JSHT - Joshua Tree Construction (fka JSHT)

[jmhollen]

Joshua Tree Construction Acquires American Health and Diet Centers

FAIRFIELD, N.J.--(BUSINESS WIRE)--Feb. 13, 2002--Joshua Tree Construction (OTC BB: JSHT) (``Joshua Tree' or the ``Company') announced today that it has completed the acquisition of 100% of the issued and outstanding common stock of American Health and Diet Centers, Inc. (``AHDC') d/b/a ``Vitamin Healthcenters,' and ``The Nutritionary.' A letter of intent was previously signed in January of this year.

The Company intends on changing its name and its trading symbol to reflect this acquisition at a later date. Key management of AHDC will be retained and a new Board of Directors will be appointed. AHDC currently operates 22 retail locations and had $10,676,100 in net sales in fiscal year 2000.

Keith Frankel will serve as an advisor to the Chief Executive Officer and the Chairman of the Board of Directors. Frankel has been President and Chairman of the Board of Directors of American Health and Diet Centers, Inc. since November of 1998, as well as co-owner of AHDC. He has been in the nutritional industry since 1986 and is President and CEO of Vitaquest International, a major producer of nutritional products serving all marketing channels of the nutritional industry.

``American Health and Diet Centers, Inc. is planning an aggressive growth strategy for 2002 and plans to open approximately 150 new locations, with further plans to expand to over 1,500 locations by the end of 2005,' said Frankel. ``We have a solid business model that will allow us to expand rapidly, yet with controlled growth, while maximizing our strengths and achieving our goals.'

Melvin Simon, currently co-chairman of the Simon Property Group and present co-owner of AHDC, will continue to serve in an advisory capacity to senior management of AHDC. Simon Property Group (NYSE: SPG - news), founded in 1960, is the largest publicly traded retail Real Estate Investment Trust (REIT) in North America and the country's largest owner, developer and manager of market-dominant retail real estate.

Marty Reynolds will continue to serve as Chief Operating Officer. Reynolds joined AHDC in 1995 as Vice President of Stores. During his tenure he has implemented state-of-the-art technology including web-based interactive training, store point of sale software that includes inventory control, human resource management and asset control. These programs have streamlined the organization's operations and increased profitability. Reynolds has over 20 years of experience in retailing and retail sales serving as Director of Stores for FuncoLand, Inc. and store controller for Wilsons the Leather Experts.

David Mihalik will assume the position of Senior Vice President of Franchising. He joined AHDC in 2000 as Vice President of the Franchise division. Mihalik previously served as Senior Director for GNC Franchising, Inc., the company that franchised General Nutrition Centers nationwide from 1993 to 1998. Mihalik was involved in the major growth of GNC franchising, contributing to GNC being named ``America's Number One Retail Franchise' in 1998 by Entrepreneur International.

AHDC is a multi-channel marketer of high quality nutraceuticals and natural health product solutions. The Company has developed a low-cost retail store concept that is the core foundation of the model. AHDC believes it can gain significant market advantage by selling from high exposure, mall-based, staffed retail locations and small in-line stores. The Company has the ability to increase customer conversion by offering a supplement selection based on specific health solutions. The health solutions address weight loss, energy, sports nutrition, anti-aging and many other areas of concern.

AHDC offers a direct shipment program that enables customers to order via telephone, Internet or mail. The business model allows for a high margin retail health center that offers consumers convenient multi-channel access to quality products, backed by highly trained personal nutritional counselors. The Company has also developed state-of-the-art point of sale programs and has achieved a superior customer service track record.

The U.S. natural health product market was projected to exceed $35 billion in 2001 and to continue to grow at 10% per annum. The industry is extremely fragmented and there is not a national multi-channel market share leader. The majority of the market is dominated by independent retailers and the off line market leader General Nutrition Center (``GNC'), which has only approximately 11.1% share. Less than 1% of industry sales are currently Web-based, and the pure play Internet retailers have not been successful due primarily to high customer acquisition costs.

ABOUT AMERICAN HEALTH AND DIET CENTERS

The American Health and Diet Centers was established in 1979 as ``The Vitamin Healthcenters' and is a multi-channel marketer of high quality nutritional and natural health products. It is committed to being the best provider of quality products, information and services in the nutritional supplement, health and self-care market.