LAKE FOREST, Calif.--(BUSINESS WIRE)--May 9, 2002



Biozhem Cosmeceuticals Inc. (OTCBB:BZHM), a developer and marketer of advanced skin care products, today announced that it has entered into a management services agreement with Thane International Inc., a global leader in multi-channel marketing.



As a result, Thane will finance and manage all aspects of Biozhem's RevitaCel System(TM) domestic direct response and international campaign, including media buying, marketing, operations and fulfillment.



Under the terms of the agreement, Biozhem will retain ownership of the RevitaCel product line containing NouriCel(TM), while continuing to lead product development efforts and provide overall strategic direction.



Thane will leverage its extensive media buying power, global distribution network and marketing expertise to accelerate the worldwide rollout of the RevitaCel System through a wider array of direct response channels.



"With more than a decade of experience in global marketing, specializing in direct response, Thane provides the expertise, financial resources, infrastructure and global reach that will allow us to quickly maximize the revenue potential of the RevitaCel System," said James S. Chapin, Biozhem's CEO and chairman.



"We appreciate Thane's confidence in our products, our team and our vision and we anticipate a successful partnership for our shareholders."



According to Bill Hay, CEO of Thane International, the company pursued the partnership because of the unique nature of the RevitaCel System. "In the direct response market, it's unusual to have the opportunity to market skin care products like the RevitaCel System, with its one-of-a-kind ingredient and clinically proven benefits.



"Biozhem has done an excellent job of developing the products, producing an infomercial starring Emmy(R) award-winning actress Lindsay Wagner and positioning the RevitaCel System for rapid growth. We believe the application of Thane's unique global direct marketing infrastructure to the RevitaCel business will maximize its market potential."



The flagship product of the RevitaCel System, RevitaCel Replenishing Complex, contains NouriCel(TM), the first and only cosmetic ingredient derived from a patented process for growing human-based tissues for repair and transplantation.



NouriCel contains a unique cocktail of natural growth factors, antioxidants, matrix proteins and soluble collagens -- all compounds produced by healthy new skin, but which aging skin makes in smaller and smaller quantities.



Biozhem exclusively licenses the marketing rights to NouriCel for skin care products in the global direct response market from BioNuvia Inc., a wholly owned subsidiary of Advanced Tissue Sciences. In addition, Biozhem has the rights for NouriCel in the direct response market for nail and lip care.



"Biozhem built a successful infomercial and established a market presence for the RevitaCel System," said Kerry Vail, vice president and general manager of BioNuvia.



"With the direct response concept now proven, Thane's financial resources and industry expertise will allow Biozhem to bring products containing NouriCel to more consumers at a faster pace. We look forward to maximizing the potential of this revolutionary ingredient in the global direct response market."



According to the agreement, all revenues, costs, inventories, accounts receivables and profits generated from Thane's management services will remain the sole property of Biozhem. The initial term of the agreement is one year and shall automatically renew except under certain conditions.



Biozhem has the right to terminate the agreement if certain minimum payments are not made. Thane has the right to terminate the agreement under certain circumstances, including the ability to terminate if certain reasonable media scores are not met within the first 30 days or if certain reasonable financial returns are not achieved.



Statements about the company's future expectations and all other statements in this news release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that is defined in the Private Litigation Reform Act of 1995. The company intends that such forward-looking statements be subject to the safe harbor created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the company's actual results could differ materially from expected results.