Carrington Laboratories, Inc. Signs Term Sheet With AM Labs for Distribution of Oral Products to Retail Markets

IRVING, Texas, March 19 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc. announced today it has signed a term sheet with AM Laboratories to co-brand Carrington's oral technology line of oral patches and rinses. The patches are used for the management of dry socket, general lesions or irritations in the oral cavity and canker sores. The rinse is used to manage problems associated with stomatitis and mucositis caused by radiation or chemotherapy. Both products relieve pain.

Under the terms of the agreement, which initially is for one year, with the opportunity for extension, Carrington will manufacture and supply its oral technology products to AM Labs under a co-brand arrangement. In return, AM Labs will be responsible for the sales, marketing and distribution of these products through their existing network of national and regional retail channels.

Carrington's line of oral patches and rinses fits within AM Labs' direction of taking professional products and re-positioning them for retail success. The patch product is manufactured at Carrington's facility in Costa Rica and the rinse at Carrington's Irving, Texas facility. Both facilities are ISO certified and produce products under current good manufacturing practices (cGMP) as recognized by the FDA and, thus meet or exceed retail and consumer quality demands guidelines.

"This is a great opportunity for Carrington's oral products to reach consumers through strong retailers and continue to diversify our business and channels," stated Mr. Doug Golwas, Carrington's Vice President of Corporate Sales and Marketing. "AM Labs and their consumer packaging partner have a proven track record of taking quality products and positioning them for success with consumers through America's leading retailers. They have high level relationships within these companies and know how to market products directly to the public."

About AM Labs

AM Labs LLC is a marketing, sales, and distribution company in San Diego, CA. The principals of the company have over 40 years of experience selling medical, beauty, and health related products into the retail and professional environment.

AM Labs LLC has partnered with MMI Inc., which over the past sixteen years has sold millions of dollars into the major drug chains. MMI Inc. has been involved in over 20 new product launches in the retail drugstore market as well as launching over 100 products on the Walgreen's E-Commerce site alone. Their products are among the top ten sellers in the Walgreen's chain.

AM Labs also has an exclusive affiliation with Impact Packaging and Design, LLC. Impact Packaging and Design is a retail packaging company that designs, manufactures, and sells packaging into many different retail channels. Impact Packaging and Design has been involved in creating new packaging and design concepts for products that have been sold into Nordstrom's, Wal-Mart, and Walgreen's. Impact Packaging and Design also has a fulfillment arm, bulk mailing center, and distribution division, which ships products into the retailing distribution centers.

About Carrington

Carrington Laboratories, Inc., is an ISO 9001-certified, research-based, biopharmaceutical and consumer products company currently utilizing naturally- occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care, as well as to manufacture and market the nutraceutical raw material Manapol(R) and cosmetic raw material Hydrapol(TM). Carrington also manufactures and markets consumer products and manufactures quality products for other companies. Manufacturing operations comply with cGMP standards.

Carrington's wholly-owned subsidiary, DelSite Biotechnologies, Inc. is developing its proprietary GelSite(R) technology designed to provide controlled release of peptide and protein-based drugs. DelSite is currently developing a nasal powder vaccine using its GelVac(TM) formula with the H5N1 avian flu antigen. This work is partially funded by two grants from the Department of Health and Human Services.

Carrington and DelSite technologies are protected by more than 130 patents in 26 countries. Select products carry the CE mark, recognized by more than 20 countries around the world. For more information, visit .

Certain statements in this release concerning Carrington may be forward- looking. Actual events will be dependent upon a number of factors and risks including, but not limited to: subsequent changes in plans by the Company's management; delays or problems in formulation, manufacturing, distribution, production and/or launch of new finished products; changes in the regulatory process; changes in market trends; and a number of other factors and risks described from time to time in the Company's filings with the Securities & Exchange Commission, including the Form 10-Q, filed November 14, 2006.

Carrington Laboratories, Inc.

CONTACT: Doug Golwas of Carrington Laboratories, Inc., +1-972-518-1300

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