ADVANCED NUTRACEUTICALS INC., (NasdaqSm-Cp: ANII)

Dear Reader,

Ding-ding!!!! Well, we’ve answered the bell for Round 2. The after-market press from Advanced Neutraceuticals Inc., contains some important information regarding the company's financial future and leadership.

We felt it was important to get you this news ASAP as our reader’s response to the initial profile (November 6, 2002 Click Here) was nothing short of overwhelming.

Here goes and thanks for making it through two rounds of StockUpTicks today !!!
 

** TODAY'S BREAKING NEWS FROM ADVANCED NUTRACEUTICALS **

Press Release
Source: Advanced Nutraceuticals, Inc.
Wednesday December 18, 4:00 pm ET 

DENVER, Dec. 18 /PRNewswire-FirstCall/ -- Advanced Nutraceuticals, Inc. (Nasdaq: ANII - News), announced that it has finalized an agreement with its senior lender to extend the maturity of its loan facility until January 31, 2003. ANII's lender is closing the office that services the Company and has decided, due to the relatively small size of the Company's facility, not to pursue the loan arrangement with ANII. ANII has received several proposal letters from prospective lenders and expects that a new facility can be finalized by the extended due date of the current agreement.

ANII is a holding company with two operating subsidiaries, Bactolac Pharmaceutical Inc. and ANI Pharmaceuticals, Inc. (ANIP). Bactolac is a successful manufacturer of vitamins and supplements that has grown rapidly since its inception and has been consistently profitable. ANIP is a contract and private label manufacturer of OTC pharmaceutical products, which had been losing money but has recently experienced a substantial improvement in its bookings and sales. ANIP is currently in discussions with its largest customer about increasing the number of products ANIP produces for them. ANIP is also developing new products for its antacid line which is expected to have a positive effect on sales.

The Company also announced that Gary Long has agreed to become the Chief Operating Officer of ANIP. Greg Pusey, President of ANII, stated, "We believe Mr. Long will play a key role in managing ANIP's growth in the private label and contract manufacturing OTC pharmaceutical business." Mr. Pusey noted that Mr. Long has held numerous positions in the pharmaceutical industry, including 18 years with Novartis/Ciba-Geigy before joining ANIP and was most recently Director of Operations Excellence at Geneva Pharmaceuticals (a subsidiary of Novartis). 

For additional information contact:
Jeff McGonegal (303) 475-3786 (Email: jmcgonegal@anii.cc) or
Gregory Pusey (303) 722-4008 (Email: gpusey@anii.cc)

This press release includes "forward looking statements" as defined by the Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors ANII believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of ANII. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors, including adverse changes in market conditions, fluctuations in sales volumes, problems in collecting receivables, and difficulties in obtaining quickly new debt financing with reasonable terms. Furthermore, ANII does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC. 
 

** ABOUT ADVANCED NUTRACEUTICALS **

Advanced Nutraceuticals, Inc., (NasdaqSM-CP: ANII), (“ANI”), is a holding company with two operating subsidiaries, Bactolac Pharmaceutical and ANI Pharmaceuticals. ANI is focused in the vitamin, nutraceutical and Over-The-Counter liquid pharmaceutical industries. Bactolac, operating in the vitamin and nutraceutical segment sells to specialty food retailers, mass-market drug stores, multi-level marketers, catalog marketers, retail distributors, direct mail sellers, infomercial marketers and international distributors. ANI Pharmaceuticals ("ANIP") employs approximately 90 full-time and 10 temporary personnel for a total of 100 employees. ANIP originated as a Phillips Milk of Magnesia (Bayer) production facility some fifty years ago. The Company has the capability of producing virtually any liquid, tablet, topical analgesic, powder, liquid OTC drug. 
 

** BACTOLAC PHARMACEUTICAL, INC. **

Bactolac is led by its founder, Dr. Pailla M. Reddy and was was founded in 1995. It was acquired by ANI in late 1999 and has grown to be a substantial entity with estimated 2002 sales exceeding $12 million. Bactolac Pharmaceutical Inc. operating in the vitamin and nutraceutical segment, continues to grow and contribute significant profitability and cash flow with 2002 EBITDA estimated to be $2.5 million. manufactures nutritional supplements for private label customers and creates products from raw materials through to finished bottled products.
 

** ANI PHARMACEUTICALS **

ANI Pharmaceuticals (ANIP) employs approximately 90 full-time and 10 temporary personnel and has increased revenues to a current annualized rate of over $12 million. ANIP originated as a Phillips Milk of Magnesia (Bayer) production facility some fifty years ago. The Company has the capability of producing virtually any liquid, tablet, topical analgesic, powder, liquid OTC drug. ANIP is a contract manufacturer of pharmaceutical and nutraceutical products operating out of the 132,000 sq. ft. facility located in Gulfport, Mississippi. 
 

** SELECTED FINANCIAL HIGHLIGHTS **

ANI receives regular quarterly payments on a  $5 million note receivable (NFLI) it carries on its books for less than $400,000. To review the SEC filings for ANI, Click Here.
 

** CONTACT **

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