GNC Lowers Ad Costs For Franchisees <b></b>

Pittsburgh-General Nutrition Companies Inc. haseliminated its regional advertising cooperative contributionrequirement for franchisees and is expanding its national adcampaigns to focus on GNC brands. The move allows franchisees torealize significant cost savings-instead of paying up to 6 percentof revenues, they now pay no more than 3 percent, while enjoyingthe benefits of a major, nationwide advertising initiative.

"GNC has always listened to the concerns of itsfranchisees, and we are responding by expanding our nationaladvertising campaign," says Russell L. Cooper, GNC franchisingsenior vice president and general manager. "Not only are wesupporting franchisees with advertising at the national level, wealso eliminated the regional advertising requirements, allowingindividual franchise store operators the choice to invest theirsavings into their own local marketing efforts or apply it directlyto the profits of their stores."

In 2001, national gross media dollars spent on GNC brands willincrease to $40 million, delivering 5.5 billion impressions toGNC's main target audience, adults 25 and older. The increasecomes from the shift in regional advertising dollars from the localmarkets to a more expansive national campaign. The move increasesGNC's national brand exposure while reducing franchiseeexpenses. -GNC Inc.