5
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported) December 19, 2002
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Health & Nutrition Systems International, Inc.
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(Exact name of registrant as specified in its charter)
Florida
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(State or other jurisdiction of incorporation)
0-29245 65-0452156
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(Commission File Number) (IRS Employer Identification No.)
3750 Investment Lane, Suite 5, West Palm Beach, Florida 33407
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(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code (561) 863-8446
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N/A
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(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits
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(c) Exhibits:
Exhibit
Number Description
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99.1 Press Release dated December 19, 2002.
Item 9. Regulation FD Disclosure
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On December 19, 2002, Health & Nutrition Systems International, Inc.
issued a press release announcing its decision to discontinue any ephedrine
based products. The press release is attached as Exhibit 99.1 and incorporated
by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HEALTH & NUTRITION SYSTEMS
INTERNATIONAL, INC.
By: /s/ Chris Tisi
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Chris Tisi, Interim Chairman of the Board,
Dated: December 19, 2002 Chief Executive Officer and President
Exhibit 99.1
[HNS LOGO]
For more information, contact:
At the Company: Media Inquiries:
Mona Lalla Christopher Tisi
Director of Operations President/CEO
Phone # (561) -863-8446 Phone # (561) 863-8446
HEALTH & NUTRITION SYSTEMS INTERNATIONAL INC. ANNOUNCES ITS
DISCONTINUATION OF EPHEDRA BASED PRODUCTS
FOR IMMEDIATE RELEASE:
West Palm Beach, FL, December19, 2002, - Health & Nutrition Systems
International Inc. (OTCBB: HNNS) was informed by its exclusive manufacturer that
effective December 31, 2002 they will be unable to supply the company with
ephedra-based products because of the supplier's inability to obtain product
liability insurance for such products.
Although Health and Nutrition Systems has been able to maintain its own
insurance for such products, the Company has made a strategic decision to
discontinue any ephedra-based products. CEO Chris Tisi said:
"We feel strongly that the ingredient is both safe and extremely
effective when used properly; however, we do recognize the overwhelming
negative press surrounding ephedra and the brands containing it. The
local and federal regulations as well as the inability to maintain
adequate liability insurance makes marketing products containing
ephedra difficult if not impossible. We are considering reformulating
the current brands containing ephedra with alternative ingredients. The
company has been attempting to limit its percentage of sales of this
ingredient over the past two years. Non ephedra-based brands are now
$4,755,670 or 80% of the company's sales" .
The Company's sales from ephedra-based products was $1,486,147 or 25% of sales
for 2001 and $936,000 or 19% for 2002.
HNS develops and markets weight management products in over 25,000 health, food
and drug store locations. The Company's products can be found in CVS, GNC,
Eckerd's, Rite Aid, Target, Vitamin Shoppe, Vitamin World, Walgreens and
Wal-Mart. The Company's HNS Direct division distributes to independent health
food stores, gyms and pharmacies. For more information, visit:
http://www.hnsglobal.com/.
Detailed results from this quarter can be obtained at www.freeedgar.com.
This news release contains forward-looking statements, as that term is defined
in the Private Securities Litigation Reform Act of 1995 and is subject to the
safe harbor created by that act. These forward-looking statements concern the
Company's operations, economic performance and financial condition and are based
largely on the Company's beliefs and expectations. These statements involve
known and unknown risks, uncertainties and other factors that may cause actual
results to be materially different from any future results expressed or implied
by such forward-looking statements. Such factors and risks include, among
others, the factors described in the Company's filing with the Securities and
Exchange Commission, the recent terrorist attacks on the United States, possible
responses by the U.S. government, general economic conditions, consumer
confidence and changes in consumer preference, introduction of products that
compete with the Company's products, and the availability and deployment of
capital. Finally, recent government action and the surrounding publicity
regarding ephedra-containing products may make it difficult for us to obtain and
maintain product liability insurance for our products containing ephedra at
current premiums. Certain of these factors and risks, as well as other risks and
uncertainties are stated in more detail in the Company's annual report on Form
10-KSB. These forward-looking statements are made as of the date of this press
release, and the Company assumes no obligation to update the forward-looking
statements or to update the reasons why the actual results could differ from
those projected in the forward- looking statements.