Healthnotes® Experiences Record Sales and Growth in First Half 2007; Adds Albertson's LLC, Harris Teeter, and DeCA to Healthnotes Network

Business Wire, August 29, 2007

PORTLAND, Ore. -- Healthnotes, the leader in interactive wellness-driven marketing for retail, today announced record sales and revenue for the first half of 2007 and significant new grocery customers. Building on the momentum of 2006, a record year with nearly a 50% increase in sales and total contract value, Healthnotes increased its market share with new sales at more than triple last year's rate. Contributing to this growth is the Defense Commissary Agency (DeCA), which has added multiple kiosks to its newest stores, and several industry-leading retailers that have integrated Healthnotes on their websites, including Albertson's LLC and Harris Teeter.

"In response to growing consumer demand for supermarkets to promote healthier lifestyles, food retailers see 'wellness' as a defining opportunity for how they connect with their shoppers and build loyalty. Healthnotes is uniquely positioned to help retailers capitalize on this growing trend with comprehensive marketing programs that not only provide the information and inspiration shoppers need, but also deliver measurable results to the store's bottom line," stated Dr. Skye Lininger, Healthnotes president and CEO.

The Defense Commissary Agency (DeCA), which operates more than 250 grocery stores on military bases worldwide, is passionate about helping enlisted and retired military families eat healthier. As part of this strategic initiative, DeCA has developed a program called, "It's Your Choice. Make it Healthy." The Healthnotes kiosks are a key component of this program, offering their customers hundreds of healthy recipes and wellness tips throughout the stores. Currently, Healthnotes kiosks can be found in the nutrition, meat, and produce departments at select commissaries.

Leading retailers partner with Healthnotes to reach consumers online

In addition to in-store marketing, Healthnotes is helping grocery retailers leverage their websites to reach out to consumers with products and information that help them make healthier choices for themselves and their families. At Albertson's LLC, Healthnotes recipes and wellness content are prominently featured on the home page and integrated within the new "Health Matters" section of their website, www.albertsonsmarket.com. Customers can find breaking news about health, explore various diet plans, learn about fresh foods, wines, and organics, and discover tasty, heart-healthy meal recipes. Customers can also access information on vitamins, herbs, and medications, and science-based product recommendations for managing health conditions.

"We are excited to work with Healthnotes to provide our shoppers with wellness information and healthy meal ideas that help them make easy, everyday decisions about what to feed their families," stated Bob Butler, senior vice president of marketing and merchandising for Albertson's LLC. "By helping shoppers make better choices, we're building confidence and loyalty which leads to larger share of wallet."

Harris Teeter, a leader in educating shoppers with their custom yourwellness[R] program, will integrate Healthnotes throughout their website to reinforce and expand their healthy living resources. The Healthnotes content will be available September 2007 and will complement the Wellness Keys (shelf-tags) and free health guides already offered in-store and online.

Healthnotes projects significant growth during the remainder of 2007 and 2008, and as a result, the company is moving to a new building in the heart of downtown Portland, Oregon in early September 2007.

About Healthnotes Inc.

Healthnotes Inc. is the leading provider of wellness-driven marketing programs for retailers, publishers, and manufacturers. Healthnotes helps marketers leverage the powerful health and wellness trend to

connect with millions of consumers at the point of decision--in-store and online.

The Healthnotes network drives more than 50 million consumer visits annually across thousands of retail locations and websites worldwide, including nine of the top ten U.S. grocery retailers. Visit www.healthnotes.com for more information.

Note to editors: HEALTHNOTES is a registered trademark of Healthnotes, Inc.