Natural Health Trends Reports Third Quarter and Year-to-Date Financial Results

Natural Health Trends Reports Third Quarter and Year-to-Date Financial Results

                  Sixth Consecutive Quarter of Profitability
  Year-to-Date Revenues Increased 28.1% and Operating Income Increased 48.5%

DALLAS, Nov. 13, 2012 (GLOBE NEWSWIRE) -- Natural Health Trends Corp.
(OTCQB:NHTC), a leading direct selling company that markets premium quality
personal care, wellness and "quality of life" products under the NHT Global
brand, today announced financial results for the third quarter and nine month
period ended September 30, 2012.

Third Quarter Financial Highlights

  *Total revenues were $9.3 million compared to $10.6 million for the same
    period in 2011, a decrease of 11.6%. The decrease in revenues for the
    third quarter reflects the promotional event during 2011 related to the
    Company's 10-year anniversary celebration in Hong Kong, which did not
    benefit 2012.

  -- Sales in Hong Kong decreased 20.5% compared to last year, primarily due
  to last year's major promotion.
  -- Net sales outside of Hong Kong increased 23.9%, primarily due to sales in
  the Russian market.

  *Gross profit was $6.9 million compared to $8.0 million last year.
  *Gross profit margin was 74.5% compared to 76.0% last year.
  *Operating income was $789,000 compared to $1.2 million last year.
  *Net income attributable to common stockholders of Natural Health Trends
    was $743,000, or $0.07 per basic and diluted share, compared to net income
    of $1.6 million, or $0.15 per basic and diluted share last year.
  *Cash and cash equivalents increased to $3.7 million as of September 31,
    2012 from $1.6 million as of December 31, 2011.

Year-to-Date Financial Highlights

  *Net sales for the nine months ended September 30, 2012 were up $6.5
    million, or 28.1%, to $29. 4 million from $22.9 million in the same period
    last year. Year-to-date (nine month) revenues are 94.4% of the full-year
    (12 month) revenue from the year ended December 31, 2011.

  -- Sales in Hong Kong increased 35.3% compared to the prior-year nine month
  period.
  -- Net sales outside of Hong Kong increased 13.3%, primarily due to sales in
  the Russian market.

  *Year-to-date gross profit increased 28.6% to $21.7 million from $16.9
    million in the same period last year.
  *Year-to-date gross profit margin was 73.9% compared to 73.7% in the first
    nine months of last year.
  *Year-to-date operating income increased 48.5% to $2.2 million from $1.5
    million in the same period last year. Nine month operating income this
    year exceeds 12 month operating income of $1.8 million for all of last
    year.
  *Year-to-date net income attributable to common stockholders of Natural
    Health Trends increased 14.9% to $2.1 million from $1.8 million in the
    same period last year.

"We are pleased with the progress and growth we've experienced in 2012 and
attribute the success to several factors, mainly our strong field leadership,
systemic training initiatives, rewarding incentive and promotional planning
and high-quality product offering," said Chris Sharng, President of Natural
Health Trends Corp. "Through nine months our revenue is nearly 95% of the
full-year revenue for last year, and we have already exceeded operating income
for all of last year."

Operational Highlights

  *The Company continued to evolve and enhance its technology platform
    integrating a unique loyalty program called the Personal Consumption
    Program. Members earn points for product purchases, attending trainings
    and events and reaching business milestones. These accumulated points can
    be used toward future product purchases or for gifting to team members.
  *The Company introduced a new product, HerBalance, in July and readies
    another, Soothe, for Hong Kong and Russia in the fourth quarter.
    HerBalance is a daily supplement to help alleviate women's pre- and
    post-menopausal symptoms while supporting healthier blood circulation.
    Soothe is an all-over super hydrating body moisturizer ideal for extreme
    weather conditions.
  *The Company continued to roll out its systemic training initiatives in
    Hong Kong, Taiwan and Russia. These multi-faceted trainings support
    enhanced product knowledge, business fundamentals for success and
    leadership training.
  *Incentive trips brought our members to Hawaii, Dubai and Las Vegas, among
    other locations just this year.

Financial Results for the Three Months Ended September 30, 2012

Total revenues for the three months ended September 30, 2012 were $9.3 million
compared to $10.6 million for the same period in 2011, a decrease of 11.6%.
The decrease in revenues for the third quarter reflects the impact of a
significant, non-recurring promotional event during 2011 related to the
Company's 10-year anniversary celebration in Hong Kong. This promotion
resulted in revenue increases, and did not re-occur in 2012. Gross profit was
$6.9 million, or 74.5% of net sales, compared to $8.0 million, or 76.0%, in
the same period last year. Total expenses for the three months ended September
30, 2012 were $6.2 million, down 9.4%, compared to $6.8 million in the
comparable period of 2011. The decrease in operating expenses relates to costs
associated with the 10-year anniversary event in 2011, which did not re-occur
in 2012.

Operating income for the quarter was $789,000 compared to operating income of
$1.2 million in the third quarter of 2011. Net income attributable to common
stockholders of Natural Health Trends was $743,000, or $0.07 per basic and
diluted share compared to net income of $1.6 million, or $0.15 per basic and
diluted share in the same period of 2011.

Financial Results for the Nine Months Ended September 30, 2012

Total revenues for the nine months ended September 30, 2012 were $29.4 million
compared to $22.9 million for the same period in 2011, an increase of 28.1%.
Hong Kong net sales increased 35.3% over the comparable period last year
primarily due to renewed focus on training as well as new incentive programs
launched at the beginning of the year surrounding the Company's recognition
program. Net sales outside of Hong Kong increased 13.3%, primarily due to
incentive trip programs that occurred in Russia throughout the first nine
months of 2012, as well as the introduction of new product promotions in
Russia and North America during late 2011. The North American market also
benefited from increased orders received from members located in Kazakhstan
and Ukraine.

Gross profit for the nine months ended September 30, 2012 increased 28.6% to
$21.7 million, or 73.9% of net sales, from $16.9 million, or 73.7%, in the
same period last year. Total expenses for the nine months ended September 30,
2012 were $19.5 million compared to $15.4 million in the comparable period of
2011.

Operating income for the nine months ended September 30, 2012 was $2.2 million
compared to operating income of $1.5 million in the comparable period in 2011.
Net income attributable to common stockholders of Natural Health Trends was
$2.1 million, or $0.19 per basic and diluted share, compared to net income of
$1.8 million, or $0.17 per basic and diluted share in the same period of 2011.

Balance Sheet

Stockholders' equity was $1.4 million as of September 30, 2012 compared to a
deficit of $809,000 as of December 31, 2011. The Company had $3.7 million in
cash compared to $1.6 million as of December 31, 2011, and no long-term debt.

Shareholder Conference Call

Management will conduct a conference call to discuss its third quarter and
year-to-date financial results for the period ended September 30, 2012.

Details of the call are as follows:

  oDate: Tuesday, November 13, 2012
  oTime: 4:30 p.m. ET/3:30 p.m. CT
  oDial-in number: 1-877-941-1427 (domestic) 1-480-629-9664 (international)
  oWebcast link: http://public.viavid.com/index.php?id=102347

A replay will be available from 7:30 p.m. ET on November 13 through 11:59 p.m.
ET on November 20, by dialing 1-877-870-5176 (domestic) and 1-858-384-5517
(international) and referencing replay pin number 4573019.

About Natural Health Trends Corp.

Natural Health Trends Corp. is an international direct-selling and e-commerce
company operating through its subsidiaries throughout Asia, North America, and
Europe. The company markets premium quality personal care, wellness and
"quality of life" products under the NHT Global brand. Additional information
can be found on the company's website, www.naturalhealthtrendscorp.com.

Forward Looking Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 -- Forward-looking statements in this release do not constitute
guarantees of future performance. Such forward-looking statements are subject
to risks and uncertainties that could cause our actual results to differ
materially from those anticipated. Such risks and uncertainties include the
risks and uncertainties detailed under the caption "Risk Factors" in our
Annual Report on Form 10-K filed on March 27, 2012, with the Securities and
Exchange Commission. We assume no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.

                             -- Tables follow --

NATURAL HEALTH TRENDS CORP.
                                                          
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
                                                          
                                         December 31, 2011 September 30, 2012
                                                          (Unaudited)
ASSETS                                                     
Current assets:                                            
Cash and cash equivalents                 $1,617            $3,651
Restricted cash                           494               –
Accounts receivable                       93                166
Inventories, net                          1,089             1,261
Other current assets                      537               446
Total current assets                      3,830             5,524
Property and equipment, net               68                129
Goodwill                                  1,764             1,764
Restricted cash                           220               231
Other assets                              241               252
Total assets                              $6,123            $7,900
                                                          
LIABILITIES AND STOCKHOLDERS' EQUITY                       
(DEFICIT)
                                                          
Current liabilities:                                       
Accounts payable                          $2,208            $1,795
Income taxes payable                      11                79
Accrued distributor commissions           1,177             1,293
Other accrued expenses                    1,471             1,531
Deferred revenue                          967               768
Deferred tax liability                    148               148
Other current liabilities                 950               896
Total current liabilities                 6,932             6,510
Commitments and contingencies                              
Stockholders' equity (deficit):                            
Preferred stock, $0.001 par value;
5,000,000 shares authorized; 1,761,900
shares designated Series A convertible
preferred stock, 138,400 shares issued    124              124
and outstanding at December 31, 2011 and
September 30, 2012, aggregate liquidation
value of $324
Common stock, $0.001 par value;
50,000,000 shares authorized; 11,326,323  11               11
shares issued and outstanding at December
31, 2011 and September 30, 2012
Additional paid-in capital                80,493           80,553
Accumulated deficit                       (81,338)         (79,238)
Accumulated other comprehensive loss:                      
Foreign currency translation adjustments  (99)             (60)
Total stockholders' equity (deficit)      (809)            1,390
Total liabilities and stockholders'       $6,123            $7,900
equity (deficit)





NATURAL HEALTH TRENDS CORP.
                                                                  
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, Except Per Share Data)
                                                                  
                                         Three Months Ended Nine Months Ended
                                          September 30,      September 30,
                                         2011      2012     2011     2012
                                                                  
Net sales                                 $10,562   $9,333   $22,945  $29,403
Cost of sales                             2,536     2,384    6,042    7,667
Gross profit                              8,026     6,949    16,903   21,736
Operating expenses:                                                
Distributor commissions                   4,166     3,897    8,642    12,474
Selling, general and administrative
expenses (includingstock-based
compensation expense of $22 and
$20during the three months ended         2,613    2,255   6,479   7,005
September 30, 2011 and2012,
respectively, and $57 and $60 during the
nine monthsended September 30, 2011 and
2012, respectively)
Depreciation and amortization             23       8       281     28
Total operating expenses                  6,802    6,160   15,402  19,507
Income from operations                    1,224    789     1,501   2,229
Other income (expense), net               425      (27)    356     (88)
Income before income taxes                1,649    762     1,857   2,141
Income tax provision                      16       15      36      41
Net income                                1,633    747     1,821   2,100
Plus:Net loss attributable to the        –       –      9       –
noncontrolling interest
Net income attributable to Natural Health 1,633    747     1,830   2,100
Trends
                                                                  
Preferred stock dividends                 (4)      (4)     (12)    (12)
Net income attributable to common         $1,629    $743     $1,818   $2,088
stockholders of Natural Health Trends
                                                                  
Income per share of Natural Health Trends $0.15     $0.07    $0.17    $0.19
– basic and diluted
                                                                  
Weighted-average number of shares                                  
outstanding:
Basic                                     10,732    10,970   10,669   10,918
Diluted                                   10,898    11,232   10,699   11,225
                                                                  



NATURAL HEALTH TRENDS CORP.
                                                                    
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
                                                                    
                                                            Nine Months Ended
                                                             September 30,
                                                            2011     2012
                                                                    
CASH FLOWS FROM OPERATING ACTIVITIES:                                
Net income                                                   $1,821   $2,100
Adjustments to reconcile net income to net cash provided by          
operating activities:
Depreciation and amortization of property and equipment      81      28
Amortization of intangibles                                  200     –
Stock-based compensation                                     57      60
Deferred income taxes                                        (1)     –
Changes in assets and liabilities:                                   
Accounts receivable                                          12      (69)
Inventories, net                                             (362)   (163)
Other current assets                                         72      93
Other assets                                                 170     (4)
Accounts payable                                             (661)   (416)
Income taxes payable                                         (15)    68
Accrued distributor commissions                              318     108
Other accrued expenses                                       (706)   51
Deferred revenue                                             418     (205)
Other current liabilities                                    33      (56)
Net cash provided by operating activities                    1,437   1,595
                                                                    
CASH FLOWS FROM INVESTING ACTIVITIES:                                
Purchases of property and equipment, net                     (7)     (88)
Decrease (increase) in restricted cash                       (72)    493
Net cash provided by (used in) investing activities          (79)    405
                                                                    
CASH FLOWS FROM FINANCING ACTIVITIES                                 
Advance from related party                                   233     –
Repayment to related party                                   (114)   –
Net cash provided by financing activities                  119     –
                                                                    
Effect of exchange rates on cash and cash equivalents        (398)   34
Net increase in cash and cash equivalents                    1,079   2,034
CASH AND CASH EQUIVALENTS, beginning of period               648     1,617
CASH AND CASH EQUIVALENTS, end of period                     $1,727   $3,651

CONTACT: Company Contact
         Scott Davidson
         Chief Financial Officer
         Natural Health Trends Corp.
         Tel: 972-241-4080
         scott.davidson@nthglobal.com
        
         Investor Contact
         Brett Maas
         Managing Partner
         Hayden IR
         Tel: 646-536-7331
         brett@haydenir.com