Allergy Research Group, Inc. Reports Profits For 2002.

Business Editors/Health/Medical Writers

HAYWARD, Calif.--(BUSINESS WIRE)--March 14, 2003

Allergy Research Group, Inc. (OTCBB:ALRG) today announced financial results for the year ending December 31, 2002.

ALRG recorded total revenue of $12,684,413 for the year, up 8% from 2001. The increase of $935,214 is primarily due to increased marketing efforts and the introduction of new products.

"We are encouraged by the increase in sales which is instrumental in meeting our financial goals," said Chief Executive Officer and Chairman, Dr. Stephen A. Levine, Ph.D., who has implemented a strategy that includes cost controls, the development of a comprehensive management team, increased sales and marketing efforts and reduction of debt.

Cost of sales increased $480,016 to $7,587,795 for the year ended December 31, 2002, compared to $7,107,779 for the year ended December 31, 2001, a corresponding increase resulting from the increase in sales. Gross profit margins increased approximately .7%, approximating 40.2% for 2002 resulting from the higher margins associated with retail sales.

During the period ended December 31, 2002, the Company recorded net income of $997,862, as compared to net income of $326,557 for the period ended December 31, 2001. The increase is a reflection of the increase in sales, higher profit margins, a reduction in selling and general and administrative expenses, from $4,070,974 in 2001 to $3,924,080 in 2002 and a reduction of interest expense. Interest expense decreased approximately $122,393 for the year ended December 31, 2002, as compared to December 31, 2001 due to declining interest rates and the reduction of our outstanding line of credit to zero during the fourth quarter of 2002.

Complete copies of the company's financial statements, including notes to the financials, can be found on its 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 physicians and healthcare practitioners worldwide.

Except for historical information contained herein, this release contains, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: the impact of competitive products, changes in law and regulations, adequacy and availability of insurance coverage, availability of raw materials, dependence on distributors and customers, litigation, limitations on future financing, the effect of adverse publicity, uncertainties relating to acquisitions, managing and maintaining growth, customer demands, as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations department.