Tru Dynamics International Inc. Announces Sale of Tru Dynamics Inc. and Restructuring of Parent Company

Business Wire,  August 1, 2001  

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Business Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 1, 2001

Wednesday, the board of directors of Tru Dynamics International Inc. (OTC BB: TRDI) announced a major restructuring of the company to allow it to focus almost entirely on its wellness business.

Specifically, the company has reached a definitive agreement to sell Tru Dynamics Inc., its travel and conference subsidiary to Jim and Mary Piccolo in exchange for cash, all of their shares of common stock in TDII, as well as the assumption of all liabilities related to this travel subsidiary. The transaction was approved by a majority of the TDII shareholders through a majority consent resolution.

The shares of TDII stock tendered by the Piccolos will become non-voting treasury stock of the company. Jim and Mary Piccolo have tendered their resignations with TDII and will focus on managing the new privately held company. The TDII board of directors has appointed Wayne Holbrook as president and chief executive officer to run its Wellness subsidiaries.

"The sale of the travel and conference subsidiary marks another step forward in the transformation that we are undertaking to realize the long-term strategic vision of an international nutritional and wellness company.

"Exiting the travel and conference business will provide us with the opportunity to focus management and deploy capital in promising new areas of the world which should contribute to revenue growth and increased returns for our shareholders," stated Board Director Tom Vergith.

The effect of this sale transaction on Tru Dynamics International Inc. will be to eliminate approximately $3.1 million in liabilities and approximately $300,000 in assets. The TDII balance sheet after the transaction will be considerably strengthened.

Until the company achieves a sustained level of profitability, it must be considered a start-up entity. Management considers the growth of revenues and reduction of losses to be positive and expects to achieve profitability in its 2001 fiscal year.

However, the company remains dependent on continuing cash flows to meet certain operating expenses and no assurance of financial success or the economic survival of the enterprise can be provided during this start-up period.

Presently, TDII is in negotiations to sell its remaining non-wellness subsidiary, Columbus Travel Co., to its original owners. The results of these negotiations will be made public when and if they are concluded.

Tru Dynamics International Inc., through its wholly owned subsidiaries, Tru Wellness Korea and Tru Wellness USA, is an international nutritional and wellness product marketing company utilizing global electronic commerce.

Its products and materials are designed to educate and support individuals in their development of income sources from home-based businesses within the wellness industry.

Tru Dynamics International Inc. has headquarters at 4150 N. Drinkwater Blvd., Fifth Floor, Scottsdale, AZ 85251. The Website is www.TruWellnessUSA.com. Investor Relations contact is Clare Holbrook at Equity@TruDynamics.com or call 480/949-9500.

The foregoing contains forward-looking statements. These forward-looking statements are based largely on the company's expectations and subject to a number of risks and uncertainties, all of which are beyond the company's control.

Actual results could differ materially from these forward-looking statements as a result of a variety of factors, including prevailing economic conditions as they effect the travel services industry in general. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this press release will in fact transpire or prove to be accurate.

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