ACCELERADE® Deal Fuels Pacific Health 2006 Gains

MATAWAN, N.J.—Pacific Health Laboratories (OTCBB:PHLI) posted fiscal year 2006 (FY06) revenues of $6.2 million, up from $5.4 million the year prior, pushing 2006 net income to $2.2 million or $0.17 per share, a marked improvement over $0.7 million or $0.06 per share lost in FY05. The FY06 progress was highlighted by a licensing agreement with Mott’s LLP, a division of Cadbury Schweppes Americas Beverages (CSAB), a deal which brought in $2.7 million in patents and technology sales; a $4.0 million initial transaction fee helped eliminate long-term debt and strengthen the PHLI balance sheet.

“The agreement also provides PHLI with an exclusive, royalty-free license to continue to manufacture and market the powder and gel forms of ACCELERADE® and ENDUROX® R4,” explained Robert Portman, president and chief executive officer (CEO) of PHLI (www.pacifichealthlabs.com). “The CSAB agreement has enabled us to drastically reduce our marketing and advertising budget and increase funding for the development of new sports performance and weight loss products.” He noted CSAB is close to its national multi-channel launch of ACCELERADE RTD in the United States.