Natural Alternatives Buys Real Health Labs

SAN MARCOS, Calif.--Natural Alternatives International Inc. (NASDAQ:NAII) announced the purchase of San Diego-based Real Health Laboratories Inc., which formulates and manufactures customized nutritional supplements for major retailers, including Walgreens, CVS, Rite Aid, Sav-On, Longs and Eckerd. Real Health also markets its nutritional products directly to consumers through catalogues, utilizing in-house graphic design, creative, fulfillment and call center operations. Real Health, which has sold branded supplements and other lifestyle products since 1994, posted revenues of $11.6 million for its last fiscal year ended Oct. 31, 2005.

"This acquisition marks a significant advance in our strategy of marketing our own branded products and expanding distribution channels, said Randell Weaver, president of NAII. We believe this acquisition will provide meaningful strategic, operational and financial benefits to both companies, including the integration of certain NAI outsourced activities into RHL's existing operation. We anticipate integration of these activities to generate cost savings."

John Dullea will continue as president of Real Health, according to Mark LeDoux, chief executive officer (CEO) of NAII. Dullea has more than 30 years of consumer products marketing and retail distribution expertise both domestically and internationally, including stints at Johnson & Johnson and Andrew Jergens Co.

I share NAII's vision of building a leading portfolio of branded supplement products across multiple channels, Dullea said. The combination of our capabilities should provide considerable opportunity for future growth."