4Health Inc. reports second-quarter financial results; sales increased 160 percent.

BOULDER, Colo.--(BUSINESS WIRE)--July 30, 1996--4Health Inc. (NASDAQ:HHHH) today announced its financial results for the second quarter and six months ended June 30, 1996.

Sales for the second quarter increased 160 percent to $8,007,000 as compared with $3,083,000 for the second quarter of 1995. Sales for the first six months of the 1996 fiscal year were $11,480,000, a 148 percent increase over the $4,632,000 reported for the comparable period in fiscal 1995.

According to R. Lindsey Duncan, president, chairman and chief executive officer of 4Health: "Much of the second-quarter sales increase is attributable to the release and aggressive marketing of the Nature's Secret(R) weight control platform, Take Charge(TM) and the extension of products, from 1 to 14 SKUs, carried by General Nutrition Centers (GNC) throughout the country. The extensive market launch campaign, which should continue through the next two to three quarters, is necessary to support the initial sales of the new products in the new retail outlets."

Earnings for the second quarter and six months ended June 30, 1996, were $100,000, or 1 cent per share, and $111,000, or 1 cent per share, respectively, as compared with $620,000, or 7 cents per share, and $745,000, or 9 cents per share, for the second quarter and six months ended June 30, 1995.

"The sales and marketing costs associated with the new weight control product launch and the product line expansion in the GNC stores increased the marketing expense to $4,003,000, or 50 percent of sales, in the second quarter of 1996 as compared to $649,000, or 21 percent of sales, in the second quarter of 1995," said Richard B. Carlock, the company's chief financial officer. "We planned this level of spending to support the new weight control line. We are not timid about investing our revenues back into the aggressive marketing of our products. This serves to build a loyal retail base in the health food market, where we have experienced an 82 percent consumer repeat rate with key Nature's Secret(R) products. Additionally, we are building our infrastructure for much larger sales volumes as we enter into the mass retail market."

4Health announced last week that it had launched Lindsey Duncan's Home Nutrition(TM), a new brand for the mass retail market with UnDo.(TM), an herbal supplement that counteracts the effects of stress, poor diet and pollution. Six thousand drugstore retailers across the country have committed to initial orders for Undo.(TM).

On July 15, 1996, 4Health completed its merger with Surgical Technologies Inc., a publicly traded company, creating a public market for its registered shares. The reverse acquisition was accompanied by a 1:2 reverse split of the common shares outstanding.

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 over 6,000 health food stores nationwide, including GNC; Harmony Formulas(R), sold through healthcare practitioners; and Lindsey Duncan's Home Nutrition(TM), for the mass retail market (drugstore chains, supermarkets and mass discounters). -0-

                                        4Health Inc.
                                    Financial Highlights

                            Three Months Ended      Six Months Ended
                                June 30,                June 30,
                            1996        1995        1996        1995

Income Statement Data:
Net sales               $ 8,007,000 $ 3,083,000 $11,480,000  $ 4,632,000
Net income before taxes $    13,000 $   918,000 $    37,000  $ 1,102,000
Income taxes            $   (87,000)$   298,000     (74,000)     357,000
Net income              $   100,000 $   620,000 $   111,000  $   745,000
Earnings per common
 share                  $       .01 $       .07 $       .01  $       .09
Weighted average
 shares
 outstanding(a)           8,693,449   8,703,437   9,004,994    8,703,437

Balance Sheet Data:
(Proforma to reflect merger which consummated July 15, 1996):

                       June 30, 1996           June 30, 1995

Cash                    $ 3,822,906             $   344,600
Total assets            $15,097,826             $ 4,221,164
Long-term debt          $     2,409             $ 1,296,270
Stockholders' equity    $ 9,149,759             $ 1,636,328
Working capital         $ 5,315,480             $ 1,018,419

    (a)  Adjusted for shares issued to 4Health Inc. pursuant to the
merger.

CONTACT: 4Health Inc.

Renee Martin or James Roberts, 303/546-6306

or

Coffin * KCSA 

Doris Banchik, 818/789-0100