Boston Therapeutics Reports First Quarter 2013 Results

MANCHESTER, NH -- (Marketwired) -- 05/15/13 -- Boston Therapeutics, Inc. (OTCQB: BTHE) ("Boston Therapeutics" or "the Company"), a pharmaceutical company developing and commercializing complex carbohydrate-based drugs to treat diabetes and inflammatory diseases, announced its financial results for the three months ended March 31, 2013. These results are included in the Company's Quarterly Report on Form 10-Q, which has been filed with the SEC.

Highlights for the first quarter include the focus of the Company's pipeline to accelerate the commercialization of its pharmaceutical drugs to address diabetes and inflammatory disease; the positive results from the Phase ll clinical study with PAZ320 at Dartmouth Medical Center; the appointment of Peter Sheehan, M.D., an internationally respected specialist in the field of diabetes, as Consulting Medical Director; the request to the U.S. Food and Drug Administration for an Investigational New Drug (IND) meeting for PAZ320 to reduce the elevation of postprandial glucose (PPG) or post meal blood sugar in patients with Type 2 diabetes, and the publication of four news articles concerning the Company's drug development programs: InformationAboutDiabetes.com, the New Hampshire Union Leader, Western Pennsylvania Healthcare News and Examiner.com.

"During this quarter, we continued our growth as a drug discovery, development and commercialization company, and built on the momentum gained from our previously announced positive results from the clinical study at Dartmouth Medical Center for PAZ320 in Type 2 diabetes," said David Platt, Ph.D., Chief Executive Officer of Boston Therapeutics. "The addition of Dr. Sheehan to our team has given us a tremendous boost in this direction. Going forward, as I have indicated previously, we intend to focus our pipeline on commercializing PAZ320 and IPOXYN, which will enable the Company to advance its status as a premier developer of complex carbohydrate-based new chemical entities. Achieving these goals will also enable us to address the rapidly expanding global diabetes market."

Financial Results for the First Quarter 2013

Revenue for the three month period ended March 31, 2013 was $23,336 compared with $18,854 for the same period in the prior year, an increase of $4,482. Revenue for both periods were generated from the sale of SUGARDOWN®. The increase was the result of a shipment of SUGARDOWN® to one customer in the amount of $20,687 during the three months ended March 31, 2013.

Cost of goods sold for the three months ended March 31, 2013 was $47,937 compared with $27,595, for the same period in the prior year, an increase of $20,342. The increase in cost of goods sold relates to the shipment of product to the customer described above. The Company's negative gross profit is attributable to cost of goods sold outpacing sales as a result of additional fixed costs related to the outsourced fulfillment operation, and manufacturing scale-up from small to production-grade equipment.

Research and development expense was $28,661 for the three months ended March 31, 2013 compared with $51,628 for the same period in the prior year, a decrease of $22,967. The decrease is primarily the result of less research and development activity during the three months ended March 31, 2013 compared to the same period in 2012.

Sales and marketing expense for the three months ended March 31, 2013 was $81,226 compared with $67,180 for the same period in the prior year, an increase of $14,046. This expense category consists primarily of costs incurred with third parties for product marketing, and redesigning the SUGARDOWN® website in 2013 and 2012.

General and administrative expense for the three months ended March 31, 2013 was $528,170 compared with $124,536 for the same period in the prior year, an increase of $403,634. The increase is primarily the result of the addition of three employees during the fourth quarter of 2012 and the first quarter of 2013 resulting in payroll related expenses of approximately $45,000, cost of a consultant in the first quarter of 2013 to increase the Company's visibility in the global securities marketplace totaling $50,000, increased professional fees of $30,000, increased consulting fees of $44,000, increased office, rent and administrative expenses of $37,000, increased legal expense of $30,000 and increased stock based compensation of approximately $147,000.

The Company had a net loss of $667,422, or ($0.04) per share, for the quarter ended March 31, 2013 compared with a net loss of $257,405 or ($0.02) for the same period in the prior year. The Company's cash balance at March 31, 2013 was $384,674.

About Boston Therapeutics, Inc.
Boston Therapeutics, headquartered in Manchester, NH, (OTCQB: BTHE) is a leader in the field of complex carbohydrate chemistry. The Company's product pipeline is focused on developing and commercializing therapeutic molecules for diabetes, including PAZ320, a non-systemic chewable therapeutic compound designed to reduce the elevation of post-prandial glucose (PPG) or post-meal blood sugar, and IPOXYN, an injectable anti-necrosis drug specifically designed to treat lower limb ischemia associated with diabetes. More information is available at www.bostonti.com.

Forward Looking Statements

Any statements in this news release about future expectations, plans and prospects for the Company constitute forward-looking statements as defined in the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in such statements.

More information about those risks and uncertainties is contained and discussed in the Company's most recent quarterly or annual report and in the Company's other reports filed with the Securities and Exchange Commission. The forward-looking statements represent the Company's views as of the date of this news release and should not be relied upon to represent the Company's views as of a subsequent date. While the Company anticipates that subsequent events may cause the Company's views to change, the Company disclaims any obligation to update such forward-looking statements.

Boston Therapeutics, Inc.
Balance Sheets (Unaudited)
March 31, 2013 and December 31, 2012

                                                 ------------  ------------
                                                   March 31,   December 31,
                                                     2013          2012
                                                 ------------  ------------
ASSETS

  Cash                                           $    384,674  $    552,315
  Accounts receivable                                  20,686        17,351
  Prepaid expenses                                     45,266         9,073
  Inventory, net                                       25,379        16,809
                                                 ------------  ------------
    Total current assets                              476,005       595,548

  Property and equipment, net                           9,097         7,075
  Intangible assets                                   744,643       760,714
  Goodwill                                             69,782        69,782
  Other assets                                          2,125         2,125
                                                 ------------  ------------
    Total assets                                 $  1,301,652  $  1,435,244
                                                 ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                               $    355,660  $    294,187
  Accrued expenses and other current liabilities      157,716       146,774
                                                 ------------  ------------
    Total current liabilities                         513,376       440,961

Advances - related parties                            297,820       297,820
                                                 ------------  ------------
    Total liabilities                                 811,196       738,781
                                                 ------------  ------------

COMMITMENTS AND CONTINGENCIES
Stockholders' equity:
  Preferred stock, $0.001 par value, 5,000,000
   shares authorized, none issued and
   outstanding                                              -             -
  Common stock, $0.001 par value, 200,000,000
   and 100,000,000 shares authorized and
   19,291,539 and 18,745,706 shares issued and
   outstanding at March 31, 2013 and December
   31, 2012, respectively                              19,291        18,746
  Additional paid-in capital                        3,835,986     3,375,116

  Accumulated deficit                              (3,364,821)   (2,697,399)
                                                 ------------  ------------
    Total stockholders' equity                        490,456       696,463
                                                 ------------  ------------

    Total liabilities and stockholders' equity   $  1,301,652  $  1,435,244
                                                 ============  ============



Boston Therapeutics, Inc.
Statement of Operations (Unaudited) For the Three Month Periods Ended March
 31, 2013 and 2012


                                                     For the Three Months
                                                             Ended
                                                    March 31,    March 31,
                                                       2013         2012

Revenue                                            $    23,336  $    18,854
Cost of goods sold                                      47,937       27,595
                                                   -----------  -----------
Gross margin                                           (24,601)      (8,741)
                                                   -----------  -----------

Operating expenses:
  Research and development                              28,661       51,628
  Sales and marketing                                   81,226       67,180
  General and administrative                           528,170      124,536
                                                   -----------  -----------
    Total operating expenses                           638,057      243,344
                                                   -----------  -----------
Operating loss                                        (662,658)    (252,085)
  Interest expense                                       4,764        4,178
  Foreign currency loss                                      -        1,142
                                                   -----------  -----------
    Net loss                                       $  (667,422) $  (257,405)
                                                   ===========  ===========

  Net loss per share - basic and diluted           $     (0.04) $     (0.02)
  Weighted average shares outstanding basic and
   diluted                                          18,880,845   16,223,206