HILLSIDE, N.J., Feb. 26, 2008 (PRIME NEWSWIRE) -- Integrated BioPharma, Inc. (Nasdaq:INBP) announced today that Carl DeSantis, the founder, principal owner and former Chairman and CEO of Rexall Sundown, Inc., has become the Co-Chairman of the Company to lead the next stage of development of its liquid nutritional and vitamin businesses weighted heavily toward nutraceutical products. Last week, Mr. DeSantis increased his beneficial ownership of equity and debt in the Company by $7.5 million with an investment of $3.0 million in the Company's Series C Convertible Preferred Stock and the purchase of a $4.5 million Convertible Note. At the same time, Imperium Master Fund, Ltd. purchased $3.0 million of the Company's Series C Convertible Preferred Stock and a $7.0 million Secured Note.
During the second quarter of fiscal 2008, a transition team, led by Nick Palin, former President of Sundown Vitamins, and Senior Executive Vice President and Director of Rexall Sundown, Inc., has been developing plans to decrease volatility of nutraceutical beverage revenues of the Company's liquid Nutraceutical product lines, especially those derived from club stores and chain retail channels, and to move these businesses beyond their market acquisition phase to margin management. As of March 1, Mr. Palin will become the President of the Company's Nutraceutical Segment, comprising at this time the Manhattan Drug, AgroLabs and The Organic Beverage companies.
Mr. DeSantis founded Rexall Sundown in 1976, built it into the leading nutritional brand with annual revenue approaching over $700 million and sold Rexall in 2000 to Royal Numico (now part of Danone) a Dutch leader in the baby food business, for $1.8 Billion. Mr. Palin was Senior Executive Vice President of Rexall Sundown, Inc. 1998 to 2000, and President of the Sundown Vitamin Division from 1997 to 1999.
"I am delighted that Carl and Nick will be bringing their enormous marketing and management skills to our nutraceutical business," said E. Gerald Kay, Co-Chairman and CEO of the Company. "Having successfully established our identity in the nutraceutical beverage business, we must now move on to the next phase in which we select and develop appropriate additional products and brands and evaluate viable acquisition opportunities to give the Company positive growth of revenues and margins. Much has already been accomplished by the transition team. We expect its results and the benefits from Carl and Nick to become evident in the 3rd and 4th calendar quarters this year," added Mr. Kay.
About Integrated BioPharma, Inc. (INBP)
Integrated BioPharma, Inc. is a unique grouping of companies presently serving the varied needs of the health care industry. Through its nutraceutical business, the Company creates, develops, manufactures and markets products worldwide. The Company's biotechnology business uses its patented plant-based technology to produce vaccines and therapeutic antibodies. Its pharmaceutical business operates a cGMP facility for the production and sale of Paclitaxel and related drugs and provides technical services through its contract research organization. Further information is available at www.iBioPharma.com.
Statements included in this release related to Integrated BioPharma, Inc. may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the Company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects. Further information on potential risk factors that could affect the Company's financial results can be found in the company's Reports filed with the Securities and Exchange Commission.