Pharmachem Acquires AVOCA Extraction Facility Expands Production and R&D Capabilities

KEARNY, NJ, May 13, 2003—David A. Holmes, founder and president, Pharmachem Laboratories, Inc., today announced that the company, with Avoca senior management, has acquired the Avoca Division of R. J. Reynolds Tobacco Company. The 172,000 sq. ft. facility, located on 2400 acres in Merry Hill, NC, is the largest botanical extraction facility in North America, producing extracts for the fragrance, pharmaceutical and dietary supplement industries.

“This acquisition not only provides the added manufacturing capacities we need for our expanding extraction and drying business, but also gives us an R&D capability unmatched in the natural products industry,” said Holmes.

Avoca, Inc., which will function as a subsidiary of Pharmachem, has a current extraction capacity of 90,000 tons per year, including a continuous-flow Crown extractor with a daily capacity of 5-10 tons. Pharmachem is already planning a major expansion there for increased capacities and technologies.

In addition, Avoca has its own internal quality control and research laboratories for process control and product development. The facility meets industry standards for current good manufacturing practices (cGMP). It features on-site storage of raw materials and a cGMP finished goods warehouse.

Pharmachem laboratories, Kearny, NJ, is the supplier of numerous ingredients and ingredient systems, including Phase 2® starch neutralizer, used in a number of weight loss products sold worldwide. The Company operates four processing and manufacturing facilities in Northern New Jersey, including the H. Reisman Corporation. Pharmachem also owns American Ingredients, Anaheim, CA. For more information, log-on to, or call 1-800-526-0609.

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