SOURCE: Gamma Pharmaceuticals, Inc.

March 03, 2010 08:30 ET

Gamma Pharmaceuticals Announces Multi-Year Distribution Agreement With Approximately $48 Million Annualized Minimum Sales Volume

LAS VEGAS, NV--(Marketwire - March 3, 2010) - Gamma Pharmaceuticals, Inc. (PINKSHEETS: GMPM): Gamma Pharmaceuticals, Inc. ("Gamma" or the "Company") announced that it has entered into a multi-year agreement (the "Agreement") with one of North America's leading wholesale distribution organizations to distribute the full line of Gamma products. The Agreement, which is evergreen in duration, provides for minimum monthly volume purchases of Gamma products at agreed upon pricing per SKU. The contracted terms cover the sale of 40,000 cases per month of Gamma's branded products, which at full distribution equates to an annualized value of approximately $48.0 million. Gamma's new distribution partner is one of the largest wholesale distributors of branded consumer products in North America, and is credited with the enormous commercial success of many leading consumer brands.

Peter Cunningham, Gamma's Chief Executive Officer, commented on the agreement, "We are extremely pleased to have successfully contracted with such an accomplished distributor. The distributor and its retail network share Gamma's view that our products have great commercial appeal. This guarantee arrangement takes Gamma from the pre-revenue, pre-EBITDA company it has been over the past two years to a company with approximately $48 million in minimum annualized revenues, and enables Gamma's management and shareholders to look forward with more certainty in anticipating our growth and profitability." Mr. Cunningham added, "Gamma now has in place a distribution platform that truly complements the Company's product portfolio. Gamma can now successfully extend its commercial reach to more effectively attract additional retail accounts that will drive revenues in the US market for years to come." 

About Gamma Pharmaceuticals, Inc.

Gamma Pharmaceuticals, Inc. ( is a marketing and product formulation company selling its own branded products through wholesalers and direct to retailers, both in the US and internationally. Gamma's core focus is the marketing and sale of vitamins and nutriceuticals, OTC pharmaceutical products and personal care products in the United States and Greater China. Branded nutritional supplements are sold under the trademarks Brilliant Choice™ children's nutritional supplements featuring the call to action "Mom you've made a brilliant choice for your children's nutrition;" SAVVY™ adult nutritional supplements featuring the call to action, "Be SAVVY Stay Healthy;" and, Jugular Energy Products™ and high performance supplements featuring the call to action, "Go for the Jugular™." Gamma's customer focus is on selling products in the Lifestyle of Health & Sustainability ("LOHAS") marketplace and in the Energy Supplement Market. A series of innovative marketing programs supports Gamma's product sales and retail partners. 

At present Gamma manufactures in North America, and distributes in the United States and China. Gamma's products utilize proprietary "Gel Delivery Technology®," to create innovative gel product forms; that are designed to give consumers a more pleasant experience. Gel Delivery Technology® characteristics include rapid absorption, convenience and taste great. Market categories Gamma targets are growing as rapidly as 60% per year. Gamma has developed formulas and strategies for Metabolic Syndrome and Diabetes Type II, Stress Reduction, Cognition, Well being, Menopause Symptoms, and Personal Care Products. Gamma also develops and manufactures house brands for major retailers. At this time, Gamma has a total of 36 SKUs and holds licenses for 9 SKUs in China.

Forward-Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this Press Release regarding any impact the quotation of the Company's stock has on the Pink Sheets or the lack thereof on the OTCBB, and any other effects of the above are forward-looking statements. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

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