Justice Department Frito Lay probe of retail shelf space purchasing is "just the tip of the iceberg," says California OTC drug producer.

VISTA, Calif.--(BUSINESS WIRE)--June 10, 1996--CAPRICE GREYSTOKE ENTERPRISES Ltd. (Vancouver Stock Exchange Trading Symbol: CPT-CN) CEO and founder John Spector applauds the Justice Department probe of retail shelf space purchasing practices.

"Retail shelf space purchasing for over-the-counter pharmaceuticals is the same as salty snack shelf space purchasing currently being investigated by the Justice Department," according to Spector. "Salty snack shelf space purchasing is just the tip of the iceberg!"

The Justice Department's concern for the effect of shelf space purchasing on open competition has been widely reported, such as the recent articles written by John Greenwald in the 6/10/96 issue of TIME Magazine ("Frito-Lay Under Snack Attack"), and by Rob Wells of the Associated Press ("Frito-Lay Muscle Probed").

CAPRICE GREYSTOKE, a small manufacturer of OTC remedies, cannot compete directly in the U.S. Over-The-Counter pharmaceutical market due to the cost of shelf space "slotting allowances" as well as the co-op advertising allowances required by major retail chains, according to Spector.

In 1994, the proprietary appetite suppressant "SPRAY-U-THIN," manufactured by Caprice Greystoke, captured 12.8 percent of the U.S. appetite suppressant sales for a leading U.S. drug and food chain and outsold 73 percent of all products in the appetite suppressant market, more than Dexatrim or Acutrim, according to Towne Oller & Associates reports.

"Consumers were aggressively buying our products," said Spector. "We had the production capacity and quality control. Major retail chains were interested. Our first patent approval was imminent. The excitement for our products spread over into our stock activity. Our stock moved up to $4.65 a share, equating to an approximate market capitalization of $14 million, a big change from our 1991 opening per share price of $.45 on a $500,000 initial capitalization."

"That was the good news," said Spector. "In spite of our initial sales success, profit did not materialize because of shelf space `slotting allowances' and co-op advertising demanded by U.S. retail chains that were far in excess of budgeted advertising and sales costs."

"Success in our business requires stepping outside the box of normal head-to-head competition," said Spector. CAPRICE GREYSTOKE ENTERPRISES Ltd., located in the northern San Diego County town of Vista, has raised its capital in Canada on the wild and woolly Vancouver Stock Exchange (VSE symbol:CPT-V) and has found global sales success in Russia, Central America, South America, Africa and the Far East.

"We learned the hard way about the cost of shelf space and co-op advertising with our first product. `SPRAY-U-THIN.' As a result, we radically changed our strategies for the introduction of our patented new oral spray caffeine stimulant, `SPRAY-N-WAKE'," said Spector.

CAPRICE GREYSTOKE's newly patented oral spray stimulant, `SPRAY- N-WAKE', meets head-to-head competition from Bristol Myers Squibb's NO DOZ, as well as other caffeine pills. Key to strong consumer demand for the unique oral spray caffeine stimulant are the numerous advantages of the delicious oral spray format as contrasted to pills and capsules.

"Now we are targeting our sales to foreign markets where we are not limited by our size nor by the need to overcome entrenched competition. In our foreign markets, NO DOZ is no better known than `SPRAY-N-WAKE'. We do not have to pay for foreign shelf space, and the typical U.S. market co-op advertising is not required," said Spector.

"We see our future in the U.S. marketplace in some form of strategic allegiance yet to be written, such as licensing or even an acquisition by one of the major pharmaceutical companies who find our patented products to be a good fit with theirs to enhance an existing product synergy," said Spector.

"Several of the large players in the Over-The-Counter remedy market have contacted us regarding our future in the U.S. marketplace," said Spector. "Now we are into a whole new learning curve. We've gone from competing with the major players to talking to them. I don't know which is worse!"

"We have come a long way during our first six years, and our foundations remain strong. First, our vision of the clear advantages and consumer preference for our unique oral spray format for certain OTC remedies. And secondly, we retained control of our company and our mission," said Spector. "Perhaps with venture capitalists we would have made fewer mistakes, but I doubt that we would be here talking about it."

"Most important, in the long run our shareholders will be better off. We have been able to focus intently on our mission and as a result we have prevailed with our unique oral spray caffeine patent," said Spector. "And we are in the final phase of the patent process for another extraordinary oral spray product."

"Yes, we are trailblazers," said Spector. "With the Vancouver capital market, our innovative products, unique new markets and aggressive sales strategies, we are recovering from our losses caused by the cost of shelf space `slotting allowances' and co-op advertising, and we are now successfully approaching the global marketplace with our unique oral spray OTC remedies."

Further information regarding CAPRICE GREYSTOKE ENTERPRISES Ltd. and its products can be obtained by visiting the company's Web Site at http://users.aol.com/capricegr/ or by e-mail at [e-mail] or by calling the company at 800/322-5738 or by writing the company at 1259 Activity Drive, Vista, Calif. 92083. -0-

NOTE: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

CONTACT: Caprice-Greystoke Enterprises Ltd., Vista

John Spector, 800/322-5738