Senior Debt Facility Expands Flexibility and Access to Capital

SAN MARCOS, Calif., Jan. 8 /PRNewswire/ -- Natural Alternatives International, Inc. (NAI), (Nasdaq: NAII) a leading formulator and manufacturer of customized nutritional supplements, announced today that it has completed restructuring all of its former senior credit arrangements and entered into a two-year senior debt agreement with a new primary lender providing the Company up to $9.35 million in capital.

The Company announced that the new senior debt agreements were executed and funded in late December 2000. The new debt arrangements provide up to $7.0 million in a working capital line of credit, $1.6 million in a five-year equipment loan and a line of credit of up to $750,000 for new capital equipment financing.

"We are pleased to have the expanded flexibility to finance our strategic business objectives," said Peter C. Wulff, Chief Financial Officer and Treasurer. "The new credit line doubles our immediate access to capital. All other financing arrangements the Company has in place for both its domestic and Swiss manufacturing operations remain unaffected. This new credit facility is another milestone in improving our financial position and ability to secure further business opportunities."

Natural Alternatives International, Inc., located in San Marcos, California, is a leading formulator and manufacturer of customized nutritional supplements. The Company's comprehensive partnership approach to client servicing is unique within the industry, combining clinical research, science- based formulation, advanced quality assurance testing methodologies, superior manufacturing and packaging capabilities and broad experience in marketing high quality products that are formulated to meet specific nutritional and health needs.

This press release may contain 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 expectations and beliefs concerning future events, including, among other things, expectations and beliefs with respect to future financial and operating results; and its ability to improve its business opportunities. 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 such as those set forth from time to time in the documents filed by the Company with the Securities and Exchange Commission, including without limitation the Company's most recent Form 10-Q.

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CONTACT: Peter C. Wulff, Chief Financial Officer and Treasurer, Natural Alternatives International, Inc., 760-744-7340, info@nai-online.com, Website: www.nai-online.com
SOURCE Natural Alternatives International, Inc.
Web site: http: //www.nai-online.com
Company News On-Call: http: //www.prnewswire.com/comp/607813.html or fax, 800-758-5804, ext. 607813
CONTACT: Peter C. Wulff, Chief Financial Officer and Treasurer of Natural Alternatives International, Inc., 760-744-7340, info@nai-online.com