Natural Health Trends Corp. Announces Fourth Quarter 2007 Results

DALLAS, TX, Mar 31 (MARKET WIRE) --
Natural Health Trends Corp. (NASDAQ: BHIP) today announced its financial
results for the quarter ended December 31, 2007.

Sales in the fourth quarter of 2007 were $13.0 million, and net loss was
$15.3 million, including $12.4 million of goodwill impairment and $0.6 million
of severance costs.

Chris Sharng, the Company's President, said, "Last year, our revenues
decreased
faster than we could cut costs. But, on a monthly basis, our sales appear to
have stabilized, particularly in our biggest market of Hong Kong. Revenues
were roughly $4 million a month from October through March, with the exception
of an expected dip over the Chinese New Year in early February. We believe
that we have regained revenue momentum through certain personnel changes,
compensation plan changes and dynamic training sessions to which our members
seem
to be enthusiastically responding. In fact, our estimate is that March was
our best month in terms of revenue since October."

Mr. Sharng continued, "With the cost cutting program that we began late last
year having been almost fully realized, we are comfortable at this point with
our levels of both cash and cash flow. We believe that the stabilized top
line and a much lower cost structure will further positively impact our cash
flow."

The Company plans to host a conference call at 11:30 a.m. EDT, April 2,
2008. Those who wish to participate may call telephone number (866) 672-2663,
or (973) 582-2772 for international callers, 15 minutes before 11:30 a.m. EDT.
Callers will need to give the conference identification number, which is
41679328. If
you cannot participate in the call, but wish to hear it, you may login to the
Company's homepage at www.naturalhealthtrendscorp.com and click on the
conference call 1 1/2 hours after the completion of the call.

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,
Europe and Latin America. The Company markets premium quality personal care
products under the NHT Global brand. Additional information can be found on the
Company's website, and management encourages interested parties to register for
updated corporate information via email on the Company's home page,
www.naturalhealthtrendscorp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act
of1995 -- 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 31, 2008, 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.

NATURAL HEALTH TRENDS CORP.

CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)

December 31,
------------------------
2006 2007
----------- -----------

ASSETS
Current assets:
Cash and cash equivalents $ 11,936 $ 6,282
Restricted cash 455 298
Certificates of deposit 1,277 -
Accounts receivable 462 418
Inventories, net 5,857 3,585
Other current assets 2,639 1,324
----------- -----------
Total current assets 22,626 11,907
Property and equipment, net 2,944 1,537
Goodwill 14,145 1,764
Intangible assets, net 3,400 2,600
Restricted cash 3,503 4,317
Deferred tax assets 208 208
Other assets 1,759 2,363
----------- -----------
Total assets $ 48,585 $ 24,696
=========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 3,424 $ 2,168
Income taxes payable 281 363
Accrued distributor commissions 3,852 2,018
Other accrued expenses 5,255 3,599
Deferred revenue 5,641 3,496
Current portion of convertible debentures, net
of discount of $151 - 203
Other current liabilities 3,135 3,254
----------- -----------
Total current liabilities 21,588 15,101
Convertible debentures, net of discount of $3,896 - -
----------- -----------
Total liabilities 21,588 15,101
Commitments and contingencies
Minority interest 22 33
Stockholders' equity:
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 and outstanding
at December 31, 2007, aggregate liquidation
value of $246 - 124
Common stock, $0.001 par value; 50,000,000
shares authorized; 8,199,933 and 10,327,405
shares issued and outstanding at December 31,
2006 and 2007, respectively 8 10
Additional paid-in capital 70,042 79,158
Accumulated deficit (44,128) (70,989)
Accumulated other comprehensive income:
Foreign currency translation adjustments 1,053 1,259
----------- -----------
Total stockholders' equity 26,975 9,562
----------- -----------
Total liabilities and stockholders' equity $ 48,585 $ 24,696
=========== ===========

NATURAL HEALTH TRENDS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, Except Per Share Data)

Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2006 2007 2006 2007
---------- ---------- ---------- ----------

Net sales $ 27,688 $ 12,977 $ 133,428 $ 76,501
Cost of sales 9,647 3,731 33,066 20,290
---------- ---------- ---------- ----------
Gross profit 18,041 9,246 100,362 56,211
% of net sales 65.2% 71.2% 75.2% 73.5%

Operating expenses:
Distributor commissions 13,363 4,908 68,265 35,095
% of net sales 48.3% 37.8% 51.2% 45.9%

Selling, general and
administrative expenses 11,367 7,352 45,735 34,524
Impairment of goodwill - 12,381 - 12,381
Recovery of KGC
receivable (753) - (1,405) (565)
---------- ---------- ---------- ----------
Total operating expenses 23,977 24,641 112,595 81,435
---------- ---------- ---------- ----------
Loss from operations (5,936) (15,395) (12,233) (25,224)
Other income (expense), net 250 (159) 946 143
---------- ---------- ---------- ----------
Loss before income taxes
and minority interest (5,686) (15,554) (11,287) (25,081)
Income tax provision 606 260 (182) (200)
Minority interest 44 1 9 (6)
---------- ---------- ---------- ----------
Net loss (5,036) (15,293) (11,460) (25,287)

Beneficial conversion
feature on preferred stock - - - (1,574)
Preferred stock dividends - (21) - (91)
---------- ---------- ---------- ----------
Net loss attributable to
common stockholders $ (5,036) $ (15,314) $ (11,460) $ (26,952)
========== ========== ========== ==========

Loss per share - basic and
diluted $ (0.61) $ (1.62) $ (1.42) $ (3.15)
========== ========== ========== ==========

Weighted-average number of
shares outstanding 8,200 9,447 8,079 8,555
========== ========== ========== ==========

Contact:

Jean Bono
Natural Health Trends Corp.
Email Contact

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