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Hoodia Products International Reports Strong August Revenues


Hoodia Products International Inc. (Pink Sheets: HDIA), the California-based manufacturer of appetite suppression products made from the Hoodia gordonii plant, today announced revenue for the month ended August 2006.

The company recorded August revenue of $13,547, a decline of 24%, as compared to July revenues of $17,934. However, management is exceptionally pleased with these results as the company did not have any media purchases or other advertising during August. Jacob V.O. Mullins, CEO of HPI, elaborated, "Our sales in August were strictly continuity program customers and Web sales. This is encouraging; it implies that a majority of our customers who helped make July such a big month for us have now stayed with POWERSLIM, and are likely to offer us recurring revenue as we assist them in their weight loss goals. Additionally, it created a month of higher-than-average revenue with virtually no business expenses, which is a model we're more than happy to be experiencing."

August sales were more than double that of every month in 2006 besides July, and the company does not expect to see future monthly sales figures revisit pre-July levels. For the month ended August 2006, call-in orders, mostly representative of our continuity customers, only decreased 33% (after a July increase of 754%), while orders on the company Web site decreased 4% (after a July
increase of 5%). "These figures are important," Mullins noted, "they are starting to give us a very good ideas about customer retention and how it relates to our marketing campaigns. If our media purchases can translate into customers that will stay on the continuity program for even a month or two, we are then essentially paying for one-time infomercials or ads that are generating multiple sales from the same customer. If this trend continues, and we believe it will, it will very much accelerate our path to becoming profitable and should greatly assist us in achieving our goal of $100,000 in sales by year end."

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but
are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," forecasts," potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

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