LAS VEGAS, July 5, 1996 - Hawaiian Legend, Inc. (OTC
BULLETIN BOARD: HWAI) reported today that it will revise downward
its sales and earnings for year end December 31, 1995. The revision
is due to a number of accounting irregularities found by management
in its review of year end inventories and costs attributed to those
inventories. These downward adjustments of sales and reallocation
of costs will result in a substantial loss for 1995, instead of the
profits indicated by the company's preliminary report on earnings
and sales.
Neil Roth, President and COO of Hawaiian Legend, Inc. has taken
a leave of absence and in his absence Kelly Doyle, the Chairman and
CEO, will assume the duties of both President and Chairman while
continuing in the role of CEO.
The anticipated restatements resulting from the Company's
preliminary review have resulted in the Company being in nonmonetary
default of its long term bank financing and its accounts receivable
and inventory financing lines. After informing the bank of these
matters, the Company received notice from the bank that the loans
are in nonmonetary default. At this time, the Company is in direct
contact with the bank regarding restructuring of the credit
facilities. The Company has engaged a new accounting firm to
complete a June 30, 1996 financial statement that will include a
full assessment for the need to restate the December 1995 year end
financial reports and the 1995 year end audit.
Kelly Doyle stated that, "The Company's sales for the first six
months of the year were $2 million versus $1.4 million for the first
six months of last year. We are looking forward to a strong second
half sales growth as the third and fourth quarter have traditionally
represented over 60% of our sales for the year. In addition, we
anticipate a reduction in our processing costs and a continuing
strong demand for both bulk processed macadamia nuts and our retail
candy and snack lines."
The Company distributes the Hawaiian Legend brand of Macadamia
Nut based snack and candy products on a national basis through the
mass market retail trade. The Company is also a major supplier of
macadamia nuts on a bulk wholesale basis to cookie, ice cream and
other food processors. The Company's customers include Woolworth,
Winn Dixie, BJ's Wholesale, Great Atlantic & Pacific Tea Co., Stop &
Shop Companies, Grand Union Supermarkets, Hannaford Brothers, P & C
Food Markets, Acme Markets and other mass merchandising retailing
and grocery store chains.
CONTACT: Randy Naft, Investor Relations of Jupiter Communications,
800-576-3431