Natural Health Trends Corp. (NASDAQ: BHIP), an international direct selling company (the "Company"), today announced that a former executive officer and director of the company, Terry LaCore, has formed a new direct selling business that he named bHIP Global, Inc. involving an energy water product.
The Company has had discussions with Mr. LaCore regarding use of the name "BHIP" and the Company's participation in his new venture. In anticipation of reaching an agreement with Mr. LaCore, the Company's subsidiary, MarketVision Communications, Inc. ("MarketVision"), agreed to provide certain information system services to bHIP Global, Inc. under a Service Bureau and Hosting Agreement (the "Service Agreement"), which the Company does not consider material.
The Company has not reached any further agreement with Mr. LaCore and bHIP Global, Inc. Other than the Service Agreement, which the Company may terminate on 90 days' notice, the Company has no involvement in or association with bHIP Global, Inc. or its business.
"We are concerned that certain statements we have seen and heard regarding bHIP Global on the Internet, as well as use of our BHIP name, are causing confusion that we are affiliated with, sponsoring or connected with bHIP Global, Inc. We want to clarify that, except for the Services Agreement, we have no relationship with, and we are not providing offices, warehouses, or other infrastructure to, bHIP Global, Inc.," said Chris Sharng, President of the Company. "Our discussion with Mr. LaCore is ongoing, and we are hopeful that all concerns can be resolved in a satisfactory manner."
The Company views the unauthorized use of the name "BHIP" or its derivatives by bHIP Global, Inc. as a trade name, trademark or service mark to be a violation of rights owned by the Company, for which the Company may seek an appropriate remedy if continuing talks with bHIP Global, Inc. do not result in a satisfactory resolution.
The Company also announced that it has terminated a Temporary Services Agreement under which Mr. LaCore had provided certain master distributor services to the Company.
About Natural Health Trends Corp.
Natural Health Trends Corp. is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, North America, Europe and Latin America. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company's website, and management encourages interested parties to register for updated corporate information via email on the Company's home page, www.naturalhealthtrendscorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption "Risk Factors" in our Amendment No. 2 to Registration Statement on Form S-3 filed on August 24, 2007 with the Securities and Exchange Commission. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
Natural Health Trends Corp.