PacificHealth Laboratories Reports FY09 Q1 Results and Updates Launch of ForzeGPS

PacificHealth Laboratories, Inc., a leading nutrition company, today reported its financial results for the quarter ended March 31, 2009 and issued an update on the launch of ForzeGPS(TM), the Company's new appetite management control tool for athletes.

First Quarter 2009 vs. First Quarter 2008 Financial Results
Revenue was $1,695,618 compared to $1,719,375 for the same period in 2008. Net loss for the first quarter was $405,465, or $0.03 per share, compared to a net loss of $271,405, or $0.02 per share, for the same period in 2008. Included in the net losses above are non-cash equity instrument-based expense of $69,498 and $109,262, respectively, for the periods ended March 31, 2009 and 2008. Sales and marketing expenses increased $171,874 in the quarter ended March 31, 2009 compared to the same period in 2008 primarily due to increased spend associated with the introduction of a new national sales representative organization designed to increase penetration in the sports specialty retail market and for a public relations and marketing campaign associated with the launch of ForzeGPS. General and administrative ("G&A") expenses decreased $67,824 in the quarter ended March 31, 2009 compared to the same period in 2008, primarily due to the organizational restructuring initiated in the third quarter of 2008.

Jason Ash, President and Chief Executive Officer of PacificHealth Laboratories said, "With revenue down slightly from the prior comparable period in 2008 largely attributable to the challenging economic environment and with retailers in particular shifting to much tighter inventory controls, the demand aspects of our base sports performance business are holding up well. The management team continues to focus on increasing gross margin, maintaining marketing efficiency and containing G&A expenses as we continue to drive prudent cost savings measures throughout the Company. We will be clear of the restructuring cost overhang in the third quarter. We ended the quarter with 14.5 million shares outstanding, approximately $800,000 in cash and other short-term investments, a $15.1 million federal net operating loss carryover (which has been fully reserved), and only $30,000 of debt. We significantly increased consumer marketing expenditures in the quarter, reflecting our commitment to the launch of ForzeGPS in support of our new route to market."

Mr. Ash continued, "The launch in March of ForzeGPS, the first appetite management tool designed for athletes, has gone extremely well in just a few short weeks. Key influencers in the sports specialty class of trade and the athletic community have wholeheartedly embraced our new approach to the sports performance category and weight control objective. Sales have already exceeded our previous endeavors in the weight control field. We expect to announce further details of our marketing efforts for ForzeGPS in the coming weeks."

About PacificHealth Laboratories. Inc.
PacificHealth Laboratories is a leading sports nutrition company that focuses on marketing, developing and selling premium nutrition products for exercisers and athletes seeking to improve their health and performance. Our products include the popular sports performance drinks Accelerade(TM) and Endurox(R) R4(R), and the recently launched ForzeGPS, the first scientifically proven appetite management tool created specifically for athletes. PHLI's principle areas of focus are sports performance and recovery, including optimal weight management. 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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