Baywood Reports Results for Fourth Quarter and Year-Ended December 31, 2002

Revenue Up 26.3% From $2,724,798 to $3,441,622

Gross Margins Increased and Net Loss Substantially Decreased

SCOTTSDALE, Ariz., March 20 /PRNewswire-FirstCall/ -- Baywood International, Inc. (the "Company") (OTC Bulletin Board: BYWD), a nutraceutical company specializing in the development, marketing and distribution of its own proprietary brands, today reported unaudited financial results for the fourth quarter and year-ended December 31, 2002.

Fourth quarter 2002 revenues rose 13.2% to $737,369 from $651,140 in the comparable quarter of last year. Revenues for the year ended December 31, 2002 rose 26.3% to $3,441,622 from $2,724,798 compared to the same period last year. The increase in revenue for the fourth quarter and year-end is due to the increasing sales of the Company's brands, Baywood PURECHOICE(R), Baywood SOLUTIONS(R) and Complete La Femme(R), which the Company is distributing through existing and new customers including independent and chain health food stores, pharmacies, grocery and drug chains and other direct-to-consumer retailers. In addition, the Company's sales increases for 2002 are attributable to the introduction of new products that the Company is selling to its existing customers along with the continuing orders from Canada and from the Company's exclusive marketer and distributor for Asia.

The Company's gross profit margin for the year ended December 31, 2002 was 45.8% compared to 40.4%, an increase of 5.4%, for the same period last year. The increase in gross profit margin for the twelve months is due to the sales mix of higher margin products into the North American market as opposed to a higher mix of international sales where margins are typically lower as compared to the same period last year.

The Company's operating loss for the twelve months ended December 31, 2002 will approximate $(242,000) or less than $(.01) per share compared to $(636,164) or $(.02) per share for the same period last year, a decrease in net loss of approximately $395,000 or 62%.

Neil Reithinger, Baywood Chairman, President & C.E.O., commented, "We continue to work extremely hard to fulfill the growth potential of our products into the marketplace and we see the recognition of our brand amongst retailers and consumers. While building our base of sales, we remain focused on monitoring our costs in this difficult economic environment. While close to achieving a break-even or profitable year for 2002, a tougher sales environment in the fourth quarter held us back from achieving this goal. Although overall we expect further sales increases for 2003, we are cautious about what the first quarter of 2003 will bring and expect much of our current year growth to occur during the latter part of the 2003 calendar year."

About Baywood:

Baywood International, Inc. is a nutraceutical company specializing in the development, marketing and distribution of its own proprietary brands under the names Baywood PURECHOICE(R), Baywood SOLUTIONS(R) and Complete La Femme(R). The Company's products are distributed through independent and chain health food stores, pharmacies, grocery stores, and other direct-to- consumer channels both internationally and domestically. Contact Baywood International, Inc. at 1-888-350-0799 or for more information visit www.bywd.com .

This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Issuer's expectations among other things are dependent upon general economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's Form 10-KSB's and 10-QSB's on file with the United States Securities and Exchange Commission.

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