NUTRITION 21 REPORTS 4TH QTR NET LOSS OF $8.2 MILLION.

Nutrition 21, Inc. (NASDAQ: NXXI), Purchase, N.Y.,a leading developer and marketer of chromium-based and omega-3 fish oil- based nutritional supplements, has announced financial results for the fourth quarter and fiscal year ended June 30, 2007. The delay in reporting since announcing preliminary results on August 13, 2007 was due to the additional time needed to complete a $17.75 million financing on September 10, 2007 as well as the time needed to meet year-end financial and Sarbanes-Oxley audit requirements.

Revenues for the fourth quarter were $12.0 million, compared to $2.5 million for the comparable period a year ago. Net loss for the fourth quarter of fiscal year ended June 30, 2007 was $8.2 million or $0.13 loss per diluted share compared to a $3.7 million or $0.9 loss per diluted share in the 2006 period. For the fiscal year ended June 30, 2007, Nutrition 21 reported total revenues of $42.1 million compared to $10.7 million in fiscal year 2006. Net loss for fiscal year 2007 was $19.1 million or $0.33 loss per diluted share, compared to a net loss of $10.3 million or $0.26 loss per diluted share for the prior fiscal year. Revenues in the fourth quarter were negatively impacted by a $1.8 million return of Selenomax[R] by a national retailer who had made a one-time $2.6 million purchase in the third quarter. In August, Nutrition 21 entered into an agreement to sell the returned inventory to a third party for $1.7 million in barter credits that the company expects to use in fiscal 2008. The net loss for the year includes a one-time net charge of $1.4 million in the fourth quarter due to the return of Selenomax, as well as a $0.7 million non-cash impairment charge for intangibles.

In general, the net loss for the quarter and the year reflects the investment and commitment made to transition from a research and development-focused company primarily selling chromium picolinate as an ingredient, to a sales and marketing-driven company selling branded consumer products targeting the growing age and weight- related health needs, including diabetes, cardiovascular health, obesity, joint health, cognitive function and mental health.

As previously announced, the activities and investments made during the fiscal year include:

Adding key members to our retail sales, marketing and distribution team;

Conducting pre-market activities associated with launching ChromaX, Iceland Health Omega-3, Iceland Health Joint Relief and Diachrome into the retail channel. These activities include market research, focus groups, web site development, collateral development, as well as developing integrated marketing programs, such as PR, print and radio advertisements;

Acquiring Iceland Health, Inc. on August 25, 2006, and integrating its established line of Omega-3 products promoting cardiovascular and joint health. The acquisition also provides us with direct-to-consumer marketing and sales capabilities, allowing us to effectively leverage television infomercials, print, radio, direct mail, and Internet e-commerce;

Expanding the company's direct response operations by adding new call centers; developing new marketing and sales programs in Spanish; producing and launching a 30-minute infomercial for Chromax and developing line extensions for the Iceland Health franchise that will launch in the fall of 2007;

Testing and refining radio and print media campaigns for the products that Nutrition 21 currently sells at retail. Completing research and development for Core4Life Advanced Memory Formula, a nutritional supplement for promoting cognitive function. The company recently completed a randomized, double-blind, placebo-controlled, clinical trial evaluating recall performance and brain activity using MRI scans. Nutrition 21 has filed a patent covering this product; and Preparing for the fall 2007 launch of Core4Life Advanced Memory Formula and the launch of Diabetes Essentials, a line of nutritional supplements for people with type-2 diabetes. Major retailers and key regional retailers have already placed purchase orders for both products.

Paul Intlekofer, Nutrition 21's president and CEO, said, "We now have a diverse portfolio of best-in-class products, extensive marketing capabilities, strong relationships with our retail distributors and an experienced staff. Excluding the one-time sale and return of Selenomax, we have grown revenues in each of the last four quarters. The investments we made during this past year and the recent $17.75 million financing will enable us to continue to build our brands and to position us to be able to generate sustainable growth over the next few years."

About Nutrition 21

Nutrition 21 is a nutritional bioscience company and the maker of chromium picolinate-based and omega-3 fish oil-based supplements with health benefits substantiated by clinical research. Nutrition 21 holds over 30 patents for nutrition products and uses. The company markets Chromax chromium picolinate, which is the most-studied form of the essential mineral chromium. Chromax, a supplement for healthy and pre-diabetic people that promotes insulin health and helps improve blood sugar metabolism, cardiovascular health, control cravings and fight weight gain, is now available through food, drug and mass retailers nationwide. Another chromium picolinate-based supplement developed and marketed by Nutrition 21 is Diachrome[R], a proprietary, non-prescription, insulin sensitizer for people with type 2 diabetes. It is sold in select drug retailers nationwide. The company omega-3 fatty acids, which are manufactured to pharmaceutical standards and sold under the Iceland Health brand.

For more information, visit http://www.nutrition21.com or call 914/701-4525.