PacificHealth Laboratories, Inc. Executes License Agreement And Receives Equity Investment from GlaxoSmithKIine

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For Immediate Release

PacificHealth Laboratories, Inc. Executes License Agreement And Receives Equity Investment from GlaxoSmithKIine

NEW JERSEY, WOODBRIDGE, Jun. 4 -/E-Wire/-- PacificHealth Laboratories, Inc. (NASDAQ: PHLI), announced today they have entered into an exclusive license agreement with

GlaxoSmithKline (NYSE: GSK), the world's largest pharmaceutical company, for

SatietrolÃ¢, the Company's new weight loss product.

The agreement provides GSK with worldwide rights to the trademarks, technology, patents, and know-how for Satietrol. Under the license agreement, in addition to

product royalties, PHLI will receive an initial payment of $1,000,000 and other

milestone payments over the next two years if GSK meets certain development goals. GSK

will be responsible for future manufacturing, marketing and sales. GSK will also

purchase shares of PHLI's common stock, equal to approximately 9% of the outstanding

shares, for $1.5 million.

Satietrol is the first appetite control product specifically designed to

activate(CCK), a peptide released by the body after eating that plays an important role in controlling appetite. Clinical studies have shown that Satietrol

can significantly reduce hunger up to 43% 3 Â½ hours after eating.

Under the agreement, PHLI will continue to market Satietrol in present distribution

channels until GSK launches its own product. After GSK launches its own product,

PHLI will have limited rights to market products using the Satietrol technology in US

health food distribution channels.

According to Dr. Robert Portman, President and CEO of PacificHealth Laboratories,

Inc., " We are pleased to have GSK as a partner due to their leadership position in

the marketing of consumer health products. GSK brings the resources to develop the

full scientific and commercial potential of the Satietrol technology."

Catherine Sohn, Vice President of Worldwide Business Development for Consumer Healthcare at GlaxoSmithKline said, "We continue to be committed to licensing, developing, and marketing scientifically based healthcare consumer products to improve the quality of lives of people and to working with our licensing partners.

With this licensing agreement, GSK has the potential to address the large unmet

consumer needs of the growing number of overweight people."

More than half of U.S. adults over the age of 20 are overweight. This condition affects more than 97 million Americans. A study published in the New England Journal of Medicine in October 1999 showed that patients who are overweight run a

higher risk of dying from cancer or heart disease, as well as a higher risk of

In other developments by PHLI, on May 24, the Company began shipping ACCELERADE, its

new sports drink. According to a leading exercise physiologist Dr. Edmund Burke,

Professor of Exercise Physiology at the University of Colorado at Colorado Springs,

"ACCELERADE represents the most significant advance in sports drinks in the last

Dr. Portman said, "The initial consumer and retail response to ACCELERADE has been

overwhelming. By mid July ACCELERADE will be carried in more than 4000 retail

outlets. Sales in April and May for both our sports drinks and weight loss products

have been very strong. We anticipate being profitable this quarter and, at the end of this quarter, will be profitable when considering the most recent four quarters combined."

GlaxoSmithKline -- one of the world's leading research-based pharmaceutical and healthcare companies -- is committed to improving the quality of human life by enabling people to do more, feel better and live longer.

PacificHealth Laboratories, Inc., Woodbridge, NJ, founded in 1995 is a science- based nutrition company that develops functionally unique proprietary products for

sports nutrition, weight loss and Type 2 diabetes.

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.

For more information about PacificHealth Laboratories, contact Mark Beal at Alan Taylor Communications at [REDACTED-PHONE] or Dr. Robert Portman at [REDACTED-PHONE], Ext.

#601 or visit www.pacifichealthlabs.com.

PacificHealth Laboratories

http://www.pacifichealthlabs.com

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