PacificHealth Laboratories, Inc. and Cargill Announce Strategic Alliance for the Launch of ACCELERADE Ready-To-Drink Sports Drink

WOODBRIDGE, N.J.--(BUSINESS WIRE)--Nov. 6, 2002--PacificHealth Laboratories, Inc. (NASDAQ: PHLI), a leading nutrition technology company, and Cargill, Incorporated, a world leader in food ingredients, announced that they have entered into a strategic alliance for the launch of PacificHealth Laboratories ready-to-drink sports product, ACCELERADE(R).
As part of the agreement, PacificHealth Laboratories will incorporate ASCEND(TM), Cargill's new branded ingredient, Trehalose, into their sports drink and Cargill will provide substantial distribution and manufacturing resources to PacificHealth Laboratories for the launch of ACCELERADE in a ready-to-drink form.

Until now, ACCELERADE was only available as a powder, whereas ready-to-drink products represent the major segment of the sports drink category. PacificHealth Laboratories working with Cargill, has created a great tasting product by adding ASCEND(TM) to ACCELERADE.

"We are extremely excited about working with PacificHealth Laboratories," said Ted Ziemann, president of Cargill Health & Food Technologies (HFT). "ASCEND(TM) brand of Trehalose offers advantages in terms of flavor, stability, and sweetness characteristics in a variety of food systems. It was important for Cargill to ensure that the first sports performance drink that incorporated ASCEND(TM) was on the cutting edge," he said.

ACCELERADE in its powdered form with its patented technology has shown in scientific studies to offer significant advantages over conventional sports drinks.

Dr. Robert Portman, CEO, PacificHealth Laboratories, Inc. said, "We began an informal working arrangement with Cargill about six months ago. Cargill HFT's assistance has helped make ACCELERADE Ready-To-Drink a reality. We will be working closely with Cargill on the upcoming launch of ACCELERADE Ready-To-Drink. We expect to have store placement in a San Diego area test market in January 2003. Through our collaboration with Cargill, we have created a new innovative sports drink available to all athletes, regardless of age, whether they are professionals, serious athletes or weekend warriors."


ACCELERADE was the first sports drink engineered to meet all the hydration, energy and nutrition needs of working muscles. Unlike conventional sports drinks, ACCELERADE has the patented 4 to 1 ratio of carbohydrates to protein to speed the movement of carbohydrate into the muscle. In research studies, ACCELERADE powder extends endurance by 24 percent compared to a conventional sports drink and 57 percent compared to water. To learn more about ACCELERADE visit

About PacificHealth Laboratories:

PacificHealth Laboratories, Inc., Woodbridge, NJ, was founded in 1995 to develop and commercialize functionally unique nutritional products for sports nutrition, weight loss and Type 2 diabetes. To learn more about PacificHealth Laboratories, Inc. visit

About ASCEND(TM) brand of Trehalose:

ASCEND(TM) is a unique sugar made from cornstarch that provides energy that lasts without the "sugar crash," a response that can occur following consumption of carbohydrates prior to exercise. ASCEND(TM) is also well known for its ability to stabilize proteins and enhance flavors. ASCEND(TM) has a clean, mildly sweet flavor, making it ideal for nutrition bars and sports drinks, such as ACCELERADE.

About Cargill:

Cargill Health & Food Technologies, based in Minneapolis, is a leading developer, processor and marketer of science-based, healthy ingredients for food and dietary supplements worldwide. HFT is part of Cargill's Food System Design initiative in which food businesses work with customers to produce ingredient solutions for affordable, nutritious, convenient and appetizing consumer products. HFT is a business unit of Cargill, Incorporated, an international marketer, processor and distributor of agricultural, food, financial and industrial products and services with 97,000 employees in 59 countries. Cargill provides distinctive customer solutions in supply chain management, food applications, and health and nutrition. For more information, please visit:

This news release contains 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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