Allergy Research Group, Inc. Reports First Quarter Results and Announces New Manager of Sales and Marketing

ALAMEDA, Calif, May 13, 2008 (PrimeNewswire via COMTEX) -- Allergy Research Group, Inc. (ALRG) today announced financial results for the quarter ending March 31, 2008.

ALRG announces revenues of $4,433,248 for the quarter ended March 31, 2008, an increase of 8% compared to $4,086,717 for the same period last year. The increase in sales is a result of increased sales to our wholesale customers and to distributors. We attribute the first quarter increase in sales to a combination of the results of our promotional efforts and the upward trend in ordering patterns of the distributors.

Cost of sales increased $314,341 to $2,820,127 for the quarter ended March 31, 2008, compared to $2,505,786 for the quarter ended March 31, 2007. The increase in cost of sales corresponds to the increase in sales. Gross profit margins were approximately 36.4% for 2008 and 38.7% for 2007. Gross profit margins decreased approximately 2.4% for the period over period comparison primarily as a result of increased sales to distributors at lower margins than retail customers or wholesale accounts.

Net earnings after tax for March 31, 2008 and 2007 was $244,500 and $281,908, respectively. The decrease is due primarily to increased operating expenses related to ongoing litigation.

We are also pleased to announce that Jeffrey Lipsius was hired on April 28, 2008 to fill the newly created position of Manager of Sales and Marketing. This new management structure will combine the National Accounts Manager and Customer Service Manager positions.

Reesa Sokoloff resigned her position as National Accounts Manager effective May 15, 2008 to return to practice as a licensed nutritional clinician in New York City. The former Customer Service Manager left the company in March 2008. The combination of these two management positions will allow us to transition our Customer Service and Inside Sales Department into to one cohesive sales group.

Jeffrey comes to Allergy Research Group with 28 years of success in marketing and selling dietary supplements to the natural foods industry and to health care professionals. He has extensive experience managing all aspects of marketing and selling products to the alternative healthcare industry. Jeffrey received his Bachelor of Arts in Psychology from Albright College in Reading, Pennsylvania.

"We are pleased to have Jeffrey fill this important new consolidated position. This is a positive step toward boosting our sales and marketing efforts and to improve service to our distributors, retail and professional customers," said President, Fred Salomon.

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

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