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Market Updates

Direct Focus, Champion Nutrition Establish Marketing Relationship

Direct Focus, Vancouver, WA, and Champion Nutrition, Concord, CA, have established a marketing relationship, whereby Direct Focus has begun selling nutritional supplement kits, comprised of Champion Nutrition products, to its Bowflex direct channel customers. Direct Focus and Champion Nutrition have entered into a financial agreement, under which Direct Focus is providing Champion Nutrition with an interest-bearing loan of up to $3 million and has an option to buy Champion for $6 million at any time through September 2002.

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