Natrol, Larex Announce Exclusive Sales Agreement

CHATSWORTH, Calif.--Aug. 21, 2003--Natrol Inc. (Nasdaq:NTOL), a manufacturer and distributor of nationally branded nutritional products, announced that it has finalized a partnership with Larex, Inc. focused on selling ImmunEnhancer(TM) AG.

Natrol and Larex have signed an agreement that will provide Essentially Pure Ingredients, Natrol's functional ingredients division, with exclusive sales and marketing rights for ImmunEnhancer(TM) AG, a proprietary immune ingredient. The news follows Natrol's public announcement defining the company's renewed focus on product innovation and leadership.

ImmunEnhancer(TM) AG is a patented form of larch arabinogalactan manufactured by Minnesota-based Larex, Inc. An all-natural, non-herbal polysaccharide, ImmunEnhancer(TM) AG offers clinically proven immune enhancement, and it is superior to Echinacea in boosting immunity due to its ability to stimulate higher macrophage proliferation. Besides providing superior immune-enhancing benefits, ImmunEnhancer(TM) AG is a multi-functional ingredient that is GRAS-approved. Applications for ImmunEnhancer(TM) AG include dietary supplements and functional foods, among others.

"Rarely does an ingredient that's GRAS-approved, patented and scientifically proven -- and with this much potential -- come along. ImmunEnhancer(TM) AG is supported by extensive research," says Elliott Balbert, Natrol Chairman, President and CEO. Natrol's EPI division is building a portfolio of premium-quality bioactive ingredients including Pure-Gar(R) garlic, high-grade melatonin, soy isoflavones and other nutraceuticals. ImmunEnhancer(TM) AG adds significant value to EPI's menu of scientifically supported products and Natrol's reputation for product leadership.

Larex President Bo Nickoloff is equally enthusiastic, adding, "We are excited to have Natrol become our marketing partner for ImmunEnhancer(TM) AG. We believe Natrol's marketing and sales strength will provide the impetus to bring ImmunEnhancer(TM) AG to the forefront of immune health ingredients."

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, including the factors described above that the Company may not currently foresee, 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, 2002, and in the Company's other filings with Securities and Exchange Commission. These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.

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