DNP INTERNATIONAL COMPANY, INC. REACHES AGREEMENT WITH GOVERNMENT REGARDING 2007 SALE OF SOMATROPIN

Resolution Clears the Way for the Company to Focus Full-Time on Delivering the Highest-Quality Products to Customers

Santa Fe Springs, CA—Sept. 12—DNP International Co., Inc., one of the leading suppliers of nutritional ingredients in North America, announced today that it has reached an agreement with the federal government to accept responsibility for its failure to obtain a state license in connection with its 2007 sales of a pharmaceutical product called somatropin. 
     
Resolution of this matter clears the way for DNP's management to focus full-time on continuing to deliver the highest-quality products to its valued customers at the most competitive prices. 
      
The events giving rise to the agreed-upon charges occurred more than five years ago and had no impact on the company’s operations. Since that time, DNP has implemented measures to ensure that all of its importation and distribution activities comply to the letter with all federal, state and local laws and regulations.

 
“The errors that led to these charges happened while I was president of the company and I accept personal responsibility,” said David Ji, DNP’s President. “The lack of information about government licensing requirements will never happen again.  In November 2007, we hired a highly trained chemist with a thorough knowledge of FDA regulations to assure quality and regulatory compliance.  We have had no problems in this area whatsoever for the past five years and will continue to provide our customers with the highest-quality products and best value.”
  
According to the agreement reached with the government, DNP acknowledged that, in March 2007, it sold and distributed 24 grams of somatropin to a pharmacy in Brooklyn, New York, and that it did not have a license from the State of California to do so.  DNP also agreed to misdemeanor charges related to its distribution of somatropin in April 2007.  The government and DNP have agreed that an appropriate sentence for these licensing offenses is a term of probation and a fine. Mr. Ji has also agreed to take responsibility for the company’s distribution of somatropin without a proper license. The government has agreed that a term of probation is appropriate for Mr. Ji.

Mr. Ji noted that both he and the company are pleased to have resolved this matter, and look forward to putting the issue behind the company. He stressed that customers can rest assured that DNP will continue to provide reliable, high-quality and reasonably priced nutritional materials and other fine ingredients from world class manufacturers with a focus on customer-valued distribution services.
  
DNP in dedicated to being the “best-in-class,” by creating value and exceeding expectations of its customers and employees through market leadership and operational excellence. For more information go to www.dnpint.com.

Contact: Robert Magnuson
(949) 290-9382
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