Nature’s Sunshine Products, Inc. (NASDAQ:NATR – news), a leading manufacturer and marketer of encapsulated herbs and vitamins, today announced improved operating results for the second quarter ended June 30, 2000, reflecting continued strong performance from international operations.

Sales revenue for the quarter ended June 30, 2000, was $78.4 million compared to $71.6 million for the same period of the prior year, an increase of 9 percent. Net income for the second quarter totaled $4.9 million compared to $4.8 million for the same period in 1999, an increase of 2 percent. Basic and diluted earnings per common share for the first quarter were $0.29, compared to basic and diluted earnings per common share of $0.27 for the same period of the prior year.

For the six months ended June 30, 2000, sales revenue totaled $158.4 million compared to $143.8 million for the same period of the prior year, an increase of 10 percent. Net income for the six months ended June 30, 2000, decreased to $9.4 million from $9.8 million the prior year, a decrease of 4 percent. Basic and diluted earnings per common share for the six months ended June 30, 2000, were $0.55 compared to basic and diluted earnings per common share of $0.55 and $0.54, respectively, in the same period of the prior year.

International sales revenues for the three and six months ended June 30, 2000, increased 43 percent and 39 percent, respectively, compared to the same periods the prior year. International sales revenue accounted for 43 percent of consolidated sales revenue for the six months ended June 30, 2000. The Company reported strong sales revenue increases for the quarter throughout its international markets. South Korea, Mexico, Japan, and Brazil reported the most significant increases in sales revenue.

Domestic sales revenues for the second quarter decreased 8 percent, compared to the same period in the prior year. However, total new distributors recruited during the second quarter increased 41 percent, compared to the same period of the prior year, in response to the Company’s marketing initiatives and the SmartStart program.

The total number of domestic distributors at June 30, 2000, was approximately 215,000, up 30,000 from June 30, 1999. The total number of worldwide distributors at June 30, 2000, was 560,000 compared to 532,000 at June 30, 1999.

“We are encouraged about the future for Nature’s Sunshine,” said Daniel P. Howells, President and CEO. “Our international business remains strong, virtually across the board. Domestically, we are encouraged by the increase in the number of new distributors that resulted from the recent marketing programs we have put in place.”

The Company’s financial position continues to remain strong. Working capital at June 30, 2000, was approximately $40.4 million. Cash and long-term investments approximated $36.1 million. During the second quarter of 2000, the Company purchased approximately 343,000 shares of its common stock in the open market, pursuant to its current stock repurchase program. The Company is authorized to purchase up to an additional 500,000 shares of its common stock as market conditions warrant.

Nature’s Sunshine Products manufactures and markets through direct sales encapsulated and tabulated herbal products, high quality natural vitamins and other complementary products. In addition to the U.S., the Company has operations in South Korea, Brazil, Mexico, Venezuela, Japan, Canada, Colombia, the United Kingdom, the Russian Federation, Argentina, Peru, Chile, Central America, Ecuador and Israel. The Company also has exclusive distribution agreements with selected companies in Australia, New Zealand, Malaysia and Norway.

Statements in this press release concerning the Company’s business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, and product line growth, together with other statements that are not historical facts, are “forward-looking statements” as that term is defined under Federal Securities Laws. “Forward-looking statements” are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those set forth in such statements. Such risks, uncertainties and factors include, but are not limited to, foreign business risks, industry cyclicality, fluctuations in customer demand and order pattern, the seasonal nature of the business, changes in pricing and general economic conditions, as well as other risks detailed in the Company’s filings with the Securities and Exchange Commission.

For more information, contact us at our website at www.natr.com.

                   NATURE’S SUNSHINE PRODUCTS, INC.
FINANCIAL SUMMARY
(In thousands, except per share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTHS ENDED
June 30,
(Unaudited)

2000 1999
——– ———–
Sales revenue $78,381 $71,639

Cost of goods sold 13,797 12,284
Volume incentives 35,325 32,764
Selling, general and administrative 21,561 19,210

Operating income 7,698 7,381
Other income 357 545

Income before income taxes 8,055 7,926
Provision for income taxes 3,164 3,130

Net income $ 4,891 $ 4,796

Basic earnings per common share $ 0.29 $ 0.27
Weighted average basic common shares 16,930 17,725
Diluted earnings per common share $ 0.29 $ 0.27
Weighted average diluted common shares 16,992 17,825

SIX MONTHS ENDED
June 30,
(Unaudited)

2000 1999
——– ——–

Sales revenue $158,358 $143,817

Cost of goods sold 28,162 25,141
Volume incentives 71,892 65,887
Selling, general and administrative 43,671 37,749

Operating income 14,633 15,040
Other income 761 1,142

Income before income taxes 15,394 16,182
Provision for income taxes 6,007 6,396

Net income $ 9,387 $ 9,786

Basic earnings per common share $ 0.55 $ 0.55
Weighted average basic common shares 17,026 17,850
Diluted earnings per common share $ 0.55 $ 0.54
Weighted average diluted common shares 17,174 17,961