Consumers head 'back-to-basics' as market for nutritional and herbal supplements approaches $5 billion mark in 1995.

PITTSBURGH--(BUSINESS WIRE)--March 14, 1996--"Pass the vitamin C," and "Give me a garlic capsule," are requests more and more Americans are making as the exploding nutritional and herbal supplement industry continues to pervade mainstream America.

The market for nutritional and herbal supplements -- including vitamins, minerals and herbal products -- was estimated at $5.1 billion in 1995 and is expected to exceed $6.7 billion by the year 2000. This represents a 32 percent growth rate in five years -- according to a 1995 Gallup study on nutritional and herbal supplement usage in the United States.

Leading the growth is General Nutrition Centers (GNC), a division of General Nutrition Companies Inc. (NASDAQ:GNCI) and the nation's largest specialty retailer of nutritional supplements and other health and self-care products. In 1995, GNC captured 14.3 percent of the vitamin, mineral and herbal supplement market and achieved total sales of $928 million combined in company-owned and franchised stores. "This is a very exciting time for us," said Russell L. Cooper, senior vice president and general manager of GNC Franchising Inc. "It's great to see that more people are concerned about their health than ever before, and that they're recognizing GNC as the leader in providing quality, self-care products."

Cooper noted that the growing health-conscious attitude of Americans has contributed to the company's franchising success. Voted America's number one franchise in 1994 by Success magazine, GNC is celebrating the opening of its 1,000th franchised store today in Riverside, Calif., just seven years after establishing franchising operations (see related news release). GNC also has more than 1,500 company-owned stores.

What's Fueling the Growth?

In a nutshell...an aging population and an increased emphasis on prevention. A recent Gallup Organization survey reports that more than a third of the U.S. population currently takes vitamins and minerals everyday. Consumers over age 35, which represent 78 percent of vitamin users, comprise more than 63 percent of GNC's total sales, and this age bracket is expected to increase by 30 percent in the next 10 years.

While vitamins remain the most popular product sold at GNC, accounting for nearly half of all GNC's sales, herbal supplement sales are steadily rising. In 1995, herbal products were the third largest selling category at GNC and are expected to continue to be one of the fastest growing categories over the next several years.

According to Mark Blumenthal, executive director of the American Botanical Council -- the leading non-profit organization in herbal education -- the rapid growth of the herbal supplement industry is being propelled by a renewed consumer interest in that which is natural. Blumenthal says that consumers, particularly baby boomers, are becoming increasingly health-conscious and are turning to plant-based products for their nutritional and medicinal values, believing the products are better and safer than chemical alternatives.

"The aging of our population combined with skyrocketing health care costs are making preventive, self-care a must in today's society," Cooper said. "From here on into the future, we anticipate that herbal and nutritional supplement usage will be more than a surging trend; it will be a way of life."

Pittsburgh-based GNC Franchising, rated the number one franchise by Success magazine in 1994, is a subsidiary of General Nutrition Companies Inc. America's leading specialty retailer and manufacturer of vitamins, herbs, nutritional supplements and related health products, GNCI owns and operates more than 1,500 stores and has an additional 1,000 franchised stores. In addition to vitamin and mineral supplements, some of the more than 5,000 products carried by General Nutrition Centers include sports nutrition supplements and accessories; natural foods and cosmetics; and herbal, weight-loss and health care products.

CONTACT: GNC Franchising Inc.

Melissa Harrell, 412/288-4676

or

Manning, Selvage & Lee

Cadey O'Leary, 404/875-1444, ext. 236