SOURCE: Gamma Pharmaceuticals, Inc.

Gamma Pharmaceuticals, Inc.

September 24, 2010 08:00 ET

Gamma Pharmaceuticals Ships Products to Fulfill Purchase Orders and Books Revenue

LAS VEGAS, NV--(Marketwire - September 24, 2010) -  Gamma Pharmaceuticals Inc. (PINKSHEETS: GMPM): Gamma Pharmaceuticals Inc. ("Gamma" or the "Company") announced today the shipment of products pursuant to the purchase order announced August 16, 2010. Gamma also announced today that the Company has booked revenue for the transaction representing the Company's first significant revenue achievement in nearly two years and signifying the success of Gamma's turnaround strategy implemented by management earlier this year. The purchase order was the first of many expected pursuant to a distribution agreement announced March 3rd, 2010 that guarantees Gamma minimum monthly product sales volume translating into approximately $48.0 million in annualized sales. This order has been shipped to U.S. retail chains located in the upper Midwest region. Gamma is in the process of fulfilling additional purchase orders and pursuing retail channel opportunities nationwide.

Gamma's CEO Peter Cunningham commented, "We are very pleased to have finalized our contract manufacturing, distribution infrastructure and transaction process with our partners, resulting in a successful production, sales and revenue cycle. Gamma again extends its heartfelt gratitude to our key distribution partner, and we look forward to further executing the ramp-up phase in Gamma's business plan, which will accelerate in the months ahead. We will drive revenues from a variety of wholesale distributors and food, pharmacy, discount and convenience store retailers as we expand geographically, add additional products and sign-on additional distribution partners and retailers. Importantly, our suppliers have been equally supportive of our turnaround strategy and our go-to-market programs."

On March 3, 2010, Gamma announced that the Company had 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 prescribe a minimum purchase of 40,000 cases per month (after an initial ramp-up period) of Gamma's branded products, which at full distribution equates to annualized sales revenue of approximately $48.0 million. Gamma's distribution partner is a large wholesale distributor of some of the most well-known and successful branded consumer products in North America, and is credited with contributing to the commercial success of many leading consumer brands.

About Gamma Pharmaceuticals Inc.

Gamma Pharmaceuticals Inc., (www.gammapharma.com) is a marketing and product formulation company selling its own branded products through wholesalers and direct to retailers, both in the U.S. 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 a gummy immune booster product; SAVVY™ adult nutritional supplements featuring formulations especially designed for the health issues of seniors and active adults, Jugular Energy Products™ and high performance supplements featuring the call to action, "Go for the Jugular™," and high performance sports nutrition products under the "Holyfield's Choice™" brand jointly developed with boxing legend Evander Holyfield. 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's products are manufactured in North America, and today, distributed in the United States and have been distributed in Asia where the Company maintains a wholly owned subsidiary based in Hong Kong and a representative office in Beijing. Gamma's products utilize proprietary patent pending "Gel Delivery Technology®," designed to create innovative gel product forms that 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 (pre diabetes), 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 43 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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