Vital Living Inc. Reports 2005 Financial Results

PHOENIX, Apr 05, 2006 (BUSINESS WIRE) -- Vital Living Inc. (VTLV) today announced its financial results for the fiscal year ended Dec. 31, 2005.

For the Fiscal Year Ended Dec. 31, 2005, Compared With the Fiscal Year Ended Dec. 31, 2004:
-- Revenue from continuing operations increased 17% to $4.9 million from $4.2 million
-- Net loss available to common stockholders was $21.7 million, or $0.21 basic and diluted loss per share, compared with $28.6 million, or $0.44 basic and diluted loss per share
-- Net loss from continuing operations decreased to $20.1 million from $24 million
-- Cash used in operations decreased to $360,000 from $3,550,000
-- Adjusted earnings before interest, taxes, depreciation and amortization was $52,000 compared with a loss of $5.6 million

"I am proud to report to our stockholders that the tough decisions we made over the last year and a half have improved our financial results and we look forward to continued improvement during 2006," noted Stuart A. Benson, Vital Living Inc.'s chief executive officer.

"We believe the restructuring efforts that began in mid-2004 and continued through mid-2005, focusing our business on growing the sales of our Doctors For Nutrition Inc. subsidiary combined with the 2005 cost containment and productivity enhancement programs, have resulted in significant adjusted EBITDA improvement. During 2006, we expect to introduce new and exciting products through DFN that will expand our product line," noted Gregg A. Linn, chief operating officer and chief financial officer of Vital Living.

Adjusted Earning Before Interest, Taxes, Deprecation and Amortization
We have calculated our Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, or Adjusted EBITDA, which also excludes the effects of the re-pricing of the variable rate warrants. The table set forth below presents the Adjusted EBITDA, which we believe to be the most directly comparable GAAP financial measure. We utilize this financial metric to manage and analyze our current operations. This measure gives us a sense of our current operations which excludes all material non-cash charges.

Adjusted EBITDA is not a measure of performance recognized under GAAP. However, it is presented because we believe Adjusted EBITDA is a useful measurement and indicator in evaluating our operating performance, as it represents our combined results excluding the impact of non-cash expenses and items not directly tied to our recurring core operations of our business. Adjusted EBITDA is not a financial measure determined by generally accepted accounting principles and should not be considered as an alternative to net loss from continuing operations as a measure of operating results or to cash flows provided by (used in) operations as a measure of funds available for discretionary or other liquidity purposes.

About Vital Living Inc.
Headquartered in Phoenix, Vital Living develops nutritional and nutraceutical products which are marketed for distribution through physicians and licensed or certified health care professionals. Vital Living develops and tests its products in collaboration with leading medical experts in the nutritional and nutraceutical fields and has designed them to be incorporated by health care practitioners into integrative medical, wellness and complementary medical protocols.
Vital Living is developing unique, safe and naturally derived nutritional products, utilizing advanced nutraceutical and drug-delivery technologies, including the Geomatrix(R) technology through its affiliation with SkyePharma PLC. The Geomatrix(R) technology has been provided exclusively for Vital Living's pharmaceutical development in China, and the development of nutraceuticals on a global basis. For more information on the company, please visit
Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve risks and uncertainties, including activities, events, or developments that the company expects, believes, or anticipates will or may occur in the future. These forward-looking statements include: expectation of continued improvement in 2006 and the introduction of new and exciting products. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the ultimate success of the company's strategic direction and its business initiatives. Such statements are subject to a number of assumptions, risks and uncertainties, including those risks disclosed in the company's Annual Report on Form 10-KSB for the year ended Dec. 31, 2005, as well as other periodic reports filed from time to time with the Securities and Exchange Commission. Readers are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.

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