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Embark Holdings, Inc. CEO Issues Letter To Shareholders

Stocks in this article: GNC VSI

I have recently hired a few companies to help us with compliance and communication strategies for EMBK. We expect to have our listing upgraded in the next few months from "limited status" to "current status" and are currently gathering all documentation and paid all fees required   by the OTC Markets to complete the process. There are several benefits to being listed on the OTC Markets as a "current" company, but the most important is the ability to seek investment in the company, which will allow us to grow and become a fully reporting company in the near future.

With EMBK focused on the Sports Nutrition Market we think it's important for you to understand the history of the industry and Muscle Warfare, Inc.;

Sports Nutrition: Industry Outlook

The Sports Nutrition Market is among the fastest and was one of the most resilient markets since the 2007 market downturn, experiencing impressive growth during this entire period. This strong and rapid market growth is forecasted by experts to continue for years to come due to continued and growing use and promotion of these products by elite professional athletes and bodybuilders. In addition, the amateur athlete market continues to expand and grow which is increasing the use of these products; this segment is expected to exceed $6 billion by 2018 according to the most recent Consumer Trend Reports.

Currently, GNC Holdings, Inc (NYSE: GNC) is the world's largest retailer of sports nutrition products in the US, they have indicated that the sports nutrition segment does approximately $3.2 billion dollars in business annually, and they expect it to reach $4.3 billion by 2015 (GNC analysts expect an approximate 8% growth rate in this niche market in 2013). There is no expected slowdown to the explosive growth in the sports nutrition market, as stated above in the Consumer Trends report, which is also backed by a food and health survey from the International Food Information Council. Accordingly, it is because more people are adopting healthier lifestyles which utilize these products and the market for new products is steadily increasing as these products are being created to be used in a convenient manner by consumers.

Muscle Warfare Current Sales & Distribution

Muscle Warfare has reached approximately $2 million in sales in 2011. However, in 2012 we performed a calculated pull back of sales distribution to successfully navigate an industry wide FDA notice on the ingredient DMAA, which restricted sales industry wide. We expected to hit 3-4 Million in sales in 2012 with strong profits. Instead, we decided to utilize this time to carefully rebrand our products to be banned substance free and create formulations that were even more effective. During this process we had intentionally slowed sales to rebrand the company, upgrade our look and presentation and take our overall quality standards to the highest level.

We are pleased with this strategy as it has worked; we are now distributing product in all 550+ Vitamin Shoppe (NYSE: VSI) stores Nationwide. Also, we have a very strong partnership with the largest independent sports nutrition distributor in the U.S.; along with many large scale international clients, which we believe will help continue our growth trajectory.

Our next major objective for 2013 is to achieve success through negotiating other distribution contracts and store launches. We are in the process of solidifying many substantial opportunities that can come to fruition during the second quarter and beyond.

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