Mr. Craig Goodwin reports

NATURALLY SPLENDID SECURES USA DISTRIBUTOR FOR PAWSITIVE FX

Naturally Splendid Enterprises Ltd.'s 100-per-cent-owned pet care retail line, Pawsitive FX, is to be distributed in the United States through Coast 2 Coast Wholesale Pet Products. Based in Garden Grove, Calif., the company is a well-established distributor serving over 1,000 stores across the United States, including PetSense and Krisers outlets. The arrangement is non-exclusive and was reached largely as a result of the exposure gained from the recently attended, U.S.-based SuperZoo trade show in Las Vegas, Nev.

Kurt Hansen, chief executive officer of Coast 2 Coast, said: "We recognize the Pawsitive FX line as a premium product. There is an excitement in the market about how effective these products are and Coast 2 Coast is very happy to be carrying the brand into the U.S. We look forward to contributing to the success of the Pawsitive FX line."

Naturally Splendid will use this relationship as a stepping stone into the $60-billion-a-year U.S. pet products market and is intending to supplement this relationship with more similar arrangements over the coming months. According to the American Pet Product Association (APPA): "An overall rise in the number of pets in the U.S. and increased spending per pet are the main factors that will contribute to the pet's industry growth in the years ahead. Even with the overall economic recovery taking longer than expected, annual revenue growth in pet products and services is anticipated to clock in at some 4.4 per cent through 2016 (one of the few industries that can say so). As the recovery takes hold, household disposable income will rise even faster and spending on pets will pick up even more."

Andy Birchall, brand manager for the Pawsitive FX line, said: "The Pawsitive FX line is generating a lot of interest on both sides of the U.S./Canada border. U.S. distribution is a hugely important piece of our strategic planning. Pet owners today are more educated than ever before in how to care for their animals and less willing to use inferior products where their well-being is concerned. As a result, consumer spend in the pet health care and grooming sectors is growing. Our Happy Snouts, Happy Paws and Strong Paws balms are superior products in their sector, so Pawsitive FX is ideally positioned to offer the high-quality and effective topical products consumers expect. Coast 2 Coast has an impressive reach and reputation in the U.S. and will provide Pawsitive FX with the perfect platform from which to launch our products into the market."

We seek Safe Harbor.