Phlo Corporation (OTCBB:PHLC - news; "Phlo") announced today the execution of an agreement providing for the exclusive license, for all uses, worldwide, of a proprietary (patent-pending) composition which in tests has demonstrated the capability of eliminating acne with consistent use within a period of three weeks to three months, depending on the severity of the condition. The composition can be delivered orally through liquid formulations and provides the foundation for teen-directed beverages. The uses for which Phlo has exclusively licensed the composition include pharmaceuticals, biotechnologicals, nutraceuticals, dietary supplements, food and beverage products and topical preparations.

The composition supports products, including liquid formulations, which can be marketed and sold through e-commerce. Phlo plans to introduce such products later in the year to coincide with the launch of its e-commerce capability.

Phlo also plans to introduce the anti-acne composition through new beverage products directed to its existing distribution system, through distributors such as Haddon House and Gourmet Awards and through supermarket chains which carry its McCoy's beverages, such as A&P, Grand Union, Stop & Shop and Super Fresh. Phlo's beverages are currently sold in 2,577 chain supermarkets, not including independent supermarkets and "up and down the street" retail outlets.

"This exciting development further demonstrates Phlo's control, under one corporate roof, of biotechnologies and the means of their relatively quick commercialization," Phlo President and Chief Executive Officer, James B. Hovis, said today. "More importantly, this development demonstrates a technological base capable of supporting the commercialization of numerous products both through Phlo's traditional, existing distribution system, which serves some of the Country's largest supermarket chains, and to a global market of consumers through the use of e-commerce."

Phlo recently announced the introduction of its new "ZO - Vital Cell Defense" line of beverages which features its proprietary (patent-pending) composition consisting of Vitamin E phosphate combined with a delivery system (with sustained-release capability). Phlo's tests, in vitro and in vivo, demonstrate that this composition stimulates the membrane repair function of cells, particularly of the liver, heart, and brain, and is effective in protecting cells from oxidative stress associated with aging and exposure to toxins. Phlo's Vital Cell Defense beverage line under the brand name ZO initially will be offered in seven flavors: Cranberry Berry, Orange Carrot, Pink Lemonade, Tropical Punch, Kiwi Strawberry, Raspberry Vanilla, and Blackberry Cherry.

Additionally, Phlo announced in May the acquisition of technology providing it with a pipeline of cognition and weight-loss products. Phlo executed an agreement providing for the exclusive license, for all uses, worldwide, of a proprietary (patent-pending) composition which has demonstrated potent memory and cognition-enhancing capabilities, based on tests involving the composition. Results of tests also indicate that the composition acts as a strong appetite suppressant, and acts as a novel stimulant which prevents the secondary depression associated with stimulant intake. Phlo is in the process of developing a liquid formulation containing this technology for introduction into the marketplace later this year.

Phlo features the use of the beverage medium to convey health benefits to the consuming public. 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. All natural fruit juices, iced teas and lemonades are also available under the McCoy's brand name. 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.