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General Nutrition Centers, Inc. Reports Fourth Quarter and Full Year 2007 Results

>-- the failure of our franchisees to conduct their operations profitably

and limitations on our ability to terminate or replace under-

performing franchisees;

-- economic, political and other risks associated with our international


-- our failure to keep pace with the demands of our customers for new

products and services;

-- the lack of long-term experience with human consumption of some of our

products with innovative ingredients;

-- disruptions in our manufacturing system or losses of manufacturing


-- increases in the frequency and severity of insurance claims,

particularly for claims for which we are self-insured;

-- loss or retirement of key members of management;

-- increases in the cost of borrowings and unavailability of additional

debt or equity capital;

-- the impact of our substantial indebtedness on our operating income and

our ability to grow;

-- the failure to adequately protect or enforce our intellectual property

rights against competitors;

-- changes in applicable laws relating to our franchise operations; and

-- our inability to expand our franchise operations to attract new


Results of Operations

(Dollars in millions and percentages expressed as a percentage of total

net revenues)

Successor Predecessor

Three Months Ended December 31,

2007 2006



Retail $278.6 74.1% $268.9 76.9%

Franchise 56.6 15.0% 52.0 14.9%

Manufacturing/Wholesale 40.9

SOURCE General Nutrition Centers, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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