AMBI Reports On Product Launches and New Product Developments.

Business Editors/ Health&Medical Writers

PURCHASE, NY--(BW HealthWire)--June 12, 2000

American Home Products Launches First Products Under its

Strategic Alliance with AMBI;Comments Made at the U.S.

Bancorp Piper Jaffray Conference

AMBI Inc. (Nasdaq: AMBI) today announced that: (1) Solgar Vitamin and Herb, an operating unit under American Home Products Corporation's (NYSE: AHP) Whitehall-Robins Healthcare Division, has launched its first AMBI product and that a second is scheduled to be launched; (2) two new product lines have been developed for QVC; (3) a new product line for persons concerned about maintaining weight will be introduced in retail stores; and (4) a clinical trial on a new chromium picolinate-based product will be initiated for people concerned about maintaining healthy glucose metabolism. Jon de la Harpe, AMBI's Senior Vice President, Commercial Operations, made the announcements in a presentation at the U.S. Bancorp Piper Jaffray Conference in Minneapolis, Minnesota.

Dr. de la Harpe said, "In less than three weeks, AMBI will conclude its third consecutive year of increased revenues, profits, and cash flow from operations. While we have been building our distribution networks and strengthening our manufacturing systems, we have also been devoting considerable resources to the development of new products and it is especially gratifying to see that several will be launched next quarter at the start of our new fiscal year."

First products launched as part of AMBI's alliance with American Home Products

In March 2000 Solgar Vitamin and Herb launched Heart Salt, a reduced-sodium salt with added potassium and magnesium, and will launch a nutrition bar for people concerned about weight control, in health food stores in the 3rd calendar quarter of 2000. AMBI and AHP entered into a strategic alliance in October 1998 and AHP is AMBI's second largest shareholder, owning 11% of AMBI's common stock.

New product lines developed for QVC

In response to a desire by consumers to simplify the process by which they take dietary supplements, AMBI has developed `kits' that contain a monthly supply of daily packs of products under the CardiaNutrition(TM) (CN) brand name. CN kits were designed to take the confusion and guesswork out of dietary supplementation. Optimal combinations of nutrients have been customized into convenient daily packs so that it is easier to maintain a proper nutritional program every day. CN kits include: Heart Health, Lipid Metabolism, Glucose Metabolism, Active Lifestyle for Women, Active Lifestyle for Men, and Lean Body.

The CN kits were originally developed as a part of the Company's Heart's Content(TM) catalog. AMBI expects to introduce the kits on QVC in the 3rd calendar quarter of 2000 as part of AMBI's August 1999 strategic alliance with QVC. The packaging and labeling of the CN kits can be viewed at: www.AMBIinc.com.

Later this calendar year, AMBI expects to launch another product line called "Sonoma(TM)" Gourmet Protein Bars that contain 13 grams of soy protein and a custom blend of vitamins, minerals, and herbs that have a superior taste profile as compared to traditional protein-based energy bars.

A new retail product line to be launched

AMBI has developed No Yo(TM), a new product line of dietary supplements designed to address the issues associated with what is commonly referred to as "yo yo dieting," or "weight cycling," the phenomenon of losing then regaining weight. The No Yo(TM) line, which includes a bar, a shake, bite-size bars, and pills, will be offered to the retail trade beginning in the 3rd calendar quarter of 2000.

Update on new products in development

The Company has five dietary supplement products in development: (1) Chromax(TM) Plus, a newly patented form of chromium picolinate; (2) A glucose control drink that contains Chromax chromium picolinate; (3) A good-tasting arginine-based nutrition bar for cholesterol health; (4) Calcium taurate, a new composition for supplementing dietary calcium; and (5) A nisin-based product for maintaining colon health. Dr. de la Harpe noted that a new clinical trial on Chromax Plus is scheduled to begin in July 2000. This double-blind, placebo-controlled trial is being conducted among 60 type 2 diabetic patients in the United States who are all on anti-diabetic prescription medications. Dr. de la Harpe also indicated that three new patents on chromium-based products were granted and three more have been allowed in the current fiscal year.

Currently, AMBI has a total of ten trials underway, including clinical studies in humans and preclinical laboratory studies, and is committed to devoting resources to the discovery, development, and commercialization of novel nutrition products.

More Information on NutritionU.com

Dr. de la Harpe also commented on the progress being made at NutritionU.com, the Company's Internet business-to-professional nutrition education unit. NutritionU is an online nutrition education network that will offer patients and consumers unique interactive courses designed to increase their knowledge of nutrition in order to improve or maintain their health. The online nutrition courses offered by NutritionU are being developed in consultation with Columbia University's Institute of Human Nutrition. An Arthur Andersen team of ten professionals with expertise in Internet strategy, technology development, and Web-based learning is assisting NutritionU on site, with start-up operations management as well as business planning and development. More than seventy five registered dietitians and several hundred of their clients are involved in the beta testing of four courses. Following completion of this phase, additional testing will be conducted with a wider group of clients. Upon successful completion of all testing, it is anticipated that the business will be launched at the start of 2001. Additional information on NutritionU appears on our website: www.NutritionU.com.

AMBI develops and markets proprietary nutrition products.

This press release may contain certain forward-looking statements. The words "believe," "expect," "anticipate" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on the company's current expectations and are subject to a number of risks and uncertainties, including without limitation: the effect of the expiration of patents; regulatory issues; uncertainty in the outcomes of clinical trials; changes in external market factors; changes in the company's business or growth strategy or an inability to execute its strategy due to changes in its industry or the economy generally; the emergence of new or growing competitors; various other competitive factors; and other risks and uncertainties indicated from time to time in the company's filings with the Securities and Exchange Commission, including its Registration Statement on Form S-3, the Prospectus dated April 25, 2000, and its Form 10-K for the year ended June 30, 1999. Actual results could differ materially from the results referred to in the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements contained in this press release will in fact occur. Additionally, the company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements.