Oslo, Norway, 30 June 2000

Nutri Pharma announces a breakthrough in dietary intervention with Abalon® in the treatment of type 2 diabetes

Nutri Pharma ASA (Oslo, NUT), the Norwegian functional foods company, today announced the results from a clinical trial that investigated its nutritional supplement, Abalon®, in the treatment of type 2 diabetes. The data were presented to the prestigious "18th International Symposium on Diabetes and Nutrition" which is convened in Reykjavik, Iceland, 29 June - 1 July, 2000 . The research shows the beneficial effects that occur with the use of Abalon® on cardiovascular risk markers in type 2 diabetic subjects.

In the placebo controlled trial, twenty middle-aged type 2 diabetics were given both Abalon® and placebo in a random order, each for a six-week period. Upon completion of the test periods, the main finding was that Abalon® significantly lowered LDL cholesterol by 10%, triglycerides by 22%, Apolipoprotein B100 by 30%, and homocystein by 14%, compared to that observed by the placebo. Research has shown that the normalisation of lipid profiles, particularly the dangerous LDL cholesterol, may be more effective in the treatment of type 2 diabetes compared to the direct management of blood glucose.

"These results are very promising, especially when one considers that 10% of the population over 45 years in the industrialised world suffer from type 2 diabetes, which mainly is a lifestyle-related disease caused by overeating and lack of physical exercise," said Dr Lars Høie, Founder of Nutri Pharma. "It is encouraging that these results occurred in normocholesterolaemic patients after only 6 weeks of treatment with Abalon®, and we are confident that this will be an important part of the therapeutic process in managing type 2 diabetes".

"Since as there is no natural product that treats this condition, and as the World Health Organisation (WHO) estimates that the number of diabetics is set to double over the next 5 to 10 years, there is a tremendous market opportunity for a unique compound like Abalon®", said Michael Oredsson, Chief Executive Officer of Nutri Pharma. "Nutri Pharma is committed to developing effective products based on sound scientific research, and we are delighted with the significant cholesterol-lowering effects of Abalon® in type 2 diabetes, and the company will continue to focus a great deal of its efforts in this area".

Nutri Pharma ASA, based in Oslo, Norway, was founded by Dr Lars Høie, MD, PhD (Appl) and Trond Syvertsen (MBA) in 1993. The company is focusing on innovative functional foods based on proprietary soy-technology, and is committed to addressing the growing incidence of prevalent lifestyle disorders, including elevated cholesterol levels, obesity and type 2 diabetes.

In March, Nutri Pharma signed a deal with Scania Dairies, which is in a joint venture with Danone, for cholesterol-lowering yoghurts in Sweden. In April, Nutri Pharma signed a co-branding agreement with Del Monte Foods International for cholesterol-lowering Abacor® fruit and vegetable juices. In May, the company signed an agreement with a leading bread manufacturer in the UK to develop a cholesterol-lowering breads. Early June, Nutri Pharma successfully launched Scan Diet(tm) with General Nutrition Corporation in the US. Nutri Pharma's weight-loss product Nutrilett® has held a market-leading position in the Nordic Countries since its launch in 1989 with aggregated sales in excess of $150 million. In May 2000, Nutri Pharma listed on the Main Board of the Oslo Stock Exchange, after a successful IPO in April, where NOK 500m was raised, and the company is now a composite of the total index.

For further information, please contact:

Michael Oredsson, CEO Nutri Pharma ASA.TEL: +45 3338 4000
David Speechly, PhD, MBA. Noonan/Russo Ltd.TEL: 0171 726 4452