Exhibit 99.1

                  Advanced Nutraceuticals, Inc. Announces Board
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                 Approval to Seek Reverse Split of Common Stock
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     Denver, CO, September 2, 2003 - Advanced Nutraceuticals, Inc. (OTC Bulletin
Board:  ANII),  announced  today that its Board of Directors has  authorized the
executive officers of the Company to seek stockholder approval to effect a stock
split of one share to be issued for every 300 shares  outstanding as of a record
date to be  determined.  The amount or formula for payment of fractional  shares
will be determined in the future.  A meeting of the  Company's  stockholders  is
expected  to be  scheduled  to  consider  the  reverse  stock  split,  following
preparation of the required proxy solicitation materials and other documents for
filing with the SEC, and subsequent distribution to the stockholders.

For additional information contact:

Jeff McGonegal (303) 475-3786 (Email: jmcgonegal@anii.cc) or
Gregory Pusey (303) 722-4008 (Email: gpusey@anii.cc)

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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 ANII.  Investors  are
cautioned that any such  statements  are not  guarantees of future  performance.
Actual results or developments may differ materially from those projected in the
forward-looking  statements  as a  result  of many  factors,  including  adverse
changes in market  conditions,  fluctuations  in sales  volumes and  problems in
collecting receivables. 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.

STOCKHOLDERS  OF ANII AND OTHER  INVESTORS ARE URGED TO READ THE PROXY STATEMENT
IN  CONNECTION  WITH THE PROPOSED  REVERSE  STOCK SPLIT  BECAUSE IT WILL CONTAIN
IMPORTANT   INFORMATION  ABOUT  ANII,  THE  REVERSE  STOCK  SPLIT,  THE  PERSONS
SOLICITING  PROXIES AND THEIR  INTERESTS IN THE REVERSE  STOCK SPLIT AND RELATED
MATTERS.  The proxy statement will be filed with the SEC by ANII.  Investors and
security  holders may obtain a free copy of the proxy statement (when available)
and  other  documents  filed  by ANII  with  the  SEC at the  SEC's  website  at
www.sec.gov.  The proxy  statement  may also be obtained  from ANII by directing
such request to Advanced  Nutraceuticals,  Inc. at 106 S. University  Blvd. #14,
Denver,  CO 80209,  telephone  (303)  722-4008.  ANII, its directors,  executive
officers and certain  members of  management  and  employees  may be  considered
"participants  in the  solicitation"  of proxies  from  ANII's  stockholders  in
connection with the reverse stock split.  Information regarding such persons and
description of their interests in the reverse stock split is contained in ANII's
filing with the SEC under Rule 14a-12 on January 3, 2003.