Gross profit percentage and dollar margins for the Cold Remedy segment for the year ended December 31, 2005 increased due to; increased cold remedy sales volume; the expiration in May 2005 of the founder’s commission and to the discontinuation of a cold remedy product, which reflected a charge of $1.4 million during the third quarter of 2004. This charge included a $422,000 write-off for inventory and a $974,000 reduction in net sales resulting from anticipated customer returns of the product. The gross profit percentage margins for the Health and Wellness declined due to inventory obsolescence and other charges. These gross profit gains of the Cold Remedy segment were also offset by substantially lower gross profit margins for the Contract Manufacturing segment, which is significantly lower than the other operating segments.

In addition to the foregoing net changes in gross profit, net income for the quarter and year ended December 31, 2005 as compared with the net income for the quarter and year ended 2004, was impacted by increased operating costs of all business segments, including non-manufacturing operating costs of the Contract Manufacturing segment in current operations rather than being carried as inventory. Net income results for the Cold-Remedy segment are substantially higher for the year 2005 as attained in 2004, which were affected by the relatively unchanged net income results of the Health and Wellness segment and were negatively impacted by the results of the Contract Manufacturing segment.

No tax or tax benefits to reduce income or losses are provided for the quarters and year ended December 31, 2005 and 2004, except for limitations imposed by the alternative minimum tax for 2005, since the Company is in a net operating loss carry-forward position.

Guy J. Quigley, Chairman, President and Chief Executive Officer stated, “We are pleased with the results for 2005 in which The Company’s Cold Remedy net sales for the year far outpaced its category for the second consecutive year. The dramatic increase in net sales is due largely to the further success of our Cold Remedy segment which generated greater profit margins, market penetration and customer acceptance of our COLD-EEZE® Cold Remedy products. The further expansion of the Cold Remedy segment continues to reap the benefits of our strategic marketing initiatives; new product extensions of COLD-EEZE® and ongoing efforts to generate greater consumer acceptance and expand household penetration.

The increase in net sales for the year also reflects a significant increase in our Contract Manufacturing segment, which incorporates sales for the entire year of 2005 as compared to three months for 2004. Although the Health and Wellness segment remained relatively unchanged, the Company generated a greater than 50% increase in its international distribution and we remain focused on expanding this international growth.”

“While the incidence of colds can vary each year, we are encouraged by the growth potential of our Cold Remedy segment to garner further consumer acceptance and enhance product sales. We are committed to developing products that provide potential to be an opportunity for expansion, market penetration and future growth by appealing to the broadest possible demographics of both younger and older adults.”

“We also remain focused on expanding our wholly-owned Ethical Pharmaceuticals subsidiary, Quigley Pharma, which is in the process of developing natural-source potential prescription medicinals for Diabetic Neuropathy, Systemic Radiation, Rheumatoid Arthritis, Avian Flu, Multiple Sclerosis and Ocular and Genital Herpes. In addition, we have received all eight Investigational New Animal Drug (INAD) numbers from the Center for Veterinary Medicine of the Food and Drug Administration species the Company applied for relative to its anti-viral compound, firmly establishing the Company’s veterinary commitment in parallel to the human drug development program. We continue moving forward with our development and testing phases of ethical pharmaceutical drugs and are confident that this segment of our business will be a source of future growth for the Company,” concluded Mr. Quigley.