May 22, 2006

4 Min Read
Natrol, Inc. Establishes Subsidiary in the United Kingdom

CHATSWORTH, Calif., May 22, 2006 (BUSINESS WIRE) -- Natrol, Inc. (NTOL) , a leading manufacturer and distributor of internationally branded nutritional products, today announced the establishment of a United Kingdom subsidiary, Natrol UK Ltd. At the same time, the Company announced the retention of Margaret Peet to lead the overall operations of Natrol UK Ltd.

"As we continue with our strategy of solidifying our core business, and developing growth platforms from a position of strength, a commitment to the European marketplace is clearly appropriate," stated Wayne Bos, President and Chief Executive Officer of Natrol, Inc. "Less than 10% of our revenue is derived from international sales today. Establishment of Natrol UK Ltd. will allow us to pursue additional organic revenue growth overseas. We will continue to support current distribution while capitalizing upon new opportunities. Our new presence, coupled with Margaret Peet's outstanding leadership and industry experience, will provide greater local capability and a better understanding of the marketplace, our customers and our distributor network."

Margaret Peet added, "I am very excited to be leading Natrol's new international development initiatives. I will be heading a business that already has a significant presence in the United Kingdom, with strong sales of approximately 40 different product offerings. The Natrol(R) and Prolab(R) Sports Nutrition brands have established a trusted position amongst a select group of retailers. The opportunity now is to leverage that platform with wider retail representation and an expanded range of Natrol, ProLab and Laci Le Beau(R) Tea products."

Margaret Peet brings almost 25 years of experience in the health and nutrition industry. She began her career in the industry by operating a single health food store, and built the business into a multi-store chain. The company was sold to GNC in 1995. She moved her family to the United States after accepting the position of Senior Vice President and National Sales Director for GNC, where she was responsible for sales and purchasing for approximately 5,000 stores across the United States and Canada. Ms. Peet is also founder of Healthy Inspirations Ltd., a company that provides strategic planning and consulting services to nutritional products companies seeking to enhance their market presence in the United Kingdom and Europe. A winner of the Woman in Business Enterprise Award, Ms. Peet and Healthy Inspirations were three-time winners of the UK Health Retailer of the Year. She is a frequent guest speaker at nutritional supplements industry events and seminars.

Elliott Balbert, Founder and Executive Chairman of Natrol, Inc., stated, "We are delighted to be incorporating our first international subsidiary in the United Kingdom, and to have appointed Margaret Peet as its leader. She has a deep understanding of the UK marketplace and of the needs of the UK's key healthy lifestyle retailers."

About Natrol, Inc.
Founded in 1980, Natrol, Inc. (NTOL) is a diversified nutrition company that manufactures and markets premium-branded nutritional products, functional teas and sports fitness products under the Natrol(R), Laci Le Beau(R) Tea and Prolab(R) Sports Nutrition labels. Natrol markets more than 200 nutritional products designed to meet a wide range of consumer needs. The products are available at more than 54,000 food, drug, mass market and independent health food stores, catalogs and Internet sites, gyms and specialty stores nationally and in approximately 40 select foreign countries. For more information, visit www.natrol.com.

The statements made in this press release which are not historical facts including statements regarding expectations for future growth of revenue and profits and trends concerning net sales, are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As a result of a number of factors, the Company's actual results could differ materially from those set forth in the forward looking statements. Certain factors that might cause Natrol's actual results to differ materially from those set forth in the forward looking statements include adverse trends in the dietary supplements industry, intense competition, adverse effects of unfavorable publicity regarding particular products or the Company's industry generally, the Company's dependence on the introduction of successful new products, the Company's ability to gain market share and shelf space in each of its distribution channels, the Company experiencing high rates of product returns, and adverse government regulation, as well as those factors set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and in the Company's other filings with the Securities and Exchange Commission.

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