TNS signs revenue sharing agreement to launch dietary supplement products in USA

Mar 31 2010

Total Nutraceutical Solutions, Inc (TNS); (OTCBB:TNUS) announced today that the company has entered into a revenue sharing agreement to undertake a direct mail marketing program of a proprietary private label compound developed and manufactured by the company for joint pain and inflammation.

The parties to the agreement are: 1) AMC, LLC ("AMC") based in Los Angeles, California; 2) Delta Group Investments Limited ("DGI"), based in Hong Kong and 3)Total Nutraceutical Solutions, Inc. ("TNS") based in Stevenson, Washington. AMC, and a predecessor company, is a highly experienced direct mail marketing company which has specialized in the nutraceutical industry for the last 20 years. Sales of products in the nutraceutical industry by AMC, and its predecessor, during one four year period exceeded $140.0 million dollars. DGI is a private investment company which has made available a loan of $300,000 to be used as operating capital to test and launch the direct mail marketing campaign. TNS will be the supplier of the finished private label products to be sold via the direct mail marketing program and will also be the project manager.

“This agreement allows our company to effectively formulate and launch proprietary dietary supplement products into the United States market”

Under the terms of the Profit Sharing Agreement, the funds provided by DGI were deposited in a special account and all expenses will be paid from this account. This agreement will be effective for 3 years. TNS and AMC will be reimbursed for all expenses related to product costs, mailing expense, media and printing, fulfillment, shipping and order taking. On a quarterly basis, any profits generated by the three entities will be disbursed pursuant to a predetermined schedule.

The initial test mailing will consist of 250,000 pieces which will be sent out on or about April 30, 2010. In connection with the direct mail marketing campaign, AMC will receive stock purchase warrants based on performance criteria tied to total sales. DGI has an option to convert their loan or any portion thereof to common stock of TNS at $.25 per share.

"This agreement allows our company to effectively formulate and launch proprietary dietary supplement products into the United States market," stated Marvin S. Hausman MD, CEO, TNS. "TNS has become a global leader in the research and development of mushroom-based products and enrichment processes for potent antioxidants such as L-Ergothioneine and Vitamin D2. Our company intends to actively formulate and launch into the US and International dietary supplement markets breakthrough nutritional products enriched with these key nutrients that have the potential to improve human health and well-being."