Hansen Natural Reports Record Second Quarter Sales and Profits

CORONA, Calif., Aug 5, 2004 (BUSINESS WIRE) -- Hansen Natural Corporation (HANS) today reported record sales and profits for the second quarter ended June 30, 2004.

Gross sales for the second quarter increased 65.4 percent to $58.0 million from $35.1 million a year earlier. Net sales for the second quarter increased 62.1 percent to $46.1 million from $28.4 million a year ago.

Operating income for the second quarter advanced 151.8 percent to $8.4 million from $3.3 million a year ago. Net income for the second quarter increased 156.8 percent to $5.1 million, or $0.43 per diluted share, from $2.0 million, or $0.19 per diluted share, last year.

Gross sales for the six months ended June 30, 2004 increased 54.2 percent to $96.7 million from $62.8 million a year earlier. Net sales for the six months ended June 30, 2004 were up 53.2 percent to $77.4 million from $50.5 million a year ago.

Operating income for the six months ended June 30, 2004 advanced 171.7 percent to $12.0 million from $4.4 million a year ago. Net income for the six months ended June 30, 2004 increased 178.2 percent to $7.3 million, or $0.63 per diluted share, from $2.6 million, or $0.25 per diluted share, last year.

Rodney C. Sacks, chairman and chief executive officer, said the exceptional performance continued to reflect strong consumer demand for Monster Energy(TM) drinks, which were introduced in 2002, Lo-Carb Monster Energy(TM) drinks, which were introduced in August 2003 and Lost(R) Energy drinks in 16-ounce cans, which were introduced in January 2004, as well as increased sales by volume of apple juice, Natural Sodas, in particular Diet Natural Sodas, private label beverages and, to a lesser extent, sales of Deuce Energy drinks, a reduction in allowances to certain customers which resulted in increased net sales of Junior Juice(R) brand drinks and increased sales by volume of Energade(R) Energy sports drinks and juice blends.

The sales increase was partially offset by lower sales by volume primarily of Hansen's(R) children's multi-vitamin juice drinks in aseptic packaging, smoothies in cans and bottles, Diet Red Energy drinks, teas, lemonades and juice cocktails and soy smoothies.

Gross profit as a percentage of net sales for the quarter increased to 45.1 percent, from 40.3 percent for the comparable 2003 quarter. Gross profit as a percentage of net sales for the six months ended June 30, 2004 rose to 44.8% from 39.1% a year ago.

Hansen Natural Corporation markets and distributes Hansen's(R) Natural Sodas, Signature Sodas, fruit juice and soy Smoothies, Energy drinks, Energade(R) energy sports drinks, E20 Energy Water(R), functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice(R) juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, as well as nutrition bars, Blue Sky(R) brand carbonated beverages, Monster Energy(TM) brand energy drinks and Lost(R) Energy(TM) brand energy drinks. The company's subsidiary Hard e Beverage Co. markets and distributes Hard e malt beverages. Hansen can be found on the Web at www.hansens.com.

Certain statements made in this announcement may constitute "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, regarding the expectations of management with respect to revenues and profitability. Management cautions that these statements are qualified by their terms/or important factors, many of which are outside of the control of the company, that could cause actual results and events to differ materially from the statements made herein, including, but not limited to, the following: Changes in consumer preferences, changes in demand that are weather related, particularly in areas outside of California, competitive pricing pressures, changes in the price and/or availability of raw materials for the company's products, the availability of production and/or suitable facilities, the marketing efforts of the distributors of the company's products, most of which distribute products that are competitive with the products of the company, the introduction of new products, as well as unilateral decisions that may be made by grocery chain stores, specialty chain stores, club stores and other customers to discontinue carrying all or any of the company's products that they are carrying at any time. Management further notes that the company's plans and results may be affected by any change in the availability of the company's credit facilities and the actions of its creditors.

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