SAN MARCOS, Calif., Nov. 23 /PRNewswire/ -- Natural Alternatives International (NAI), Inc. (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, announced today its fiscal 2002 first quarter results for the three months ended September 30, 2001.

The Company reported net revenues of $9.9 million in the first quarter of fiscal 2002, compared to $10.2 million in the first quarter of fiscal 2001, a decrease of $336,000 or 3%. Fiscal 2002 first quarter revenues decreased $467,000 or 4.5% from fourth quarter fiscal 2001 revenues of $10.3 million. In the first quarter of fiscal 2002, the net loss was ($658,000), or ($0.11) per diluted share, compared to the net income of $205,000, or $0.04 per diluted share, in the first quarter of fiscal 2001, a decrease of $863,000.

Mark LeDoux stated, "We continue to focus on several important objectives, including controlling costs, improving our balance sheet, targeting new revenue opportunities and increasing operational efficiencies. Recently, we have seen increased interest from consumer and international regulatory bodies for greater scientific validation of supplements. I am proud to announce that a recent study sponsored by NAI, co-authored by Chief Science Officer, John A. Wise, Ph.D., and published in "The Journal of Nutrition," has been selected as one of the top 25 studies on dietary supplements published in the year 2000. Over 450 papers were nominated by the editors of prominent peer-reviewed journals, and leading scientists selected the best for publication in the "Annual Bibliography of Significant Advances in Dietary Supplement Research 2000," produced as a joint effort of the Office of Dietary Supplements -- National Institutes of Health and the Consumer Healthcare Products Association.

LeDoux continued, "We have also seen significant increased demand for product produced by our European facility, and we are in the process of expanding that facility to accommodate our clients' increased demand. We are now poised to execute our strategy to achieve profitability by investing wisely, cutting expenses appropriately and targeting strong markets and revenue sources."

Randell Weaver, Chief Financial & Operations Officer reports, "As a result of our efforts to strengthen the Company's financial position and diversify our sales mix, sales in our direct-to-consumer physician's branded product line have continued to increase, this quarter by $1 million or 100% over the same quarter last year. We are pleased with our progress in controlling costs and diversifying our sales mix."

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 assessment, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design and international product registration assistance. For more information about Natural Alternatives International, please see our Web site at 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 future financial and operating results; the Company's ability to achieve profitability; diversify both sales channels and sales mix; contain costs; maximize use of manufacturing assets; enhance direct-to-consumer marketing programs; obtain new financing and repay its debt obligations; and its ability to implement its strategic plan. 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 Company's financial performance and 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 & Operations Officer, Natural Alternatives International, Inc., +1-760-744-7340, info@nai-online.com.

                     NATURAL ALTERNATIVES INTERNATIONAL, INC.

                  CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                        (In thousands, except share data)

                                                   Three Months Ended
                                                      September 30,
                                                 2001             2000
                                                      (Unaudited)
     Net sales                                  $9,887          $10,223
     Cost of goods sold                          7,863            8,418
      Gross profit                               2,024            1,805
     Selling, general and
      administrative expenses                    2,454            1,222
     Loss on abandonment of leased facility         --              308
      Income (loss) from operations               (430)             275
     Other income (expense)                       (214)            (140)
      Income (loss) before taxes                  (644)             135
     Tax (benefit) expense                          14              (70)
       Net income (loss)                         $(658)            $205

       Basic net income (loss)
        per common share                        $(0.11)           $0.04
       Diluted net income (loss)
        per common share                        $(0.11)           $0.04

        Shares used in calculation of
         net income (loss) per share:
         Basic                               5,785,606        5,761,880
         Diluted                             5,785,606        5,763,890


                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In thousands)

                                             September 30,       June 30,
                                                 2001              2001
     Assets                                   (unaudited)       (audited)
      Cash and cash equivalents                   $792             $499
      Accounts receivable, net                   3,395            3,331
      Inventories, net                           7,059            6,201
      Other current assets                       1,229            1,006
       Total current assets                     12,475           11,037
      Property and equipment, net               13,151           13,478
      Other assets                                 554              553
     Total Assets                              $26,180          $25,068

     Liabilities and Stockholders' Equity
      Current liabilities                       $7,616           $5,672
      Long-term debt                             3,386            3,567
      Other long-term liabilities                  230              225
      Stockholders' equity                      14,948           15,604
     Total Liabilities and Stockholders'
      Equity                                   $26,180          $25,068


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SOURCE Natural Alternatives International, Inc.
Web site: http: //www.nai-online.com
Company News On-Call: http: //www.prnewswire.com/comp/607813.html
CONTACT: Randell Weaver, Chief Financial & Operations Officer of Natural Alternatives International, Inc., +1-760-744-7340, info@nai-online.com