Oslo, July 23, 2004

Nutri Pharma ASA (OSE: NUT) today announced that its loss for the first half of 2004 was NOK 6.5 million compared to a profit of NOK 1.1 million in the first half of 2003. Revenues declined from NOK 8.3 million in the first half of 2003 to NOK 2.4 million in the first half of 2004. The decline in revenues is mainly due to an upfront payment related to a new licence agreement with Nycomed in 1H 2003, lower sales of Scan Diet™ in the US and the discontinuation of Nutriplan™ in Australia/New Zealand.

All figures in NOK 1000
INCOME STATEMENT	1H 2004	1H 2003	2003	2002
Total revenue	2 451	8 297	10 999	51 263
Total operating expenses	9 186	14 330	31 867	132 155
Results of operations	-6 735	-6 033	-20 868	-80 892
Total financial income and expenses	240	7 173	10 348	14 307
Ordinary profit before taxes	-6 495	1 140	-10 520	-66 586
Tax on ordinary results
Results of the period	-6 495 -0.09	1 140 0.02	-10 520 -0.15	-66 586 -0.93
BALANCE SHEET		30.06.2004	31.12.2003	31.12.2002
Total long term assets		9 978	11 569	26 051
Total current assets		20 902	26 635	234 251
Total assets		30 880	38 204	260 301
Total equity		28 520	34 635	242 171
Total liabilities		2 360	3 569	18 130
Total equity and liabilities		30 880	38 204	260 301

FIRST HALF 2004 ACCOUNTS
Nutri Pharma had total revenues of NOK 2.4 million in 1H 2004, down from NOK 8.3 million the previous year. The significant reduction in revenues is mainly due to an upfront payment related to a new licence agreement with Nycomed and lower sales of Scan Diet™ in the US and the discontinuation of Nutriplan™ in Australia/New Zealand. Royalty revenues declined from NOK 4.1 million in 1H 2003 to NOK 2.2 million in 1H 2004.Operating expenses were reduced from NOK 14.3 million to NOK 9.2 million. The operating result declined from a loss of NOK –6.0 million in 1H 2003 to a loss of NOK –6.7 million in Q1 2004. Interest income declined from NOK 7.2 million to NOK 0.2 million mainly as a result of the repayment of NOK 197.6 million to shareholders in December 2003.  The net loss for 1H 2004 was NOK -6.5 million compared to a profit of NOK 1.1 million in 1H 2003.Cash and other liquid assets were NOK 20 million as of June 30 2004 compared to NOK 25.2 million as of December 31 2003.

COMMERCIAL UPDATENordic - Nutrilett®
Sales of Nutrilett® in the Nordic countries during 1H 2004 amounted to NOK 47.1 million compared to NOK 36.3 million in 1H 2003, an increase of 30%.  As previously announced, Ferd Private Equity acquired the consumer health division of Nycomed, Collett Pharma AS, where Nutrilett is one of the core brands, in December 2003.

Norway

– Vita Hjertego
In September 2003 the Norwegian consumer goods company Mills DA (part of the Agra Group which is partly owned by Unilever) launched two new patés under its Vita brand containing plant oils, one of which also contains Abacor. The Vita brand is positioned as an active part of a cholesterol conscious diet. While sales are performing well, the product is a niche product in the small Norwegian market and has only generated limited royalty revenue for Nutri Pharma in 1H. 

UK

– Burgen Cholessterol
In January 2004 Nutri Pharma entered into a 5 year licence agreement with Allied Bakeries, the leading bread manufacturer in the UK, for the use of Abacor® in Burgen Cholessterol bread.  Since the launch of this product at the end of January, retail distribution has been below forecast and this has impacted volumes. Allied is currently running a sampling and coupon campaign aimed at increasing rate of sale. As previously announced, the revenue impact for Nutri Pharma in 2004 will be limited.US - Scan Diet™
Sales of Scan Diet™ amounted to USD 0.5 million in 1H, down from USD 2.3 million in 1H 2003.  As the future for Scan Diet is uncertain, Nutri Pharma is exploring alternative strategies in the US market.

OUTLOOK
As announced on May 13, Nutri Pharma has engaged Enskilda Securities to assist in exploring and developing strategic alternatives in the areas of cholesterol reduction (functional foods and dietary supplements), weight management, soy protein and process technologies. This may include a possible sale of the whole or parts of the company or its business or assets. This process is ongoing and is expected to be concluded during 2004.Nutri Pharma is also continuing the development of a business opportunity where the company would have an ownership stake in a direct sales organization outside the Nordic region. The intention is that Nutri Pharma will be a finished goods supplier.Nutri Pharma has previously announced that a hearing related to the European patent opposition case was scheduled for May 2004. The European Patent Office postponed this hearing for internal reasons and a new date has not yet been decided. The quarterly report is based on the same accounting principles as the latest published annual accounts and is in accordance with the Norwegian Accounting Standard for interim financial reporting.Oslo July 23, 2004

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 Upcoming financial events 2004
 
October 19, 2004  Presentation of Q3 2004
  
  
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Eirik Uboe, CEO  +47 412 92 712