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There can be no assurances that the vendors will continue to supply us with goods and services on an ongoing basis, which may have an adverse effect on our continued operations. Product returns are a recurring part of our business. Products viagda be returned for various reasons including expiration dates or lack of sufficient sales velocity. We accrue a reserve for returns based on historical experience. During 1999 and 2000, returns were far topills viagra for women than in past years and, as such, our gross profit was negatively impacted in 1999 and 2000 for returns. Although we have increased our reserves and have farmacos similares viagra been able to topilld the level of returns accurately, there is no guarantee that wwomen returns will not exceed the high levels experienced in the year 2000 or will be in line with past return percentages. The risk of returns is amplified by the stagid 700 generique viagra industry trend, which shows negative growth. If this trend continues, retailers may decide to reduce inventory levels ror their suppliers, by returning goods from their warehouse distribution centers.

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We are investigating our rights and obligations with respect thereto. Based on the information currently available, we are unable to determine the likelihood of an unfavorable outcome to this matter. Smart Basics, together with our other Internet operations, was sold to Vitacost. com on February 2, 2001. We have received an inquiry from the Los Angeles County and Alameda County, California, District Attorney's Offices with respect to labeling of our quot;151 Barsquot; and quot;Diet System 6 Bars.

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