Herborium Group Inc, Shareholder Update Letter

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/UCW/ FORT LEE, NJ – Herborium® Group, Inc. (OTCPink: HBRM: (%) ), www.Herborium.com, a Botanical Therapeutics® Company and the provider of unique all botanical medicinal products (Botanical Therapeutics®) targeting dermatological issues such as acne and rosacea, and other health and wellness concerns, is happy to provide this Shareholders Update Letter from Dr. Agnes P. Olszewski the CEO.

To Our Valued Shareholders,

Happy New Year!

By now the last pie has been eaten and the last gift unpacked so it’s time to provide an update on the recent milestones we achieved in 2016 and discuss our opportunities and our vision for 2017 and the Company’s future.

As the first step we would like to highlight several recent business activities since the last year was full of milestones for Herborium Group.

We achieved substantial progress implementing strategies to increase sales, strengthen our brand recognition and reactivate efforts to create and capture shareholders value. Every quarter in 2017 our sales grew by double digits. Pivotal sales events including Black Friday and Cyber Monday showed sales of our leading product, AcnEase®, increased 105% over the same sales events in 2015.

Revenues & Sales Growth

We are pursuing number of growth initiatives while capitalizing on diverse opportunities in the United States and overseas. Thanks to our global strategy we have been able to provide viable solutions for all types of acne and other growing skin problems on almost EVERY continent. From Europe to the Caribbean’s, from the skyscrapers of New York to bustling towns of Asia, from historical South America to the colorful cities of Africa our unique acne treatment AcnEase® has helped thousands of women and men of every age and skin tone achieve healthy skin, and a healthy self–perception. This global outreach resulted in 18% sales growth in comparison to the previous year. We have accomplished this without sacrificing our healthy margin.

Over 75 million people have acne in the USA alone;120 million I Europe. Seventy five percent of all individuals will suffer from acne at some point in their lives. The acne treatment and prevention market is steadily growing while at the same time no new products are emerging and the number of previously used treatments is dwindling or restricted because of recognized health concerns (Accutane, antibiotics, oral contraceptives as examples). The average age of the acne sufferer has increased during the past decade from 21 years old to 26 years old, making adult acne an burgeoning epidemic.

AcnEase® is a systemic, proprietary all herbal product that contains no chemicals, no gluten, animal by products or phytoestrogens and has demonstrated up to 96% efficacy in eliminating and preventing acne breakouts with no adverse side effects. From a regulatory perspective, AcnEase is considered a nutraceutical allowing AcnEase to take advantage of the rapid global growth of the nutraceutical market. For instance, the global nutraceutical market is valued at around USD 250 billion in 2016 and is expected to reach around USD 385 billion by 2021, at a CAGR of 7.5% from 2016 to 2021. The US nutraceutical market has dominated this growth accounting for ~ 36% of this growth.

We made a big push in international markets in 2016 especially in France and UK where our sales doubled. We developed new, promising distribution partnerships in these markets and revitalized old once. We expect this strengthen distribution infrastructure to support further sales growth in 2017.

New Mobile Websites and Social Media Presence

6 months ago we deployed new, state of the art mobile websites for English, French and Spanish markets and expect these platforms to support further sales growth. Deployment of the Spanish language website and formulation of the Spanish language market strategy has been especially important as Hispanic beauty and wellness market is the FASTEST growing sector in the USA and globally with 97% of Hispanic households are buying products in this category with 8% growth in spending annually. By the end of 2016 we have established relationships with two powerful social medial influencers in the Spanish market and we expect this market to become a strong driver for our 2017 revenues.

In 2016 we made a real splash in media both in the USA and abroad. We were chosen by Cosmopolitan Magazine (one of the most prominent women’s publication in the world) as a top beauty editor pick for acne treatment; we won the Top Acne and Skincare Blog by Healthline for the second year in a row; AcnEase has been featured on ABC and CBS TV shows in such important geodemographically areas as the San Francisco Bay Area and Seattle, AcnEase has also been picked up by a number of prominent influencers with hundreds of thousands of followers in the US and overseas.

New Opportunities

Last but not least, it is important to note that in 2016 the Company developed a strategy for product line extension in skincare sector and for commercializing its unique Botanical Therapeutics® in the highly demanded sectors of women and men’s sexual health and energy replenishment. In 2017 Herborium will focus on adding a complementary skincare product to AcnEase line and on pursuing licensing and direct commercial opportunities for the sexual health and energy formulations that combined represent over $50 billion market potential.

Capital Structure

All 2016 milestones and progress have been achieved without increasing the number of outstanding shares and without any changes in the Company’s capital structure.

In summary, 2016 marked a significant progress and established a solid foundation for the future growth of the Company and increase in shareholders value.

We are looking forward with confidence to a great 2017 and we are committed to share all the important developments with our shareholders. With a growing global demand for natural wellness and beauty products, and natural medicinal products Herborium’s unique Botanical Therapeutics® provide both an opportunity for the Company and a valuable solution for global challenges and evolving consumer and healthcare sector needs. With the growing demand for its signature acne product, new products ready for commercialization and a near term pipeline supported by o its unique expertise, Herborium Group is in an ideal position to take advantage of emerging nutraceutical market trends and to meet more demanding consumer, manufacturing and regulatory standards for the industry.

Sincerely,

Dr. Agnes P. Olszewski CEO & Chairwoman

About Herborium Group, Inc.
Herborium Group, Inc. is a botanical therapeutics® company that develops, licenses and markets proprietary, botanical based medicinal products to consumers and healthcare professionals. The Company’s business model focuses on emerging market opportunities spearheaded by the growth of a new market sector located between high-cost, high-risk, ethical pharmaceuticals and commoditized classic nutraceuticals (supplements). The Company uses clinical validation and a proactive regulatory strategy based on the FDA Guidance for Industry: Botanical Drug Products (FDA Guidance 2004) to establish and maintain a differential advantage. Herborium has secured a pipeline of botanical ingredients based products in the areas of dermatological needs, wellness and energy, prostate health, women’s health and selected sexual disorders Herborium Group sells its products in the United States, the United Kingdom, and continental Europe through a network of distributors, specialty retailers, and e-commerce.

For more information, please visit www.herborium.com, www.acnease.com, www.acnease.fr and www.acneassp.com

Safe Harbor Statement: This release contains forward-looking statements with respect to the results of operations and business of Herborium Group, Inc., which involves risks and uncertainties. The Company’s actual future results could materially differ from those discussed. The Company intends that such statements about the Company’s future expectations, including future revenues and earnings, and all other forward looking statements be subject to the “Safe Harbors” provision of the Private Securities Litigation Reform Act of 1995.

Contact Information:
Herborium Group, Inc.
Email: InvestorsRelations@Herborium.com or DrAgnes@Herborium.com

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