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OKLAHOMA CITY--(BUSINESS WIRE)--April 5, 2005--AMS Health Sciences, Inc. (AMEX:AMM) today announced a 5% increase in new Free Trial sign-ups over February levels. Free trial sign-ups increased from 7,273 in February to 7,603 in March.
New associate and preferred customers for the month of March totaled 8,814, a 3% increase over a total of 8,538 in February. New business builder associate recruiting, which has been the Company's focus in 2005, increased 29% over February levels. New associates are the driver for future sales and revenues. New associates expand the Company's sales efforts and increase retention of new customers. The Company's internal audits have revealed that monthly product autoships retention are up to five times higher for sales associates as opposed to customer-only autoships. Total sales for March were approximately $1.3 million, a decrease of 7% over February sales of $1.4 million.
During the second half of April AMS Health Sciences will be transitioning the Free Trial program, which has had a good run attracting sales associate leaders, from being highly capital intensive at enrollment to a program that is profitable on a per transaction basis.
Transitioning this Free Trial sales sign-up momentum with a refined Free product program should deliver reduced enrollment expense and higher monthly product autoship retention. The goal is to expand the sales force and improve the quality of business written while lowering expenses moving the Company to profitability.
"Our goal is the focus on the sales force expansion with a streamlined Free Trial program that delivers a unique selling proposition to our sales force while increasing retention that drives AMS and our sales associate monthly recurring income. The second quarter goal is to execute a plan that will begin to maximize the capital outlay we have made over the last 12 months, reduce expenses, capital investment and increase margins while also maintaining attractive incentives for sales associates and customers alike," stated AMS Health Sciences President, Mr. David D'Arcangelo.
Since launching its new customer acquisition campaign on March 6, 2004, new sales associates and preferred customers have been added as follows: in 2004, 3,732 in April; 4,778 in May; 5,143 in June; 6,522 in July; 8,751 in August, 10,227 in September, 13,592 in October, 10,587 in November; and 8,113 in December, and in 2005, 8,742 in January; 8,538 in February, and 8,814 in March. These numbers compare favorably to fiscal year 2003 additions of; 997 in April; 1,005 in May; 969 in June; 1,147 in July; 1,318 in August, 1,097 in September, 968 in October, 669 in November, 698 in December; 624 in January 2004; 743 in February 2004 and 3,414 in March 2004.
About AMS Health Sciences, Inc.
AMS Health Sciences, Inc. sells more than 60 natural nutritional supplements, weight management products, and natural skincare products, including the world's number-one all-natural weight loss and stress reliever, Prime One, through independent distributors across the U.S. and Canada. More information about the Company is available at http://www.amsonline.com.
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "expects," "may," "will," or "should" or other variations thereon, or by discussions of strategies that involve risks and uncertainties. The actual results of the Company or industry results may be materially different from any future results expressed or implied by such forward-looking statements.
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