| New      York                                                       | 11-2653613                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

| 4      Manhattanville Road                    |            |
|-----------------------------------------------|-----------------|
| Purchase,      New York                       | 10577-2197      |
| (Address      of Principal Executive Offices) | (Zip      Code) |

| Class                                         |   | Outstanding      at November 12, 2010 |
|-----------------------------------------------|--------|---------------------------------------|
| Common      Stock, $0.005 par value per share |   | 141,226,622      shares               |

----

|              |                                                                                                       |                                                                                                                                      | PAGE   |
|--------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|         |                                                                                                  |                                                                                                                                      |   |
| PART      I  | FINANCIAL      INFORMATION                                                                            |                                                                                                                                      |   |
|         |                                                                                                  |                                                                                                                                      |   |
| ITEM      1  | Financial      Statements                                                                             |                                                                                                                                      |   |
|         |                                                                                                  |                                                                                                                                      |   |   |
|         | (a)                                                                                                   | Condensed      Consolidated Balance Sheets at September 30, 2010 (unaudited) and June 30,      2010                                       |   |  3 |
|         |                                                                                                  |                                                                                                                                      |   |   |
|         | (b)                                                                                                   | Condensed      Consolidated Statements of Operations for the three month periods ended      September 30, 2010 and 2009 (unaudited)       |   |  5 |
|         |                                                                                                  |                                                                                                                                      |   |   |
|         | (c)                                                                                                   | Condensed      Consolidated Statement of Stockholders’ Deficit for the three-month period      ended September 30, 2010 (unaudited) |   |  6 |
|         |                                                                                                  |                                                                                                                                      |   |   |
|         | (d)                                                                                                   | Condensed      Consolidated Statements of Cash Flows for the three-month periods ended      September 30, 2010 and 2009 (unaudited)       |   |  7 |
|         |                                                                                                  |                                                                                                                                      |   |   |
|         | (e)                                                                                                   | Notes      to Condensed Consolidated Financial Statements (unaudited)                                                                     |   |  8 |
|         |                                                                                                  |                                                                                                                                      |   |   |
| ITEM      2  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |                                                                                                                                      | 11     |
|         |                                                                                                  |                                                                                                                                      |   |
| ITEM      3  | Quantitative      and Qualitative Disclosures About Market Risk                                       |                                                                                                                                      | 13     |
|         |                                                                                                  |                                                                                                                                      |   |
| ITEM      4  | Controls      and Procedures                                                                          |                                                                                                                                      | 13     |
|         |                                                                                                  |                                                                                                                                      |   |
| PART      II | OTHER      INFORMATION                                                                                |                                                                                                                                      |   |
|         |                                                                                                  |                                                                                                                                      |   |
| ITEM      1  | Legal      Proceedings                                                                                |                                                                                                                                      | 14     |
|         |                                                                                                  |                                                                                                                                      |   |
| ITEM      6  | Exhibits                                                                                              |                                                                                                                                      | 14     |

----

|                                                                                                                                                                                |   | September 30,2010 |       |   | June 30,2010   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|---------------------|--------|
|                                                                                                                                                                                |   |  (unaudited)      |       |   |  (Note 1) |   |
| ASSETS                                                                                                                                                                              |   |                   |       |   |                |   |
|                                                                                                                                                                                |   |                   |       |   |                |   |
| Current      assets:                                                                                                                                                                |   |                   |       |   |                |   |
|                                                                                                                                                                                |   |                   |       |   |                |   |
| Cash      and cash equivalents                                                                                                                                                      |   | $                      | 1,100      |   |                | $      | 835 |   |
| Restricted      cash                                                                                                                                                                |   |                   | 100        |   |                |   | 100 |   |
| Accounts      receivable (less allowances for doubtful accounts and returns of $1,150      and $1,231 at September 30, 2010 and June 30, 2010,      respectively)                   |   |                   |   867 |   |                |   |   1,495 |   |
| Other      receivables                                                                                                                                                              |   |                   | 259        |   |                |   | 224 |   |
| Inventories                                                                                                                                                                         |   |                   | 145        |   |                |   | 173 |   |
| Prepaid      expenses and other current assets                                                                                                                                      |   |                   | 115        |   |                |   | 104 |   |
| Total      current assets                                                                                                                                                           |   |                   | 2,586      |   |                |   | 2,931 |   |
|                                                                                                                                                                                |   |                   |       |   |                |   |   |   |
| Property      and equipment, net                                                                                                                                                    |   |                   | 68         |   |                |   | 57 |   |
|                                                                                                                                                                                |   |                   |       |   |                |   |   |   |
| Patents,      trademarks and other amortizable intangibles (net of accumulated      amortization of $27,087 and $27,011 at September 30, 2010 and June 30,      2010, respectively) |   |                   |   521 |   |                |   |   588 |   |
|                                                                                                                                                                                |   |                   |       |   |                |   |   |   |
| Other      assets                                                                                                                                                                   |   |                   | 309        |   |                |   | 386 |   |
| TOTAL      ASSETS                                                                                                                                                                   |   | $                      | 3,484      |   |                | $      | 3,962 |   |

----

|                                                                                                                                                                                                                                                                                                                     |   | September 30, 2010 |           |   | June 30, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|----------------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                |   | (unaudited)                  |           |   | (Note 1)           |   |
|                                                                                                                                                                                                                                                                                                                |   |                         |           |   |                    |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                                          |   |                         |           |   |                    |   |
|                                                                                                                                                                                                                                                                                                                |   |                         |           |   |                    |   |
| LIABILITIES                                                                                                                                                                                                                                                                                                         |   |                         |           |   |                    |   |
|                                                                                                                                                                                                                                                                                                                |   |                         |           |   |                    |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                           |   |                         |           |   |                    |   |
| Accounts      payable                                                                                                                                                                                                                                                                                               |   | $                            | 536            |   |                    | $      | 719 |   |
| Accrued      expenses                                                                                                                                                                                                                                                                                               |   |                         | 986            |   |                    |   | 1,321 |   |
| 8%      Series J convertible preferred stock subject to mandatory redemption      (redemption value $17,750 at September 30, 2010)                                                                                                                                                                                  |   |                         | 15,570         |   |                    |   |  — |   |
| Total      current liabilities                                                                                                                                                                                                                                                                                      |   |                         | 17,092         |   |                    |   | 2,040 |   |
| 8%      Series J convertible preferred stock subject to mandatory redemption      (redemption value $17,750 at June 30, 2010)                                                                                                                                                                                       |   |                         |  —  |   |                    |   | 15,068 |   |
|                                                                                                                                                                                                                                                                                                                |   |                         |           |   |                    |   |   |   |
| Total      liabilities                                                                                                                                                                                                                                                                                              |   |                         | 17,092         |   |                    |   | 17,108 |   |
| Commitments      and contingencies                                                                                                                                                                                                                                                                                  |   |                         |           |   |                    |   |   |   |
| STOCKHOLDERS’      DEFICIT:                                                                                                                                                                                                                                                                                   |   |                         |           |   |                    |   |   |   |
| Preferred      stock, $0.01 par value, authorized 5,000,000 shares, 100,000 shares      designated as Series H, none issued and outstanding; 17,750 shares      designated as Series J convertible preferred stock issued and outstanding      at September 30, 2010 and June 30, 2010 (see liabilities      above) |   |                         |   — |   |                    |   |   — |   |
|                                                                                                                                                                                                                                                                                                                |   |                         |           |   |                    |   |   |   |
| Common      stock, $0.005 par value, authorized 500,000,000 shares; 123,617,495 shares      and 96,225,520 issued and outstanding at September 30, 2010 and June 30,      2010, respectively                                                                                                                        |   |                         |   616     |   |                    |   |    479 |   |
|                                                                                                                                                                                                                                                                                                                |   |                         |           |   |                    |   |   |   |
| Additional      paid-in capital                                                                                                                                                                                                                                                                                     |   |                         | 119,514        |   |                    |   | 119,215 |   |
| Accumulated      deficit                                                                                                                                                                                                                                                                                            |   |                         | (133,738       | )      |                    |   | (132,840 | ) |
| Total      stockholders’ deficit                                                                                                                                                                                                                                                                              |   |                         | (13,608        | )      |                    |   | (13,146 | ) |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                                              |   | $                            | 3,484          |   |                    | $      | 3,962 |   |

----

|                                                                    |   | Three Months Ended |        |
|-------------------------------------------------------------------------|--------|------------------------------|-------------|
|                                                                    |   | September 30,           |        |
|                                                                    |   | 2010                         |        |   | 2009 |   |
|                                                                    |   |                         |        |   |   |   |
| Net      sales                                                          |   | $                            | 1,555       |   |   | $ | 2,216 |   |
| Other      revenues                                                     |   |                         | 66          |   |   |   | 94 |   |
| TOTAL      REVENUES                                                     |   |                         | 1,621       |   |   |   | 2,310 |   |
|                                                                    |   |                         |        |   |   |   |   |   |
| COSTS      AND EXPENSES                                                 |   |                         |        |   |   |   |   |   |
| Cost      of revenues                                                   |   |                         | 517         |   |   |   | 650 |   |
| General      and administrative expenses                                |   |                         | 667         |   |   |   | 980 |   |
| Advertising      and promotion expenses                                 |   |                         | 228         |   |   |   | 166 |   |
| Research      and development expenses                                  |   |                         | 101         |   |   |   | 79 |   |
| Depreciation      and amortization                                      |   |                         | 84          |   |   |   | 105 |   |
|                                                                    |   |                         |        |   |   |   |   |   |
| TOTAL      COSTS AND EXPENSES                                           |   |                         | 1,597       |   |   |   | 1,980 |   |
|                                                                    |   |                         |        |   |   |   |   |   |
| OPERATING      INCOME                                                   |   |                         | 24          |   |   |   | 330 |   |
|                                                                    |   |                         |        |   |   |   |   |   |
| Interest      income                                                    |   |                         | —     |   |   |   | 2 |   |
| Interest      expense                                                   |   |                         | (943        | ) |   |   | (1,001 | ) |
|                                                                    |   |                         |        |   |   |   |   |   |
| LOSS      FROM CONTINUING OPERATIONS                                    |   |                         | (919        | ) |   |   | (669 | ) |
| Income      taxes                                                       |   |                         | —     |   |   |   | — |   |
|                                                                    |   |                         |        |   |   |   |   |   |
| LOSS      FROM CONTINUING OPERATIONS                                    |   |                         | (919        | ) |   |   | (669 | ) |
|                                                                    |   |                         |        |   |   |   |   |   |
| INCOME      FROM DISCONTINUED OPERATIONS, NET OF TAX                    |   |                         | 21          |   |   |   | 26 |   |
|                                                                    |   |                         |        |   |   |   |   |   |
| NET      LOSS                                                           |   | $                            | (898        | ) |   | $ | (643 | ) |
|                                                                    |   |                         |        |   |   |   |   |   |
| Net      loss per common share: continuing operations                   |   | $                            | (0.01       | ) |   | $ | (0.01 | ) |
|                                                                    |   |                         |        |   |   |   |   |   |
| Net      income per common share: discontinued operations               |   | $                            | —     |   |   | $ | — |   |
|                                                                    |   |                         |        |   |   |   |   |   |
| Net      loss per common share                                          |   | $                            | (0.01       | ) |   | $ | (0.01 | ) |
|                                                                    |   |                         |        |   |   |   |   |   |
| Weighted      average number of common shares – basic and diluted |   |                         | 123,487,706 |   |   |   | 72,455,162 |   |

----

|                                                                    |   | Common Stock |        |   | AdditionalPaid-InCapital |   |    | AccumulatedDeficit |   |   | Total   |   |
|-------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------------|--------|---------|--------------------|--------|--------|---------|--------|
|                                                                    |   | Shares            |        |   | $                        |   |    | $                  |   |   | $       |   |   | $ |   |
|                                                                    |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance      at June 30, 2010                                           |   |              | 96,225,520  |   |                     |   | 479     |               |   |   | 119,215 |   |   |   | (132,840 | ) |   |   | (13,146 | ) |
|                                                                    |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock for dividends on Series J preferred stock |   |              | 27,391,975  |   |                     |   | 137     |               |   |   | 218     |   |   |   | — |   |   |   | 355 |   |
|                                                                    |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation expense                                   |   |              | —     |   |                     |   | — |               |   |   | 81      |   |   |   | — |   |   |   | 81 |   |
|                                                                    |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      loss for the period                                            |   |              | —     |   |                     |   | — |               |   |   | — |   |   |   | (898 | ) |   |   | (898 | ) |
|                                                                    |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance      at September 30, 2010                                      |   |              | 123,617,495 |   |                     | $      | 616     |               |   | $      | 119,514 |   |   | $ | (133,738 | ) |   | $ | (13,608 | )  |

----

|                                                                                             |   | Three Months EndedSeptember 30, |          |
|--------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------------|
|                                                                                             |   | 2010                                           |          |   | 2009 |   |
| Cash      flows from operating activities:                                                       |   |                                           |          |   |   |   |
| Net      loss                                                                                    |   | $                                              | (898          | ) |   | $ | (643 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities:        |   |                                           |          |   |   |   |   |   |
| Depreciation      of property and equipment                                                      |   |                                           | 8             |   |   |   | 5 |   |
| Amortization      of intangibles                                                                 |   |                                           | 76            |   |   |   | 100 |   |
| Accretion      of preferred stock and amortization of deferred financing      costs              |   |                                           | 579           |   |   |   | 517 |   |
| Accretion      on note payable to Iceland Health                                                 |   |                                           | —       |   |   |   | 12 |   |
| Convertible      preferred stock dividends paid in common stock charged as interest      expense |   |                                           | 355           |   |   |   | 355 |   |
| Stock-based      compensation expense                                                            |   |                                           | 81            |   |   |   | 109 |   |
|                                                                                             |   |                                           |          |   |   |   |   |   |
| Changes      in operating assets and liabilities net of effects of      dispositions:            |   |                                           |          |   |   |   |   |   |
| Accounts      receivable                                                                         |   |                                           | 628           |   |   |   | 395 |   |
| Other      receivables                                                                           |   |                                           | (35           | ) |   |   | 426 |   |
| Inventories                                                                                      |   |                                           | 28            |   |   |   | 296 |   |
| Prepaid      expenses and other current assets                                                   |   |                                           | (11           | ) |   |   | 203 |   |
| Accounts      payable                                                                            |   |                                           | (183          | ) |   |   | (424 | ) |
| Accrued      expenses                                                                            |   |                                           | (335          | ) |   |   | (600 | ) |
| Deferred      income                                                                             |   |                                           | —       |   |   |   | (217 | ) |
| Net      cash provided by operating activities                                                   |   |                                           | 293           |   |   |   | 534 |   |
|                                                                                             |   |                                           |          |   |   |   |   |   |
| Cash      flows from investing activities:                                                       |   |                                           |          |   |   |   |   |   |
| Contingent      payments for acquisitions, allocated to goodwill, patents and      trademarks    |   |                                           | —       |   |   |   | (83 | ) |
| Purchases      of property and equipment, patents and trademarks                                 |   |                                           | (28           | ) |   |   |  (3 | ) |
| Net      cash used in investing activities                                                       |   |                                           | (28           | ) |   |   | (86 | ) |
| Cash      flows from financing activities:                                                       |   |                                           |          |   |   |   |   |   |
| Repayments      of short-term borrowings and long-term debt                                      |   |                                           | —       |   |   |   | (1,229 | ) |
| Net      cash used in financing activities                                                       |   |                                           |  — |   |   |   | (1,229 | ) |
|                                                                                             |   |                                           |          |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                        |   |                                           | 265           |   |   |   | (781 | ) |
| Cash      and cash equivalents at beginning of period                                            |   |                                           | 835           |   |   |   | 1,373 |   |
| Cash      and cash equivalents at end of period                                                  |   | $                                              | 1,100         |   |   | $ | 592 |   |

----

| Note      1 | BASIS OF      PRESENTATION |
|-------------|----------------------------|

|   | The      accompanying unaudited condensed consolidated financial statements have      been prepared pursuant to the rules and regulations of the Securities and      Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and do not      include all of the information and note disclosures required by accounting      principles generally accepted in the United States of      America.  Accordingly, the unaudited condensed consolidated      financial statements should be read in conjunction with the Company’s      audited consolidated financial statements and notes thereto for the fiscal      year ended June 30, 2010 included in the Company’s Annual Report on Form      10-K filed on September 22, 2010 (the “Form 10-K”).  The      accompanying unaudited condensed consolidated financial statements reflect      all adjustments (consisting of normal recurring adjustments) which are, in      the opinion of the management, considered necessary for a fair      presentation of financial position, results of operations and cash flows      for the interim periods.  The June 30, 2010 balance sheet has      been derived from the audited consolidated financial statements included      in the Form 10-K. Operating results for the three-month period ended      September 30, 2010 are not necessarily indicative of the results that may      be expected for the fiscal year ending June 30,  2011. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      2 | STOCK-BASED      COMPENSATION |
|-------------|-------------------------------|

|   | Stock-based      employee compensation cost is measured at the grant date, based on the      estimated fair value of the award, and is recognized as expense over the      requisite service period. The Company has no awards with market or      performance conditions. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      2 | STOCK-BASED      COMPENSATION(continued) |
|-------------|------------------------------------------|

|   Options                    |   |  Shares(000) |    |   |  Weighted-AverageExercise Price |   |    | WeightedAverageRemainingContractualTerm (Yrs.) |   |   |  AggregateIntrinsic Value($000) |   |
|----------------------------------------|--------|-------------------|---------|--------|-------------------------------------------|--------|---------|-----------------------------------------------------|--------|--------|-------------------------------------------|--------|
| Outstanding      at July 1, 2010       |   |              | 5,995   |   |                                      | $      | 0.42    |                                                |   |   |                                      |   |   |   |
| Granted                                |   |              | — |   |                                      |   | — |                                                |   |   |                                      |   |   |   |
| Exercised                              |   |              | — |   |                                      |   | — |                                                |   |   |                                      |   |   |   |
| Forfeited      or expired              |   |              | (85     | )      |                                      | $      | 1.41    |                                                |   |   |                                      |   |   |   |
| Outstanding      at September 30, 2010 |   |              | 5,910   |   |                                      | $      | 0.40    |                                                |   |   | 6.5                                       |   |   | $ | - |   |
| Exercisable      at September 30, 2010 |   |              | 4,238   |   |                                      | $      | 0.50    |                                                |   |   | 5.7                                       |   |   | $ | - |   |

|   Restricted Stock      |   |  Shares(000) |    |   |  Weighted-AverageExercise Price |   |    | WeightedAverageRemainingContractualTerm (Yrs.) |   |   |  AggregateIntrinsic Value($000’s) |   |
|----------------------------------------|--------|-------------------|---------|--------|-------------------------------------------|--------|---------|-----------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| Outstanding      at July 1, 2010       |   |              | 130     |   |                                      | $      | 1.57    |                                                |   |   |                                              |   |   |   |
| Granted                                |   |              | — |   |                                      |   | — |                                                |   |   |                                              |   |   |   |
| Exercised                              |   |              | — |   |                                      |   | — |                                                |   |   |                                              |   |   |   |
| Forfeited      / expired or cancelled  |   |              | — |   |                                      |   | — |                                                |   |   |                                              |   |   |   |
| Outstanding      at September 30, 2010 |   |              | 130     |   |                                      | $      | 1.57    |                                                |   |   | —                                           |   |   | $ | — |   |
| Exercisable      at September 30, 2010 |   |              | 130     |   |                                      | $      | 157     |                                                |   |   | —                                           |   |   |   | — |   |

| Note      3 | FINANCIAL      INSTRUMENTS |
|-------------|----------------------------|

| Note      4 | INVENTORIES |
|-------------|-------------|

----

| Note      5 | LOSS PER COMMON      SHARE |
|-------------|----------------------------|

| Note      6 | SUPPLEMENTAL CASH FLOW      INFORMATION |
|-------------|-----------------------------------------|

|                                                                    |   | Three months ended |   |
|-------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                    |   | September 30,           |   |
|                                                                    |   | 2010                         |   |   | 2009 |   |
| Supplemental      disclosure of cash flow information:                  |   |                         |   |   |   |   |
|                                                                    |   |                         |   |   |   |   |
| Cash      paid for interest                                             |   | $                            | 8      |   |   | $ | 85 |   |
|                                                                    |   |                         |   |   |   |   |   |   |
| Supplemental      schedule of non-cash financing activities:            |   |                         |   |   |   |   |   |   |
| Issuance      of common stock for dividends on Series J preferred stock |   | $                            | 355    |   |   | $ | 355 |   |

| Note      7 | 8% SERIES J      CONVERTIBLE PREFERRED STOCK |
|-------------|----------------------------------------------|

| Note      8 | SEGMENT      REPORTING |
|-------------|------------------------|

----

|   | · | The      Company maintains allowances for uncollectible accounts receivable for      estimated losses resulting from the inability of its customers to make      required payments.  If the financial condition of the Company’s      customers were to deteriorate, resulting in an impairment of their ability      to make payments, additional allowances may be  required. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company carries inventories at the lower of cost or estimated net      realizable value.  If actual market conditions are less      favorable than those projected by management write-downs may be      required. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Property,      equipment, patents, trademarks and other intangible assets owned by the      Company are depreciated or amortized, over their estimated useful      lives.  Useful lives are based on management’s estimates over      the period that such assets will generate revenue.  Intangible      assets with definite lives are reviewed for impairment whenever events or      changes in circumstances indicate that the carrying value of an asset may      not be recoverable.  Future adverse changes in market conditions      or poor operating results of underlying capital investments or intangible      assets could result in losses or an inability to recover the carrying      value of such assets, thereby possibly requiring an impairment charge in      the future. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company accounts for its stock-based compensation arrangements in      accordance with the provisions of ASC 718- Compensation-Stock      Compensation. Stock-based employee compensation cost is measured at the      grant date, based on the estimated fair value of the award, and is      recognized as expense over the requisite service period. The Company has      no awards with market or performance conditions. The valuation provisions      apply to new awards and to awards that were outstanding on the effective      date and subsequently modified orcancelled. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | (a) | Exhibits |
|--|-----|----------|

|  | 31.1 | Certifications      of the President and Chief Executive Officer pursuant to Section 302 of      the Sarbanes-Oxley Act of2002. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------|

|  | 31.2 | Certifications      of the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act      of 2002. |
|--|------|------------------------------------------------------------------------------------------------------------------------------|

|  | 32.1 | Certifications      of the President and Chief Executive Officer pursuant to Section 906 of      the Sarbanes-Oxley Act of2002. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------|

|  | 32.2 | Certification      of the Chief Financial Officer pursuant to Section 906 of the      Sarbanes-Oxley Act      of 2002. |
|--|------|------------------------------------------------------------------------------------------------------------------------|

----

| NUTRITION 21, INC. |
|--------------------|
| Registrant         |

| By:    | /s/ Michael A. Zeher               |
|--------|------------------------------------|
|   | Michael      A. Zeher              |
|   | President      and                 |
|   | Chief      Executive Officer       |
|   | (Principal      Executive Officer) |

----