Health Enhancement Products, Inc. Sets New Agenda for Product Platforms and Development Schedule


BLOOMFIELD HILLS, MI--(Marketwire - Sep 26, 2012) - Arizona-based algae producer Health Enhancement Products (OTCBB: HEPI) announces the activation of the Company's product platform strategy to accelerate potential licensing or co-development opportunities.

The results from the recently concluded cholesterol study, along with previous studies, provide enough accumulated data for the Company to address the cholesterol vertical opportunity with drug development companies, their associated venture groups and research-based pharmaceutical companies. At the same time, several other paths have been activated to realize short-term product development and revenue objectives.

Based on previous work and a pending confirmatory test, the Company is aggressively pursuing bovine mastitis, an inflammatory condition that impacts dairy cow milk production and quality. Industry sources quote annual losses to dairy producers at nearly $10 billion. Further, government regulation is clamping down on the use of antibiotics just as new, drug-resistant pathogens are surfacing. Mastitis is the leading problem for much of the world's 244 million dairy cows. The Company is in active discussions with leading animal health companies.

The Company is also pursuing the use of its patented algae culture as a direct source of micro-nutrition and diet supplementation for beef and dairy cattle, whereby the beneficial algae is grown in large volumes, compressed and sold in bulk through licensees. Outside the US, dietary supplements and feed enhancers for cattle are a rapidly-growing, billion-dollar segment of the agricultural industry. Company management is confident that compliance with international standards can be met in a relatively short period of time.

Utilizing the same production technology, the Company can also bring to market a canine dietary supplement for the US market -- a $20 billion industry sector. A previous study, linked to a pending in vitro, will be used to engage large animal nutrition companies in licensing negotiations.

"The cholesterol application will continue to move forward at a pace set by our developmental partners. We need to pursue these other near-term opportunities to put a real number on the bottom line in the immediate term," states Andrew Dahl, President and Chief Executive Officer. "We're obviously spreading our resources, but we're also spreading our bets. Moving in parallel allows us to meet our investment and timeframe objectives. The pace of research and development will begin to accelerate."

With two anti-inflammatory tests in process and a pending autoimmune study, the Company can continue its work on several key development drivers:

  • Analyses and identification of cholesterol natural product bioactive compound(s) for multiple platforms, including synthetic development
  • Analyses and identification of anti-inflammatory natural product bioactives for human and animal use as a licensed ingredient in both functional foods and dietary supplementation
  • Bovine autoimmune modulation research and product development for licensing
  • Production technology for bulk animal feed/supplementation product

In order to speed up identification of the compounds tested in the recently concluded cholesterol study, the Company is focusing additional resources on isolation techniques that don't use salt or phosphates to extract potentially active molecules. Secondly, in order to speed up bovine mastitis research, the Company is moving forward with independent in vitro tests to support previous in vivo research. The isolation and identification of bioactives commences in parallel with anti-inflammatory and autoimmune modulation studies. Simultaneously, the Company is requesting proposals from qualified contract algae producers that can meet specific production requirements and compliance safeguards.

And finally, the Company is aggressively pursuing the protection of its existing and pending patents across the globe, filing numerous applications in Europe, Japan, Brazil, Canada and Mexico in anticipation of international distribution of proprietary products by its licensees.

About Health Enhancement Products, Inc.

Health Enhancement Products, Inc. (OTCBB: HEPI) is a health & wellness company engaged in the development of natural products derived from algae cultures for use as dietary supplements and food ingredients. These natural products are extracted from living algae grown in purified water.

Safe Harbor Statement

Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the timing of completion of a trial, actual future clinical trial results being different than the results the company has obtained to date, and the company's ability to secure funding. Such statements are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.