SOURCE: Feelgoods International Ltd

November 07, 2005 08:00 ET

Feelgoods International Ltd. Signs Letter of Intent for Financing

With Funding in Place, Substantial Sustainable Growth Should Be Achieved

ZURICH-KLOTEN, SWITZERLAND -- (MARKET WIRE) -- November 7, 2005 -- Feelgoods International Ltd. (OTC: FGDS), a Company that offers a complete food/supplement in-store franchise to European Pharmacies, announces it has entered into a Letter of Intent (LOI) for a Private Placement of its shares from Ischian Holdings, Ltd., a BVI Business Development Company.

The underwriting commitment is for the placement of a total of up to 20,000,000 restricted common shares on a "best-efforts" basis. The price per share is determined upon the current market value of Feelgoods common stock at closing. The Private Placement will provide enough working capital for Feelgoods to execute its business plan and pursue a more aggressive expansion strategy as well as the development of its own product line.

Projections substantiate Feelgoods as a compelling investment that warrants the risk factors associated with a growth stage company. Revenue projections are based on franchise fees and royalties. Product sales comparisons are with the traditional pharmacy's sales history of non-subscription products. Feelgoods expects that combining conventional medicine with alternative medicines under one roof should increase customer purchases due to increased traffic within a convenient retail environment. Consequently an investment in shares of Feelgoods against projected earnings justifies the capital risk.

"We are very pleased to have received such a substantial financing proposal at this early stage of our development," remarks Marcel Maurer, CEO of Feelgoods. "Depending upon the timing and amount of funds we receive, we expect to be in position to open other franchise locations and add key personnel that we have identified on an accelerated scale. This LOI validates our business plan, corporate philosophy and shareholder confidence. Based upon our financial projections we could receive enough working capital to self-fund future growth from earnings without further dilution to our existing shareholders.

"As Feelgoods continues to add franchise locations, establish corporate identity and customer loyalty, we will be able to develop our own product line and access other various sources of revenue within our industry. This will lead to an increasing bottom line and shareholder value."

About Feelgoods International Ltd. -- Based in Zurich-Kloten, Switzerland, Feelgoods International Ltd. deploys a unique franchise system. The system offers new business opportunity for thousands of European Pharmacies. The franchise package produces revenue from a Pharmacy's existing customer traffic. The Feelgoods' model incorporates easily into a Pharmacy's existing floor space producing a self-contained business or 'shop within a shop.' Feelgoods' focus is on products that complement a pharmacy's traditional goods. The complementary line includes alternative medications, nutriceuticals, lifestyle products and bio cosmetics. Baby foods and bio foods are also offered for special needs. The franchise concept is anchored by a highly trained, professional staff. The staff provides expert advice concerning healthy lifestyle choices that are enhanced by using Feelgoods' products. A Feelgoods franchise significantly increases a pharmacy's revenue by generating additional proceeds from the health food and supplement industry's growth.

Safe Harbor Statement

All statements other than statements of historical fact included in this press release are forward-looking statements within the meaning of the private securities Litigation Reform Act of 1995. The forward-looking statements, including statements about the company's future expectations, including future revenues and earnings, and all other forward-looking statements (i.e., future operational results and sales) are subject to assumptions and beliefs based on current information known to the company and factors that are subject to uncertainties, risk and other influences, which are outside the company's control, and may yield results differing materially from those anticipated


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