SAN MARCOS, Calif., Dec. 6 /PRNewswire-FirstCall/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, today announced the acquisition of Real Health Laboratories, Inc. ("RHL"). One of NAI's recent initiatives has been to increase product lines and expand distribution channels. We believe the acquisition of RHL is a significant milestone in achieving these goals.

RHL, based in San Diego, CA since 1994, is a leading marketer of branded nutritional supplements and other lifestyle products with approximately $11.6 million in revenue in its latest fiscal year ending October 31, 2005. RHL sells its supplements through many of the largest U.S. retailers including CVS, Sav-on, Walgreens, Longs, Rite Aid and Eckerd. Certain of RHL's current products are leading sellers in their respective categories within U.S. drug stores. Additionally, RHL also directly markets nutritional supplements and other products through lifestyle catalogues targeting female baby boomers and other audiences. RHL's inhouse operations include graphic design, creative, fulfillment and call center activities.

President Randell Weaver commented, "This acquisition marks a significant advance in our strategy of marketing our own branded products and expanding distribution channels. We believe this acquisition will provide meaningful strategic, operational and financial benefits to both companies, including the integration of certain NAI outsourced activities into RHL's existing operation. We anticipate integration of these activities to generate cost savings."

CEO Mark LeDoux added, "I am delighted that John Dullea will continue as President of RHL. John brings to NAI more than 30 years of consumer products marketing and retail distribution expertise both domestically and internationally at companies including Johnson & Johnson and Andrew Jergens Company."

John Dullea commented, "I share NAI's vision of building a leading portfolio of branded supplement products across multiple channels. The combination of our capabilities should provide considerable opportunity for future growth."

NAI, headquartered in San Marcos, California, is a leading formulator and manufacturer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to the client including: scientific research, clinical studies, proprietary ingredients, 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 NAI, please see our website at www.nai-online.com. For more information about RHL, please see www.realhealthlabs.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 our intentions, expectations and beliefs concerning future events, including, among other things, our expectations and beliefs with respect to future financial and operating results, and our ability to continue to implement our strategic plans, increase branded product sales and develop distribution channels. We wish to caution readers 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. NAI'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 us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

CONTACT - John R. Reaves, Chief Financial Officer, Natural Alternatives International, Inc., 760-736-7700 or investor@nai-online.com.

SOURCE Natural Alternatives International, Inc.
12/06/2005
CONTACT: John R. Reaves, Chief Financial Officer of Natural Alternatives International, Inc., +1-760-736-7700, investor@nai-online.com
Web site: http://www.nai-online.com
http://www.realhealthlabs.com
(NAII)