New Image Group Shines Light In Economic Gloom

Media Release 2 February, 2009

New Image Group Shines Light In Economic Gloom

New Zealand wellness product marketing company New Image Group Limited is defying global economic trends and reporting exceptional growth, especially in Asia.

Due to the strength of the listed company’s (NZX:NEW) trading revenues in the past six months to 31 December 2008, the company’s directors believe the market should be notified of the improved revenue and profit result since the last trading indication given by New Image Group at its Annual General Meeting last October.

New Image Group Chief Executive Stephen Lyttelton says while the group’s revenue and profit results for the six months to December 31 2008 will not be finalised and reported until late February, projections show revenues of approximately $40 million ($16.37 million for the same period last year) and net profit after tax of more than $5 million ($1.48 million for the same period last year).

The group reported audited revenues of $39.1 million and a net profit after tax of $2.18 million for its full year to June 30 2008.

Mr Lyttelton says during the past six months the group has experienced strong trading conditions, especially in its Malaysian direct sales operation.

“New Image has a 24 year history of marketing high quality, colostrum-based wellness products that are scientifically-backed,” he says. “These features, coupled with the competitiveness of our business model and our proven direct sales distribution channel, has enabled us to attract both new and retain existing, high quality distributors. As a result, heightened consumer buying interest and increased sales of our products have been experienced throughout Asia.”

A cornerstone of the company’s products is colostrum – the pre-milk fluid containing immune and growth factors that female mammals provide their newborn babies in the first few days after birth. New Image’s hero product, “Alpha Lipid Lifeline,” contains colostrum, probiotics, vitamins and minerals and is taken as a breakfast drink, or in tablet or capsule form.

Following their board meeting last week, New Image Group directors also approved payment of a maiden dividend of half a cent per share payable during March 2009. The actual payment date will be advised when the company’s preliminary interim announcement is made later this month.

The directors also gave notice, in accordance with NZX Listing Rule 7.6.2, that New Image Group will undertake an on market buy back of its ordinary shares. Such purchases may occur when market conditions warrant and such a transaction would be of benefit to the company and its shareholders. The company will acquire such number of ordinary shares as it determines, up to a maximum of 5,000,000 ordinary shares. The purchases may occur within the period to December 31 2009, with all transactions concluded notified to NZX.

ENDS

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