AMS Health Sciences, Inc. Announces Disposition of Heartland Cup

  
    
  
  
    
      AMS Health Sciences, Inc. (AMEX:AMM) announced the execution of certain 
      lease and purchase agreements between Heartland Cup Inc. and Republic 
      Plastics Ltd. (collectively, the “Agreements”). 
      Republic Plastics is located in McQueeney, Texas and produces Styrofoam 
      products for private label users. The transaction will permit Republic 
      to take over operation of the Heartland plant immediately. Pursuant to 
      the Agreements, and effective November 15, 2006, Republic Plastics 
      assumed the existing lease for the Heartland plant, purchased all 
      remaining cup contracts with Heartland customers, and executed a 
      two-year equipment lease. The equipment lease includes an option in 
      favor of Republic Plastics to purchase all the equipment utilized in the 
      Heartland operations at a specified price. The option period begins 
      November 15, 2007 and ends November 15, 2008.
    
    
      By execution of the Agreements, AMS will receive a cash benefit of 
      approximately $33,000 per month resulting from the assumption of the 
      plant lease and the rental payments under the equipment lease. This cash 
      benefit will offset AMS’ monthly out-of-pocket 
      costs and debt service related to its discontinued operations at 
      Heartland Cup of approximately $35,000 per month.
    
    
      “We are very pleased to announce this 
      transaction as another step in our goal of divesting us of any activity 
      not associated with our core business of marketing nutritional 
      supplements and skin care products”, said Dr. 
      Jerry Grizzle, Chairman and CEO of AMS. “Republic 
      Plastics is in the Styrofoam business and will be able to produce 
      Styrofoam cups as a logical extension of their current business.”
    
    
      Gino Inman, Chairman, President, & CEO of Republic Plastics said, “We 
      are a privately held company that produces foam tableware for nationwide 
      distribution to large and small retailers and distributors. The 
      acquisition of the Heartland Cup operation from AMS will give us a foam 
      cup product line extension to supplement our foam tableware business. We 
      appreciate AMS working with us on this flexible acquisition opportunity 
      to help us transition the Heartland Cup business from AMS to Republic 
      Plastics. “
    
    
      AMS Health Sciences, Inc. sells more than 60 natural nutritional 
      supplements, weight management products, and natural skincare products 
      through independent distributors across the United States and Canada. 
      More information about the Company is available at http://www.amsonline.com.
    
  
AMS Health Sciences, Inc. (AMEX:AMM) announced the execution of
certain lease and purchase agreements between Heartland Cup Inc. and
Republic Plastics Ltd. (collectively, the "Agreements"). Republic
Plastics is located in McQueeney, Texas and produces Styrofoam
products for private label users. The transaction will permit Republic
to take over operation of the Heartland plant immediately. Pursuant to
the Agreements, and effective November 15, 2006, Republic Plastics
assumed the existing lease for the Heartland plant, purchased all
remaining cup contracts with Heartland customers, and executed a
two-year equipment lease. The equipment lease includes an option in
favor of Republic Plastics to purchase all the equipment utilized in
the Heartland operations at a specified price. The option period
begins November 15, 2007 and ends November 15, 2008.

   By execution of the Agreements, AMS will receive a cash benefit of
approximately $33,000 per month resulting from the assumption of the
plant lease and the rental payments under the equipment lease. This
cash benefit will offset AMS' monthly out-of-pocket costs and debt
service related to its discontinued operations at Heartland Cup of
approximately $35,000 per month.

   "We are very pleased to announce this transaction as another step
in our goal of divesting us of any activity not associated with our
core business of marketing nutritional supplements and skin care
products", said Dr. Jerry Grizzle, Chairman and CEO of AMS. "Republic
Plastics is in the Styrofoam business and will be able to produce
Styrofoam cups as a logical extension of their current business."

   Gino Inman, Chairman, President, & CEO of Republic Plastics said,
"We are a privately held company that produces foam tableware for
nationwide distribution to large and small retailers and distributors.
The acquisition of the Heartland Cup operation from AMS will give us a
foam cup product line extension to supplement our foam tableware
business. We appreciate AMS working with us on this flexible
acquisition opportunity to help us transition the Heartland Cup
business from AMS to Republic Plastics. "

   AMS Health Sciences, Inc. sells more than 60 natural nutritional
supplements, weight management products, and natural skincare products
through independent distributors across the United States and Canada.
More information about the Company is available at
http://www.amsonline.com.