Phlo Corporation (OTC BB:PHLCE) announced that approximately 2,600 chain supermarkets have authorized the sale of its new "ZO - Vital Cell Defense" line of beverages, featuring its proprietary (patent-pending) composition with sustained-release capability which helps protect cells from the oxidative stress of aging and stimulates cell repair. The launch of the Vital Cell Defense line marks the successful commercialization of one of Phlo's biotechnologies.

Phlo's largest existing distributors, such as Haddon House and Gourmet Awards, have agreed to distribute the Vital Cell Defense line to their account base. To date, 38 chain accounts, comprising approximately 2,600 stores, have authorized the sale of the new ZO brand, including A&P, Acme, Grand Union, Super Fresh, Waldbaum's, and Winn Dixie. The Company is in the process of presenting ZO - Vital Cell Defense to a number of the largest distribution systems in the United States.

Wegmans, a major supermarket chain in upstate New York which boasts some of the largest selling space and highest revenues per store of any supermarket chain in the nation, has recently authorized the sale of ZO - Vital Cell Defense and all of Phlo's other beverage products. Wegmans supermarkets feature extensive gourmet and natural foods sections and are serviced by Haddon House.

"With ZO - Vital Cell Defense, Phlo is offering in the marketplace, through beverage form, a patented payload, protected from the acidic environment of the stomach with sustained release capability," Phlo President and CEO James B. Hovis said today. "There is no competing product in the marketplace today, and these elements give Phlo the opportunity to enter the largest beverage distribution systems in the Country. These features will be present in all of Phlo's future beverage products."

Additionally, three new distributors have agreed to distribute Phlo's McCoy's and ZO beverage brands in their respective territories. These additions include Let Us Produce, which distributes brands such as Evian, Nantucket Nectars, and Jones Sodas in the Southern East Coast (Virginia to North Carolina); S&S Distributors, which distributes Hansen's, Poland Springs and Evian throughout Long Island; and Capitol Beverage, which distributes a wide range of brands, including Hansen's, in the five boroughs of New York City and in West Chester County. Together, these three distributors service over 11,000 accounts, including both chains and independent, "up and down the street" retail outlets.

Phlo's biotechnology contained in the ZO - Vital Cell Defense beverage line (the "Vital Cell Defense Technology") has been shown through in vitro and in vivo tests to be effective in protecting cells from oxidative stress associated with aging and exposure to toxic agents. Further, these tests have shown this composition to be effective in stimulating the membrane repair function of cells, particularly of the liver, heart and brain. The composition's delivery system will protect the active payload from destruction by enzymes in the body, therefore allowing the actives to reach their intended target tissue and to penetrate cell membranes for maximum beneficial effect.

Phlo has exclusively licensed the Vital Cell Defense Technology for all uses, worldwide, including, among other things, pharmaceuticals, biotechnologicals, nutraceuticals, dietary supplements, food and beverage products and topical preparations (for therapeutic or cosmetic use).

The inventor of the Vital Cell Defense Technology is Robert G. Lamb, Ph.D., Department of Pharmacology and Toxicology, Medical College of Virginia, Virginia Commonwealth University. Dr. Lamb is working with Phlo in the further development of the Vital Cell Defense Technology for other uses including pharmaceutical products for the treatment of disorders such as Alzheimer's disease, alcoholic liver disease, cancer, heart disease, and emphysema. Dr. Lamb is a top expert on liver function who has conducted over 30 years of research focusing on how the liver meets the demands of energy storage, lipoprotein biosynthesis, membrane phospholipid synthesis, hydrolysis, and bile formation. Dr. Lamb has developed an in vitro model which mimics the response of liver cells to various agents in the intact animal. He has over 100 publications to his credit and has received numerous grants from entities such as the National Institute of Health and the Environmental Protection Agency to support his research.

The ZO - Vital Cell Defense beverage line 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. The beverage line will later be expanded to include at least four flavors of iced tea.

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. Phlo Corporation 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.