Allergy Research Group, Inc. Retains New Director of Marketing.

Business Editors

HAYWARD, Calif.--(BUSINESS WIRE)--June 13, 2002

Allergy Research Group, Inc. (ARG) (OTCBB:ALRG) today announced that the Company has appointed Dr. Nicholas Calvino, D.C. as its new Director of Marketing as part of a continuing effort to increase sales.

Dr. Calvino is one of the industry's leading marketing innovators. He is an experienced marketer and president of Natural Health Partners, LLC, a consulting and public relations firm dealing with marketing strategies for consumer product companies selling to licensed health care professionals. Dr. Calvino has worked with and for some of the industries top nutraceutical companies.

Dr. Calvino will be assisting ARG in introducing an innovative educational program on CD ROM, called "Seminars in a Box(TM)" that allow health care professionals on their own time to keep up on new scientific literature surrounding nutritional products. He will also be launching his proprietary 7 Habits of the Highly Effective Practice(TM) and Practice Enhancement(TM) Tools through ARG to support the growth and success of top accounts.

The expansion of the Company's marketing team is part of Chief Executive Officer, Dr. Stephen A. Levine's, strategy for increasing revenues to the Company. While sales were relatively flat during 2001, with the Company reporting net sales of $11,749,199 for the fiscal year end, ARG has seen an increase in net sales during the first quarter of 2002 of $150,238 over the same period in 2001. Based on its current rate of sales, the Company also expects to show increased sales during the second quarter of 2002.

The introduction of new products has helped to spur the increase in sales. During the first quarter of 2002, ARG added five new products to its existing product line. Coag Cal Oxygenation Formula (an herbal formula to support general circulation), L-Citrulline (an amino acid for optimizing blood flow), Nattokinase (supports the body in dissolving the unhealthy coagulation of blood), NeoDerma (provides hydration of the skin and other organs at the cellular level) and Metabolic Co-Factor (support for utilization and metabolism of essential fatty acids.)

The increase in net sales during the first quarter of 2002 was offset by an increase in cost of sales of $111,523 from the first quarter of 2001. Cost of materials increased because the volume of capsules in each container of selected products was increased without passing the cost on to the consumer. The volume change was made in an effort to increase the value of the product in anticipation of generating increased sales. The cost of freight also increased. Gross profit margins decreased approximately .9% for the first quarter, approximating 40% for 2002.

Net income for the year ended December 31, 2001 was $326,557. For the quarter ended March 31, 2002, net income was $292,955 compared to $177,774 for the quarter ending March 31, 2001. The increase in net income is primarily attributable to reduced selling, general and administrative expenses. The Company renegotiated its line of credit, which significantly reduced interest expense beginning in June 2001, reflecting a decrease of approximately $45,900 for first quarter of 2002 compared to the same period last year. Interest expense decreased as a result of reductions in the outstanding line of credit balance from $929,200 at March 31, 2001 to $470,064 at March 31, 2002, and as a result of a reduction in the interest rate the Company was paying on the line of credit prior to renegotiating the loan. The line of credit is used to finance accounts receivable and inventory.

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 over 6,000 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.