GeoPharma Finalizes Acquisition of Dynamic Health Products

18/10/07 GeoPharma, Inc. - In a major step forward in GeoPharma's business model, the company announced that it has finalized the acquisition of Dynamic Health Products, Inc. with all merger conditions satisfied.

Dynamic, a leading distributor in the sports nutrition product and performance drink industries, is a U.S. based cash-flow positive company with comparable 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 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. GeoPharma expects increased revenues, operating profits, productivity, cost savings on multiple levels, 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.

In explaining the significance of the Dynamic transaction to the Company, Mihir Taneja, CEO of GeoPharma remarked, "This deal creates a compelling value for our shareholders. Undoubtedly, our companies are stronger collectively than we are individually and we look forward to leveraging our obvious synergies to achieve greater shareholder value for all involved.

"With 3000 SKU's and over 5000 customers in its distribution-based business, Dynamic will expand and perfectly complement GeoPharma's already flourishing manufacturing and distribution business segments. The combination of our two companies will allow for meaningful savings that currently tax each company as separate entities."

The company went on to state that the combined revenues of the two companies are expected to be in excess of $90 million on an annualized basis. Furthermore, the Company believes that the acquisition will be accretive within the first year of consolidated operations. Dynamic sales will begin to be recognized by GeoPharma during the 3rd fiscal quarter ending December 31st, 2007. Dynamic's revenues for the six months ended September 30, 2007 were approximately $29.2 million.

Dynamic has displayed significant revenue growth over the last few years with its revenues skyrocketing from approximately $16 million in its fiscal year ending in March of 2005 to approximately $56.8 million in its fiscal year ended March 31, 2007. Recently, Dynamic was honored to be ranked number 9 in Entrepreneur magazine's (August 2007 issue) HOT 500 list depicting America's top fast-growth businesses and the entrepreneurs who built them.