It is estimated that the global retail market for low calorie tabletop sweeteners is approximately $1.3 billion. Low calorie sweeteners are found as ingredients in thousands of food and beverage products, and are also sold as a tabletop sweetener to individual consumers or to restaurants in single-serving packets for patrons to add to food and beverages.

From 1990 to 2000, the demand for low calorie tabletop sweetener products grew two to three times faster than the demand for caloric sweeteners by volume in the tabletop sweetener category. According to LMC International Ltd, or LMC, global demand for low calorie tabletop sweeteners grew at a CAGR of 3% between 1990 and 2000 to 952,000 tons of sugar equivalent, but it only represented 2% of total tabletop sweetener demand. The global retail volume of low calorie tabletop sweeteners increased at a CAGR of approximately 8% during the years 2000 - 2003. During the same period, global low calorie tabletop sweetener retail sales increased at a CAGR of 9%.

It is believed the strong growth characteristics of worldwide low calorie tabletop sweetener usage are a result of three main factors: an increased health consciousness among consumers, favorable demographics for the industry, and an increase in the incidence of diabetes and glucose intolerance.

It is estimated the North American low calorie tabletop sweetener retail market to be $596.8 million, the largest in the world. In 2003, it is estimated that the category grew by 27%, and is continuing to experience growth.

The Company supplies its products to its consumers through multiple distribution channels that include grocery and pharmacy retailers, as well as mass merchandisers, club/warehouse retailers and food service. The Company’s distribution channels are well established and give it the flexibility to service its consumers and optimize its profitability. The Company uses distributors and brokers to distribute its products throughout the world and sell its products directly to selected customers in its largest markets.

The Company primarily markets two brands in North America: Equal® and NutraSweet®. Equal® was launched in the United States in 1982, providing a significant taste benefit because it tastes like sugar and has no unpleasant aftertaste, unlike then-current products in a saccharin-driven category. It has been a leading low calorie tabletop sweetener in the region for several years despite its premium price.

Canderel® became the world's first aspartame-based product when it was introduced to the French market in 1979 and is now the only significant pan-European brand on the market. Canderel® accounted for the majority of EAME's 2003 net sales. Canderel® is marketed in a variety of different product forms, of which the tablet form is the most popular. While packaging units vary by country, the product is typically sold in packages containing 100 or 300 counts or refills of 500 tablets. Canderel® is also produced as a powder.

The Company manages 14 brands in Latin America. Canderel® is its largest brand in the region and is sold exclusively in Mexico where it has achieved 86% brand awareness. Equal® is the Company’s second largest brand in the region. NutraSweet® is sold primarily in Argentina and Mexico and is the Company’s third largest brand in Latin America. In addition to the introduction of its core brands in Latin America, the Company has acquired established regional brands to fill out its portfolio. Sucaryl™ is sold as a saccharin and saccharin/cyclamate blend in liquid and tablet form and distributed in virtually all Latin American countries, with the majority of its sales in Argentina. In 2003, the Company acquired the NoSucar™ brand in Central America, which is the largest brand in Costa Rica, and it launched SAME® in Puerto Rico.

Cost of sales was $65.8 million for the six months ended June 30, 2004, a decrease of $1.5 million, or 2%, compared to cost of sales of $67.2 million for the six months ended June 30, 2003.

Gross profit was $102.0 million for the six months ended June 30, 2004, a decrease of $4.0 million, or 4%, compared to gross profit of $106.0 million for the six months ended June 30, 2003.

Operating expenses were $85.2 million for the six months ended June 30, 2004, an increase of $5.2 million, or 6%, compared to operating expenses of $80.1 million for the six months ended June 30, 2003.

Net loss was $5.2 million for the six months ended June 30, 2004, a decrease of $12.0 million, or 177%, compared to net income of $6.8 million for the six months ended June 30, 2003.