<PAGE>

                                 Exhibit 99.1
                                 ------------

                         ADVANCED NUTRACEUTICALS, INC.
       ANNOUNCES CLOSING OF THE SALE OF NUTRITION FOR LIFE INTERNATIONAL
       -----------------------------------------------------------------

     Houston, June 13, 2001 - Advanced Nutraceuticals, Inc. (NASDAQ Symbol:
ANIID), announced today that it has completed the sale of its network marketing
subsidiary, Nutrition For Life International, Inc. ("NFLI"), to Everest Group
Holdings, Inc.

     At closing the Company received $3.2 million in cash and a $5 million note
payable by NFLI based on a ten-year amortization with quarterly payments for
three years and a final balloon payment in June 2004.  NFLI entered into a
product supply agreement with the Company's subsidiary, Bactolac Pharmaceutical,
Inc. and Bactolac received a $650,000 note from NFLI due in June 2002.  The
purchase price may also be increased up to an additional $750,000, depending
upon future operating results of NFLI's recently established Japanese
subsidiary.  As part of the terms of the transaction, Everest paid off the
balance outstanding of the Company's revolving and term debt obligations related
to NFLI.  The majority of the cash received at closing will be used by the
Company to reduce debt, with a portion providing working capital.

     Gregory Pusey, Chairman of Advanced Nutraceuticals, commented, "With the
consummation of the sale of NFLI, Advanced Nutraceuticals is in a much improved
financial position and intends to re-focus on its strategy of acquiring other
companies in the nutraceutical and pharmaceutical industries.  Management is
focused on increasing stockholder value and expanding opportunities for our
operating company, Bactolac and ASHCO."

     Advanced Nutraceuticals, Inc. is a holding company that conducts operations
through Bactolac Pharmaceutical, Inc. and ASHCO, a division of Bactolac
Pharmaceutical, Inc.  Bactolac and ASHCO are manufacturers of nutraceutical and
pharmaceutical products.

FOR ADDITIONAL INFO CALL JEFF MCGONEGAL AT 303/660-9583 OR GREG PUSEY AT
303/722-4008

================================================================================

This press release includes "forward looking statements" as defined by the
Securities and Exchange Commission (the "SEC").  All statements, other than
statements of historical fact, included in the press release that address
activities, events or developments that the Company believes or anticipates will
or may occur in the future are forward-looking statements. These statements are
based on certain assumptions made based on experience, expected future
developments and other factors ANII believes are appropriate in the
circumstances.  Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of the companies.
Investors are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ materially from
those projected in the forward-looking statements.  Furthermore, ANII does not
intend (and is not obligated) to update publicly any forward-looking statements.
The contents of this release should be considered in conjunction with the
warnings and cautionary statements contained in the Company's recent filings
with the SEC.