PharmaNutrients CLA Patent Rights Unaffected by Recent Industry Events

March 7, 2003 -- Responding to confusion regarding its access to certain CLA patents issued by the Wisconsin Alumni Research Foundation (WARF), PharmaNutrients' President, Mark Nottoli, has issued the following statement: "Despite confusing and inaccurate statements that certain organizations have acquired ‘exclusive' access to WARF CLA patents, PharmaNutrients has had and continues to have full access to these same patents."

Recent announcements by Cognis, a Dusseldorf, Germany-based chemicals and nutritional ingredients company, regarding its licensing of the Tonalin® assets of Natural, ASA, a Norwegian-based research and development company, appeared to indicate that the agreement granted exclusive rights to the WARF CLA patents. "This is inaccurate. Our firm has had full access since our initial commercialization of CLA in 1996," Nottoli added. The Wisconsin Alumni Research Foundation (WARF) is a not-for-profit organization that manages the patenting and licensing of intellectual property developed by University of Wisconsin-Madison researchers.

Initially, PharmaNutrients' patent access was granted through a Supply License Agreement based on its joint venture with Natural, ASA during which time PharmaNutrients established the body composition category and commercialized the first branded CLA product, Tonalin®. The patent right access was renewed when the joint venture was dissolved in June of 1999 and formalized by the granting of a separate sublicense, effective August 2002. In the interim, the firm has introduced a second generation of conjugated linoleic acid under the brand name CLA One®.

"Today, our second generation of conjugated linoleic acid, CLA One®, truly represents the expanded role CLA will play by addressing the serious health issue of obesity and other obesity-related conditions, such as cardiovascular disease, diabetes, Syndrome X and arthritis," Nottoli concluded.

About PharmaNutrients
Founded in 1994, PharmaNutrients is a provider of proprietary, human study-validated ingredients and technologies to the food and natural products industries. The company's activities encompass multiple technology platforms including conjugated linoleic acid and chitosan soluble fibers, as well as other related platforms, each focused on obesity or obesity-related conditions such as weight loss, weight management, cardiovascular disease, diabetes, Syndrome X and arthritis.

Tonalin is a registered trademark of Natural, Inc.; CLA One is a registered trademark of PharmaNutrients, Inc. USA

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