FOR IMMEDIATE RELEASE                                Contact: Eric Friedman
July 14, 2004                                        Investor Relations
                                                     (973) 926-0816

 Integrated BioPharma Agrees to Acquire Hauser Contract Research Organization,
                           Continuing Expansion Plan

Hillside, N.J., July 14, 2004--Integrated BioPharma, Inc. (AMEX:INB) announced
the mutual execution of an agreement with Hauser Inc. to acquire the Hauser
Contract Research Organization (Hauser CRO). The transaction, which is subject
to court approval, is scheduled to close in September 2004.

As an ongoing business, the Hauser CRO is expected to provide revenues, an
established customer base and expanded analytical capabilities in support of
INB's growth and expansion goals. The Hauser CRO, together with Paxis
Pharmaceuticals, Inc., another wholly owned subsidiary, will give INB a complete
capability, from inception to commercialization, to create Active Pharmaceutical
Ingredients (API) for itself and customers.

Hauser CRO is a world leader in the extraction, isolation, purification and
synthetic modification of natural products from plant, marine and microbial
sources. Hauser CRO provides small scale API Production for clinical trials
through commercial applications. In addition, Hauser CRO provides research,
process development, analytical services, manufacturing, compliance services and
consulting to companies in pharmaceutical, dietary supplement and fine chemical
industries.

The Hauser CRO acquisition complements and extends INB's expansion into the
supply of Active Pharmaceutical Ingredients. Paxis Pharmaceuticals, Inc., a
wholly owned subsidiary, is a world leader in the supply of Paclitaxel, the
leading anticancer compound. Combined with the Hauser CRO, Paxis now has a
substantial platform to leverage its modern and recently updated manufacturing
plant into development and manufacturing of a variety of API products, meeting
customers' needs as well as its own internal needs. Combined, the companies will
operate 6 GMP suites. Paxis will be able to provide complete development of API
from concept to production.

INB CEO E. Gerald Kay commented that "The CRO acquisition enhances our position
as a manufacturer of Active Pharmaceutical Ingredients. This should provide for
additional opportunities for both taxane based novel drug candidates and other
non taxane based naturally derived and semi-synthetic pharmaceuticals." INB
serves the pharmaceutical, biotech and nutraceutical industries. Through several
wholly owned subsidiaries, INB develops, manufactures and distributes more than
130 products worldwide. Its subsidiary, Paxis Pharmaceuticals, Inc., develops
and operates a state-of-the-art GMP facility for the production and sale of
paclitaxel and related drugs. Through its biotech subsidiary, NuCycle Therapy,
Inc., INB is developing human therapeutics and preventive cancer compounds in
transgenic plants. Further information is available at www.iBioPharma.com.

Statements included in this release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve a number of risks and uncertainties such as competitive
factors, technological development, market demand, and the company's ability to
obtain new contracts and accurately estimate net revenues due to variability in
size, scope and duration of projects, and internal issues in the sponsoring
client. Further information on potential risk factors that could affect the
company's financial results can be found in the company's Reports filed with the
Securities and Exchange Commission.