----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**FORM      10-QSB**

| x  | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF 1934** |
|---------|---------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended June 30, 2006**

**-OR-**

|  o  |  **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from _________to________**

**Commission      File No. 333-36379**

**PACIFICHEALTH      LABORATORIES, INC.**

|   | **DELAWARE***(State                or other jurisdiction of**incorporation                or organization)* |   | **22-3367588***(I.R.S.                Employer**Identification                Number)* |   |
|--------|-------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|

|   |   |   |   |   |
|--------|--------|--------|--------|--------|

|   | **100                Matawan Road, Suite 420****Matawan,                NJ***(Address                of principal executive offices)* |   |  **07747***(Zip                Code)* |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|

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**PACIFICHEALTH        LABORATORIES, INC.**

**TABLE        OF CONTENTS**

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| CAUTIONARY                  NOTE REGARDING FORWARD-LOOKING STATEMENTS | 3      |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   |
| PART                  I. FINANCIAL INFORMATION                        |   |
|                                                                  |   |   |   |
| ITEM                  1.                                              |   | FINANCIAL                  STATEMENTS |   |
|                                                                  |   |   |   |
|                                                                  |   | Balance                  Sheet as of June 30, 2006 (Unaudited) and December 31,                  2005 | 4 |
|                                                                  |   |   |   |
|                                                                  |   | Statements                  of Operations (Unaudited) for the three months and six months ended                  June                  30, 2006 and June 30, 2005 | 5 |
|                                                                  |   |   |   |
|                                                                  |   | Statements                  of Cash Flows (Unaudited) for the six months ended June 30, 2006 and                  June 30, 2005 | 6 |
|                                                                  |   |   |   |
|                                                                  |   | Notes                  to Financial Statements | 7 |
|                                                                  |   |   |   |
| ITEM                  2.                                              |   | MANAGEMENT’S                  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                  OPERATIONS | 11 |
|                                                                  |   |   |   |
| ITEM                  3.                                              |   | CONTROLS                  AND PROCEDURES | 15 |
|                                                                  |   |   |   |
| PART                  II. OTHER INFORMATION                           |   |
|                                                                  |   |   |   |
| ITEM                  1.                                              |   | LEGAL                  PROCEEDINGS | 15 |
|                                                                  |   |   |   |
| ITEM                  2.                                              |   | UNREGISTERED                  SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 15 |
|                                                                  |   |   |   |
| ITEM                  3.                                              |   | DEFAULTS                  UPON SENIOR SECURITIES | 15 |
|                                                                  |   |   |   |
| ITEM                  4.                                              |   | SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY HOLDERS | 15 |
|                                                                  |   |   |   |
| ITEM                  5.                                              |   | OTHER                  INFORMATION | 16 |
|                                                                  |   |   |   |
| ITEM                  6.                                              |   | EXHIBITS | 16 |
|                                                                  |   |   |   |
| SIGNATURES                                                            | 18     |

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**Cautionary      Note Regarding Forward-Looking Statements**

*As      used herein, unless we otherwise specify, the terms the “Company,” "we," "us,"      and "our" means PacificHealth Laboratories, Inc.*

*This      Report contains forward-looking statements concerning our financial condition,      results of operations and business, including, without limitation, statements      pertaining to: *

| *·  * | *The                development, testing, and commercialization of new products and the                expansion of the market for our current                products;* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *The                receipt of royalty payments from our agreements with business                partners;* |
|----------------------|-------------------------------------------------------------------------------------------------------------|

| *·  * | *Implementing                aspects of our business plans;* |
|----------------------|--------------------------------------------------------------|

| *·  * | *Financing                goals and plans;* |
|----------------------|---------------------------------------------|

| *·  * | *Our                existing cash and whether and how long these funds will be sufficient                to                fund our operations; and* |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *Our                raising of additional capital through future equity financings.* |
|----------------------|--------------------------------------------------------------------------------------|

*These      and other forward-looking statements are primarily in the section entitled      "Management's Discussion and Analysis of Financial Conditions and Results of      Operations". Generally, you can identify these statements because they include      phrases such as "anticipates," "believes," "expects," "future," "intends,"      "plans," and similar terms. These statements are only predictions. Although      we      do not make forward-looking statements unless we believe we have a reasonable      basis for doing so, we cannot guarantee their accuracy, and actual results      may      differ materially from those we anticipated due to a number of uncertainties,      many of which are unforeseen. You should not place undue reliance on these      forward-looking statements, which apply only as of the date of this Report      on      Form 10-QSB. Our actual results could differ materially from those anticipated      in these forward-looking statements for many reasons, including those stated      in      this Report. We undertake no obligation to update publicly any forward-looking      statements, whether as a result of new information, future events or otherwise.      We cannot be sure when or if we will be permitted by regulatory agencies to      undertake clinical trials or to commence any particular phase of clinical      trials. Because of this, statements regarding the expected timing of clinical      trials cannot be regarded as actual predictions of when we will obtain      regulatory approval for any “phase” of clinical trials. *

*We      believe it is important to communicate our expectations to our investors. There      may be events in the future, however, that we are unable to predict accurately      or over which we have no control. Cautionary language in this Report provides      examples of risks, uncertainties and events that may cause our actual results      to      differ materially from the expectations we describe in our forward-looking      statements. *

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**PART      I. FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

**PACIFICHEALTH        LABORATORIES, INC.**

**BALANCE        SHEETS**

| **ASSETS**                                       |
|--------------------------------------------------|
|                                             |   |   |   |   |   |
|                                             |   | June                      30, 2006(Unaudited)  |   |  December                      31,2005  |   |
| Current                      assets:             |   |   |   |   |   |
| Cash                      and cash equivalents   |   | $ | 2,743,833 |   | $ | 138,487 |   |
| Accounts                      receivable, net    |   |   | 867,413 |   |   | 187,835 |   |
| Inventories                                      |   |   | 1,146,112 |   |   | 1,309,779 |   |
| Prepaid                      expenses            |   |   | 177,572 |   |   | 119,002 |   |
| Deferred                      tax asset          |   |   | — |   |   | 1,278,000 |   |
| Total                      current assets        |   |   | 4,934,930 |   |   | 3,033,103 |   |
|                                             |   |   |   |   |   |   |   |
| Property                      and equipment, net |   |   | 88,552 |   |   | 65,357 |   |
|                                             |   |   |   |   |   |   |   |
| Deposits                                         |   |   | 40,865 |   |   | 20,393 |   |
|                                             |   |   |   |   |   |   |   |
| Total                      assets                |   | $ | 5,064,347 |   | $ | 3,118,853 |   |
|                                             |   |   |   |   |   |   |   |

| **LIABILITIES                      AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                       |   |   |   |   |   |
| Current                      liabilities:                                                                                                                                                                                                                  |   |   |   |   |   |
| Notes                      payable                                                                                                                                                                                                                         |   | $ | 68,061 |   | $ | 129,944 |   |
| Accounts                      payable and accrued expenses                                                                                                                                                                                                 |   |   | 506,526 |   |   | 1,546,958 |   |
| Deferred                      revenue                                                                                                                                                                                                                      |   |   | 339,233 |   |   | 369,068 |   |
| Total                      current liabilities                                                                                                                                                                                                             |   |   | 913,820 |   |   | 2,045,970 |   |
|                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Long-term                      liabilities:                                                                                                                                                                                                                |   |   |  |   |   |  |   |
| Convertible                      notes payable                                                                                                                                                                                                             |   |   | — |   |   | 500,000 |   |
|                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Stockholders’                      equity:                                                                                                                                                                                                           |   |   |  |   |   |  |   |
| Preferred                      stock:                                                                                                                                                                                                                      |   |   |  |   |   |  |   |
| Series                      A, convertible, no par value; 90,909 shares authorized; -0-                      issued and                      outstanding at June 30, 2006 and 90,909 issued and outstanding at                      December 31, 2005 |   |   | — |   |   | 966,387 |   |
| Series                      B, convertible, no par value; 45,455 shares authorized, -0-                      shares issued                      and outstanding at June 30, 2006 and December 31,                      2005                           |   |   | — |   |   | — |   |
| Common                      stock, $.0025 par value; authorized                                                                                                                                                                                            |   |   |  |   |   |  |   |
| 50,000,000                      shares; issued and outstanding:                                                                                                                                                                                            |   |   |   |   |   |   |   |
| 12,648,990                      shares at June 30, 2006 and                                                                                                                                                                                           |   |   |   |   |   |   |   |
| 10,267,045                      shares at December 31, 2005                                                                                                                                                                                                |   |   | 31,623 |   |   | 25,667 |   |
| Additional                      paid-in capital                                                                                                                                                                                                            |   |   | 17,730,291 |   |   | 15,790,335 |   |
| Accumulated                      deficit                                                                                                                                                                                                                   |   |   | (13,611,387 | ) |   | (16,209,506 | ) |
|                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                       |   |   | 4,150,527 |   |   | 572,883 |   |
|                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Total                      liabilities and stockholders’ equity                                                                                                                                                                                      |   | $ | 5,064,347 |   | $ | 3,118,853 |   |

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**PACIFICHEALTH            LABORATORIES, INC.**

**STATEMENTS            OF OPERATIONS**

**FOR            THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2006 AND            2005**

**(UNAUDITED)**

|                                                                                           |   |  **Three                      Months****Ended                      June 30,** |           |   |    |  **Six                      Months****Ended                      June 30,** |    |
|------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|----------------|--------|---------|----------------------------------------------------------------------------------|---------|
|                                                                                           |   |                                                                               | **2006**  |   |    | **2005**                                                                    |    |   |   |   | **2006**  |   |   | **2005**  |   |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Revenues:                                                                                      |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
|    Net                      product sales                                       |   | $                                                                                  | 1,747,206      |   | $       | 2,042,382                                                                        |    |   |   | $ | 3,322,602 |   | $ | 3,040,043 |   |
|                                                                                           |   |                                                                               |                |   |    |                                                                                  |    |   |   |   |  |   |   |  |   |
| Cost                      of goods sold                                                        |   |                                                                               | 952,691        |   |    | 1,294,909                                                                        |    |   |   |   | 1,711,086 |   |   | 1,899,307 |   |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Gross                      profit                                                              |   |                                                                               | 794,515        |   |    | 747,473                                                                          |    |   |   |   | 1,611,516 |   |   | 1,140,736 |   |
|                                                                                           |   |                                                                               |                |   |    |                                                                                  |    |   |   |   |  |   |   |  |   |
| Selling,                      general and administrative expenses                              |   |                                                                               | 782,430        |   |    | 1,065,721                                                                        |    |   |   |   | 1,530,763 |   |   | 2,071,075 |   |
| Research and                      development expenses                                    |   |                                                                               | 46,233         |   |    | 46,095                                                                           |    |   |   |   |  87,484 |   |   | 119,118 |   |
| Depreciation                      expense                                                      |   |                                                                               | 14,858         |   |    | 16,141                                                                           |    |   |   |   | 28,952 |   |   | 32,303 |   |
|                                                                                           |   |                                                                               | 843,521        |   |    | 1,127,957                                                                        |    |   |   |   | 1,647,199 |   |   | 2,222,496 |   |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Net                      operating loss                                                        |   |                                                                               |  (49,006  | )      |    | (380,484                                                                         | )       |   |   |   |      (35,683 | ) |   | (1,081,760 | ) |
|                                                                                           |   |                                                                               |                |   |    |                                                                                  |    |   |   |   |  |   |   |  |   |
| Other                      income (expense):                                                   |   |                                                                               |                |   |    |                                                                                  |    |   |   |   |  |   |   |  |   |
|                       Gain on sale of patents/technology, net of expenses of $90,795 |   |                                                                               | —        |   |    | —                                                                          |    |   |  |  | 3,909,205 |  |  | — |  |
|    Interest                      income                                         |   |                                                                               | 24,319         |   |    | 1,315                                                                            |    |   |   |   | 32,733 |   |   | 2,922 |   |
|    Interest                      expense                                        |   |                                                                               |  (1,487   | )      |    | (28,181                                                                          | )       |   |   |   | (30,136 | ) |   | (47,743 | ) |
|                                                                                           |   |                                                                               |  22,832   |   |    | (26,866                                                                          | )       |   |   |   | 3,911,802 |   |   | (44,821 | ) |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| (Loss)                      income before income taxes                                    |   |                                                                               |  (26,174  | )      |    | (407,350                                                                         | )       |   |   |   |  3,876,119 |   |   | (1,126,581 | ) |
|                                                                                           |   |                                                                               |                |   |    |                                                                                  |    |   |   |   |  |   |   |  |   |
| Provision                      for income taxes                                                |   |                                                                               | —        |   |    | —                                                                          |    |   |   |   |  1,278,000 |   |   | 2,115 |   |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Net                      (loss) income                                                         |   | $                                                                                  |  (26,174  | )      | $       | (407,350                                                                         | )       |   |   | $ |  2,598,119 |   | $ | (1,128,696 | ) |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Less                      preferred dividends                                                  |   |                                                                               | (5,000         | )      |    | (5,425                                                                           | )       |   |   |   | (10,425 | ) |   | (8,333 | ) |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Net                      (loss) income applicable to common stockholders                       |   | $                                                                                  | (31,174        | )      | $  | (412,775                                                                         | )       |   |   | $ | 2,587,694 |   | $ | (1,137,029 | ) |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Basic                      (loss) income per share                                        |   | $                                                                                  | 0.00           |   | $       | (0.04                                                                            | )       |   |   | $ | 0.23 |   | $ | (0.11 | ) |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Diluted                      (loss) income per share                                           |   | $                                                                             | 0.00           |   | $  | (0.04                                                                            | )  |   |   | $  | 0.20 |   | $  |  (0.11 | )  |
|                                                                                           |   |                                                                               |                |   |    |                                                                                  |    |   |   |   |  |   |   |  |   |
| Weighted                      average common shares - Basic                                    |   |                                                                               | 11,368,088     |   |    | 10,237,045                                                                       |    |   |   |   | 11,070,122 |   |   | 10,237,045 |   |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |
| Weighted                      average common shares - Diluted                                  |   |                                                                               | 11,368,088     |   |    | 10,237,045                                                                       |    |   |   |   | 13,167,853 |   |   | 10,237,045 |   |
|                                                                                           |   |                                                                               |           |   |    |                                                                             |    |   |   |   |   |   |   |   |   |

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| **PACIFICHEALTH                    LABORATORIES, INC.**                                                                               |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| **STATEMENTS                    OF CASH FLOWS**                                                                                       |   |
| **FOR                    THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005**                                                                |   |
| **(UNAUDITED)**                                                                                                                       |   |
|                                                                                                                                  |   |   |   |   |   |
|                                                                                                                                  |   | 2006 |   | 2005 |   |
| Cash                    flows from operating activities:                                                                              |   |   |   |   |   |   |   |
| Net                    income (loss)                                                                                                  |   | $ | 2,598,119 |   | $ | (1,128,696 | ) |
| Adjustments                      to reconcile net income (loss) to net cash                      used in operating activities:        |   |   |   |   |   |   |   |
| Depreciation                                                                                                                          |   |   | 28,952 |   |   | 32,303 |   |
| Allowance                    for doubtful accounts                                                                                    |   |   | 6,000 |   |   | - |   |
| Equity                    instrument based consulting expense                                                                         |   |   | 109,639 |   |   | 272 |   |
| Gain                      on sale of patents and technology, net                      of expenses of $90,795                          |   |   | (3,909,205 | ) |   | - |   |
| Provision                    for income taxes                                                                                         |   |   | 1,278,000 |   |   | - |   |
| Changes                    in assets and liabilities:                                                                                 |   |   |   |   |   |   |   |
| Increase                    in accounts receivable                                                                                    |   |   | (685,578 | ) |   | (527,802 | ) |
| Decrease                    in inventories                                                                                            |   |   | 163,667 |   |   | 322,324 |   |
| (Increase)                    decrease in prepaid expenses                                                                            |   |   | (58,570 | ) |   | 21,461 |   |
| Increase                    in deposits                                                                                               |   |   | (20,472 | ) |   | - |   |
| (Decrease)                    increase in accounts payable/accrued expenses                                                           |   |   | (1,040,432 | ) |   | 259,967 |   |
| (Decrease)                    increase in deferred revenue                                                                            |   |   | (29,835 | ) |   | 126,971 |   |
| Net                    cash used in operating activities                                                                              |   |   | (1,559,715 | ) |   | (893,200 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Cash                    flows from investing activities:                                                                              |   |   |   |   |   |   |   |
| Purchase                    of property and equipment                                                                                 |   |   | (52,145 | ) |   | (11,085 | ) |
| Proceeds                      from sale of patents and technology, net                      of expenses of $90,795                    |   |   | 3,909,205 |   |   | - |   |
| Net                    cash provided by (used in) investing activities                                                                |   |   | 3,857,060 |   |   | (11,085 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Cash                    flows from financing activities:                                                                              |   |   |   |   |   |   |   |
| Issuance                    of notes payable                                                                                          |   |   | 763,443 |   |   | 2,982,815 |   |
| Repayments                    of notes payable                                                                                        |   |   | (825,326 | ) |   | (2,759,939 | ) |
| Repayments                    of convertible notes payable                                                                            |   |   | (500,000 | ) |   | - |   |
| Preferred                    stock issued                                                                                             |   |   | - |   |   | 1,000,000 |   |
| Costs                    associated with preferred stock issuance                                                                     |   |   | - |   |   | (51,947 | ) |
| Proceeds                    from common stock options/warrants exercised                                                              |   |   | 869,884 |   |   | - |   |
| Net                    cash provided by financing activities                                                                          |   |   | 308,001 |   |   | 1,170,929 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Net                    increase in cash                                                                                               |   |   | 2,605,346 |   |   | 266,644 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Cash,                    beginning balance                                                                                            |   |   | 138,487 |   |   | 25,832 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Cash,                    ending balance                                                                                               |   | $ | 2,743,833 |   | $ | 292,476 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Supplemental                    disclosures of cash flow information:                                                                 |   |   |   |   |   |   |   |
| Cash                    paid for interest                                                                                             |   | $ | 30,136 |   | $ | 47,743 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Schedule                    of non-cash financing activity:                                                                           |   |   |   |   |   |   |   |
| Conversion                      of 90,909 shares of Series A Preferred Stock into                      909,091 shares of common stock |   | $ | 966,387 |   | $ | - |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |

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**PACIFICHEALTH      LABORATORIES, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**FOR      THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005**

**(UNAUDITED)**

**1.        Basis of Presentation:**

|   | The                accompanying unaudited financial statements have been prepared in                accordance with accounting principles generally accepted in the United                States of America for interim financial information and with the                instructions for Form 10-QSB and Item 310 of Regulation S-B. Accordingly,                they do not include all of the information and footnotes required                by                generally accepted accounting principles for complete financial                statements. In the opinion of management, all adjustments (consisting                of                normal recurring accruals) considered necessary for a fair presentation                have been included. Operating results for the three and six months                ended                June 30, 2006 are not necessarily indicative of the results that                may be                expected for the year ending December 31, 2006. The unaudited financial                statements should be read in conjunction with the financial statements                and                footnotes thereto included in the Company's annual report on Form                10-KSB                for the year ended December 31,                2005. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On                February 22, 2006, pursuant to an Asset Purchase Agreement of the                same                date, we sold to Mott’s LLP (“Mott’s”) the patents, trademarks, web sites,                and other intellectual property related to our ACCELERADE and ENDUROX                sports nutrition product lines for $4,000,000 in cash and potential                future                royalty payments. Simultaneously, we entered into a License Agreement                with                Mott’s giving us the exclusive, royalty free right to continue to sell                our                sports nutrition products in powder, gel and pill form. Consequently,                we                will continue to sell our current sports nutrition products in the                same                manner as prior to the sale of the intellectual property assets. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If                Mott’s launches a product using the purchased assets, we will receive                royalty payments for a finite period following such launch, subject                to an                annual limitation on the amount of the royalty. There are no minimum                royalties and there is no specific time by which Mott’s must launch a                product, but we will have the option to repurchase the assets if                a product                is not launched within a time specified in the Asset Purchase Agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                preparation of financial statements in conformity with accounting                principles generally accepted in the United States of America requires                management to make certain estimates and assumptions that affect                the                reported amounts of assets, liabilities and disclosure of contingent                assets and liabilities at the date of the financial statements and                the                reported amount of revenue and expenses during the reporting period.                Actual results may differ from these estimates. The significant estimates                and assumptions made by the Company are in the area of revenue                recognition, inventory obsolescence, allowance for doubtful accounts,                and                valuation allowances for deferred tax                assets. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2.      Revenue Recognition**

|      | Sales                are recognized when all of the following criteria are met: (1) persuasive                evidence that an arrangement exists; (2) delivery has occurred or                services                have been rendered; (3) the seller’s price to the buyer is fixed and                determinable; and, (4) collectibility is reasonably assured. Sales                are                recorded net of incentives paid to                customers. |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      | In                December 2003, the Company entered into a purchasing agreement with                a                significant customer for its strength training products whereby all                unsold                product is subject to a right of return provision if certain minimum                levels of retail sales in a 12-month period of time from the date                of                initial sale are not achieved. In March 2005, our major customer                informed                us that it would discontinue carrying our strength training products.                The                Company and the customer agreed to a significant discount program                in the                second quarter of 2005 to transfer these products to the customer                with no                further recourse to the Company. Given the ongoing significant business                relationship between the Company and the customer, the Company discounted                product to the customer even though it was not contractually obligated                to                do so. |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      | In                April 2004, the Company entered into a purchasing agreement with                the same                significant customer for all other products sold to this customer                whereby                all unsold product is subject to return provisions identical or similar                to                the one disclosed above. Through December 31, 2004, in addition to                the                four criteria described above, the Company recognized revenue related                to                these products after analyzing retail sell-through data provided                by the                customer and the Company’s expectation of future customer sell-through                trends. A new agreement was signed in April 2005 that increased minimum                levels of retail sell-through requirements. Since January 1, 2005,                the                Company recognizes revenue when its major customer sells through                its                products to the consumer. This change was made due to the inability                to                accurately estimate future returns from this customer as the Company                has                previously agreed to accept returns/discounts of product from this                customer that it was not contractually obligated to do so as well                as                because the Company entered into a new purchasing agreement with                this                customer that increased certain sell-through minimums. At June 30,                2006,                the Company has deferred $339,233 in revenues related to this                customer. At June 30, 2005, the Company had deferred $502,971 in                revenues                related to this customer. |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**3.      Inventories**

|                                                                                    |   |  June                  30, 2006(Unaudited) |      |  December                  31, 2005 |   |
|-----------------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|------------------------------------------|--------|
|     Raw                  materials                                  |   | $                                               | 143,091   |                                     | $      | 102,587 |   |
|     Work                  in                  process               |   |                                            | —   |                                     |   | 8,847 |   |
|     Packaging                  supplies                             |   |                                            | 43,873    |                                     |   | 46,880 |   |
|     Finished                  goods                                 |   |                                            | 820,176   |                                     |   | 989,814 |   |
|     Finished                  goods                  on consignment |   |                                            | 138,972   |                                     |   | 161,651 |   |
|                                                                                    |   |                                            |      |                                     |   |   |   |
|                                                                                    |   | $                                               | 1,146,112 |                                     | $      | 1,309,779 |   |

**4.      Stock Based      Compensation**

|                                          |   |       |      |          |   | **Weighted-**                   |   |          |   |
|-----------------------------------------------|--------|------------|-----------|---------------|--------|---------------------------------|--------|---------------|--------|
|                                          |   |       |      | **Weighted-** |   | **Average**                     |   |          |   |
|                                          |   |       |      | **Average**   |   | **Remaining**                   |   | **Aggregate** |   |
|                                          |   |       |      | **Exercise**  |   | **Contractual**                 |   | **Intrinsic** |   |
| **Options**                                   |   | **Shares** |      | **Price**     |   | **Term                (Years)** |   | **Value**     |   |
| **Balance,                January 1, 2006**   |   |       | 1,970,000 |          | $      | 1.11                            |   |          |   |   |   |   |   |
| Granted                during the period      |   |       | 508,000   |          | $      | 0.56                            |   |          |   |   |   |   |   |
| Exercised                during the period    |   |       | (640,000  | )             | $      | 0.46                            |   |          |   |   |   |   |   |
| Expired                during the period      |   |       | (212,500  | )             | $      | 1.51                            |   |          |   |   |   |   |   |
| **Outstanding,                June 30, 2006** |   |       | 1,625,500 |          | $      | 1.14                            |   |          | 3.19   |   | $ | 896,445 |   |
| **Exercisable,                June 30, 2006** |   |       | 902,500   |          | $      | 1.58                            |   |          | 2.38   |   | $ | 348,845 |   |

----

|                                       | **June                30,****2006** |
|--------------------------------------------|-------------------------------------|
| Expected                volatility         | 102-111%                            |
| Weighted-average                volatility | 106%                                |
| Expected                dividends          | 0.0%                                |
| Expected                term (in years)    | 5                                   |
| Risk-free                rate              | 4.35-4.39%                          |

|                                                                     |   | Three                  Months  |     | Six                  Months    |   |
|--------------------------------------------------------------------------|--------|--------------------------------|----------|--------------------------------|--------|
|                                                                     |   | Ended                          |     | Ended                          |   |
|                                                                     |   | June                  30, 2005 |     | June                  30, 2005 |   |
| Reported                  net loss                                       |   | $                              | (407,350 | )                              | $      | (1,128,696 | ) |
| Total                  stock-based employee compensation expense         |   |                           |     |                           |   |   |   |
| determined                  under fair value-based method for all awards |   |                           | (21,160  | )                              |   | (80,227 | ) |
|                                                                     |   |                           |     |                           |   |   |   |
| Pro                  forma net loss                                      |   | $                              | (428,510 | )                              | $      | (1,208,923 | ) |
|                                                                     |   |                           |     |                           |   |   |   |
| Basic                  and diluted loss per share:                       |   |                           |     |                           |   |   |   |
| As                  reported                                             |   |                           | ($0.04   | )                              |   | ($0.11 | ) |
| Pro                  forma                                               |   |                           | ($0.04   | )                              |   | ($0.12 | ) |
|                                                                     |   |                           |     |                           |   |   |   |

**5.      Income Taxes**

** **

----

**6.      Notes Payable**

**7.      Concentration**

**8.      Equity Instruments**

**9.      Convertible Notes Payable**

**10.        Contingencies**

**11.      Subsequent Event**

----

**Item      2.**
**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

**(a)    **
**Introduction      **

**ACTIVATION      OF MUSCLE GROWTH, ENERGY AND TRANSPORT PATHWAYS**

**Exercise      Performance**

----

**Post-Surgical      Muscle Recovery**

**Oral      Rehydration**

**ACTIVATION      OF SATIETY PEPTIDES**

**Weight      Loss**

----

**Type      II Diabetes**

**(b)    **
**Results      of Operations - Three and Six Months Ended June 30, 2006 and June 30,      2005**

*)*

----

**(c)    Liquidity      and      Capital Resources**

**(d)    **
**Off-Balance      Sheet Arrangements**

----

**ITEM      3. CONTROLS AND PROCEDURES**

**Evaluation      of disclosure controls and procedures.**

**Changes      in internal control over financial reporting.**

**II.      OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

| (a) | On                June 7, 2006, the Company held its Annual Meeting of Stockholders,                pursuant to information contained in the Company’s Notice of Annual                Meeting of Stockholders and Proxy Statement that were mailed to                stockholders on May 10, 2006. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | One                of the matters listed in the Company’s Proxy for the meeting was the                annual Election of Directors. There were five nominees for election                who                were elected by the shareholders to serve for a one-year term. The                results                of the balloting were as follows (Shares voting: 9,637,932 of                11,884,349): |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nominee                            |   | For       |   | Against |   | Abstain |
|------------------------------------|--------|-----------|--------|---------|--------|---------|
| Robert                  Portman    |   | 9,351,432 |   | -0-     |   | 16,500  |
| Stephen                  P. Kuchen |   | 9,351,432 |   | -0-     |   | 16,500  |
| David                  Portman     |   | 9,351,432 |   | -0-     |   | 16,500  |
| Michael                  Cahr      |   | 9,351,432 |   | -0-     |   | 16,500  |
| Gary                  Jamison      |   | 9,351,432 |   | -0-     |   | 16,500  |

| (c) | Another                matter voted upon by the stockholders was the ratification of the                appointment of Weiser, LLP as independent auditors for the Company                for the                fiscal year ending December 31, 2005. This matter was approved. The                results of the balloting for this matter was as follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Matter                                   |   | For       |   | Against |   | Abstain |
|------------------------------------------|--------|-----------|--------|---------|--------|---------|
| Appointment                  of auditors |   | 9,329,711 |   | 27,721  |   | 10,500  |

**ITEM      5. OTHER INFORMATION**

**ITEM      6.        **
**EXHIBITS**

| **Exhibit****Number****________** |   |  **Description                of Exhibit****(1)****_____________________**                                                                                                                                                                                                                                                                                                                          |
|-----------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(a)                           |   | Certificate                of Incorporation of PacificHealth Laboratories, Inc. and all amendments                thereto (incorporated by reference to Exhibit 3.1 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 (Registration No.                333-36379) filed on September 25, 1997)                                                              |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(b)                           |   | Certificate                of Amendment of Certificate of Incorporation of PacificHealth                Laboratories, Inc. (incorporated by reference to Exhibit 3.3 to                PacificHealth Laboratories, Inc.’s Annual Report on Form 10-KSB filed on                March 31, 2003)                                                                                                     |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)I                             |   | Certificate                of Designations for Series A Preferred Stock (incorporated by reference                to                Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                8-K filed on January 28, 2005)                                                                                                                                         |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(d)                           |   | Certificate                of Designations for Series B Preferred Stock, filed with the Secretary                of                State of the State of Delaware on April 28, 2005 (incorporated by                reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed May 4, 2005)                                                   |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(ii)                             |   | Amended                and Restated Bylaws of PacificHealth Laboratories, Inc. (incorporated                by                reference to Exhibit 3.2.1 to PacificHealth Laboratories, Inc.’s Amendment                No. 3 to Registration Statement on Form SB-2/A filed on December                17,                1997)                                                                   |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1                               |   | Specimen                Common Stock Certificate (incorporated by reference to Exhibit 4.1                to                PacificHealth Laboratories, Inc.’s Amendment No. 3 to Registration                Statement on Form SB-2/A filed on December 17, 1997)                                                                                                                                 |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2.1                             |   | Form                of Securities Purchase Agreement entered into among PacificHealth                Laboratories, Inc. and Certain of the Selling Stockholders dated                August                26, 2003 (incorporated by reference to Exhibit 4.4 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                September 29, 2003) |

----

| **Exhibit****Number****________** |   |  **Description                  of Exhibit****(1)****_____________________** |
|-----------------------------------|--------|-----------------------------------------------------------------------------------|

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.2.2  |   | Form                of Registration Rights Agreement entered into among PacificHealth                Laboratories, Inc. and Certain of the Selling Stockholders dated                August                26, 2003 (incorporated by reference to Exhibit 4.5 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                September 29, 2003)                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.2.3  |   | Form                of Warrant issued to Certain of the Selling Stockholders in connection                with Exhibit 4.2.1 on August 26, 2003 (incorporated by reference                to                Exhibit 4.6 to PacificHealth Laboratories, Inc.’s Registration Statement                on Form SB-2 filed on September 29, 2003)                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.3    |   | Stock                Purchase Agreement dated June 1, 2001, by and between PacificHealth                Laboratories, Inc. and Glaxo Wellcome International B.V. (incorporated                by                reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on June 14, 2001)                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4.1  |   | Series                A Preferred Stock Purchase Agreement dated January 28, 2005, by and                between PacificHealth Laboratories, Inc. and Hormel HealthLabs, LLC                (incorporated by reference to Exhibit 4.3 to PacificHealth Laboratories,                Inc.’s Annual Report on Form 10-KSB filed on April 15,                2005)                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4.2  |   | Investors’                Rights Agreement dated January 28, 2005, by and between PacificHealth                Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by reference                to Exhibit 4.4 to PacificHealth Laboratories, Inc.’s Annual Report on Form                10-KSB filed on April 15, 2005)                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4.3  |   | Right                of First Refusal and Co-Sale Agreement dated January 28, 2005, by                and                between PacificHealth Laboratories, Inc., Robert Portman and Hormel                HealthLabs, LLC (incorporated by reference to Exhibit 4.5 to PacificHealth                Laboratories, Inc.’s Annual Report on Form 10-KSB filed on April 15,                2005)                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4.4  |   | Certificate                of Designations for Series A Preferred Stock (incorporated by reference                to                Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                8-K filed on January 28, 2005)                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.5    |   | Certificate                of Designations for Series B Preferred Stock, filed with the Secretary                of                State of the State of Delaware on April 28, 2005 (incorporated by                reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on May 4, 2005)                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.1  |   | Securities                Purchase Agreement, dated August 24, 2005 by and between PacificHealth                Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by reference                to Exhibit 10.1 to PacificHealth Laboratories, Inc.’s Current Report on                Form 8-K filed on August 30, 2005)                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.2  |   | Amended                and Restated Investors’ Rights Agreement dated August 24, 2005 between                PacificHealth Laboratories, Inc. and Hormel HealthLabs, LLC and any                additional investor that becomes a party thereto (incorporated by                reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on August 30, 2005) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.3  |   | Form                of Secured Convertible Promissory Note issued in connection with                Exhibit                4.6.1 (incorporated by reference to Exhibit 10.2 to PacificHealth                Laboratories, Inc.’s Current Report on Form 8-K filed on August 30,                2005)                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.4  |   | Security                Agreement dated August 24, 2005 by and between PacificHealth Laboratories,                Inc. and Hormel HealthLabs, LLC (incorporated by reference to Exhibit                10.3                to PacificHealth Laboratories, Inc.’s Current Report on Form 8-K filed on                August 30, 2005)                                                                                      |

----

| **Exhibit****Number****________** |   |  **Description                  of Exhibit****(1)****_____________________** |
|-----------------------------------|--------|-----------------------------------------------------------------------------------|

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1   |   | Employment                Extension Agreement between PacificHealth Laboratories, Inc. and                Robert                Portman effective January 1, 2004, executed February 28, 2006                (incorporated by reference to Exhibit 10.6 to PacificHealth Laboratories,                Inc.’s Post-Effective Amendment to Registration Statement on Form SB-2/A                (File No. 333-109197) filed on May 2, 2006)                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.1 |   | Asset                Purchase Agreement dated February 22, 2006, by and between PacificHealth                Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                confidential treatment) (incorporated by reference to Exhibit 10.8                to                PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                March 31, 2006)                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.2 |   | License                Agreement dated February 22, 2006, by and between PacificHealth                Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                confidential treatment) (incorporated by reference to Exhibit 10.9                to                PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                March 31, 2006)                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.3 |   | Consulting,                License and Noncompetition Agreement dated February 22, 2006, by                and                between PacificHealth Laboratories, Inc., Mott’s LLP and Robert Portman                (redacted, subject to request for confidential treatment) (incorporated                by                reference to Exhibit 10.10 to PacificHealth Laboratories, Inc.’s Annual                report on Form 10-KSB filed on March 31, 2006) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.1   |   | Rule                13a-14(a) Certification of Chief Executive Officer (filed                herewith)                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.2   |   | Rule                13a-14(a) Certification of Chief Financial Officer (filed                herewith)                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32     |   | Certifications                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                906 of the Sarbanes-Oxley Act of 2002 (filed                herewith)                                                                                                                                                                                                                                                                    |

| (1) | In                the case of incorporation by reference to documents filed by the                Registrant under the Exchange Act, the Registrant’s file number under the                Exchange Act is 000-23495. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES**

|   |   | **PACIFICHEALTH                  LABORATORIES, INC.**                                                                                                                                                                                                 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | By: /S/                  STEPHEN P. KUCHEN                                                                                                                                                                                                       |
|   |   | STEPHEN                  P. KUCHEN                                                                                                                                                                                                                    |
|   |   | Chief                  Financial Officer (Principal Financial Officer and Principal Accounting                  Officer)                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                  |
|   |   | Date:                  August                  3,                  2006                              |

----

**EXHIBIT      INDEX**

| **Exhibit****Number****________** |   |  **Description                  of Exhibit****(1)****_____________________**                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3(i)(a)                           |   | Certificate                  of Incorporation of PacificHealth Laboratories, Inc. and all amendments                  thereto (incorporated by reference to Exhibit 3.1 to PacificHealth                  Laboratories, Inc.’s Registration Statement on Form SB-2 (Registration No.                  333-36379) filed on September 25, 1997)                                                                  |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3(i)(b)                           |   | Certificate                  of Amendment of Certificate of Incorporation of PacificHealth                  Laboratories, Inc. (incorporated by reference to Exhibit 3.3 to                  PacificHealth Laboratories, Inc.’s Annual Report on Form 10-KSB filed on                  March 31, 2003)                                                                                                         |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3(i)I                             |   | Certificate                  of Designations for Series A Preferred Stock (incorporated by reference                  to                  Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                  8-K filed on January 28, 2005)                                                                                                                                             |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3(i)(d)                           |   | Certificate                  of Designations for Series B Preferred Stock, filed with the Secretary                  of                  State of the State of Delaware on April 28, 2005 (incorporated                  by                  reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                  Report on Form 8-K filed May 4, 2005)                                    |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3(ii)                             |   | Amended                  and Restated Bylaws of PacificHealth Laboratories, Inc. (incorporated                  by                  reference to Exhibit 3.2.1 to PacificHealth Laboratories, Inc.’s Amendment                  No. 3 to Registration Statement on Form SB-2/A filed on December                  17,                  1997)                                                                   |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.1                               |   | Specimen                  Common Stock Certificate (incorporated by reference to Exhibit                  4.1 to                  PacificHealth Laboratories, Inc.’s Amendment No. 3 to Registration                  Statement on Form SB-2/A filed on December 17, 1997)                                                                                                                                     |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.2.1                             |   | Form                  of Securities Purchase Agreement entered into among PacificHealth                  Laboratories, Inc. and Certain of the Selling Stockholders dated                  August                  26, 2003 (incorporated by reference to Exhibit 4.4 to PacificHealth                  Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                  September 29, 2003) |

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.2.2  |   | Form                  of Registration Rights Agreement entered into among PacificHealth                  Laboratories, Inc. and Certain of the Selling Stockholders dated                  August                  26, 2003 (incorporated by reference to Exhibit 4.5 to PacificHealth                  Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                  September 29, 2003) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.2.3  |   | Form                  of Warrant issued to Certain of the Selling Stockholders in connection                  with Exhibit 4.2.1 on August 26, 2003 (incorporated by reference                  to                  Exhibit 4.6 to PacificHealth Laboratories, Inc.’s Registration Statement                  on Form SB-2 filed on September 29, 2003)                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.3    |   | Stock                  Purchase Agreement dated June 1, 2001, by and between PacificHealth                  Laboratories, Inc. and Glaxo Wellcome International B.V. (incorporated                  by                  reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                  Report on Form 8-K filed on June 14, 2001)                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.4.1  |   | Series                  A Preferred Stock Purchase Agreement dated January 28, 2005, by                  and                  between PacificHealth Laboratories, Inc. and Hormel HealthLabs,                  LLC                  (incorporated by reference to Exhibit 4.3 to PacificHealth Laboratories,                  Inc.’s Annual Report on Form 10-KSB filed on April 15,                  2005)    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.4.2  |   | Investors’                  Rights Agreement dated January 28, 2005, by and between PacificHealth                  Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by                  reference                  to Exhibit 4.4 to PacificHealth Laboratories, Inc.’s Annual Report on Form                  10-KSB filed on April 15, 2005)                                                |

----

| **Exhibit****Number****________** |   |  **Description                      of Exhibit****(1)****_____________________** |
|-----------------------------------|--------|---------------------------------------------------------------------------------------|

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.4.3  |   | Right                  of First Refusal and Co-Sale Agreement dated January 28, 2005,                  by and                  between PacificHealth Laboratories, Inc., Robert Portman and Hormel                  HealthLabs, LLC (incorporated by reference to Exhibit 4.5 to PacificHealth                  Laboratories, Inc.’s Annual Report on Form 10-KSB filed on April 15,                  2005)                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.4.4  |   | Certificate                  of Designations for Series A Preferred Stock (incorporated by reference                  to                  Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                  8-K filed on January 28, 2005)                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.5    |   | Certificate                  of Designations for Series B Preferred Stock, filed with the Secretary                  of                  State of the State of Delaware on April 28, 2005 (incorporated                  by                  reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                  Report on Form 8-K filed on May 4, 2005)                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.6.1  |   | Securities                  Purchase Agreement, dated August 24, 2005 by and between PacificHealth                  Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by                  reference                  to Exhibit 10.1 to PacificHealth Laboratories, Inc.’s Current Report on                  Form 8-K filed on August 30, 2005)                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.6.2  |   | Amended                  and Restated Investors’ Rights Agreement dated August 24, 2005 between                  PacificHealth Laboratories, Inc. and Hormel HealthLabs, LLC and                  any                  additional investor that becomes a party thereto (incorporated                  by                  reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                  Report on Form 8-K filed on August 30, 2005) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.6.3  |   | Form                  of Secured Convertible Promissory Note issued in connection with                  Exhibit                  4.6.1 (incorporated by reference to Exhibit 10.2 to PacificHealth                  Laboratories, Inc.’s Current Report on Form 8-K filed on August 30,                  2005)                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.6.4  |   | Security                  Agreement dated August 24, 2005 by and between PacificHealth Laboratories,                  Inc. and Hormel HealthLabs, LLC (incorporated by reference to Exhibit                  10.3                  to PacificHealth Laboratories, Inc.’s Current Report on Form 8-K filed on                  August 30, 2005)                                                                                                                        |

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1   |   | Employment                  Extension Agreement between PacificHealth Laboratories, Inc. and                  Robert                  Portman effective January 1, 2004, executed February 28, 2006                  (incorporated by reference to Exhibit 10.6 to PacificHealth Laboratories,                  Inc.’s Post-Effective Amendment to Registration Statement on Form SB-2/A                  (File No. 333-109197) filed on May 2, 2006)                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.2.1 |   | Asset                  Purchase Agreement dated February 22, 2006, by and between PacificHealth                  Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                  confidential treatment) (incorporated by reference to Exhibit 10.8                  to                  PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                  March 31, 2006)                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.2.2 |   | License                  Agreement dated February 22, 2006, by and between PacificHealth                  Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                  confidential treatment) (incorporated by reference to Exhibit 10.9                  to                  PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                  March 31, 2006)                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.2.3 |   | Consulting,                  License and Noncompetition Agreement dated February 22, 2006, by                  and                  between PacificHealth Laboratories, Inc., Mott’s LLP and Robert Portman                  (redacted, subject to request for confidential treatment) (incorporated                  by                  reference to Exhibit 10.10 to PacificHealth Laboratories, Inc.’s Annual                  report on Form 10-KSB filed on March 31, 2006) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 31.1   |   | Rule                  13a-14(a) Certification of Chief Executive Officer (filed                  herewith)                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 31.2   |   | Rule                  13a-14(a) Certification of Chief Financial Officer (filed                  herewith)                                                                                                                                                                                                                                                                                                                                                                                    |

----

| **Exhibit****Number****________** |   |  **Description                      of Exhibit****(1)****_____________________** |
|-----------------------------------|--------|---------------------------------------------------------------------------------------|

|   |   |                                                                                                                                                                                                                 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32     |   | Certifications                  of Chief Executive Officer and Chief Financial Officer pursuant                  to Section                  906 of the Sarbanes-Oxley Act of 2002 (filed                  herewith) |

| (1) | In                  the case of incorporation by reference to documents filed by the                  Registrant under the Exchange Act, the Registrant’s file number under the                  Exchange Act is 000-23495. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|