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   Microcap & Penny StocksDHPI - Desert Health Products, Inc.

To: C Horn who started this subject8/10/2000 8:50:32 PM
From: C Horn
   of 4

Contact: Joe Brown
(727) 576-2800

Desert Health to offer more health products worldwide

ST. PETERSBURG, FL – July 10, 2000 — Desert Health Products, Inc., an International distributor of nutrition and dietary supplements, has entered a strategic relationship with Everfill, Inc. to market and deliver worldwide via the Internet its health products and custom formulations, including pharmaceuticals.

The deal greatly extends the Scottsdale, Ariz.-based health company’s reach into the Worldwide market and introduces its customers to a wide range of medical supplies, over-the-counter products and prescription drugs.

Both companies have signed a letter of intent; the partnership is scheduled to be finalized later this month.

“Basically, we’re going after the world,” said Anita Gotcher, director of corporate communication for Desert Health ( “Everfill will help us use the Web as a worldwide commerce channel.”

“Desert Health will become a charter eHost client,” said Everfill’s Vice President of business development, David Wysocky. “This will provide them with a vastly improved access to consumer markets, rapidly expanding their reach with minimal upfront cost.”

Desert Health is currently concentrating on the nutrition and dietary supplement industry, especially within international markets. It will use Everfill Worldwide™, a suite of services that streamlines the procurement and fulfillment, or delivery, processes. Included in this suite is Everfill eHost™, a service that can enhance Desert Health’s Web presence to further drive online commerce and raise levels of customer service.

Some of Desert Health’s products include: nutraceuticals, supplements and specialty items such as Fem-aid, Male-aid, Ayurvedic, Skin care and Pet care natural products. Next year Desert Health is expected to increase sales 500 percent to 1,000 percent in Europe, Asia and Central and South America.

Gotcher said that teaming up with Everfill allows the company to benefit from the public’s growing awareness of health prevention and maintenance products. Everfill will establish and manage a presence on the World Wide Web for Desert Health, turning its site into a powerful marketing and promotional tool that provides content and community.

Launched in April, Everfill, Inc. is an early stage business-to-business Internet company.
Using its proprietary technology Everfill enables electronic commerce-based ordering and provides fulfillment of medical supplies, OTCs and pharmaceuticals from its state-of-the-art automated pharmacies and warehouse operations. Orders are shipped directly to the end users. All demographic and transaction information on every order is captured in an Online Data Store (a data warehouse) and is made available on a depersonalized basis for data mining by pharmaceutical manufacturers, managed care organizations and others in the healthcare field.

Developed in December 1999, is the result of a merger between JIT and SAM Care Centers. The company is headquartered in St. Petersburg, FL.

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To: C Horn who wrote (1)8/14/2000 1:09:01 PM
From: Wally
   of 4
CH: As you know, I've been interested in Desert Health for some time now and have been looking forward to its recent entry as a publicly traded company. I assume the current lack of a bid/ ask means that the MMs are not paying attention, yet. Am I correct - and if so, is there any typical time frame for "discovery?"

Here's what has interested me in Desert Health and why your message and PR reprint on the subject caught my attention - and again, please correct me if I'm wrong.
While the health product business is booming and already crowded with competition, DHPI appears (to date) to have found an under-developed niche in the formulation and distribution market, primarily in the promotion of indigenously American health products in Europe and elsewhere.
DHPI's recent expansion into the retail market via their alignment with Everfill is intriguing. Internet sales and fulfillment capability go hand-in-hand. While I know very little about Everfill, what little I've discovered suggests to me that they are a legitimate player. If that is an accurate conclusion, Everfill could be a valuable strategic partner allowing DHPI to rapidly and seriously enter the Internet based retail market.
Aside from the potential to dramatically broaden their client base through Internet retail sales, DHPI may have a distinct price edge in the retail market since they are also the formulator and partnering distributor.

Any thoughts or updates would be greatly appreciated.

Hope this note finds you in healthy and happy.

PS - My wife and I have both tried DHPI's products. My wife has used a couple of skin care items and I have consumed 3 or 4 of their dietary supplements. So far, both of us have been pleased with the quality and the results.

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To: Wally who wrote (2)8/14/2000 3:46:06 PM
From: C Horn
   of 4
Wally. Nice to hear from you.

Regarding the lack of bid/ask - From what I
understand, the company only has 1 market maker
at this point (Public Securities). It is very
difficult to get a market maker to sign off on the
15c2-11. They have to pretty much guarantee the
accuracy of the company's financial statements.
It is also my understanding, that within a few months,
there should be other market makers on board.

Regarding the market niche - I believe that DHPI
has a huge opportunity in the overseas market as
well as on the internet. I witnessed first hand
the tremendous amount of paperwork that has to be
done to register products in other countries. The
process can take in excess of 1 year. DHPI should
have a substantial head start, as their registrations
are either complete, or nearly complete.

IMHO, the price of the stock could move up very quickly,
especially with only 1 MM. We know they don't have many
shares in their inventory (only been trading a few days).
I don't think many of the existing shareholders will
be willing to let go of their shares for less than a few bucks.


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To: C Horn who wrote (3)8/14/2000 5:15:54 PM
From: Tomato Man
   of 4
Craig, Wally, I'm back from vacation and it is a terrific to see DHPI trading. A while back when I was looking at this company, I called and got a bunch of samples. My wife fell in love with their skin care products. With the harsh New York winters, I started to use their moisturizer and a couple of other products, and they are terrific. I have given some to actor friends of mine (who are in and out of heavy theatrical makeup 8 times a week) and they fell in love with the stuff.

This has the promise of being a very very nice stock. Glad I'm in.


Tomato Man

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