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Nanotechnology Helps Improve RBC Third Quarter Profit
Wednesday November 12, 11:57 am ET


IRVING, Texas--(BUSINESS WIRE)--Nov. 12, 2003--Royal BodyCare, Inc. (OTCBB:ROBE - News) reported sales of $5,877,000 with net earnings of $261,000 or $.01 per share for the third quarter ended September 30, 2003, compared to sales of $6,203,000 and a net loss of $34,000 or $.00 per share for the same period last year.
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Clinton Howard, CEO stated, "While RBC nutritional product sales in North America declined in the third quarter 31% compared to the same period last year, international sales increased 100%, MPM Medical product sales increased 44%, and operating profit improved as a result of operational economies and a nanotechnology manufacturing process developed by Dr. Jerry Lee Phelps, Vice President of Science and Technology at RBC."

The steps in this proprietary process reduce the size of two nutritional minerals to extremely small compounds, less than 10 nanometers in size. (A nanometer is one billionth of a meter). These nanoscale compounds begin to cluster together like bunches of grapes to form submicroscopic nanoclusters. During this process other compatible nutrients may be introduced into the system. A unique characteristic of these nanoclusters is that they can act both as a carrier and as the active-substance, and they can be engineered for either rapid release or delayed release of the nutrients.

The active-substance system provides for rapid wetting of each molecule, which facilitates transport and enhances digestion and absorption of the nutrients. These extremely small compounds also have a greater surface area, and when consumed with water or other liquids, are more available to digestive juices, further supporting digestion and absorption.

This in-house manufacturing process has improved the Company`s gross margin by reducing the cost of products that account for over 50% of RBC sales worldwide, principally antioxidants Microhydrin®, Microhydrin® Plus and HydraCel(TM).

During the third quarter, RBC used this technology to enhance the taste of a new form of chocolate it has named CocoaClusters(TM), used in a low-calorie, low-fat, high-protein powder for a soy milk shake that is a part of the Company`s new dietary weight control program, "10 Days of Chocolate." The Company plans to apply this same manufacturing technology to other dietary supplements and skin care products. RBC products produced by this process are referred to by the Company`s trade name, NanoCeuticals(TM).

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