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Carrington Laboratories Agrees to Purchase Custom Business of Creative Beauty Innovations (CBI)

-- New Business to Increase Facility Throughput and Annual Revenues
-- Products to Be Produced at Carrington's ISO-Certified, cGMP Facility
-- Transaction Subject to Certain Closing Conditions

IRVING, Texas, Dec. 12 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc. (Nasdaq: CARN) today announced that it has agreed to purchase the business of the Custom Division of Creative Beauty Innovations, Inc. (CBI) of Carrollton, Texas. CBI is a privately held manufacturer of skin and cosmetic products. Under the terms of the agreement, Carrington will pay $1.0 million, plus a percentage of Carrington's net sales of Custom Division products to CBI's existing customers for the next five years, for CBI's specialized manufacturing customer information, intellectual property and a limited amount of equipment, plus $700,000 for useable inventory.

The transaction, subject to certain closing conditions, is expected to close later this month with transfer of the business to be completed in the first quarter of next year.

Carrington reported that it expects the additional volume from the transferring CBI customers to result in considerable savings in its manufacturing operations, and that the effect on its top and bottom lines should be favorable beginning next year. Carrington's existing specialty manufacturing capacity in Irving, Texas, coupled with the transfer of CBI Custom Division employees to Carrington, are expected to make the transition seamless to current CBI customers.

CBI is one of the country's largest private-label manufacturers of custom designed bath, body, skin and hair care products. In addition to custom manufacturing services, it produces private and semi-private label brands. Its list of prestigious clients includes a number of nationally recognized beauty and bath products companies who market products manufactured by CBI under their own private labels.

About Carrington

Carrington Laboratories, Inc., is an ISO 9001-certified, research-based biopharmaceutical and consumer products company currently utilizing naturally occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care; manufacture and market the nutraceutical raw materials Manapol(R) and Hydrapol(TM). Carrington also manufactures and markets consumer products sold under its AloeCeuticals(R) brand and manufactures quality products for other companies. Manufacturing operations comply with cGMP standards. Carrington's technology is protected by more than 120 patents in 26 countries. Select products are honored with the internationally coveted CE mark, recognized by more than 20 countries around the world.

Certain statements in this release concerning Carrington may be forward-looking. Actual events will be dependent upon a number of factors and risks including, but not limited to: subsequent changes in plans by the company's' management; changes in the regulatory process; changes in market trends; and a number of other factors and risks described from time to time in the Company's filings with the Securities & Exchange Commission, including the Form 10Q filed November 14, 2002.

For additional information about Carrington Laboratories, Visit the company's home page at or .

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