Phlo Corporation (OTCBB:PHLC) ("Phlo") announced today that it has retained the services of Watson & Associates, LLC, an Atlanta-based beverage marketing firm.

Bob Watson, President of the firm, is a former marketing and finance executive of The Coca-Cola Company and senior vice president of Texas Commerce Bank. Clients of Watson & Associates have included The Coca-Cola Company, Coca-Cola Enterprises, Coca-Cola Bottling Company Consolidated, The Seven-Up Company, Del Monte Beverages, The Double Cola Company, Premium Beverages, and a wide range of independent soft drink bottlers throughout the United States.

Mr. Watson stated today, "Our firm is delighted to have the opportunity to work closely with Phlo Corporation to introduce to associates within the beverage industry the McCoy's line of quality products. We are particularly excited about ZO -Vital Cell Defense. It is a truly unique nutraceutical line of beverages which contains proprietary, patent-pending payloads that provide both excellent taste and real health benefits. We are particularly impressed with the delivery system known as the Phlo System, which protects the active payload in the beverage from the acidic environment of the stomach and delivers the actives when and where they are needed within the body. We know of no competing product in the marketplace today that affords the consumer this combination of benefits."

"The engagement of Watson & Associates will enable Phlo to be most effective in the communication of the unique benefits and attributes of its new ZO - Vital Cell Defense line of beverages to the top beverage distribution systems in the United States. ZO - Vital Cell Defense features Phlo's proprietary (patent-pending) composition with sustained-release capability, which helps protect cells from the oxidative stress of aging and stimulates cell repair," James B. Hovis, President and CEO of Phlo, said today. "The Company believes that Mr. Watson's experience as a director of marketing for Coca-Cola USA, as well as his management of several billion dollars in financial transactions within the beverage industry, will offer us tremendous opportunity with a wide range of contacts and distributors in the beverage industry."

"This association will strengthen Phlo's traditional beverage distribution network, a critical factor in the company's corporate strategy -- the control, under one corporate roof, of biotechnologies and the means of their relatively quick commercialization, both through the Company's traditional, existing distribution system, serving some of the Country's largest supermarket chains, and to a global market of consumers through the use of e-commerce," said Mr. Hovis.

Phlo features the use of the beverage medium to convey health benefits to the consuming public. The ZO - Vital Cell Defense line of beverages will be offered in 20 ounce glass bottles, initially in seven flavors: Cranberry Berry, Orange Carrot, Pink Lemonade, Tropical Punch, Kiwi Strawberry, Raspberry Vanilla, and Blackberry Cherry. Phlo's McCoy's Green Tea beverage line is available in seven different flavors and is the first and only new age beverage that delivers a truly functional level (250 mg) of powerful green tea catechins, including the super anti-oxidant EGCg. Studies show that a high daily intake of EGCg aids in the protection against cancer and cardiovascular disease. McCoy's Green Teas also feature Vitamin C and Siberian ginseng for sustained energy and concentration. Phlo is based in New York City at 475 Park Avenue South, Seventh Floor, New York, New York 10016 and can be reached at (212) 447-1322.

Certain statements made herein constitute "forward-looking" statements within the meaning of the Private Litigation Reform Act of 1995. Such statements are based on a number of assumptions and on information and estimates supplied to Phlo Corporation by its distributors. Such assumptions and estimates are subject to uncertainties, contingencies, and other factors, many of which are beyond Phlo's control. Actual results may differ materially from the statements set forth above.