DESERT HEALTH PRODUCTS, INC. TO SPIN OFF ROYAL PHOENIX

SCOTTSDALE, AZ---October 23, 2000---Desert Health Products,
Inc. (OTC:BB "DHPI") announced today the Spin Off of its
Royal Phoenix Group of herbal products.

Under the terms of the executed Separation and Distribution
Agreement each shareholder of Desert Health will receive
shares in the newly formed Royal Phoenix corporation. The
distribution of the shares is anticipated to occur no later
than December 15, 2000.

Johnny Shannon, President of Desert Health indicated that
the spin off provided Desert Health with a means of
marketing its Royal Phoenix Group of products through an
independently capitalized marketing entity, while
maintaining a profit center through an agreement with Royal
Phoenix to manufacture, package, ship, and handle the credit
card processing of the products being distributed.

Desert Health primarily markets its product lines to the
European and Asian markets through a channel of distributors
which Desert Health has created over several years. Most
recently, Desert Health received approval to open its
largest Asian operations in Beijing, China. The agreement
with Royal Phoenix provides Desert Health with a new
template for marketing its products in North America and
possibly elsewhere. Mr. Shannon indicated that, "we are
taking a wait and see attitude prior to projecting any major
revenue stream, however all financing will occur through the
newly created separate entity." He further indicated that,
"Desert Health enjoys the elements of a no risk situation in
light of the difficulties many companies are having in
regards to capitalization."

Safe Harbor Statement: Except for historical information,
the matters set forth herein, which are forward-looking
statements, involve certain risks and uncertainties that
could cause actual results to differ. Potential risks and
uncertainties include, but are not limited to: any perceived
or actual benefits of the Spin Off, including the completion
of the transaction, the anticipated share distribution date,
the market acceptance and amount of sales derived from the
Company's operations through the Spin Off, the competitive
environment within the nutrition and dietary supplement
industry, and the market acceptance and successful technical
and economic implementation of the Company's operations as
relates to the Royal Phoenix products.

Contact:
Anita C. Gotcher
Director of Corporate Communications
agotcher@deserthealth.com
480-951-1941