New York,NY– August 29, 2007 – The Electronic Retailing Self -Regulation Program (ERSP) has determined that Iovate   Health   Sciences Inc.   (Iovate)   has   substantiated performance, establishment,  and exclusivity  claims   for  the  Sleep  MD  Formula   and  found  the  marketer’s voluntary   modification   of  the  expert  endorsement   claim   to  be  adequate.   The  marketer’s advertising  was challenged  by WellNx Life Sciences,  a competing manufacturer  of nutritional supplements.

ERSP,  the  electronic  direct-response  industry’s  self-regulatory  forum,  is  administered  by  the Council of Better Business Bureaus (CBBB) with policy oversight by the National  Advertising Review Council (NARC).

ERSP reviewed the following core claims:

• “Helps you fall asleep fast and wake up refreshed” “Promotes healthy sleep patterns and natural biorhythms” “Delivers restful, drug-free sleep when you need it”
• “…clinically  proven  key  ingredient  and  formulated  with  the  latest  in cutting-edge nanoparticulation technology”
• “This  groundbreaking  process,  Nano-Diffuse™,  reduces  the  size  of  a precise portion of the formula’s primary ingredient to near-micron size, allowing the dissolution process to begin right on your tongue.”
• “Doctor Formulated. Doctor Approved”

ERSP determined that the multiple clinical studies submitted by the marketer provided adequate support for the performance claims which involved the relative speed of sleep onset, the quality of sleep experienced, and the general safety of the product.

ERSP found that  three  clinical  studies  conducted  using  the same  dosage  level  of the primary ingredient  contained  in  the  product  adequately  supported  the  establishment   claim  that  the ingredient has been “clinically proven” to perform.

ERSP concluded that the exclusivity claims were adequately supported and determined that the marketer’s  voluntary modification  of its “Doctor  Formulated”  claim sufficiently alleviated  the potential that the claim would be broadly interpreted by consumers as meaning that the product is recommended by independent doctors.

The company, in its marketer statement,  said that “Iovate is pleased that ERSP found all of the performance  claims  for Sleep  MD to be substantiated  by randomized,  double -blind,  placeb o- controlled trials.” The marketer continued to say “Iovate appreciates ERSP’s careful attention to this  matter  and  will  continue  to  support  ERSP’s  efforts  to  promote  truthful  and  accurate advertising of dietary supplements.”