ENCINITAS, Calif., Feb. 8, 2005 (PRIMEZONE) -- Vitasti, Inc. (OTCBB:VITS) today announced that it has signed a Letter of Intent ("LOI") for the acquisition of certain exclusive rights for the use of X-W8 from SweetSue LLC. X-W8 is a sugar-free substitute baking and sweetener formulation comparable to the Splenda baking and sweetener mix. Under negotiation are rights for use in Canada, USA and other international territories. Pending completion of its due diligence, Vitasti may pursue an outright acquisition of SweetSue LLC.
Many candy and baked goods manufacturers are under increasing pressure to produce products that do not upset the digestive system of consumers who are on a sugar-free diet. One of the prime concerns of the use of sugar alcohols like maltitol in food products is the laxative effect it has on the consumer. X-W8 is designed to meet this need and address these issues. X-W8 is a patent pending sweetener that replaces the general bulking, browning, rising and sweetening effect of sugar in baking, without any sugar alcohols and their laxative consequence. Vitasti is not aware of any other sugar-free sweeteners on the market to date that have these highly desirable qualities.
Vitasti's initial research has shown that the market for sugar substitutes is large and growing rapidly. Sales of Splenda both in table top and intensive sweetener format exceeded $387 million U.S. last year while sugar replacements in both table top and intensive format overall exceeded $1 billion U.S. There is an opportunity to capture a significant portion of this market on both the retail and wholesale sides of the industry.
Vitasti feels that there is a strong need to continue producing sugar-free products for consumers to decrease the chances of developing sugar diabetes and obesity. Diabetes is becoming more common in the United States. From 1980 through 2002, the number of Americans with diabetes more than doubled (from 5.8 million to 13.3 million). According to the American Diabetic Association, there are currently 18.2 million people in the United States, or 6.3% of the population, who have diabetes. While an estimated 13 million have been diagnosed, unfortunately, 5.2 million people (or nearly one-third) are unaware that they have the disease. X-W8 is not only sugar-free but also low in calories and has a low Glycemic index, below 25, which makes it eminently suitable for consumption by people with Diabetes.
Tammy-Lynn McNabb, Chairwoman and CEO of Vitasti stated, "One of the biggest challenges in creating a sugar-free sweetener is to produce a product that mimics the characteristics of sugar. To date, many products have been close, but have fallen short of meeting the candy and baking manufacturer's needs. Our corporate bakery and test kitchen have both worked with X-W8 and we are amazed at the outcome of our products."
Founder of SweetSue LLC and X-W8, Fred Goldman adds, "I have had a 2 year business relationship with Tammy-Lynn and her organization and am excited with the possibility of sharing this opportunity with her group. We are very familiar with this market place and are pleased that X-W8 will meet and exceed the expectations of consumers and manufacturers alike."
About Vitasti, Inc.
Vitasti, Inc. is well known in the specialty foods industry for producing and delivering exceptional products and services to its customers. One division of the company operates as Vitasti Lifestyle Markets, Bakeries and Cafes. The company meets the needs of consumers who follow specialized diets and through its own manufacturing facility, a portion of the products sold are produced to meet specific dietary needs. The company's focus is to develop or joint venture with developers to produce and distribute leading edge products and services within the health and wellness industry and meet the needs of ailments related to diet and nutrition.
About SweetSue
Fred Goldman has been actively working in the sugar-free confectionary and condiment industry for over 5 years. His organization has spent the majority of the past year developing X-W8 after realizing that there was a real need for a low calorie, low Glycemic, non sugar alcohol, high fiber and flexible sugar-free product for usage in a multitude of products. Goldman has been a leader in the no sugar industry and is the founder of a multi-million dollar private distribution company.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, risks set forth in documents filed by the company from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.