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Atrium Innovations Supports Its Subsidiary, Garden of Life, as it Challenges a Proceeding taken by the U.S. Federal Trade Commission

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Company has Proactively Dealt with Situation and Stands Behind its Products

QUEBEC CITY, Oct. 3, 2011 /PRNewswire/ - Atrium Innovations Inc. (TSX: ATB), a globally-recognized leader in the development, manufacturing, and commercialization of innovative, science-based dietary supplements endorsed by health professionals, announced today that its subsidiary, Garden of Life, LLC (GOL), intends to defend itself against a proceeding taken by the U.S. Federal Trade Commission (FTC).

In a motion unsealed today in the United States federal courts, the FTC alleges that GOL and Jordan S. Rubin, the founder of the business, violated a Consent Decree, or a settlement between the parties, entered into in March 2006. Atrium acquired Garden of Life's business in September 2009.

In its filing, the FTC contends that GOL has made certain misleading marketing claims on four of its products launched during the first half of 2009. GOL maintains that in its normal course of business, it has addressed the issues set forward by the FTC in respect of the 2006 Consent Decree.

The FTC informed GOL and Jordan Rubin of the allegations that are the subject of the current proceedings in August, 2011 and the parties have attempted to negotiate a settlement since then.

Based on the total revenues generated by the four products in question since their respective launch dates, the FTC has demanded an amount of up to $20.9 million from GOL and Jordan Rubin, and certain ancillary measures. As part of its acquisition of Garden of Life, Atrium was indemnified for damages sustained by Atrium as a result, among others, of a breach of the original Consent Decree, including potential monetary compensation payable to the FTC and certain related costs of this process.

"We are extremely disappointed by the allegations made by the FTC concerning four products out of a family of 150, particularly in view of GOL's proactive measures to address the issues in question. We fully support Garden of Life and continue to believe that they adhere to the highest standards in terms of product development and product marketing claims in our industry. To demonstrate that we unconditionally stand behind our products, GOL has proposed to the FTC to proceed with a full consumer redress program for customers who believe they were misled but the FTC rejected this offer," said Pierre Fitzgibbon, President and CEO of Atrium.

About Atrium

Atrium Innovations Inc. is a globally-recognized leader in the development, manufacturing, and commercialization of innovative, science-based natural health products endorsed by health professionals. The Company distributes its extensive portfolio of products mainly in the healthcare practitioner and health food and specialized store channels, with a primary focus in North America and Europe. Atrium is at the forefront of science, innovation and education in the dietary supplement industry.  The Company has over 1,100 employees and operates eight manufacturing facilities. Additional information is available at www.atrium-innovations.com.

Cautionary Note and Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Forward-looking statements are not guarantees of performance. These forward-looking statements, including financial outlooks, may involve, but are not limited to, comments with respect to the Company's business or financial objectives, its strategies or future actions, its targets, expectations for financial condition or outlook for operations and future contingent payments. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances.  The Company considers these assumptions to be reasonable based on information currently available to it, but cautions the reader that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company and its business.

For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made in this press release, see the Company's quarterly and annual Management Discussion and Analysis for the fiscal year ended December 31, 2010 filed with the Canadian securities commissions. The forward-looking information set forth herein reflects the Company's expectations as at the date of this press release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

SOURCE ATRIUM INNOVATIONS INC.



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