Gamma Pharmaceuticals Inc. Ships 8 Tons of Product to China

Sat May 31 00:33:51 PDT 2008

Gamma Pharmaceuticals Inc. (OTCBB:GMPM) announced that the Company has commenced its export program with China. The China market is a key component in Gamma’s dual home market strategy designed to achieve rapid revenue growth and profitability. This week, Gamma shipped 8-tons of products featuring Gamma’s Gel Delivery Technology®. The products shipped include Gamma’s Brilliant Choice® Gelibites® nutritional supplements. Gamma produces the products in the U.S., and then ships in bulk to China for final packaging and sale. Today, Gamma’s China operations are directed from the Company’s Beijing Representative Office. Gamma utilizes its China operation for selected off-shore functions including graphic design, printing, packing, labeling and distribution resources. Gamma manages and controls all marketing, advertising and promotion resources internally.

Peter Cunningham, Gamma’s Chief Executive Officer, highlighted, "Gamma’s operations in China are based on best practices and enable the Company to gain a competitive advantage with ‘made in America products’ sold at premium prices. Profitability is enhanced with the use of the domestic Chinese cost structure for graphic design, printing, final packaging and distribution. The combination of premium price and local cost structure improves our overall margin profile." Hao Zhang, Ph.D., Gamma’s Chief Marketing Officer, added, "Gamma’s China target market is characterized as urban households in which the parents are college-educated, working in management positions for multinational companies or large local companies; and in the household, they may have children and/or grandparents. This segment totals more than 10.0 million consumers in China’s four top–tier cities."

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