4Health Inc. releases preliminary fourth-quarter financial results.

BOULDER, Colo.--(BUSINESS WIRE)--Jan. 24, 1997--4Health Inc. (NASDAQ: HHHH) today released preliminary results for its fourth quarter ended Dec. 31, 1996.

Estimated net sales for the fourth quarter and fiscal year ended 1996 were $2.56 million and $17.35 million, respectively, as compared to $2.65 million and $10,435,000 for the same periods in 1995. The company anticipates that losses for the fourth quarter and year ended Dec. 31, 1996, were $1.9 million, or 17 cents per share, and $2.48 million, or 25 cents per share, respectively, as compared to losses of $255,000, or 3 cents per share, and earnings of $710,000, or 8 cents per share, for the comparable periods in 1995. 4Health will release its formal fourth-quarter numbers upon completion of the audit.

"Marketing expenses alone during the fourth quarter 1996 nearly doubled over the $755,000 spent in the fourth quarter of 1995," said R. Lindsey Duncan, president, chairman and chief executive officer, 4Health Inc. "The increase in marketing expenses was largely related to our extensive mass market advertising campaign, which included four-color spreads in leading national consumer magazines to promote UnDo(TM), our new internal cleansing product. This compares with our fourth quarter 1995 advertising campaign, which was conducted through lower-cost health food publications."

The company credits the effectiveness of its mass market sales and marketing efforts in the last two quarters of 1996 with bringing in new orders for UnDo(TM) from some of the country's leading grocery, drug and mass discounter chains. 4Health today announced the following new accounts for UnDo(TM):

-- CVS, one of the largest drug chains in the Northeast, ordered the

UnDo(TM) product for all of their 1,300 stores;

-- Albertson's, a prominent national grocery chain;

-- Harco Drug, a large drug store chain in the Alabama region;

-- Fry's and Basha's -- two grocery stores located in the Phoenix

area;

-- King Soopers and City Market -- two supermarkets in Denver;

-- Fred Meyer, a superstore chain in the Northwest; and

-- Ralphs supermarkets, concentrated on the West Coast.

The new accounts noted above are in addition to those reported on Nov. 13, 1996. In that release, orders were announced from retailers which placed UnDo(TM) in over 11,000 stores nationwide. Those outlets are SAV-ON, Thrifty/Payless, Osco, Eckerd, Vons Grocery Stores, Pharmhouse, Long's Drug Stores, Carr's Food Stores, select Drug Emporium franchises, Harmon Drug Stores, Top's Supermarkets, City Markets, Vix, Daiei and Times Markets. The new orders will add approximately 3,000 new store fronts, bringing the total number of retail establishments carrying UnDo(TM) to 14,000.

"With the new UnDo(TM) orders, the total number of stores in the U.S. offering and committed to carrying 4Health products has increased to over 20,000," said Duncan. "While some of the new order product was shipped during the fourth quarter 1996, we are anticipating that most of the new account product will be shipped during the current quarter and throughout the year."

4Health Inc. is a leading formulator and supplier of herbal and nutritional supplements. The company was founded to develop natural healthcare formulations designed to help people attain better health. The company offers three primary name brand product lines under which its formulations are sold: Nature's Secret(R), available in health food stores nationwide; Harmony Formulas(R), sold through healthcare practitioners; and Lindsey Duncan's Home Nutrition(TM), marketed to the food, drug and mass retail channel. -0-

Estimated Statement of Income:

                       Three Months Ended          Year Ended
                            Dec. 31,                 Dec. 31,
                        1996        1995         1996        1995
                     (Estimated)              (Estimated)

Net Sales            $2,560,000  $2,653,000  $17,352,000 $10,434,000
Gross Profit          1,416,000   1,670,000   10,427,000   6,631,000
Net Income (Loss)
  Before Taxes       (1,796,000)   (352,000)  (2,515,000)  1,068,000
Net Income (Loss)    (1,888,000)   (253,000)  (2,478,000)    709,000
Earnings (Loss)
  per Common Share         (.17)       (.03)        (.25)        .08
Weighted Average
  Shares Outstanding 11,364,986   9,090,890   10,113,210   8,832,942


Estimated Balance Sheet Data:

                           Dec. 31, 1996

Cash                         $1,086,000
Total Assets                  9,281,000
Long-term Debt                    1,000
Stockholders' Equity          6,465,000
Working Capital               2,786,000

CONTACT: 4Health Inc., Boulder

Renee Martin, Investor Relations,

303/546-6306, ext. 4310