Yet Another Athlete to Endorse Companys Revolutionary Product!

HealthSport Inc. (OTCBB: HSPO) should be watched closely by investors. Recently the company, a developer, manufacturer and marketer of unique and proprietary branded and private label edible film strip nutritional supplements and over-the-counter drugs, issued a press release announcing that Buffalo Sabres Goaltender, Ryan Miller, has inked a deal with the company to endorse Enlyten SportStrips, adding one more athlete to the growing list of endorsers.

This should be great exposure for the company. The All-Star Goalie will appear in his first endorsement campaign promoting the electrolyte replenishment product he used throughout the 2007 playoffs. Under the terms of his contract with HealthSport, Inc., the developer of electrolyte edible thin strips, Miller will be featured in marketing campaigns to promote the importance of electrolyte replenishment and hydration.

The third year goaltender from Michigan State uses the Enlyten SportStrips before and after practices and used them throughout the Sabres playoff run. "Enlyten SportStrips have really helped me to stay on top of my game," said Miller. "I used them through the playoffs and I felt energized the entire game and focused. The strips allowed me to get the electrolytes I needed in a quick and efficient manner without over-hydrating. I sweat so much while wearing all of the goalie equipment and I need something that is not going to fill me up. The Enlyten SportStrips are convenient, easy to use, and I would recommend them to anyone that exercises."

Miller joins other Enlyten endorsers including Buffalo Bills Starts JP Losman and Jim Kelly, NFL Defensive Player of the Year and Miami Dolphins Defensive End Jason Taylor, Olympic Soccer Medalist Brandi Chastain, Bills Head Trainer Bud Carpenter, San Francisco Giants manager Bruce Bochy, and marathon runner Peter Gilmore.

Continue to watch this company. Enlyten SportStrips replace the electrolytes lost while exercising through a patented delivery system. This mode of absorption is very different from all electrolyte delivery predecessors. Gastric absorption is bypassed speeding higher levels of electrolytes directly into the bloodstream. Not only does it dramatically improve hydration on a cellular level, but it also helps athletes to avoid the problems caused by excessive fluid consumption often associated with sports drinks.

RECENT NEWS!

06/12/07 Ryan Miller Begins a New Season With the Enlyten Team

06/07/07 HealthSport Engages Medco to Distribute Enlyten Products

06/05/07 HealthSport Inc. Rated 'Speculative Buy,' Price of $4.00 by Beacon Equity Research

05/30/07 HealthSport Announces Dr. C.T. Moorman as Sports Advisory Council Chairman

05/23/07 AC Milan Refuels With Enlyten SportStrips

05/22/07 Shazamstocks Announces Profile Launch of HealthSport, Inc.

05/21/07 JP Losman Scores a Touchdown With Enlyten SportStrips

05/18/07 HealthSport Closes $6 M Fixed Price Private Placement

05/10/07 HEALTHSPORT, INC. Files SEC form 8-K, Completion of Acquisition or Disposition of Assets, Financial Statements and Ex

05/07/07 HealthSport Completes $40M Acquisition of InnoZen

The peer group companies were recently trading at Price/Sales multiples ranging from a low of 0.6 times revenues
for Cott Corp to a high of 4.1 times revenues for Hansen Natural Corp. The peer group average Price/Sales multiple is approximately 2.5 times revenues. At a recent $2.20 share price and with approximately 24 shares outstanding, HealthSport has a current market capitalization of approximately $53 . At that valuation level, the Companys shares trade at about 3.6 times projected 2008 revenues but only 1.3 times projected 2009 revenues. Given the rapid growth expected for HealthSport over the next three to five years, with sales expected to double between 2008 and 2009, we think a valuation above peer group levels is warranted. As a result, we are initiating coverage of HealthSport with a Speculative Buy rating and a $4.00 price target, based on a Price/Sales multiple of 2.5 times projected 2009 revenues. We anticipate significant share price gains for HealthSport if the Company is successful in negotiating a distribution agreement for its products with a major mass marketer or drug store chain. Read Full Report

Demand for easy-to-swallow formulations fuels market growth
The Companys R&D department has already designed and developed several additional products using its proprietary edible film strip technology, including products to treat allergy, diarrhea, pain and . Edible film strips as a delivery system are more portable than drinks and tablets, easier to administer and more cost effective than traditional nutritional solutions. Market acceptance of these products is increasing and creating favorable growth opportunities for HealthSport.

Large Market For Health Based Products
The market for healthy and nutritional food is growing globally. This market consists of beverages, dairy-based products, bakery goods and snacks. Exhibit 1 provides a global overview by category.

The growth prospects for the edible strips market, which is in a nascent stage of development, are similar to those of the health drink market since they target the same groups of consumers. IRI reports that energy drinks are the fastest growing segment of the healthy beverage industry, with sales increasing 56% in five years. Rapid sales growth for energy drinks suggests a strong potential market for edible strips as well.

Strong portfolio of innovative products
HealthSport recently acquired InnoZen Inc. for $40 and plans to develop new edible film products and delivery systems for nutritional supplements and over-the-counter drugs. The Company also recently acquired Cooley Nutraceuticals, Inc. which owns a formula that provides relief from hangover symptoms. These acquisitions
extend the Companys capabilities, product offerings and revenue opportunities.

Effective marketing strategy
  Duke Universitys K-Lab
  Buffalo Bills
  AC Milan Youth Sports Camps
  Jim Kelly Hall of Fame Quarterback
  Brandi Chastain - U.S. womens World Cup and Olympic soccer champion
  Jason Taylor - Miami Dolphins Defensive End and NFL Defensive Player of the Year
  JP Losman Buffalo Bills Quarterback
  Ryan Miller Buffalo Sabres Goalie and NHL All Star
  Peter Gilmore - #1 Ranked U.S. Marathoner
  Bruce Bochy Manager of the San Francisco Giants

Acquisition strategy enhances growth
The Company is aggressively promoting its existing products while continuing to develop new products. Enlyten,
Inc., HealthSports marketing and distribution division, has a multi-year deal with the Buffalo Bills NFL football franchise to integrate Enlyten SportStrips into their players training program. Enlyten has recently partnered with a marketing and distribution company called Medco to distribute its SportStrips to over 9,000 sports teams and related outlets, including high schools, colleges, universities and professional sports teams. The Company has already received significant interest from numerous athletes, coaches, sports teams, trainers and sports medicine physicians, including the following list of endorsers and sponsors:

Experienced Management
HealthSport is led by an experienced management team. Daniel Kelly, the Companys President, has more than 20 years experience in marketing, promotions, and celebrity endorsements and, in former roles, has negotiated marketing deals with Fortune 500 companies such as Motorola, Coors, KFC, Nike and Disney, among others. In addition, Rob Davidson, HealthSports Chairman of the Board, co-invented and launched Zicam Cold Remedy, which was a hugely successful product launch. Less than $6 was spent in developing, launching and marketing the first Zicam product in the first two years before it was sold. Zicam was sold in 2001, two years after its launch, and was valued at $42 . Eight years after its launch, the Zicam brand is worth over $200 , with net sales in 2006 exceeding $96 .

Edible Film Strip Market Has Significant Growth Potential
The growth prospects for the edible strips market, which is in a nascent stage of development, are similar to those of the health drink market since they target the same groups of consumers. IRI reports that energy drinks are the fastest growing segment of the healthy beverage industry, with sales increasing 56% in five years. Rapid sales growth for energy drinks suggests a strong potential market for edible strips as well.

Unique features of edible strips
Easy to swallow
Rapidly absorbed by the body
More portable than drinks and tablets
More cost-effective than traditional solutions
Less calories than sports/energy drinks (Enlytens products contain no sugar and are calorie free) Because of these benefits, edible film strips offer an alternative to lozenges, gums, pills and fluids. Consumer acceptance of edible filmstrips has steadily increased since the 2001 introduction of Pfizers Listerine PocketPaks. This novel delivery system holds special appeal for several consumer groups, including:

Large consumer market for film strips
People having difficulty swallowing tablets
Sick children and the elderly
Consumers interested in exploring the latest product trends.