Sabah Independent Distributor

New Image Buys Omegatrend International
20-07-2006 -- New Image

PRESS RELEASE FROM THE NEW IMAGE GROUP

July 20, 2006

The Chairman of publicly listed company The New Image Group, Graeme Clegg, announced today that New Image International has successfully negotiated with the Australian administrators to purchase the total shareholding of Omegatrend International. The transaction however still requires final approval at a creditors meeting.

The Perth based direct selling company established in 1990, voluntarily appointed Administrators PPB at the beginning of May when faced with financial difficulties caused by a combination of falling sales, and huge project cost overruns with the development of new global markets and sophisticated global computer software systems.

Omegatrend was founded by Loren and Sandra Watts and quickly became a major player in Australia, with further expansion into New Zealand and Malaysia. It peaked at $60 million a year sales, with over 100,000 representatives. The release from administration and the provision of additional capital removes any uncertainty amongst Omegatrend distributors with regard to continuation, and facilitates the implementation of major enhancements to the system that have been planned for some time.

New Image International has operated in the Asia-Pacific Region for 22 years since its inception in June 1984.

The New Image Group listed on the Main Board of the New Zealand Stock Exchange in November 2004.

The core business of the Group is nutritional supplements with a proactive focus on prevention of disease. The New Image Group are pioneers in the development and marketing of Colostrum products and extracts. The group has been the recipient of 3 major export awards and were listed in 2003 by NZ Business magazine as one of the top one hundred export companies, and as No. 2 in the spectacular growth category. The New Image chairman and founder, Graeme Clegg, was the 2003 Ernst and Young Entrepreneur of the year, Technology and Communication category winner.

New Image is based in Auckland, New Zealand, and has offices in Australia and five Asian countries - Malaysia, Singapore, Philippines, Indonesia and Taiwan. The group has biotech research facilities, formulating and manufacturing operations, private label and branded marketing as well as a large direct sales division. Recent expansion into the medical field arena has been successful with contractual arrangements to supply special colostrum formulae and extracts to several multi-national pharmaceutical companies. Currently a new release of an oral spray (FluNox), and a 40% immunoglobulin tablet pack for strengthening the immune function against infections and influenza (Immufort), is attracting wide attention.

There are many commercial advantages with the merging of the two operations, including better utilisation of offices, distribution facilities, management, product inventory, and a substantially increased sales momentum in the marketplace. The arrangement assures that all current Omegatrend staff and management will be retained, and all future network commission payments assured. The Omegatrend group will continue independently, but will have access to the New Image nutritional supplement range of products.

The new Omegatrend group reinforced with additional working capital will continue progressing with an enhanced compensation plan, and will focus on developing the four key product markets of Home Care, Beauty, Services and Nutritional supplements, with better profitability for all stakeholders in these categories. Omegatrend will offer a very attractive business opportunity. The Omegatrend distributors will also have access to all countries that New Image operates in, including participating in impending launches into China and South Africa.

Both companies are very optimistic that the synergies of the combined resources will greatly stimulate the leadership and networks in both organisations to challenge the top companies in the industry in Asia-Pacific.