AMS Health Sciences, Inc. Announces Third Quarter 2006 Financial Results

  
    
  
  
    
      AMS Health Sciences, Inc., (Amex: AMM), 
      today announced a net loss from continuing operations for the third 
      quarter 2006 of $583,299, or $0.07 per common share, on 7.8 million 
      shares outstanding. Results for the three months ended September 30, 
      2006, including discontinued operations, was a net loss of $635,774 or 
      $0.08 per common share, on 7.8 million shares outstanding. This compares 
      to a net loss of $513,868, or $0.07 per common share, on 7.5 million 
      shares outstanding in the third quarter of 2005. Sales totaled $2.3 
      million for the quarter compared to sales of $2.6 million for the 
      quarter ended September 30, 2005.
    
    
      Sales for the first nine months of the current fiscal year totaled $7.1 
      million compared to $10.2 million for the same period in 2005. Net loss 
      for the first nine months of 2006 was $1,104,989, or $0.14 per common 
      share, on 7.8 million shares outstanding, compared to a net loss of 
      $2,621,737, or $0.36 per common share, on 7.2 million shares 
      outstanding, in the year 2005.
    
    
      Cost of sales in the third quarter of 2006 decreased by $342,939 to 
      $1,422,788, or 61.2% of net sales. During the same period in 2005, cost 
      of sales was $1,765,727, or 67.2% of net sales. Cost of sales in the 
      first nine months of 2006 decreased by $3,225,108 to $4,475,427, or 
      63.3% of net sales, compared to cost of sales of $7,700,535, or 75.7% of 
      net sales, in the same period of 2005.
    
    
      “The key element to focus on is our profit 
      from continuing operations in the first six months of 2006 of $52,017 
      versus a loss in the same period of 2005 of $2,107,869. We continue to 
      establish the fact that we can make a profit in our core operations. We 
      have eliminated many of the detractors that hurt us in 2005 and early 
      2006 and can now turn all of our efforts to driving top of line sales 
      and bottom line profits. During the third quarter, we incurred the cost 
      for our annual convention, settled the last lawsuit dealing with 
      ephedra, hired a professional branding company to help with the launch 
      of our new binary compensation program and started a pro-active effort 
      to market the stock of the Company. All of these efforts and initiatives 
      increased our administrative costs by $369,000 in the third quarter but 
      are expected to pay dividends in the future. Also in the third quarter, 
      we incurred interest expense and loan amortization costs of $205,000 
      related to our new financing incurred to jumpstart our sales efforts. If 
      you consider this total additional cost of $574,000 for the quarter and 
      compare that to our loss from continuing operation of $583,000, you will 
      understand that we are basically at a breakeven for the quarter on our 
      normal, core business of selling nutritional supplements.
    
    
      “The life blood of any network marketing 
      company is recruiting. In the third quarter of 2005, we recruited 1,205 
      new associates. In the third quarter of 2006, we recruited 2,343, or a 
      94.4% increase over the prior year. Currently, the fourth quarter is 
      producing the same type results; October 2006 recruiting was up 46.7% 
      over October 2005, and collectively for the fourth quarter of 2006, we 
      are up 33.8% over fourth quarter of 2005,” 
      said Dr. Jerry W. Grizzle, Chairman and CEO.
    
    
      AMS Health Sciences, Inc., sells more than 60 natural nutritional 
      supplements, weight management products, and natural skincare products 
      through independent distributors across the U.S. and Canada. More 
      information about the Company is available at http://www.amsonline.com.
    
  
AMS Health Sciences, Inc., (Amex: AMM), today announced a net loss
from continuing operations for the third quarter 2006 of $583,299, or
$0.07 per common share, on 7.8 million shares outstanding. Results for
the three months ended September 30, 2006, including discontinued
operations, was a net loss of $635,774 or $0.08 per common share, on
7.8 million shares outstanding. This compares to a net loss of
$513,868, or $0.07 per common share, on 7.5 million shares outstanding
in the third quarter of 2005. Sales totaled $2.3 million for the
quarter compared to sales of $2.6 million for the quarter ended
September 30, 2005.

   Sales for the first nine months of the current fiscal year totaled
$7.1 million compared to $10.2 million for the same period in 2005.
Net loss for the first nine months of 2006 was $1,104,989, or $0.14
per common share, on 7.8 million shares outstanding, compared to a net
loss of $2,621,737, or $0.36 per common share, on 7.2 million shares
outstanding, in the year 2005.

   Cost of sales in the third quarter of 2006 decreased by $342,939
to $1,422,788, or 61.2% of net sales. During the same period in 2005,
cost of sales was $1,765,727, or 67.2% of net sales. Cost of sales in
the first nine months of 2006 decreased by $3,225,108 to $4,475,427,
or 63.3% of net sales, compared to cost of sales of $7,700,535, or
75.7% of net sales, in the same period of 2005.

   "The key element to focus on is our profit from continuing
operations in the first six months of 2006 of $52,017 versus a loss in
the same period of 2005 of $2,107,869. We continue to establish the
fact that we can make a profit in our core operations. We have
eliminated many of the detractors that hurt us in 2005 and early 2006
and can now turn all of our efforts to driving top of line sales and
bottom line profits. During the third quarter, we incurred the cost
for our annual convention, settled the last lawsuit dealing with
ephedra, hired a professional branding company to help with the launch
of our new binary compensation program and started a pro-active effort
to market the stock of the Company. All of these efforts and
initiatives increased our administrative costs by $369,000 in the
third quarter but are expected to pay dividends in the future. Also in
the third quarter, we incurred interest expense and loan amortization
costs of $205,000 related to our new financing incurred to jumpstart
our sales efforts. If you consider this total additional cost of
$574,000 for the quarter and compare that to our loss from continuing
operation of $583,000, you will understand that we are basically at a
breakeven for the quarter on our normal, core business of selling
nutritional supplements.

   "The life blood of any network marketing company is recruiting. In
the third quarter of 2005, we recruited 1,205 new associates. In the
third quarter of 2006, we recruited 2,343, or a 94.4% increase over
the prior year. Currently, the fourth quarter is producing the same
type results; October 2006 recruiting was up 46.7% over October 2005,
and collectively for the fourth quarter of 2006, we are up 33.8% over
fourth quarter of 2005," said Dr. Jerry W. Grizzle, Chairman and CEO.

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