GeoPharma Executes an Agreement to Acquire Dynamic Health Products

17/05/07 GeoPharma, Inc. announced the execution of an agreement to acquire Dynamic Health Products, Inc.

Under the agreement, which has been approved by both company's boards of directors and is subject to the approval of the shareholders of GeoPharma and Dynamic, GeoPharma will issue to Dynamic shareholders, 0.147 of one share of GeoPharma common stock for every one share of Dynamic common stock. It is estimated that GeoPharma will issue approximately 3.1 to 3.5 million shares of GeoPharma common stock. If the merger is approved by the requisite number of the outstanding shares of GeoPharma and Dynamic Health, GeoPharma expects increased revenues, operating profits, and an enhanced distribution platform supported by a highly experienced management team from both the companies having extensive industry knowledge in marketing, developing, manufacturing and distributing. GeoPharma will notify its shareholders of the date of the shareholders meeting about the merger.

Dynamic, with over 3,000 SKUs and serving in excess of 5,000 customers, is a U.S. cash-flow positive distribution company with 18% gross margins presenting an attractive opportunity for widening the breadth of the overall Company and its existing distribution platform. GeoPharma has the ability to manufacture the majority of the products that Dynamic distributes. The combination of GeoPharma and Dynamic will bring mass economies of scale as gained from further vertical integration and improvements surrounding the expanded distribution points across the U.S thus making this a well- diversified company.

For the 12 months ended March 31, 2006, GeoPharma reported revenues of approximately $49.7 million with reported revenues of approximately $45.6 million for the nine months ended December 31, 2006.

For the 12 months ended March 31, 2006, Dynamic reported revenues of approximately $50.1 million with reported revenues of approximately $40.1 million for the nine months ended December 31, 2006.

Mihir Taneja, CEO of GeoPharma stated, "The acquisition of Dynamic is in line with this year's planned strategy of acquiring companies that either complement or supplement our existing business lines. As we progress through the stages of this acquisition, we plan to continue executing our acquisition strategy thus driving industry consolidation and allowing us to leverage on and benefit from the resulting economies of scale."