MusclePharm Completes Retirement of All Convertible Notes From Derivative Financing Companies

DENVER, March 28, 2012 /PRNewswire/ -- MusclePharm Corporation (OTCBB: MSLP), a nutritional supplement company focusing on all categories of an active lifestyle, today announced it has completed the retirement of all of its outstanding convertible notes held by various financing companies. 

In January 2012, the company instituted a convertible debt retirement program under which it would retire all of its outstanding convertible notes.  Under the program, the company has used cash flow from operations, as well as mezzanine financing, to retire the notes.  MusclePharm has retired $5.5 million of derivative financing instruments with $3.0 million cash and 55 million shares of common stock. 

"Our goal is to become a fully sustainable free cash flow business by the end of the 2012 first quarter," said Brad Pyatt, chief executive officer.  "Retiring the convertible debt has helped reduce uncertainty in our equity structure and represents a major step in our plan to re-capitalize MusclePharm and strengthen its balance sheet.  We are very excited to have completed this program and to continue our focus on growing our business, and adding value for our shareholders."

"We are pleased to have reduced our derivative liability exposure on the company's balance sheet," said John Bluher, chief operating officer.  "A significant amount of the company's operating loss and dilution to shareholders was attributable to these convertible note instruments.  While such debt served a purpose during a time when we were investing in marketing and branding with the objective of creating revenues, we are happy to be moving ahead without these toxic dilutive instruments."

ABOUT MUSCLEPHARM CORPORATION

MusclePharm is a healthy life-style company that develops and manufactures a full line of NSF International and Informed Choice approved nutritional supplements that are free of banned substances. Based on years of research at the MusclePharm Sports Science Center, the products are created through an advanced six-stage research protocol involving the expertise of top nutritional scientists and field tested by more than one hundred elite professional athletes from various professional sports leagues including the National Football League, Mixed Martial Arts and Major League Baseball. The company's products address all categories of an active lifestyle, including muscle building, weight loss and maintaining general fitness through a daily nutritional supplement regimen. MusclePharm is sold in more than 120 countries and available in over 10,000 U.S. retail outlets, including GNC and Vitamin Shoppe and Vitamin World. MusclePharm products also are sold through more than 100 online stores, including bodybuilding.com, Amazon.com and Vitacost.com. For more information, please visit www.musclepharm.com.

FORWARD LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements, including, but not limited to, becoming a free cash flow business by the end of the 2012 first quarter, relate to future events or to future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Undue reliance should not be placed on forward-looking statements, since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. MusclePharm assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

For more information, contact:
PondelWilkinson Inc.
Roger Pondel/Robert Jaffe
310-278-5980

SOURCE MusclePharm Corporation

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