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Pharmachem Acquires AVOCA Extraction Facility

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

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