Gamma Pharmaceuticals to Ship Products to Fulfill Purchase Orders; Expects Products on Retailer Shelves Within the Month

LAS VEGAS, NV--(Marketwire - August 16, 2010) -

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Gamma Pharmaceuticals Inc.

Gamma Pharmaceuticals Inc. (PINKSHEETS: GMPM): Gamma Pharmaceuticals Inc. ("Gamma" or the "Company") announced that manufacturing is under way for several of its product lines pursuant to customer purchase orders, including Gamma's $48.0 million annualized guaranteed sales contract announced March 3rd 2010, and that shipping to retailers is expected to begin soon. Under the terms of the purchase orders, Gamma expects to begin receiving sales revenue by early September.

Joseph Cunningham, Gamma's Chief Financial Officer, commented, "With the support of our major distribution partner, Gamma was able to secure highly specialized purchase order financing that has enabled the Company to manufacture and deliver product and generate sales virtually from a standing start. We are now in the process of securing additional capital and financing that will permit Gamma to quickly ramp up sales pursuant to purchase orders and purchase discussions that have been ongoing."

On March 3, 2010, Gamma announced the Company had entered into a multi-year agreement (the "Agreement") with one of North America's leading wholesale distribution organizations to distribute the full line of Gamma products. The Agreement, which is evergreen in duration, provides for minimum monthly volume purchases of Gamma products at agreed upon pricing per SKU. The contracted terms prescribe a minimum purchase of 40,000 cases per month (after an initial ramp-up period) of Gamma's branded products, which at full distribution equates to annualized sales revenue of approximately $48.0 million. Gamma's distribution partner is a large wholesale distributor of branded consumer products in North America, and is credited with the enormous commercial success of many leading consumer brands.

Peter Cunningham, Gamma's Chief Executive Officer, commented on the news, "We are extremely excited about this important milestone. Over the last two years, Gamma has finalized our product formulation and packaging, completed contract manufacturing and supply chain logistics, established critical distributor and retailer arrangements, and developed a comprehensive marketing and promotion program designed to stimulate consumer demand for our unique branded products. Our close cooperation with our manufacturing partners has enabled Gamma to achieve a unit cost profile designed to generate a profit margin exceeding 60%. Our major distribution partner has gone far beyond the role of a typical distributor, fully backing our commercial launch. Our aim for our branded products is the broadest possible distribution and we continue to work to put in place a network to achieve our distribution objectives. In the process, we have transformed Gamma as a company."

About Gamma Pharmaceuticals Inc.
Gamma Pharmaceuticals Inc. (www.gammapharma.com) is a marketing and product formulation company selling its own branded products through wholesalers and direct to retailers, both in the US and internationally. Gamma's core focus is the marketing and sale of vitamins and nutriceuticals, OTC pharmaceutical products and personal care products in the United States and Greater China. Branded nutritional supplements are sold under the trademarks Brilliant Choice™ children's nutritional supplements featuring a gummy immune booster product; SAVVY™ adult nutritional supplements featuring formulations especially designed for the health issues of seniors and active adults, Jugular Energy Products™ and high performance supplements featuring the call to action, "Go for the Jugular™," and high performance sports nutrition products under the "Holyfield's Choice™" brand jointly developed with boxing legend Evander Holyfield. Gamma's customer focus is on selling products in the Lifestyle of Health & Sustainability ("LOHAS") marketplace and in the Energy Supplement Market. A series of innovative marketing programs supports Gamma's product sales and retail partners.

At present Gamma's products are manufactured in North America, and today, distributed in the United States and have been distributed in Asia where the Company maintains a wholly owned subsidiary based in Hong Kong and a representative office in Beijing. Gamma's products utilize proprietary patent pending "Gel Delivery Technology®," designed to create innovative gel product forms that give consumers a more pleasant experience. Gel Delivery Technology® characteristics include rapid absorption, convenience and taste great. Market categories Gamma targets are growing as rapidly as 60% per year. Gamma has developed formulas and strategies for Metabolic Syndrome and Diabetes Type II, Stress Reduction, Cognition, Well being, Menopause Symptoms and Personal Care Products. Gamma also develops and manufactures house brands for major retailers. At this time, Gamma has a total of 43 SKUs and holds licenses for 9 SKUs in China.

Forward-Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this Press Release regarding any impact the quotation of the Company's stock has on the Pink Sheets or the lack thereof on the OTCBB, and any other effects of the above are forward-looking statements. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.