Natural Harmony Foods Announces Material Changes and Company Outlook

Mon Jul 13, 2009 10:25am EDT
 
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  FORT LAUDERDALE, FL, Jul 13 (MARKET WIRE) -- 
Natural Harmony Foods, Inc. (PINKSHEETS: NHYF) announced today material
changes to the operations of the Company and hopeful outlook for
2009-2010.

    Sales and Distribution. Sales of the Company's SoLean products have
declined steadily for the past year due to economic conditions and lack of
marketing dollars. As a result, the Company failed to make certain
"slotting" payments to several of its retailers. Harris Teeter, one of the
Company's accounts, recently notified the Company that it had removed the
SoLean products from its shelves due to the late payment issue, however,
NOT because of lack of product movement. As such, they remain open to a
new relationship with the Company in the near future, subject to further
negotiations, including a new marketing plan to increase consumer
awareness and sales and proof of adequate financing to maintain the
program. The Company continues to preserve its network of other
distributors and retailers through the daily support provided by its
manufacturing partner.

    Financial Condition. For the past several years, the Company has
experienced significant cash flow issues due to lack of investment capital
and reduced margins from increased cost of goods and distribution. In
addition, certain creditors have enforced legal claims against the Company
impeding its ability to operate without limitations. Furthermore, the
Company has been unable to complete its quarterly financials for Q-4 2008,
and Q-1 and Q-2 for 2009, respectively, due to lack of cash flow,
resulting in a "down grade" by Pink Sheets. Despite the negative
situation, some key creditors have come forth with a "work out" proposal
and have offered to convert past due invoices owed by the Company into
Company Stock. As such, the Company has begun to negotiate a reduction of
all of its outstanding debt with similar stock settlements. Unless the
Company is able to reduce all of its outstanding debt and further obtain
additional working capital investments, then the Company may be forced to
cease operations.

    Change of Operational Management. Since inception nearly 9 years ago, Sam
Dewar has not only been one of the co-founders, but also CEO and President
of the Company. Mr. Dewar has been instrumental in the development of
product recipes, packaging, sales and distribution of all the SoLean
products to date. Due to unanticipated personal circumstances, Mr. Dewar
has tendered his resignation as an officer and director of the Company,
effective on July 10, 2009. The Board of Directors will hold a special
board meeting this week to appoint Daniel A. Carr, also a board member, as
the "interim" CEO and President of the Company until a permanent
replacement can be named and also appoint Danny Pate to replace Mr. Dewar
as a member of the Company's Board of Directors. Mr. Dewar has offered to
provide "part-time" consultation to the Company as needed.

    Reorganization and Financing. The Company's outlook still remains positive
despite the recent material changes and unattractive financial condition.
However, the Company requires a reorganizational plan, including the
reduction of certain operational costs and the elimination of outstanding
financial obligations. Furthermore, the Company requires additional
working capital to meet the requirements of its current sales and
distribution network. As such, the Company and members of its Board of
Directors have been in discussions with various consultants, advisors and
investors to review potential financing options for the Company. The
Company plans to make an announcement within the coming weeks pertaining
to financing options available to the Company. If the Company is able to
continue to make "work out" arrangements with all of its creditors, it
may be able to attract new investments into the Company to provide for a
new corporate foundation to rebuild the sales and distribution network
and uphold the Company's product brand.

    About Natural Harmony Foods, Inc.

    Natural Harmony Foods, Inc. (PINKSHEETS: NHYF) is an independent, new food
company dedicated to producing healthful, flavorful foods that fit the
lifestyles of individuals looking to make better, health conscious diet
choices without sacrificing taste. We have combined the taste and
nutrition of beef and pork with the health benefits of soy in our
SoLean(R) brand foods. SoLean(R) Flame Broiled Beef Patties, SoLean(R)
Fully Cooked Pork Patties, SoLean(R) Cheeseburgers, and SoLean(R) Sausage
Egg Muffin Sandwiches are 95% fat-free, high protein blends of lean
ground meat and heart-healthy soy protein.

    Safe Harbor Statement Under The Private Securities Litigation Reform Act
Of 1995:

    The Private Securities Litigation Reform Act of 1995 (the "Reform Act")
provides a "safe harbor" for forward-looking statements to encourage
companies to provide prospective information, as long as those statements
are identified as forward-looking and are accompanied by cautionary
statements identifying important factors that could cause actual results
to differ materially from those discussed in the forward-looking
statements. Natural Harmony Foods, Inc. desires to take advantage of the
safe harbor provisions of the Reform Act. All future written and oral
forward-looking statements attributable to the Company or any person
acting on its behalf are expressly qualified in their entirety by the
cautionary statements contained or referred to above. New risks and
uncertainties arise from time to time, and it is impossible for the
Company to predict these events or how they may affect the Company. We
assume no obligation to update any forward-looking statements as a result
of new information, future events or developments, except as required by
federal securities laws. In addition, it is our policy generally not to
make any specific projections as to future earnings, and we do not
endorse any projections regarding future performance that may be made by
third parties.

    Natural Harmony Foods, Inc. is traded on the OTC Exchange (Pink Sheets)
under the symbol NHYF. More information is located at the website --
www.naturalharmonyfoods.com.

    

Contact:
Daniel A. Carr
President
Natural Harmony Foods, Inc.
2881 East Oakland Park Blvd.
Ft. Lauderdale, FL  33306
(954) 315-1760
naturalharmonyfoods@gmail.com

Copyright 2009, Market Wire, All rights reserved.

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