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GNC Franchisees Endorse Settlement <b></b>

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Pittsburgh-General Nutrition Companies Inc. todayannounced that more than 75 percent of its franchise operators haveaccepted the previously announced proposed settlement of threelawsuits seeking class action status for all of GNC's U.S.franchisees. The settlement was scheduled for final approval infederal court in Pittsburgh.

Mike Meyers, president and COO of GNC, said, "We are verypleased that the great majority of GNC franchisees have endorsedthis settlement. This is just one step in an ongoing and focusedplan to provide our franchisees with tangible businessimprovements. The franchising system is critical to the growth ofthe GNC brand, and we are committed to working with franchisees toincrease year-over-year sales and improve margins in what continuesto be a challenging retailing environment."

Under the terms of the settlement, GNC is committed to providingparticipating franchisees with, among other things, a total ofapproximately $2.7 million in wholesale credits on purchases of thecompany's private label products over the period of 24 months.-Miller DeMartine Group

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