SAN MARCOS, Calif., Oct. 31 -- Natural Alternatives International ("NAI"), Inc. (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, announced today it obtained a new $6.5 million two-year credit facility from UPS Capital Corporation, the financial services arm of UPS, the world's largest global transportation company. The new facility is comprised of a $4 million working capital line of credit and a $2.5 million term loan. The interest rate on the line of credit and the term loan is prime plus 0.5%. The new facility replaces an existing $2.5 million line of credit and $1.2 million term loan that NAI had in place with two separate lenders.

COO Randell Weaver said, "We are pleased to announce this credit facility which provides NAI increased flexibility and additional long-term stability. The new term loan provides an immediate $1.3 million increase in our cash position. In addition, the new line of credit frees up $1.5 million of existing cash previously restricted as collateral for our prior line of credit while also providing an additional $1.5 million in borrowing capacity."

CEO Mark LeDoux said, "We are pleased to enter into this relationship with UPS Capital Corporation. This credit facility significantly enhances our ability to execute our long-term growth plans, implement our business strategies and build upon the momentum we have established in improving our financial performance."

NAI, headquartered in San Marcos, California, is a leading formulator and manufacturer of nutritional supplements that provides 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 NAI, 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 the impact of having and maintaining long-term 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 Annual Report on Form 10-K.

For further information please contact: Randell Weaver, Chief Operating Officer, Natural Alternatives International, Inc., +1-760-744-7340, info@nai-online.com.