AROMA NATURALS, INC. DEFEATS KEY MOTIONS FILED BY OUR SECRET, LTD.

AROMA NATURALS, INC. DEFEATS KEY MOTIONS FILED BY OUR SECRET, LTD.
CASE ALLEGING FALSE ADVERTISING AND FRAUDULENT BUSINESS PRACTICES IN LABELING OF NATURAL VS. SYNTHETIC AROMATHERAPY CANDLES WILL GO TO TRIAL


Irvine, CA (August 17, 2001) - United States District Court Judge Gary Taylor denied on August 9, 2001 the motion for summary judgment by Our Secret, Ltd. and its owner and CEO, Matt Walsh. The Judge determined that there is evidence from which a jury may hold Walsh personal liability for knowingly participating in and authorizing false advertising. Walsh and Our Secret, Ltd. were named as co-defendants in a $15 million lawsuit filed June 14, 2000 by Aroma Naturals, Inc. in Santa Ana Federal Court [SA CV 00-591 GLT (Eex)] alleging false advertising and fraudulent business practices in the labeling of natural versus synthetic fragrances to make aromatherapy candles. The case is set for trial in July 2002. Aroma Naturals, Inc. is based in Irvine, CA. and is represented by William E. Levin with the Laguna Beach, CA. firm of Levin & Hawes. Defendants are based in Albuquerque, NM. and are represented by Paul Adams with the firm of Peacock, Adams & Myers.
>
Plaintiff alleged in its complaint that Defendants have misrepresented their aromatherapy candles as being 100% pure essential oils when, in fact, they are made of synthetic fragrances. The Court noted in its August 9th ruling that: 'Defendant Our Secret concedes its use of the phrase 'pure essential oils' in its advertising and product labeling is false and misleading.' Page 10, line 3. Since this case was filed, Defendant has removed language and similar claims which touted that 'Our Secret's Aromatherapy contains 100% pure essential oils' on its labels,promotional materials and website.

'This is a compelling case,' said William E. Levin, 'because it is using our legal system to bring a uniform standard to the labeling practices of not only the candle industry, but all businesses which purport to manufacture and sell essential oil based products. Consumers should be able to read a label and know that the 'natural' products that they use really are natural, not synthetic. Any lesser standard is not fair to the purchaser or to companies which label their products with integrity.'
>
In a related victory for Aroma Naturals, Inc. protecting its own freedom of speech and the media's freedom of the press, Defendant lost on its trade libel counterclaim based on Plaintiff's June 15, 2000 press release announcing the filing of this lawsuit and subsequent media coverage in such publications as ADWEEK, the Albuquerque Journal and the Los Angeles Times. The Court relied upon California Civil Code §47(c) which protects communications made to interested parties without malice and §47(d) which protects a 'fair and true report in, or a communication to, a public journal.' The Court held that Plaintiff's press release was privileged because it fairly and truthfully reported the allegations of its lawsuit against defendants.
>
A copy of the Court's ruling can be found at www.levinhawes.com or will be faxed upon request.
> # # #
> Press Contact:
> Kathy Pinckert, Communication Art Forms
> Dial 310.836.8355 Email [email protected]