Inc., are manufacturers of nutraceutical
and pharmaceutical products.
FOR ADDITIONAL INFO CALL JEFF McGONEGAL AT 303/660-9583
OR GREG PUSEY AT 303/722-4008
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This press release includes "forward looking statements" as defined by the
Securities and Exchange Commission (the "SEC"). Such statements are those
concerning the Company's proposed business combination and expectations for
future operations. All statements, other than statements of historical fact,
included in the press release that address activities, events or developments
that the companies believe or anticipate will or may occur in the future are
forward-looking statements. This includes completion of the proposed business
combination and other matters. These statements are based on certain assumptions
made based on experience, expected future developments and other factors ANII
believes are appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond the
control of the
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companies. Investors are cautioned that any such statements are not guarantees
of future performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. Furthermore,
ANII does not intend (and is not obligated) to update publicly any forward-
looking statements.
SHAREHOLDERS OF ANII AND OTHER INVESTORS ARE URGED TO READ THE PROXY STATEMENT
WHEN IT IS AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. THE PROXY
STATEMENT WILL BE FILED WITH THE SEC BY ANII. INVESTORS AND SECURITY HOLDERS MAY
OBTAIN A FREE COPY OF THE PROXY STATEMENT (WHEN AVAILABLE) AND OTHER DOCUMENTS
FILED BY ANII WITH THE SEC AT THE SEC'S WEBSITE AT WWW.SEC.GOV. The proxy
statement may also be obtained from ANII by directing such request to Advanced
Nutraceuticals, Inc. at 9101 Jameel, Houston, Texas 77040, telephone (713) 460-
1976. ANII, its directors, executive officers and certain members of management
and employees may be considered "participants in the solicitation" of proxies
from ANII's shareholders in connection with the proposed business combination.
Information regarding such persons and a description of their interests in the
proposed business combination is contained in ANII's filing with the SEC under
Rule 14a-12 on May 9, 2001.
CERTAIN INFORMATION CONCERNING PARTICIPANTS
ANII, its directors, executive officers and certain members of management and
employees may be considered "participants in the solicitation" of proxies from
ANII's shareholders. The participants in such solicitation may include the
directors of ANII: F. Wayne Ballenger, David P. Bertrand (President and CEO of
NFLI), M. F. Florence, Jana Mitcham (Secretary and Executive Vice President and
Secretary of NFLI), Gregory Pusey, Pailla M. Reddy and Neil Sirkin and the
following executive officers of ANII and NFLI: John R. Brown, Jr. (Vice
President-Finance and Treasurer), Jeffrey G. McGonegal (Senior Vice President-
Finance).
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