Naturade, Inc. Reports Third Quarter Results


IRVINE, Calif., Nov. 23, 1999 (PRIMEZONE) -- Naturade, Inc. (OTCBB:NRDC) today reported a net loss of ($2,080,605) for the third quarter ended September 30, 1999 or ($0.39) per share, on net sales of $3,298,259, compared with a net loss a year earlier of ($1,799,746), or ($0.34) per share on net sales of $3,693,196. Operating results showed a third quarter loss of ($587,030) as compared to a prior year operating loss of ($1,637,819).

Bill Stewart, Chief Executive Officer, said, "Third quarter results reflect decisions planned, made and executed during the last eighteen months to reposition the company as a marketer of differentiated branded products that target attractive, high-growth segments with innovative products." Sales for the core protein powders and aloe vera product lines were up 9.5% versus third quarter 1998. This was offset by expected declines in the PLEX and international businesses. Orders for the company's new product line, Naturade Total Soy, continue to grow significantly with increased penetration into mass accounts. The company's restructuring plans are on target and in line with company expectations.

Improved third quarter operating results were due to higher gross margins and reduced operating costs. Non-operating charges reflect a one-time interest expense due to the granting of warrants and the issuance of debt with a beneficial conversion feature, which, per GAAP, required a charge of $1,288,115 to the September 30, 1999 quarter.

Stewart said, "Our strategic plan is on track with restructured financing, a new management team in place and a clear focus on building on our significant position in the soy protein category. We're optimistic that our strategic focus on expanded distribution combined with the recent FDA heart health claim for soy protein will allow us to begin a new chapter in financial performance as we move into 2000."

Founded in 1926, Naturade's offices are in new, modern facilities in Irvine, California. The company is committed to marketing innovative natural products that actively nourish and improve the health and well-being of consumers. The company's brands include Naturade Total Soy(TM) Naturade NRG(TM) Naturade Vegetable Protein(TM) Naturade 100% Soy (TM) (all of which qualify for the FDA heart health claim), THE CHINESE WAY(TM) herbs and Aloe Vera 80(TM)natural beauty care products. For more information visit the Naturade Web site at www.naturade.com or call toll-free (877) 4 Soy News.

NOTE: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the Company's business, see the Company's filings with the Securities and Exchange Commission.


NATURADE, INC.
INCOME STATEMENT

                   3 Mo. Ended               9 Mo.s Ended
               9/30/99      9/30/98      9/30/99      9/30/98
 
Net sales   $ 3,298,259  $ 3,693,196  $ 8,432,184 $ 10,777,915
Cost of 
 sales        1,874,417    2,913,541    5,100,343    7,105,385
Gross profit  1,423,842      779,655    3,331,841    3,672,530
 
Operating costs and expenses
  SG & A      2,007,779    1,926,999    5,821,467    6,776,606
  New product
   Design                    443,333                   443,333

  Depreciation &
   amortization   3,093       47,142       94,538      140,848
 
  Total operating 
   costs & 
   expenses   2,010,872    2,417,474    5,916,005    7,360,787
 
Operating 
 (Loss)        (587,030)  (1,637,819)  (2,584,164)  (3,688,257)
 
Other income (expense)
  Interest 
   Expense   (1,412,723)     (92,544)  (1,636,209)    (296,568)
  Other (Income)
   Expense      (80,315)      66,067   (2,814,659)      16,824
 
  Total other 
   (income)
   expense   (1,493,038)     (26,477)  (4,450,868)    (279,744)
 
(Loss) income
 before income
 taxes       (2,080,068)  (1,664,296)  (7,035,032)  (3,968,001)
 
Provision for
 income taxes       537      135,450        2,937       77,996
 
Net (loss)
 Income     ($2,080,605) ($1,799,746) ($7,037,969) ($4,045,997)
 
Basic (loss)
 earnings per
 share           ($0.39)      ($0.34)      ($1.32)      ($0.76)
 
 
 
NATURADE, INC.
BALANCE SHEET
 
                                      9/30/99      12/31/98
 
Current Assets
  Cash                             $ 1,158,460   $   842,029
  Accounts & notes receivables       1,386,279     1,294,612
  Related party receivables                  0       600,000
  Inventories                        2,620,456     2,093,981
  Refundable income taxes                    0       163,416
  Prepaid expenses                     211,272       325,853
 
  Total current assets               5,376,467     5,319,891
 
Property and equipment, net            310,660     1,981,326
Intangible assets, net                 112,520     1,106,358
Other assets                           103,199       116,014
                                       526,379     3,203,698
 
  Total assets                     $ 5,892,846   $ 8,523,589
  
Current liabilities
  A/P & accrued expenses           $ 1,732,678   $   891,069
  Accrued expenses                     266,851       565,794
  Line of credit                       980,308     1,450,000
  Notes payable                        388,667          
  Amount due to related party, 
   Net of debt discount of $237,366  1,362,634            -
  Current portion long-term debt        31,452       193,383
                                     4,762,590     3,100,246
 
Long-Term Debt, less 
 current maturities                    143,866     1,964,324
Amount due to stockholder            3,000,000            -
 
Stockholders' equity                (2,013,610)    3,459,019
 
Total liabilities & 
 stockholders' equity              $ 5,892,846   $ 8,523,589
  
CONTACT:  Larry Batina
          Chief Financial Officer
          Naturade, Inc.
          714-573-4800
  
          Steven Stern/Cecilia Wilkinson
          Pondel / Wilkinson Group
          310-207-9300