STOCK iQ  NEWS ALERT
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MERIDIAN USA HOLDINGS

OTC BB:SYMBOL:MUSD

LAST SALE PRICE:  $1.50
52 WEEK HIGH:     $3.50
52 WEEK LOW:      $0.51

SHARES OUTSTANDING:       6.38 MILLION
PUBLIC FLOAT:             3.60 MILLION
MARKET CAPITALIZATION:  $10.20 MILLION

PER SHARE DATA FISCAL QUARTER ENDED MARCH 31, 2001
CASH IN BANK AND MARKETABLE SECURITIES: $0.66
DISTRIBUTED NET LOSS: (0.32)

* FORMER PRESIDENT OF YOO-HOO HIRED

* MERIDIAN SPORT DRINK TAKES AIM AT $2.3 BILLION MARKET

* LICENSING OF SWEET'N LOW BRAND NAME FOR SYRUP LINE

* MARKETING PLAN SIMILAR TO SUCCESSFUL TEA DRINK
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MUSD (Meridian USA Holdings, Inc.)  through its subsidiaries markets sugar free syrups under the brand name SWEET 'N LOW which was licensed from Cumberland Packing Corp and a sugar free sport drink called  ChampionLyte.

In 1998, the market for the Sport Drink (electrolyte replacement) also called refresher drink constituted a market of $2.3 billion and was growing rapidly. The average annual consumption per capita in the United States is 2.0 gallons.

Although existing products in this market provide electrolyte replacement, they also contain high levels of calories and carbohydrates.The competition  in the marketplace are Gatorade and Powerade, who between them have an approximate 95% market share. Traditionally, when a sugar free product goes into the market, it captures six to seven percent of the particular market share, although Diet Coke has 28 percent of the market share of Coca Cola.

If the company could effect a one percent penetration of the market for sport drinks, they could have  two dollar per share earnings with the resultant effect on the stock price.

What follows are pertinent excerpts from the company's recent SEC filings:

ChampionLyte(TM) Refresher Drinks.
As it is with syrups, there have been no sugar-free products within the isotonic refresher drink category. This category, whose most well known products are Gatorade(R) and Powerade(R) refresher drinks, constituted a market of nearly $2.3 billion in 1998, with average per capita annual consumption in the U.S. of 2.0 gallons. (Beverage World, 1999).

First, diabetics and those with medically restricted sugar intakes had no available refresher drink on the market. This group represents a sizable segment of the U.S. population.

Second, it is believed that persons attempting to lose weight through exercise are often reluctant to consume a drink like Gatorade(R) containing hundreds of calories right after strenuous exercising to "burn-off" those calories.

Their marketing efforts to introduce ChampionLyte have involved ad placements in industry trade publications, radio ads, food show and beverage show appearances and establishment of a network of brokers to sell the products on behalf of the Company.

In October 2000, they entered into a sponsorship and endorsement agreement with Jay Fiedler, the starting quarterback for the Miami Dolphins of the N.F.L., under which Mr. Fiedler has agreed to provide various promotional services in connection with ChampionLyte.

In January 2001, they entered into a similar agreement with the world-ranked and former world middleweight boxing champion, Dangerous Dana Rosenblatt.

ChampionLyte has also qualified for sponsorship by the Diabetes Research Institute sponsorship and each bottle contains that organization's seal of  approval.

Americans spend $33 billion on weight-loss programs and products annually (National Institute of Diabetes and Digestive and Kidney Diseases, 2000). Their products are aimed directly at this market.

The enormous success of products such as Diet Coke(R), SnackWell's(R) cookies and numerous sugar-free ice cream, candy and other products have demonstrated the existence of a substantial market for sugar-free/reduced calorie food products.

In November 1998, they succeeded in obtaining an exclusive license for the trademark Sweet'N Low for use on chocolate syrups. Sweet'N Low is the trademark under which the world's most popular sugar substitute is sold, most recognizably in the small, pink packets.

In January 1999, they made their first shipments of Sweet'N Low brand chocolate syrup. By the end of 1999, they had expanded their customer base to more than 150 customers and the products are currently available in over 16,000 food outlets in the U.S.

In June 1999, we entered into an agreement with Francis Anthony, the "Love Chef" of television and magazine fame, under which Mr. Anthony agreed to develop recipes for the Syrup Company and represent the product to the public. Meridian believes that Mr. Anthony's involvement has and will continue to increase the visibility of the Syrup Company's products.

Also in 1999, they obtained the right to market the Syrup as an approved product of the Diabetes Research Institute, a national diabetes research center located at the University of Miami. This approval required their product to pass a strenuous qualification procedure at the Institute to establish our worthiness to use the Institute's name on our products.

Management believes that the quality of their products, their appeal to health-conscious and sugar-restricted consumers, the fame and reputation of the Sweet'N Low trademark for our syrups and our network of food brokers should enable us to continue to penetrate the retail food market.

The primary consumers at whom they are directing their marketing efforts are people suffering from diabetes and others with sugar restricted diets. According to the American Diabetes Association, there are approximately 16,000,000 Americans suffering from diabetes, plus another five to ten million Americans who are required to maintain a strict diet regimen for various medical conditions.

In addition, millions more Americans restrict their sugar consumption in an effort to reduce their calorie intake. All of these people form a natural market for our products. Americans spend $33 billion on weight-loss programs and products annually (National Institute of Diabetes and Digestive and Kidney Diseases, 2000). Our products are aimed directly at this market.

The enormous success of products such as Diet Coke(R), SnackWell's(R) cookies and numerous sugar-free ice cream, candy and other products have demonstrated the existence of a substantial market for sugar-free/reduced calorie food products. Public and industry acceptance have been positive to date.

On January 8, 2001, US Bancorp converted its $8,000,000 convertible note along with accrued interest of $229,727 into 8,230 shares of the Company's Series II Convertible Preferred Stock.

RESULTS OF OPERATIONS
Meridian's net sales revenues for the three months ended March 31, 2001 were$239,038, as compared to $408,572 in the comparable period of 2000.

Selling, general and administrative expenses increased from $441,521 in the first quarter of 2000 to  $2,108,644 in the first quarter of 2001.  The major element of that increase was non cash interest and amortization costs of $898,605 for the three months ended March 31, 2001, associated with the conversion of the U.S. Bancorp note into shares of the Company's Series II Convertible Preferred Stock in January 2001.

The remaining increases in expenses were primarily related to an increase in advertising and media expenses from approximately$92,000 for the three months ended March 31, 2000 to  approximately  $586,000 in the comparable 2001 period to support the Company's product lines,  particularly the introduction of the Company's  ChampionLyte (TM)

Meridian had a net loss available to common shareholders of $2,051,145  ($0.32 per share) during the three months ended March 31, 2001, as compared to a net loss available to common shareholders of $267,325 ($0.04 per share) during the comparable prior period.

LIQUIDITY AND CAPITAL RESOURCES
Meridian's available cash and marketable securities at March 31, 2001 were approximately $4,187,000, as compared to approximately $203,000 at March 31,2000. The increase in primarily attributable to the proceeds of Meridian's issuance of its Series A Convertible Note to U.S. Bancorp Investments, Inc. in June 2000.

As a result of the U.S Bancorp financing, management believes that is has sufficient working capital to carry out its business plan for the operation and expansion  of its syrup  business  and for the  introduction  and  growth of its sports  refresher drink for at least the next 12 months.  In addition, Meridian believes that operations will increasingly  contribute to cash flow during the same period.

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