Allergy Research Group, Inc. Reports 2006 Results

ALAMEDA, Calif., Mar 29, 2007 (PrimeNewswire via COMTEX) -- Allergy Research Group, Inc. (ALRG) today announced financial results for the year ending December 31, 2006.

ALRG announces revenues of $16,273,465 for the year ended December 31, 2006, an increase of 2% compared to $15,911,221 for the year ending December 31, 2005. The increase in sales is primarily due to the introduction of new products.
"We plan to increase our efforts to expand sales by executing additional promotional activities with selected major accounts in 2007 and utilizing the knowledge and skills of our existing staff," said Chief Executive Officer and Chairman, Dr. Stephen A. Levine, Ph.D.

Cost of sales increased $548,444 to $10,193,737 for the year ended December 31, 2006, compared to $9,645,293 for the year ended December 31, 2005. The increase in sales plus increased cost of materials and increased shipping costs caused the increase in cost of sales. Gross profit margins were approximately 37% for 2006 and 39% for 2005. In addition to the increased cost of materials, there is a downward pressure on margins due to the changing mix between wholesale customers and distributors and due to the introduction of lower margin items. We responded to the decrease in margins by raising prices on approximately 50 items to roll out between February and April 2007.

Net income after tax for December 31, 2006 and 2005 was $1,095,976 and $1,208,869, respectively. The decrease is primarily due to the decrease in gross profit.

Complete copies of the company's financial statements, including notes to the financials, can be found on its website at

About Allergy Research Group, Inc.
Allergy Research Group, Inc. is an innovative leader in nutraceutical research and product formulation. Since its inception in 1979, the company has been noted for quality, hypoallergenic nutritional supplements and supplies products to physicians and healthcare practitioners worldwide.

The Allergy Research Group, Inc. logo is available at
Except for historical information contained herein, this release contains, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: the impact of competitive products, changes in law and regulations, adequacy and availability of insurance coverage, availability of raw materials, dependence on distributors and customers, dependence on key personnel, litigation, limitations on future financing, the effect of adverse publicity, uncertainties relating to acquisitions, managing and maintaining growth, customer demands, as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations department or via the SEC's website located at
This news release was distributed by PrimeNewswire,

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