2005 Extraordinary Year for Pharmanex Global R&D

Pharmanex® Scientists Create Innovative Products
Pharmanex® created eight new and innovative products in 2005, including g3™ superfruit juice, Xoi Bar™, lifepak® nano, and DuoLean™. In addition, R&D is about to conclude two years of efforts to improve our BioPhotonic Scanner technology, resulting in the new S2 model, which will be officially launched in early March 2006. Finally, R&D aggressively pursued product registrations in preparation for the much anticipated Pharmanex® launch in Russia (2006). Pharmanex® R&D currently maintains a solid new product pipeline with strong innovative projects being prepared for the future.

Pharmanex® Scientists Perform More Studies than Ever
Our clinical and pharmacological laboratories in Beijing and Provo conducted 16 human clinical studies, 190 experimental and pre-clinical studies, 20 toxicology studies and developed 19 new biological efficacy testing methods. Compared to the previous year, the number of studies was significantly greater. For example, we have performed almost twice the number of clinical studies and over ten times more preclinical studies in 2005.

Product quality is at the heart of our core values in Pharmanex®. In 2005, our chemistry, quality control and assurance laboratories in Shanghai and Provo developed 140 new analytical testing methods and performed over 25,000 assays testing the quality of our existing and new products. Most importantly, however, Pharmanex® became the first company worldwide to obtain three levels of third-party quality certifications for a dietary supplement: LifePak is now certified by NSF, Consumer Labs and BSCG (Banned Substance Control Group).

Pharmanex® BioPhotonic Scanner Assists in Research
The Pharmanex® BioPhotonic Scanner assumes a central position in the Pharmanex® product strategy as well as in R&D. In 2005, we concluded a series of six clinical studies, which have validated the BioPhotonic Scanner as a non-invasive method to determine carotenoid antioxidant status in humans. Most notably, a large university collaboration study was finished, showing that the Pharmanex® BioPhotonic Scanner not only measures carotenoids, but in fact is also a good indicator of overall antioxidant status and oxidative stress levels. Pharmanex® won the American Business (Stevie) Award as most innovative company in 2005.

Pharmanex® S2 BioPhotonic Scanner
During 2005, our scientists achieved many breakthroughs to further improve the technology as well, leading to our announcement of the new S2 version at our October convention. The S2 BioPhotonic Scanner will be lighter, smaller, faster, and easier to use. In addition the S2 now works over a very broad ambient temperature range. We continue to receive overwhelmingly positive support from researchers all over the world who are excited about the scanner’s abilities in the field of nutritional assessment. More Scanner-related research will be presented in scientific journals and at conferences in 2006.

In an increasingly competitive market place, intellectual property protection is very important, and in 2005 we have filed 19 patent applications, and have taken steps to further increase our efforts to create patented technologies and products.

Pharmanex® Scientists Shine Academically
We are pleased to report that Pharmanex® scientists not only achieve outstanding business results, but also excel academically and professionally. In 2005, R&D scientists published nine scientific papers in peer-reviewed journals, covering the Pharmanex® BioPhotonic Scanner, gac fruit and other g3 ingredients, vitamins C and E, and ReishiMax GLp®, and we published another nine scientific abstracts. In addition, our scientists gave 19 presentations at scientific meetings, and attended 34 international scientific meetings and three trade shows. These efforts are keeping our scientists closely abreast with the advances in international research.

Pharmanex® R&D Support Scientific Community
Pharmanex® R&D sponsored nine scientific meetings and prizes in 2005 including the prestigious OCC 2005 World Congress (Alba, Italy), the American Physiological Society annual meeting in San Diego, the Conference on Nutrition Oxygen Biology and Medicine in Paris, the International Carotenoid Society meeting in Edinburgh, the Linus Pauling Institute meeting in Portland, Oregon, and the ISNA/SFRR (Society for Free Radical Research) meeting in Shanghai. Pharmanex® continues to be the only dietary supplement company to support the prestigious American Society for Clinical Nutrition (ASCN) as a sustaining member. We also benefited from a highly productive and informative Scientific Advisory Board meeting which was held April 11-12 in Salt Lake City.

Pharmanex® Scientists on the Move
In 2005 our Ph.D. and product support scientists gave an unprecedented 280 technical training presentations all over the world. In addition, we conducted over 300 educational laboratory tours in Provo, over 100 tours in Shanghai. In addition, many distributor conference calls featured Pharmanex® scientists. To boost the public visibility of R&D, Pharmanex scientists gave 35 press interviews in 2005 for TV, radio and print media from all over the world.

Together, we have very successfully completed a record-setting year, and we look forward to a highly productive and exciting 2006.

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