BALA CYNWYD, Pa., Oct. 26, 2006 (PRIMEZONE) -- Creative Enterprises International, Inc. (OTCBB:CEII), the marketer and distributor of Skinny Water(r), a dietary supplement designed to facilitate consumers' weight loss efforts, announced today that it has completed the initial phase of its corporate restructuring. As part of its restructuring, Creative Enterprises has reduced its corporate overhead substantially by relocating its executive offices from New York City to Bala Cynwyd, Pa. and terminating its distribution agreement with Jamnica, d.d., thereby eliminating a $230,000 liability on the Company's balance sheet. The Company is now finalizing arrangements to bottle Skinny Water in the U.S.
On October 26, 2006, the Company also announced that to date it has received gross proceeds of $500,000 in its current private financing. The Company's financing is for a total of $1.2 million of its securities, at the offering price of $0.05 per share and a convertible note sold to one investor in the principal amount of $100,000. In addition, as a result of the financing, certain lenders to the Company, including its Chairman, have converted $642,000 of loans into common stock. The securities sold in the financing have not been registered under the Securities Act of 1933, as amended, and were offered and sold in reliance upon the exemption from registration set forth in Section 4(2) thereof and Regulation D, promulgated under the Securities Act. We believe that the investors and the selling agent are "accredited investors," as such term is defined in Rule 501(a) promulgated under the Securities Act. This disclosure does not constitute an offer to sell or the solicitation of an offer to buy any of our securities, nor will there be any sale of these securities by us in any state or jurisdiction in which the offer, solicitation or sale would be unlawful. The disclosure is being issued pursuant to and in accordance with Rule 135c of the Act.
The Company also announced the appointment of Don McDonald as its new Chief Executive Officer and President and Michael Reis as its new Chief Operating Officer. Further, the Company announced that it appointed Mr. McDonald, Mr. Reis and Kenneth Brice, its current Chief Financial Officer, to its Board of Directors. In addition to the changes in its executive management, the Company also added April Shelley Brown to its senior management team as its Chief Marketing Officer.
Management Biographies
Chief Executive Officer/President: Donald J. McDonald
Donald J. McDonald has over 25 years of experience as a senior executive in the cable television, broadcast and video production industries with expertise in financial management, sales, marketing and corporate governance. Since April 2002, Mr. McDonald has served as the President of Summit Corporate Group, Inc., providing executive management and corporate advisory services to a number of companies. Prior to that, Mr. McDonald served in an executive capacity for a number of companies including National Media Corp., where as President, the Company increased revenues to $180,000,000. Mr. McDonald is 54 years old and graduated with a B.S. from Villanova University in 1974.
Chief Operating Officer: Mr. Michael Reis
Since April 2003, Mr. Reis operates a consulting practice through M.R. Reis Co., pursuant to which he provides business and accounting consulting services. Prior to that, Mr. Reis was the Chief Financial Officer of Weaver Nut Co., a position he held from June 2001 through April 2003. Prior to that, Mr. Reis began his career as an accountant with Deloitte & Touche and thereafter held executive positions with a number of companies including serving as the Chief Financial Officer of Public Gas Co., the Chief Financial Officer of Waste Masters, Inc., the President of Pollution Control Industries and a Senior Vice President of ENSI. Mr. Reis is 61 years of age and graduated from Bloomfield College & Seminary in 1973 with a B.A. in Accounting and Mathematics.
Chief Marketing Officer: April Shelley Brown
Prior to joining Creative Enterprises on October 6, 2006, Ms. Brown was most recently employed by Nautilus, Inc. from April 2002 to May 2006, where she has held the positions of Senior Director -- Marketing Strategy since 2004, the Director of Creative Services and Marketing Operations and Creative Director. Prior to that, Ms. Brown was the Senior Art Director of Publicis Advertising from December 1999 to September 2001. From 1998-1999, Ms. Brown was a graphic design strategist at Nike, Inc. and from 1996-1998, she served as a creative director for BHP, Ltd. Ms. Brown is 41 years old and graduated from Reed College in 1990 with a B.A. in fine art and theoretical physics.
As part of the changes to its management team, Creative Enterprises announced the resignation of Christopher Durkin as its Chief Executive Officer, President and a director and James Robb as a director.
Michael Salaman, the Company's Chairman of the Board stated, "With these corporate changes, the Company's new management team is in place, the balance sheet and operating expenses are now under control and with the new funding, Creative Enterprises can now continue to build the Skinny line of products."
Donald McDonald, the new Chief Executive Officer stated, "Creative Enterprises has begun to implement a financial and operating plan to take advantage of the 'Skinny' brand. I am looking forward to help expand the awareness of the brand through television and other electronic media."
About Creative Enterprises International, Inc.:
Creative Enterprises International, Inc. is a national and international marketing and distribution company that identifies emerging consumer product trends. Creative Enterprises is the exclusive distributor of "Skinny Water," a dietary supplement product design to assist consumers' in their weight loss efforts.
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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. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. 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.