Baywood International, Inc. Acquires Skae Beverage International, LLC

Baywood International, Inc. (OTCBB:BAYW) ("Baywood") announced today that it has acquired Orangeburg, NY-based Skae Beverage International, LLC ("Skae Beverage"), a maker of all natural, ready-to-drink (RTD) teas.

Skae Beverage's teas are marketed under the brand name New Leaf and are currently available primarily in the Northeast and South Florida in approximately 5,000 independent grocery and restaurant outlets.

New Leaf is sold in 16.9 oz bottles in thirteen flavors: Diet Blue Tea with Lemon, Diet Blue Tea with Peach, Blue Tea with Lemon, Blue Tea with Peach, Blue Tea with Raspberry, Green Tea with Plum, Green Tea with Ginseng, Green Tea with Mango, White Tea with Ginseng & Honey, White Tea with Honey Dew Melon, White Tea with Strawberry, White Tea with Tangerine and Black Tea with Mint and Lime.

Skae Beverage will operate as a separate unit of Baywood and will remain in Orangeburg. Eric Skae, the company's founder, will remain President of Skae Beverage and become a Vice President of Baywood.

"By acquiring Skae Beverage, we now combine Baywood's nutraceutical expertise and health food distribution with their expertise in street and food, drug and mass distribution (FDM) channels to foster significant growth in the fast-growing RTD business," stated Neil Reithinger, President & C.E.O. of Baywood.

"Joining with Baywood is the next positive step in the evolution of the New Leaf brand," said Eric Skae, President of Skae Beverage. "Together, we are now in a position to expand New Leaf into a prominent, national brand while, at the same time, creating exciting new products."

Skae Beverages teas are classified as ready-to-drink teas, a category that represented 2.9% of the total non-alcoholic beverage market, but posted the third highest growth rate of 15% in 2007, after energy drinks and enhanced water. According to Packaged Facts, in 2007, the U.S. tea market (instant, leaf, liquid concentrate and ready-to-drink) was approximately $7.4 billion and is estimated to grow to $15 billion by 2012. Skae Beverage's products are well-positioned to participate in that growth due to consumers' acceptance of the products in the markets it has penetrated, its growth to date and its competitive edge in ingredients, flavor and packaging. More information on Skae Beverage's products can be found at

For more detailed information regarding the transaction, please refer to the Company's filing on Form 8-K to be filed on the SEC's website at

About Baywood:

Baywood International, Inc. (OTCBB:BAYW) ("Baywood") is a nutritional science company that develops, markets and sells nutraceutical and nutritionally enhanced products and new age beverages under its own brands. Baywood merges its expertise in nutritional formulation with its leverage in sales and distribution to deliver the most effective and progressive products to market. Currently, Baywood's products are sold under three brands that are distributed into retail markets nationwide and internationally as follows:

* New Leaf Tea -- Available in the Northeast and South Florida through 50+ distributors and approximately 5,000 accounts of
independent grocery/restaurant "street" channel (i.e. bagel stores, delis, pizzerias, cafes, independent convenience
stores, college book stores etc).
* LifeTime(r) -- Available in independent and chain health food stores, natural grocery stores, and other direct-to-consumer
channels both internationally and domestically (
* Baywood PURECHOICE(r), Baywood SOLUTIONS(r) and Complete La Femme(r) -- Available in independent and chain health food stores, natural grocery stores, and other direct-to-consumer channels both internationally and domestically
* Mamajuana Extreme(tm) -- Available in select convenience stores and chain stores nationwide (

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