Gum Tech Announces Major Agreement.PHOENIX--(BUSINESS WIRE)--Nov. 20, 1997--Gum Tech International Inc. (Nasdaq:GUMM GUMM Gurus of UNIX Meeting of Minds ) has entered into an agreement with a major new customer for the development and manufacture of chewing gum products. The agreement is for an initial period of two years. The customer has the option of renewing the agreement for an additional two-year period. The initial order of approximately $750,000 will be manufactured at, and shipped from, Gum Tech's state-of-the-art facility in Phoenix. GTI GTI Gas Technology Institute GTI Global Taxonomy Initiative GTI Good Time Interval GTI Guelph Turfgrass Institute GTI Green Theme International GTI Gordon Training International GTI Georgia Transportation Institute GTI Group Travel Insurance will combine its expertise in product formulation and manufacturing with the customer's expertise in distribution. Gum Tech uses the latest in chewing gum technology to deliver active materials quickly and efficiently into the body. "GTI is extremely pleased to be involved with this new customer," said Jerry Kern, Gum Tech's chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "They are a tremendously important factor in this industry and we are very pleased to have been selected as one of their suppliers. "The rigid inspection and audit performed by the customer on the Gum Tech facility was an affirmation to us of the importance of having built our plant to state-of-the-art specifications." Gum Tech distributes its functional chewing gum Functional gum is the name given to types of chewing gum which impart some practical function instead of, or in addition to, the usual enjoyment provided by a traditional chewing gum as a confectionery product.
Gum Tech products are also sold in mass market chains such as Walmart, Target, Kmart and Meijer's, and supermarket chains like Safeway, Smith's and Lucky. Recent expansion included 7-11 stores, as well as many other convenience-store chains. Gum Tech products are sold in Canada, Japan, Korea, Russia, Scandinavia, Eastern Europe, Austria, Germany, Saudi Arabia, Kuwait, New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , Turkey, United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. , South Africa and more. Additionally, Gum Tech is involved in many contract manufacturing arrangements including a recently announced private label program for GNC GNC General Nutrition Centers GNC Gas Natural Comprimido (Argentina) GNC Guidance, Navigation, and Control GNC Grand National Championship (ATV racing) GNC Global Navigation Chart stores and a joint product development agreement with a major Fortune 100 food-producing company. The company manufactures some of the most well-known functional chewing gums in the industry. Research and development of various smoking-cessation products and a variety of other products for health and fitness are among Gum Tech's activities. Their OTC-registered, state-of-the-art plant is located in Phoenix. -0- NOTE: Gum Tech's future results of operations and other forward-looking statements contained in this document, in particular statements concerning plant efficiencies and capacities, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , research and development and other expenses involve a number of risks and uncertainties. In addition to the factors discussed above, among the other factors that could cause actual results to differ materially are the following: business conditions and the general economy; competitive factors, such as rival gum manufacturers' pricing and marketing efforts; availability of third-party material products at reasonable prices; unused barter credits, if any; risk of nonpayment of accounts receivable; risks of inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. due to shifts in market demand; timing of product introductions; and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. involving product liabilities and consumer issues. CONTACT: Gum Tech, Phoenix Jerry Kern, 602/277-0606 or Aldrich & Associates John DeNovi, 562/436-5156 john@aldrichpr.com |
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