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GULL LABORATORIES FINALIZES USANA SPINOFF

 SALT LAKE CITY, Feb. 2 /PRNewswire/ -- Gull Laboratories, Inc. (NASDAQ: GULL), a Salt Lake medical products firm, today provided details on the spin-off of its natural products division into a separate, free-standing company, USANA, Inc. All shareholders of Gull Laboratories will receive one share of USANA common stock for every share of Gull stock held on Dec. 15, 1992. Gull said it would have tripled earnings in 1992 over 1991 without the losses incurred by USANA.
 The company has filed a Form 10 to register the shares to be distributed in connection with the spin-off with the Securities and Exchange Commission and requested acceleration of the effective date for registration of the shares. USANA stock certificates are expected to be distributed in February 1993.
 Milton Adair, president and CEO of Gull Laboratories, commented, "The Health Products division simply did not fit into the strategic plans we have for the growth and expansion of Gull Laboratories, the diagnostics manufacturer. For example, Biodesign, the bioreagents manufacturer we recently acquired, is a much better fit because of the integration of their products and services with what Gull does best. Also, Gull Laboratories would have been able to report year-end earnings of $.30 per share, a 200 percent increase over 1991, except for losses of nearly $700,000 incurred by operations that accounted for less than 10 percent of our consolidated sales of $9.4 million."
 Myron Wentz, Ph.D., chairman of the board of Gull Laboratories and chairman, president and CEO of USANA, said that USANA was facing an uphill journey to profitability. "However, we feel that Gull's shareholders are better served by the spin-off of the division rather than having to face the prospect of continuing significant losses over the next several years," said Wentz. "Now Gull Laboratories -- without USANA -- will clearly demonstrate the strength of its medical diagnostics business."
 USANA's current products are a line of high-quality nutritional products, including unique formulations of vitamins, minerals and antioxidants. The company intends to begin marketing lines of biologically safe skin care products and environmentally friendly household products in 1993.
 Founded in 1974, Gull Laboratories, Inc. develops, manufactures and markets high-quality diagnostic test kits for the detection of infectious diseases. The company markets these products for use in hospitals and clinical laboratories around the world.
 -0- 2/2/93
 /CONTACT: Peter Van Duser of Gull Laboratories, Inc., 801-263-3524; or Bill Roberts of Cameron Towey Central, 513-891-1818, for Gull Laboratories, Inc./
 (GULL)


CO: Gull Laboratories, Inc. ST: Utah IN: MTC SU:

KK -- CL001 -- 1689 02/02/93 09:04 EST
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Date:Feb 2, 1993
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