PacificHealth Laboratories Announces Sale of Sports Drink Assets to Mott's LLP

MATAWAN, N.J., Feb 23, 2006 (BUSINESS WIRE) -- PacificHealth Laboratories, Inc. (PHLI) , a leading nutrition technology company, announced that Mott's LLP, has purchased the trademarks, technology and patents for their brands, Accelerade(R) and Endurox (R) R4 (R). Under the terms of the purchase PacificHealth Laboratories received a $4 million upfront payment and a royalty based on sales for a defined period. Additionally, PacificHealth Laboratories was granted an exclusive royalty-free license to use the intellectual property and trademarks for the continued manufacture, distribution and marketing of Accelerade and Endurox R4 brands in powder and gel forms.

Dr. Robert Portman, CEO and President of PHLI said, "We are delighted to complete this transaction with Motts. Serious athletes have recognized for quite some time the science-based advantages of Accelerade. This agreement will give PHLI the necessary resources to grow the Accelerade powder and gel business. Our goal is to make sure that athletes at all levels, in all sports, and all ages including the weekend warrior will experience the performance benefits of this exceptional sports drink."

PacificHealth Laboratories has been a pioneer in the development of a new generation of protein-containing sports and recovery drinks that have been shown, in head-to-head comparisons with conventional sports drinks, to improve endurance, enhance rehydration, reduce muscle damage and speed muscle recovery following exercise. PHLI's research program in sports drinks has resulted in two patents and over 18 published studies demonstrating the benefits of adding protein to a sports drink.

Dr. Portman continued, "This agreement also gives PHLI the additional funds necessary to expand our research programs and accelerate product development in weight loss and management of type II diabetes. The improved form of our appetite suppressant should be launched in the third quarter of 2006 under the brand name Satietrim(R). Incorporating a patented nutritional formulation, Satietrim has been shown in clinical studies to reduce food intake up to 20%."

About PacificHealth Laboratories. Inc.:
PacificHealth Laboratories, Inc. (PHLI.OB), a leading nutrition technology company, has been a pioneer in discovering and developing patented, protein-based nutritional products that stimulate specific peptides involved in appetite regulation and that activate biochemical pathways involved in muscle performance and growth. PHLI's principle areas of focus include weight loss, management of Type 2 diabetes and sports performance. To learn more, visit

Notice: This news release and oral statements made from time to time by Company representatives concerning the same subject matter may contain so-called "forward-looking statements". These statements can be identified by introductory words such as "expects", "plans", "will", "estimates", "forecasts", "projects" or words of similar meaning and by the fact they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing new products and their potential. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known, such general economic conditions, consumer product acceptance and competitive products, and others of which are not. No forward-looking statements are a guarantee of future results or events, and one should avoid placing undue reliance on such statements.

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