Baywood International, Inc. Reports Third Quarter Financial Results

SCOTTSDALE, Ariz., Nov 20, 2007 (BUSINESS WIRE) -- Baywood International, Inc. (BYWD) ("Baywood" or the "Company"), a leading nutraceutical company, announced today financial results for its third quarter ending September 30, 2007.
Net Sales Increased 1465%
Net sales for the three months ended September 30, 2007 were $3,214,465 compared to $205,331 for the same period last year, an increase of $3,009,134, or 1465%. The increase in net sales for the three month period is attributable to our acquisition of Nutritional Specialties, Inc., d/b/a LifeTime(R) ("LifeTime") on April 5, 2007, effective March 30, 2007.

Positive Operating Income
On an operating basis, Baywood reported operating income of $143,746 for the three month period ended September 30, 2007 compared to an operating loss of $(131,175) for the same period last year. Operating income for the three month period was impacted by certain cash expenses including professional fees, offering costs and other charges totaling approximately $95,000 that were incurred relating to the LifeTime acquisition and related financing.

For the three months ended September 30, 2007, Baywood had a net loss of $(202,644), or less than $(0.01) per share based on weighted average shares outstanding of 131,596,110. This compares to a net loss of $(179,003), or less than $(0.01) per share based on weighted average shares outstanding of 42,235,114 for the same period last year. The net loss for the three month period ended September 30, 2007 included non-cash acquisition and financing related charges of $146,766 and interest expense of $199,624.

"In the coming quarters we intend to expand into new stores by introducing innovative new products and also by up selling into our existing base of products," said Neil Reithinger, President and CEO of Baywood. "As we enter into 2008, we will also begin certain marketing initiatives to increase brand awareness to support our sales force in expanding distribution and to our retailers by driving consumers into their stores."

New Distribution Agreement
Subsequent to the third quarter, on October 29, 2007, Baywood signed an exclusive distribution agreement with SVG Dis Ticaret, Ltd. ("SVG") to expand the existing distribution of its LifeTime(R) brand of products into the Turkish market. SVG is an affiliated distribution company of Sunfarma A.S. / Genfarma A.S., one of the leading companies for the importation and distribution of food supplements, dermo-cosmetic and selective cosmetic products in the Turkish market. SVG's selling network will span directly to over 700 pharmacies that will be supported by a dedicated team of 26 sales professionals. SVG is also in collaboration with wholesalers for the distribution of imported food supplement products. Through collaboration with these wholesalers, SVG can reach up to 7,500 pharmacies in all over to Turkey. Currently, there are approximately 22,000 pharmacies in Turkey.

New Product Launches
During the third quarter, six products were launched under LifeTime(R) brand including the following:
-- Certified Organic 4 Blend - Antioxidant-rich superfruit blend containing certified organic noni, mangosteen, goji and acai in a tropical fruit flavored juice
-- Resveratrol Life Tonic - Antioxidant containing 300 mg of resveratrol extract in liquid form for enhanced bioavailability
-- Calm & Calmer II - Magnesium-rich effervescent powder containing ten other essential vitamins and minerals that dissolves in cold water with no mixing
-- Liquid D3 (Cholecalciferol) - Support for strong bones, immune and nervous system in liquid form for enhanced bioavailability
-- Uri-Active Liquid and Capsules - Highly concentrated cranberry extract with other essential herbs for urinary tract health (liquid & capsule form)
-- Diosmin Complex - Bioflavonoid complex containing diosmin and hesperidin for cardiovascular health and vasculoprotective support
These products are being well received by the Company's sales force and retailers. As part of Baywood's ongoing product innovation efforts, the Company works actively with its sales force and its store networks to introduce new and exciting products that the Company believes consumers are seeking and that fit with their active lifestyles.

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