Nutraceutix, Inc. Announces BaCCine -- New Listeria-Inhibiting Product Technology.

REDMOND, Wash.--(BW HealthWire)--June 30, 1999--

Nutraceutix, Inc. (OTC BB:NUTX) has developed the proprietary BaCCine(TM) Lactococcus lactis BT5100 that is designed to reduce the ability of food poisoning gram positive bacteria, like Listeria monocytogenes, to grow and cause infection.

The BaCCine technology involves a proprietary genetically selected strain of the healthful Lactococcus lactis bacteria that produces amounts of a natural antibiotic called nisin. Nisin has received the G.R.A.S. (Generally Regarded as Safe) designation by the FDA and has been shown to inhibit the growth of gram-positive pathogenic bacteria in over 70 independent laboratory examinations. The amounts of nisin produced by the BaCCine strain BT5100 are significant when compared with non-genetically selected wild species. Nutraceutix intends to market this organism for inclusion in health supplements and animal health products. Further information regarding BaCCine(TM) can be obtained by accessing the Nutraceutix website at: http://www.nutraceutix.com/.

Pregnant women and newborns, older adults, and people with weakened immune systems caused by cancer treatments, AIDS, diabetes, kidney disease, etc., are at risk for becoming seriously ill from eating foods that contain types of bacteria classified as gram positive pathogens. Foods that often contain gram positive pathogenic bacteria are soft cheeses, ready-to-eat meat products (hot dogs, sandwich meats, etc), and cultured milk products, like yogurt. One example of gram-positive pathogenic bacteria is Listeria monocytogenes an organism responsible for a serious illness called Listeriosis.

"This new strain is a direct result our ongoing microbial research program. This strain is expected to contribute to continual growth of our fermentation division," stated Bill St. John, president of Nutraceutix.

Except for any historical information, the matters discussed in this press release contain forward-looking statements, including activities, events or developments that the company expects, believes or anticipates will or may occur in the future. Such statements are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statement.

Nutraceutix, Inc. RN develops, licenses and manufactures proprietary and non-proprietary private-label health supplements and related products for major health supplement companies, with distribution to health food retailers, multi-levels, and mass merchants. Nutraceutix also manufactures products for major brands utilizing proprietary processes of Controlled Delivery Technology (CDT(TM)), Molecular Dispersion Technology (MDT(TM)), and LiveBac(R) probiotic caplets, as well as health supplement products containing the patented compound Calcium D-Glucarate(TM). Nutraceutix's fermentation facility is located at corporate headquarters where it also conducts research and development for the continued development of new health supplements for humans. Nutraceutix's private-label tableting, encapsulating and packaging facility is located outside Boulder, Colorado.