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PHLI News PacificHealth Laboratories Amends Licensing Agreement with Mott's LLP

MATAWAN, N.J.--(BUSINESS WIRE)--PacificHealth Laboratories, Inc. (OTCBB: PHLI), a nutrition technology company, announced today that it has amended its original license agreement with Mott’s LLP, a division of Cadbury Schweppes Americas Beverage (“CSAB”). The amended agreement adds 26 countries to PacificHealth’s exclusive, royalty-free license to manufacture, distribute and market ACCELERADE and ENDUROX R⁴ brands in powder and gel, bringing the total to 47 countries representing all of the major markets in the world.

ACCELERADE and ENDUROX R⁴ were part of an asset purchase agreement between PacificHealth Laboratories and CSAB. Under the terms of the agreement, PHLI received an upfront payment of $4 million, a royalty payment for a finite period of time and a royalty-free license to continue selling ACCELERADE and ENDUROX R⁴ in powder and gel forms.

Dr. Robert Portman, Chairman and CEO of PHLI said, “We are delighted to have expanded the territories covered under the original licensing agreement with CSAB. Although the majority of our current sales are derived from North America, there is an increased market for sports drinks and related products throughout the world. By gaining early access to these burgeoning geographies, we are confident that we can gain a first-mover advantage and, over time, convert these worldwide market opportunities into sales.”

With CSAB scheduled to commence its national launch of ACCELERADE RTD (ready-to-drink) in the United States in the second quarter, PacificHealth has more closely aligned its efforts with CSAB’s by redesigning its ACCELERADE powder and ACCEL GEL^® packaging to be consistent with the new RTD label. In addition, the Company has introduced additional flavors and formulations to the ACCELERADE powder and ACCEL GEL product lines.

ACCELERADE, developed by PacificHealth Laboratories, is the first sports drink that contains a patented 4:1 ratio of carbohydrate to protein. Fifteen studies have now been conducted documenting the benefits of a 4:1 ratio in terms of improved endurance, enhanced rehydration, faster muscle recovery and less post-exercise muscle damage. For more information, please visit www.accelerade.com

About PacificHealth Laboratories, Inc.:

PacificHealth Laboratories, Inc. (PHLI.OB), a leading nutrition technology company, has been a pioneer in discovering, developing and commercializing patented, protein-based nutritional products that stimulate specific peptides involved in appetite regulation and that activate biochemical pathways involved in muscle performance and growth. PHLI’s principle areas of focus include weight loss, management of Type 2 diabetes and sports performance. To learn more, visit www.pacifichealthlabs.com.

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.