Human Touch® Announces Successful Restructuring of Its Balance Sheet

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Tue Jun 16, 2009 8:41pm EDT

High-Technology Massage Chair Company Poised for Growth
LONG BEACH, Calif.--(Business Wire)--
Human Touch®, the U.S. market leader of innovative lifestyle and massage
products today has announced the successful completion of an exchange offer for
its existing 7 1/4% senior notes due 2011 in exchange for cash, warrants to
acquire common stock and Senior Secured Second Lien PIK Notes due in 2014 where
associated interest will accrue to the principal, resulting in a net reduction
of nearly 77% of outstanding debt and a substantial reduction in cash interest
expense for the company going forward. 

This successful refinancing of the Company's capital structure will provide the
Company with added flexibility and cash flow to pursue its marketing and growth
strategies and will permit management to focus additional time and resources on
expanding the Company's product offerings and customer base. "We are pleased to
have completed this exchange with nearly 95% of our bondholders on a long-term
solution to improve our capital structure," said David Wood, Chief Executive
Officer. "We are committed to our mission of providing innovative lifestyle
products and experiences that deliver indispensable, life changing benefits to
an ever growing number of consumers and through this transaction we will be even
better positioned to serve our customers and resellers now and in the future." 

Following the successful completion of the bond exchange offer, the Company's
credit agreement with Comerica Bank was extended to provide the Company with
additional flexibility to fund its ongoing operations and growth. Human Touch
believes its total liquidity, strong management of current assets, and
mitigation of interest expense, place the company in a strengthened position
during this challenging economic climate to further pursue its strategic
objectives. Jefferies & Company, Inc. served as financial advisor to the Company
in connection with the exchange offer and Gibson, Dunn & Crutcher LLP served as
legal advisor to the Company in connection with the exchange offer and the bank
credit agreement extension. 

About Human Touch

Human Touch, celebrating its 30th anniversary as the leading brand of
high-technology, design-oriented massage chairs and products for today`s modern
and traditional living spaces, offers advanced technology and designs for
consumers seeking to incorporate health and wellness into their everyday
routines. Appealing to back pain sufferers, sports enthusiasts, and those
looking to relax from today`s hectic lifestyles, Human Touch delivers
high-quality Robotic Massage® chairs, zero-gravity recliners, and other
industry-leading massage products that help people feel better, play better and
perform better. Human Touch products are available at back care specialty
stores, fine furniture stores across the country, through international
retailers and distributors in more than 48 countries, and online at
www.humantouch.com. 



The Pollack PR Marketing Group
Will Ostedt/Monica Ballin
310-556-4443
wostedt@ppmgcorp.com
mballin@ppmgcorp.com

Copyright Business Wire 2009

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