Letter from the President of Pharmanex

We are pleased to announce the introduction of an innovative, cutting-edge breakthrough technology called biophotonics. Biophotonics is an emerging area of scientific study based on the use of laser light to non-invasively detect specific biomarkers in the human body. Scientists are extremely excited about the potential medical applications of biophotonics in a variety of situations that currently require invasive testing procedures. We also expect biophotonics to provide us with important new insight on the relationship of health and nutrition.

Recently, Pharmanex obtained exclusive rights to the non-medical use of the biophotonic scanning instrument that non-invasively detects the presence of an important class of antioxidants called carotenoids in living human tissue. We have called this new instrument the Pharmanex BioPhotonic Scanner. This scanner employs a low power blue-light laser reflected off the palm of the hand that readily provides the person being scanned with a personal antioxidant biomarker reading called a "Body Defense Score." Unlike current antioxidant testing methods that require invasive collection of tissue samples or body fluids, the Pharmanex BioPhotonic Scanner safely and accurately measures antioxidant activity at the site of biological action in the skin.

We believe this scanner will cause a paradigm shift in our understanding of antioxidants and health. The ability to track antioxidant activity will provide Distributors with demonstrable proof of the health benefits of our products. Furthermore, as consumers track their Body Defense Scores they will be motivated to consume our products more consistently and for longer periods of time thus resulting in increased earning opportunity for Distributors. This added value will be very difficult for any competitor to match and strengthens the Pharmanex differentiating proposition for Distributors and consumers alike.

I have never been more excited about the launch of a Pharmanex product or program. I believe the Pharmanex BioPhotonic Scanner will transform our nutritional business. We are fully committed to the timely deployment of this technology in many of our markets before the end of 2003.

Sincerely,

Joe Chang, Ph.D. President, Pharmanex