SOURCE: PacificHealth Laboratories, Inc.

PacificHealth Laboratories, Inc.

February 22, 2011 09:13 ET

PHLI Provides 2011 Progress Update

MATAWAN, NJ--(Marketwire - February 22, 2011) - PacificHealth Laboratories, Inc. (OTCBB: PHLI), a nutrition technology company, today provided an update on its recent corporate changes. 

Fred Duffner, CEO and President of PacificHealth Laboratories, said, "In October, we announced sweeping changes that affected every facet of our business. Our goals included a reduction in operating expenses, an aggressive focus on our brands, customers and retailers and, most importantly, becoming profitable in 2011. I believe we have made significant progress toward achieving these goals." 

"In 2010, we reduced our net operating loss by more than 50%. Almost two-thirds of the 2010 loss resulted from severance pay to senior management. Today we are a far leaner organization than we were last year. We have met our goal of reducing fixed overhead costs by almost 30%. However, the key to profitability in 2011 is to grow the top line. We are planning to drive our top line growth through new products, a more compelling message to consumers, increased marketing and a more directed focus on our core consumer and retailer."

"In April we will be introducing two breakthrough products: 2nd SURGE energy gel and Accel RECOVER nutrition bar. Each of these products builds on cutting-edge research and capitalizes on our scientific leadership in muscle recovery. 2nd SURGE is the result of new research that highlights the role of the brain in producing fatigue. 2nd SURGE is the first gel formulated to reduce brain and muscle fatigue. 2nd SURGE is designed to be consumed during exercise to help athletes finish stronger."

"Accel RECOVER is the first nutritional bar specifically engineered for maximum muscle recovery. It contains a proprietary combination of different proteins, carbohydrates and a special fat that provides significant metabolic advantages over the conventional fats used in other nutrition bars. Optimal muscle recovery requires activation of many different metabolic pathways. The unique formula of Accel RECOVER activates multiple pathways for a faster and stronger recovery. Both products have been enthusiastically received by our retailers. 2nd SURGE and Accel RECOVER are just the beginning of our new product initiative. We are also funding new research studies at major universities that we anticipate will form the scientific foundation for additional new products."

"To support our existing products, Accelerade®, Endurox R and Accel Gel®, as well as our new launches, we are implementing a major communication campaign involving both print and digital media that will deliver over 22 million impressions against our target consumer, the endurance athlete. The campaign, consisting of full-page and banner ads, features well-known triathletes and will run in leading magazines and on popular websites. Complementing this campaign will be a new grass-roots program called Nutrition Edge, which will be directed toward endurance athletes and coaches. PHLI has been at the forefront of many of the major advances in sports nutrition. This year we intend to reclaim that role. One of the key elements in our grass-roots campaign is the development of the Performance Nutrition Handbook. The handbook, which includes articles by leading sports scientists, nutritionists and athletes, provides a wealth of information and practical tools to help endurance athletes achieve their potential. The Performance Nutrition Handbook will be distributed in print and digital versions at events, through our website and through our retailers."

"In 2011, our shareholders will also see the results of a new internet strategy. In April we will be launching a new website, which will be closely integrated with our overall communication message. The website will be easy to navigate and contain a wealth of valuable content for the endurance athlete. To drive web traffic we have instituted an aggressive search engine optimization plan. Part of the website will include a new shopping cart that will enable athletes to personalize their nutrition needs and will give us the flexibility to deliver highly individualized messages to our consumers. Finally, we are now aggressively using social media to increase awareness, use and discussion of our products."

"In October, I said that we would be a lean, motivated sales, marketing and research-driven organization focused on profitable growth. We have made enormous progress to date and, speaking for management, I could not be more enthusiastic about our prospects in 2011."

About PacificHealth:
PacificHealth Laboratories, Inc. (OTCBB: PHLI), 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 principal areas of focus include sports performance and weight loss. 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 as 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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