PREVENTCO: PREVENTCO INTRODUCES FIRST FAMILY DRUG PREVENTION PRODUCT
WITH INNOVATIVE SALES STRATEGY

PreventCo, a leading drug preventionrelated cost
containment company, has launched the first comprehensive
drug prevention tool developed for parents to use at home
to help keep their kids drugfree the Drug Free Family
PAK using an innovative direct sales approach to reach,
over the next 12 to 18 months, tens of thousands of parents
and grandparents of children 8 to 18 years of age.

"America's families are facing an unprecedented crisis
with teen and preteen drug abuse," according to
PreventCo's Chairman and President, Dr. Charles Granger.
"While the latest crime statistics show a reduction in
other categories of crime, drug abuse among our country's
children is skyrocketing and the age of firstuse is
dropping dramatically. In this environment, parents have
had little guidance and few effective tools to use, in the
home, to help them drugproof their kids until now."

PreventCo's Drug Free Family PAK, endorsed by the
American Foundation for Drug Prevention in an exclusive
"cause marketing" arrangement that provides a portion of
the revenue from each sale to the Foundation to help
underwrite its national drug prevention efforts, contains
nine video training tapes for parents and kids as
well as audio tapes, instruction booklets and other tools
designed to help them understand and address the risks of
drug abuse, and, as Dr. Granger says, "to win the war on
drugs in America, one family at a time." The Drug Free
Family PAK also provides, for a 12month period, 24hour
access to a phone hot line staffed by drug counselors, as
well as more than 200 prerecorded answers to the most
common drugrelated questions.

"The Family PAK also includes athome drug and alcohol
testing kits, along with instructions for their proper
use," Dr. Granger said. "Our extensive research among
parents with kids aged 8 to 18 indicated that 80 percent of
parents would agree to test their children for drugs and
alcohol if they suspected a problem. This FDAsanctioned
testing kit with instructions, and supported by our
24hour drugprevention hot line."

To help place this product on the market to reach the
greatest number of prospects in the shortest time
PreventCo has developed several innovative marketing
strategies. "Our most important strategy involves direct
sales through a network of independent sales reps," Dr.
Granger explained.

"We have launched this network by recruiting a
fastgrowing group of experienced sales reps, many of who
are also experts or professionals in the drug prevention
field. All of these reps also own and use the Family PAK in
their own homes that is a requirement for all sales reps.
Many of these new reps are affiliated with regional or
national drug prevention groups, which will use Family PAK
sales as both a fundraising tool and as a way of advancing
their groups' own drug prevention efforts."

In addition, PreventCo will be holding meetings in 10
major cities across the country in the next six weeks,
specifically recruiting direct sales superstars
especially those with extensive existing networks of sales
reps to add the Family PAK to their product lists. This
outreach effort to attract network marketing professionals
is designed to help jumpstart Family PAK sales.

Initial results are promising, and if this launch
continues to go according to plan, and if this product is
embraced by a significant number of experienced network
marketing professionals, PreventCo hopes to recruit
thousands of active sales reps and achieve sales of from
three to five Family PAKs per signed rep within the first
twelve to eighteen months. Family PAKs retail for $ 199.95,
and sale rep packages cost $ 475.00 for a package of sales
tools including a Family PAK, 25 sets of a hardhitting
video with its support brochure, and the nonexclusive
right to both sell Family PAKs and recruit other sales reps
into the network.

By using a network approach, PreventCo hopes to be able
to place thousands of Family PAKs with families across the
country and do so without incurring significant
salesrelated costs. "Because sales reps are independent
contractors," Dr. Granger explained, "they purchase their
own sales tools on an asneeded basis. This not only keeps
our costs down, but because the reps are invested into
the sales program they are motivated to succeed."

Supporting this effort, the American Foundation for Drug
Prevention is conducting what will be the largestever
ongoing drug prevention survey among parents across the
country.

Information from this survey is used by the American
Foundation for Drug Prevention to help shape both public
attitudes and national drug policy and participants are
also offered the opportunity to learn more about athome
drug prevention. Following completion of the survey, the
names of those who indicate a wish to know more about the
Family PAK are referred to the sales reps as a valuable
source of warm leads.

"This kind of support for independent sales reps is
unprecedented in network marketing," Dr. Granger said. "In
initial tests, this has proved to be an excellent
additional source of sales."

Another innovative sales strategy involves working
through membership groups such as credit unions to
offer the Drug Free Family PAK to members. This approach is
being validated in several testmarkets across the country,
and plans are in place to roll this out nationwide once
success has been demonstrated.

"We have a oneofakind product," Dr. Granger
concluded, "a selfhelp kits to give and grandparents a new
way of keeping their kids drugfree. With soaring teen and
preteen drug abuse, this new approach is vital to
preserving the sanctity and safety of the American family.
In addition, we have validated our product's value through
our affiliation with the American Foundation for Drug
Prevention and in a groundbreaking cause marketing
relationship, we are providing a portion of the revenue
from each sale to help underwrite that group's important
antidrug crusade.

"Finally, we are pioneering several innovative
approaches to ensure that the Family PAK receives
widespread distribution and are doing so in a way that
makes our sales costs selfliquidating. Together, these
efforts will help us to reach our ambitious sales targets
and to pave the way for additional new product launches
beginning later this year."

PreventCo is traded as PREV on the NASDAQ Bulletin
Board.

CONTACT: Ned Barnett Tel: +1 8008584797 *M2
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