SOURCE: Hoodia International, Inc.

May 15, 2007 09:00 ET

Hoodia Products International Reports Q1 Results, Net Revenues Increase 99% Quarter-Over-Quarter

DUBLIN, CA -- (MARKET WIRE) -- May 15, 2007 -- Hoodia Products International Inc. (PINKSHEETS: HDIA), the California-based manufacturer of appetite suppression products made from the Hoodia gordonii plant, today announced revenue for the first quarter ended March 2007.

Management Analysis

For the quarter, sales totaled $25,425, a net increase of 99% over Q4-06 sales of $12,798. The sales increase was primarily driven through the website and other internet channels, and web sales accounted for 82.6% of the quarter's revenue. Management believes the increase in sales is due to continued aggressiveness in pricing; POWERSLIM was reduced from a price point of $54.95 to $39.99 during the first quarter, and will likely remain at this price for the foreseeable future. With many of our major competitors now retailing for 30-40% more, the company believes it may be successful in capturing additional first-time buyers who were otherwise unwilling to pay the original price.

Q1-07 Sales Breakdown

January Web Sales: $7,407
January Call-In Sales: $2,439

February Web Sales: $6,686
February Call-In Sales: $1,160

March Web Sales: $6,877
March Call-In Sales: $865
New Products in Development

The company is currently in the late stages of development of two new products. Both of these products will retail for less than $5.00 and would offer Hoodia Products enhanced distribution capability because of their unique functionality and impulse-buying potential. Net margins for these products should each exceed 100%, priced competitively against any relevant peers. The company expects to make a formal announcement on these items no later than the end of Q3-2007.

Stock Issuances & Shares Outstanding

The company did not issue any stock in the first quarter. As of May 1, 2007, the company has 169,931,230 shares outstanding, with approximately 148,850,362 of those shares restricted and held by management or affiliates. The company transfer agent is Interstate Transfer Company and can be reached at (801) 281-9746.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," forecasts," potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

Contact Information

  • Contact:
    Hoodia Products International Inc., Dublin
    Jacob V.O. Mullins