HEE Corp Announces Marketing Direction For HPB-84

HEE Corporation, Inc. (HCCF on OTC Pink Sheets), the international manufacturer of HPB-84, a nutraceutical developed in India, announced today their plans for going forward.

Hutchinson, KS (PRWEB) March 5, 2005 -- "HEE Corp continues to generate solid marketplace interest in its Type II Diabetes nutraceutical, HPB-84, and it has developed a base of enthusiastic and satisfied users.

However, its ability to penetrate its key market segment targets, continues to be slower than the Company originally expected," explained Herbert Becker. "Since joining HEE as the Interim-CEO and Chairman of the Board a few weeks ago, we have conducted a thorough review of the Company's business and its impact, in order to determine what is needed to accelerate marketplace penetration."

"A key conclusion from this analysis, is that meeting the needs of the varied marketplace segments that HEE Corp has been targeting (i.e. doctors, clinics, and medical groups) with its 'one-size-fits-all' system, has been and continues to be, very challenging," added Mr. Becker. "While progress is being made, efforts must continue to ensure that the Company's unique nutraceutical consistently and accurately conforms to the differing needs of these high-potential markets before accelerated marketplace progress can be expected."

Radley Brooks, HEE President continued, "To help address this situation, HEE Corp. is taking the following steps."

1. We realize that we must make our product available to the people that need it. We are in the process of creating an e-commerce site that will include a consultation link along with a tablet-dosing program. This will allow each person to learn how much to buy for a 30, 60 or 90 day session, bringing our product right to their door step;

2. Reducing HEE's monthly corporate 'burn rate' and re-examining the appropriateness of a 'direct sales' approach compared to broader licensing or distribution agreements. In the near term, the principal sales focus will be on the needs and opportunities for growth within the Company's existing base;

3. Exploring the potential for joint ventures or broader based alliances with larger, more financially and technically 'deep' organizations as a means of more efficiently and rapidly capitalizing on the sizable opportunity available for HEE's nutraceutical within the respective market segments such groups can target;

4. Email marketing, national and international media attention;

5. Concurrent with these activities, evaluating financial alternatives to provide the Company with an appropriate capital base to execute its plan.

"We continue to be extremely optimistic about HEE's long-term potential and expect that the new operational steps outlined here will improve the Company's ability to more fully and rapidly penetrate its target markets," Mr. Becker concluded.

The Company is projecting potential gross sales of $5,000,000 to 7,000,000 in 2005 from all sources. Average gross margins in the range of 37% to 42% are expected to be achieved. Such margins may be substantially increased considering the Company's ongoing licensing discussions with potential regional distributors. The Company's projections do not include international sales generated from the distribution channels to be established as part of any licensing deals.

About HEE
HEE's headquarters is based in Hutchinson, Kansas.
    
Forward-Looking Statements:
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as: entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, changes in licensing programs, product price discounts, delays in product development and related product release schedules, sales channel disruption such as the bankruptcy of a major distributor, and reliance on sole source suppliers for key components that could result in delays in product delivery. Also, any of which may cause revenues and income to fall short of anticipated levels; technological shifts; the ability to have access to distribution channels that are controlled by third parties; the risk of unanticipated increased costs; the continued ability to protect the company's intellectual property rights; adverse effects on our business that might result if an unauthorized disclosure of a significant portion of our formula were to occur; the ability to obtain on acceptable terms the right to incorporate in the company's products and services; changes in product and service mix; maturing product life cycles; product sale terms and conditions; the risk that actual or perceived vulnerabilities in our products could adversely affect our revenues; implementation of operating cost structures that align with revenue growth; unavailability of insurance; uninsured losses; adverse results in litigation; unanticipated tax liabilities; the effects of terrorist activity and armed conflict such as disruptions in general economic activity and changes in our operations and security arrangements; the effects of a major earthquake, cyber-attack or other catastrophic event that results in the destruction or disruption of any of our critical business or information technology systems; the level of corporate information technology spending and changes in general economic conditions that affect demand; currency fluctuations; and financial market volatility or other changes affecting the value of our investments that may result in a reduction in carrying value and recognition of losses including impairment charges.

Note to editors: If you are interested in viewing additional information on HEE Corp, please visit the HEE Corp web page at http://www.HEE-Corp.com on HEE Corps information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. Shareholder and financial information is available at http://www.HEE-Corp.com.

# # #