Allergy Research Group, Inc. Continues to Report Profitability; Final Clearance Received From SEC On 10SB Registration.

Business Editors

HAYWARD, Calif.--(BUSINESS WIRE)--April 6, 2001

Dr. Stephen Levine, CEO of Allergy Research Group, Inc. (ALRG), had good news for shareholders on two fronts today. Allergy Research Group released the Independent Auditor's Report for fiscal year ended December 31, 2000, which reflects the company's continuing profitability. He was also most pleased to announce that its Form 10-SB registration statement has cleared comments with the U.S. Securities & Exchange Commission. Allergy Research Group, Inc. is working with its market maker at Herzog, Heine, Geduld, Inc. to qualify its common stock trades for listing on the Nasdaq Over-the-Counter market (OTCBB) under the trading symbol of ALRG. The stock is currently trading on the National Quotation Bureau (NQB) Electronic Quotation System (EQS), the "pinksheets".

Fiscal Year Ended December 31, 2000 Compared to December 31, 1999

During the period ended December 31, 2000, the Company experienced a net income of $264,976, as compared to a net loss of $(1,795,225) for the period ended December 31, 1999. The increase is primarily due to a reduction in selling and general and administrative expenses, including salaries, from $5,350,071 in 1999 to $3,763,734 in 2000.

Operating expenses decreased by approximately $1,823,375 or 29% to $4,505,276 for the year ended December 31, 2000 from $6,328,651 for the year ended December 31, 1999, primarily attributable to an approximate decrease of $1,035,000 in payroll and related costs resulting from the departure of several members of management and the closing of the Scottsdale, Arizona marketing office. The Company has centralized its operations to its corporate headquarters by closing down offsite locations, thereby reducing total occupancy costs by approximately $116,000 which was offset by subletting a portion of its warehouse space at $8,320 per month, or $99,840 of income per year.

At December 31, 2000, the Company had a positive working capital of $315,280, compared to a negative working capital at December 31, 1999 of $86,217. The Company has been successful in paying down its outstanding debt as a result of overall decreased operating expenses, and as evidenced by a decrease in outstanding accounts payable to $848,187 at December 31, 2000 from $1,296,755 at December 31, 1999.

Complete copies of the financial statements, including notes to the financials, can be found on our website at www.nutricology.com.

About Allergy Research Group, Inc.

Allergy Research Group, Inc. is an innovative leader in nutraceutical research and product formulation. Since its inception in 1979, the company has been noted for quality, hypoallergenic nutritional supplements and supplies products to over 6,000 physicians and healthcare practitioners worldwide.

The information contained in this news release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such statements regarding the timing of acquiring and developing new products, of bringing them on line and of deriving revenues and profits from them, as well as the effects of those revenues and profits on the company's margins and financial position, is uncertain because many of the factors affecting the timing of those items are beyond the company's control.