MODERN HEALTH LABS PARTICIPATES IN ERSP SELF-REGULATORY FORUM

New York, NY - January 25, 2005 - The Electronic Retailing Self- Regulation Program (ERSP) announced that Scalp Med Hair Restoration for Men and Women ("Scalp Med"), marketed by Modern Health Labs, Inc. ("MHL"), has provided a reasonable basis for establishment, safety, and performance claims.

The marketer's advertising was reviewed pursuant to ERSP's monitoring program. ERSP, the electronic direct-response industry's self-regulatory forum, is administered by the Council of Better Business Bureaus and supervised by the National Advertising Review Council (NARC). ERSP reviewed core claims that include:
"Prevent hair loss; reverse thinning hair; and even grow new hair."
"...results that I would get having surgery without having to have the surgery."
"Clinically proven to thicken and re-grow your hair faster than a hair transplant."
"FDA has ruled that its growth agent is the most effective and safest topical formula that exists for regrowing hair."

ERSP determined that MHL provided a reasonable basis for the following performance claims:
"Your hair will grow back thicker and fuller."
"Incredibly effective for both men and women."
"...liquid actually gets sucked in, increased blood flow...stays on follicle."
"Thicken your hair the first time you use it."

ERSP further determined that Food and Drug Administration approval of the Vitadil formulations to "regrow hair" provided a reasonable basis for the claims that hair will "grow back thicker and fuller" and that Scalp Med will "prevent hair loss," "reverse thinning hair" and "re-grow hair." ERSP also noted that the marketer agreed to discontinue the claim "...start seeing results in weeks not months" in future advertising. With respect to its comparative claims against hair transplants, ERSP determined that MHL properly supported the statement "...works faster than a hair transplant." ERSP further concluded that the claim "...results that I would get having surgery without having to have the surgery," was not unreasonably communicated and would not be misinterpreted by consumers..