PacificHealth Laboratories, Inc. Receives $1 Million Equity Investment from Hormel Health Labs, LLC

MATAWAN, N.J., Feb 1, 2005 (BUSINESS WIRE) -- PacificHealth Laboratories, Inc. (PHLI), an innovative nutrition technology company, announced today that Hormel Health Labs, LLC, a subsidiary of Diamond Crystal Sales, LLC, has made a $1,000,000 equity investment in the company. The investment is in the form of preferred convertible stock with a conversion price into common stock of $1.10 per share, and carries a 2% coupon, payable in either cash or stock at PHLI's option. PHLI common stock closed yesterday at $0.68 per share.

Dr. Robert Portman, Chairman and Chief Scientific Officer said, "In addition to this investment, we will be working closely with Hormel Health Labs both in manufacturing and in product development. We have a portfolio of innovative, science-based nutritional products that are backed by extensive research studies. This new relationship with Hormel Health Labs will enable us to bring these products to market faster."

Dave Mastroianni, CEO of PacificHealth Laboratories said, "I believe that the short and long term prospects for PacificHealth Laboratories just got even brighter. Our goal is to ensure that the markets we serve continue to take notice of the strength of our research and innovative products. I am also excited about the potential opportunity of delivering our technology to the markets served by Hormel Health Labs."

About PacificHealth Laboratories. Inc.:

PacificHealth Laboratories, Inc., Matawan, 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 Hormel Health Labs, LLC:

Hormel Health Labs, LLC is a subsidiary of Diamond Crystal Sales, LLC. Hormel Health Labs is proud to offer a full line of specialized food products for the healthcare industry. We are committed to providing great tasting, innovative foods for individuals with special dietary needs. For more information, 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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