AMBI Enters Into a Marketing and Brand-building Strategic Alliance With QVC.

PURCHASE, N.Y.--(BW HealthWire)--Aug. 16, 1999--

Agreement Expands Existing Relationship and Includes New

Product Launches as well as New Market Opportunities

QVC Receives Performance-Based Warrants

AMBI Inc. (Nasdaq: AMBI) announced that it has entered into a marketing and brand-building strategic alliance with QVC, Inc., the world's largest TV shopping network.

This alliance builds significantly upon the existing relationship between the companies by enabling AMBI to launch new products quickly and economically and to expose its products to new markets. Terms of the agreement include: (1) Expansion of distribution of Lite Bites(R) nutrition products outside of the US; (2) Launch of another Lite Bites product called Sweet Support(TM); (3) Testing a new AMBI product line comprised of multiple nutrition products; and (4) Evaluation of other distribution channels for Lite Bites and Sweet Support products.

The first two initiatives under the strategic alliance include the launch of Sweet Support, a dietary supplement bar formulated to support the special nutritional needs of people concerned with blood sugar levels in the US, and the launch of Brite Bites(TM), a nutrition bar similar to Lite Bites, on the QVC network in the UK. Both Sweet Support and Brite Bites should be launched before the end of the calendar year.

"The strengthening of the relationship with QVC represents another important element of our plan to forge alliances with companies that have leading market-share positions in the key distribution channels for nutrition products," said Fredric D. Price, AMBI's President and Chief Executive Officer. "QVC has achieved more than a two-thirds share of the television shopping-at-home market, reaching over 70 million homes in the US and 7.2 million in the UK."

QVC's Vice President Business Development, Daniel J. Schutzman said, "We are pleased to have upgraded the relationship between the companies from a traditional supplier/distributor arrangement to one that mutually aligns our goals over the long term. We look forward to bringing AMBI's proprietary products to a wider audience of health-conscious consumers."

AMBI has issued to QVC 420,000 warrants to purchase AMBI common stock, with an exercise price at a premium to AMBI's current market price, that will vest over a three-year period based upon the achievement by QVC of certain sales goals during those years.

AMBI established its relationship with QVC in January 1999 when AMBI acquired the Lite Bites line of nutrition products. Since that time, AMBI has launched a new and improved Lite Bites line that is formulated with Chromax(R) chromium picolinate, its proprietary ingredient that has three separate patents related to its use as a dietary supplement to maintain healthy glucose levels, preserve lean body mass (muscle), and promote healthy cholesterol levels.

AMBI develops and markets proprietary nutrition products.

The statements in this press release that are not historical facts are forward-looking statements based upon current expectations. Such forward-looking statements involve risks and uncertainties, including risks and uncertainties set forth in "Risk Factors" and elsewhere in AMBI's Registration Statement on Form S-3 and the Prospectus dated June 10, 1999 and AMBI's Form 10-K/A for the year ended June 30, 1998. Actual results and timing of certain events could differ materially from those indicated in the forward-looking statements as a result of these and other factors.