Company Overview

Planet Nutrition, Inc. (PNHD) is a retailer of products and nutritional programs for the diet and nutrition industry. Incorporated in 1999, Planet Nutrition offers an extensive line of products from established nutritional and diet products manufacturers and laboratories. The Company offers nutritional supplements- vitamin, minerals and herbal supplements, sports nutrition products and diet and energy products. It also offers tanning lotions, tanning beds and fitness equipment from leading manufacturers.

The Company markets its products through strategic partnerships with manufacturers and distributors, collaborations with fitness centers, company stores and online sales through its website, store.planetnutritiononline.com. Recently, Planet Nutrition entered into an agreement with Peak Fitness, a fitness center chain in North and South Carolina, to open nutritional product stores in each of its 37 fitness centers. By 2009, the Company expects to be generating $10 million in annualized revenues from the Peak Fitness center store network. The Company has already opened one store inside a Peak Fitness Center and is averaging sales of $700 per day with no advertising and no grand opening to drive traffic.

The Company offers a wide variety of products and leading health brands such as Twinlab, MuscleTech, Lean Body Challenge, Designer Protein Whey, MHP (Maximum Human Performance), SCIFIT – Scientific Solution for Fitness, and .phpari Nutrition. The product portfolio includes Amino Acids, energy/nutrition bars, fitness accessories, weight gain, weight loss/energy, and tanning products.

The Company markets the products of leading manufacturers and laboratories through its online store, store.planetnutritiononline.com. It also plans to market its products through fitness centers and franchised company stores, supporting their growth through a high impact advertising program designed to create brand awareness.

The global nutrition industry has grown exponentially over the last few years to reach $226.1 billion in 2006. This industry consists of various categories of nutrition products such as functional food, dietary supplements (vitamins, minerals, herbs/botanicals, sports nutrition, meal replacement and specialty), natural/organic food, and personal care and household products. The primary markets for nutraceuticals and functional foods are the industrialized countries or regions with greater levels of economic development such as the US, Sweden, Switzerland and the UK.

Increasing health and obesity concerns drive demand for:
Nutritional food: Rising health and obesity concerns are leading to a noticeable change in eating habits. Tasty but fattening foods and beverages are being gradually replaced by healthier substitutes. Awareness of the health risks linked to obesity is rising and people are becoming more conscious of unhealthy diets resulting from busy lifestyle and intake of food with low nutritional value. Better taste, quality and guaranteed availability of more nutritious foods in convenience stores will help drive growth for the nutritional products industry.

Weight loss programs: The US has the highest percentage of overweight and severely overweight citizens, with 65% of the adult population (people aged 18 years and above) falling into one of these two categories. Due to the growing threat of obesity, demand remains strong for all forms of weight loss programs, fueling a $55 billion US industry. The US market for weight loss programs is expected to grow 6% annually to reach $58.7 billion in 2007 and $68.7 billion by 2010. The retail market for weight management products was estimated at $0.93 billion for Europe and $3.93 billion for the US in 2006.
The nutrition industry is highly competitive and fragmented. A large number of suppliers have entered the market due to its huge growth opportunities. Suppliers sell their products through websites and retail distribution channels. Some of the best-known online nutritional product suppliers are freeonlineresource.com, Amazon.com, NutriSystem and Weight Watchers.

The Company’s online store sells a wide variety of products in the following categories: