Carlon Colker, M.D., Appointed to Head Scientific Advisory Board; Reports Second Quarter Results and Recaps Recent Developments

Business Wire, August 23, 2005

LOS ANGELES -- Health Sciences Group, Inc. (OTCBB:HESG), provider of innovative nutraceutical products and functional food ingredients derived from natural sources, announced today that Carlon Colker, M.D., FACN has been appointed to chair the company's newly-formed Scientific Advisory Board.

"We are ecstatic to have Dr. Colker head up our scientific advisory board," stated Fred E. Tannous, Co-Chairman and Chief Executive Officer of Health Sciences Group. "As one of the premier researchers in the field of heath and nutrition, Dr. Colker has researched and designed many of the popular dietary supplements available today. We look forward to working with Dr. Colker to enhance the scientific support for our proprietary products. For example, we expect Dr. Colker will be the driving force behind our cholesterol product, Sequestrol. We plan to feature Sequestrol in an infomercial slated to air later this year. We look forward to working with Dr. Colker to enhance the medical and scientific foundation underlying each and every one of our products."

Carlon M. Colker, M.D., FACN is an internationally recognized consultant in the area of health and fitness. Specializing in internal medicine, medical nutrition and sports medicine, he works with professional athletes and celebrities as well as large health systems, governments and private companies. In addition to running his company, Peak Wellness, Inc., in Greenwich, Conn., Colker is an attending physician at Beth Israel Medical Center in New York and Greenwich Hospital in Connecticut.

"I'm very pleased to be part of the Health Sciences organization," said Colker. "With its portfolio of innovative and proprietary products, Health Sciences Group has tremendous potential for becoming a leading provider of scientifically-based nutritional products. I look forward to drawing upon my experience and resources to help boost the company's position in the industry. I see tremendous sales opportunities ahead for Health Sciences Group and look forward to helping capture them."

Colker has authored and co-authored numerous scientific publications and has been featured in a variety of sports and fitness magazines. In addition to being a columnist and contributing editor in Muscular Development Magazine, he has appeared on such shows as ESPN Outside the Lines, NBC's Health Segment and ABC's World News Tonight. He has been a long-time guest correspondent on America's Health Network "Ask the Doctor" segment and Fox News Channel's "Fox & Friends." He has also written several books, including "The Greenwich Diet" and "Extreme Muscle Enhancement -- Bodybuilding's Most Powerful Techniques."

In addition to being a Fellow of the American College of Nutrition, Colker is a member of the American Medical Association, the American College of Physicians, the American College of Sports Medicine and the Connecticut State Medical Society. He also holds various certifications in the areas of cardiac and trauma life support issued by the American Heart Association and the American College of Surgeons. Dr. Colker received his medical degree from Sackler School of Medicine in New York and a bachelors degree in biology from Manhattanville College in Purchase New York.

"We are fortunate to have Dr. Colker as our medical advisor," said Bill Glaser, Co-Chairman and President of Health Sciences Group. "He is not only well published but also highly regarded one of the world's foremost nutrition and dietary supplement experts and brings a tremendous level of knowledge and scientific resources, which we expect to utilize as we continue launching our proprietary products. We look forward to working with Dr. Colker on scientific initiatives."

Highlights & Recent Developments

During the second quarter, management continued to achieve key incremental milestones which are expected to establish a solid foundation for future growth of its business plan. Some key developments to date include:

--Shipped initial order of Shugr(TM) products to The Vitamin Shoppe for the sale of in all of its retail locations;

--Signed agreement with DNP International, a national distributor nutritional supplements and ingredients, for commercial sales of Shugr(TM);

--Retained a direct response production company to develop a thirty minute infomercial for Sequestrol;

--Recruited retired General Merrill A. McPeak as an outside member to its Board of Directors -- a 37-year veteran and former Chief of Staff of the United States Air Force; extensive experience in mission-critical planning and execution, as well as a rich background in both domestic and international affairs;

--Added Mr. Dean Blechman, founding family member of Twin Lab to its Advisory Board -- recognized leader in the nutritional product industry; brings 25 years of experience as former Executive Vice President of Sales at Twinlab; instrumental in growing Twinlab's annual revenues; and

--Shipped an initial order of Shugr(TM) products to GNC.

During the past six months, management concentrated on strengthening Shugr's product positioning by (i) introducing additional packaging configurations, such as its single-serving packets and re-sealable baker's bag, (ii) developing more compelling graphic package design suited for the food and mass market channels and (iii) reducing its cost of goods in order to achieve a more competitive pricing structure. "We have been methodically introducing Shugr to selected specialty retail outlets with an eye toward gathering targeted consumer feedback," commented Bill Glaser. "As a result, we are introducing Shugr in single-serving packets as well as re-sealable bags designed for baking applications. We expect to make incremental improvements in packaging, pricing and formulation prior to a mass market roll-out expected in the coming months."