SAN MARCOS, Calif., July 2 /PRNewswire-FirstCall/ -- Natural Alternatives International (NAI), Inc. (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, announced today it has received a sixty day interim extension and amendment of its existing working capital line of credit effective July 1, 2002.

Under the terms of the amended and extended working capital line of credit, maximum borrowings remain at $2.5 million, and the interest rate has been decreased to prime plus 0.5%. Existing financial covenants have been removed, and NAI is only required to maintain a minimum cash balance of $1.5 million with the secured creditor. That amount is currently on deposit with the existing lender and there were no amounts outstanding under the working capital line of credit as of June 30, 2002. A related term note has already been repaid in full.

CFO Randell Weaver said, "We have been in active negotiations to establish new long term replacement financing and are confident we will successfully conclude that effort shortly. In the interim we have arranged this extension and amendment of our existing working capital line of credit."

Natural Alternatives International, Inc., headquartered in San Marcos, California, is a leading formulator and manufacturer of nutritional supplements providing strategic partnering services to its customers. The Company's comprehensive partnership approach offers a wide range of innovative nutritional products and services to the client including: scientific research, clinical studies, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about Natural Alternatives International, please see our website at http://www.nai-online.com .

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent the Company's intentions, expectations and beliefs concerning future events, including, among other things, expectations and beliefs with respect to obtaining long-term replacement financing. The Company wishes to caution and advise readers that these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. The forward-looking statements contained herein are further qualified by other risks including those set forth from time to time in the documents filed by the Company with the Securities and Exchange Commission, including the Company's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K.

For further information, please contact Randell Weaver, Chief Financial Officer, Natural Alternatives International, Inc., 760-744-7340 or info@nai-online.com.

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http://tbutton.prnewswire.com/prn/11690X89185155
SOURCE Natural Alternatives International, Inc.
Web site: http: //www.nai-online.com
CONTACT: Randell Weaver, Chief Financial Officer of Natural Alternatives International, Inc., +1-760-744-7340, info@nai-online.com