Nutrition 21 Announces Fiscal First Quarter 2010 Financial Results

PURCHASE, N.Y., Nov. 4 /PRNewswire-FirstCall/ -- Nutrition 21, Inc. (OTC
Bulletin Board: NXXI), the developer and marketer of ingredients and finished
products under the Iceland Health®, Chromax®, and Diabetes Essentials®(
)brands that help consumers manage blood sugar levels, improve cardiovascular
health, enhance memory and reduce chronic joint pain, today announced
financial results for the first quarter of fiscal year 2010 ended September
30, 2009.

The Company reported total revenues of $4.6 million for the first quarter
ended September 30, 2009, compared to $12.7 million in the corresponding
quarter a year ago. Net loss for the first quarter this year was $0.6
million, or $(0.01) per diluted common share, compared to net income of $0.2
million, or $0.00 per diluted common share, in the first quarter a year ago.

The Company's continuing emphasis on controlling its expenses reduced
operating expenses by $3.9 million, or 62%, from $6.3 million in the first
quarter last year to $2.4 million in the first quarter this year. The
reduction in expenses was the primary reason for the Company's $0.4 million
operating profit for the first quarter of this fiscal year.

Michael Zeher, president and chief executive officer, said, "While economic
conditions continue to be extremely challenging, we are aggressively managing
our expenses and, as a result, were profitable on an operating basis in the
first quarter. We also continue to work diligently to arrange new financing
to replace the current line that we will pay off on November 15, 2009.
Moreover, we continue to work with the Iceland Health principals to reach an
accommodation on the $2.5 million plus interest that we owe them and secured
with the Iceland Health trademark."

"Additionally, in the first quarter we signed a non-binding letter of intent
for the sale of certain assets and liabilities of our retail and direct
response businesses to a privately-owned company," continued Mr. Zeher. "We
will announce the terms of the proposed sale if the transaction proceeds and a
binding agreement is signed. Proceeds from the sale of these assets would
improve the Company's short-term financial situation, and would allow us to
refocus our efforts on growing our consistently profitable ingredients
business.

"There are many nutritional products, supplements, pharmaceuticals, and animal
feed products that can be enhanced by the addition of our patented
ingredients. We look forward to developing these new business opportunities
both here in the U.S. and abroad. Accordingly, we're pleased to note that our
chromium picolinate product was recently approved for use as an ingredient in
the European Union markets.

"In short, we are working to alleviate our current financial situation and to
gradually become a profitable company. We plan to grow the business with more
focused and streamlined operations, an improved balance sheet, and
consistently positive cash flow. "

About Nutrition 21
Nutrition 21, Inc. (OTC BB: NXXI.OB), headquartered in Purchase, NY, is a
nutritional bioscience company and the maker of chromium picolinate-based and
omega-3 fish oil-based supplements with health benefits substantiated by
clinical research. Nutrition 21 holds more than 30 patents for nutrition
products and uses. Nutrition 21's portfolio of health and wellness products
include: Iceland Health Chromax®, Iceland Health Advanced Memory Formula(TM),
Diabetes Essentials(TM), Iceland Health® Maximum Strength Omega-3 and Iceland
Health® Joint Relief. The company also manufactures private label supplements
and ingredients for third parties. Nutrition 21 distributes its products
nationally through more than 29,000 major food, drug and super center
retailers as well as internationally. For more information please visit
http://www.nutrition21.com.

Safe Harbor Provision
This press release may contain certain forward-looking statements. The words
"believe," "expect," "anticipate" and other similar expressions generally
identify forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of their
dates. These forward-looking statements are based largely on the company's
current expectations and are subject to a number of risks and uncertainties,
including without limitation: the effect of the expiration of patents;
regulatory issues; uncertainty in the outcomes of clinical trials; changes in
external market factors; changes in the company's business or growth strategy
or an inability to execute its strategy due to changes in its industry or the
economy generally; the emergence of new or growing competitors; various other
competitive factors; and other risks and uncertainties indicated from time to
time in the company's filings with the Securities and Exchange Commission,
including its Form 10-K/A for the year ended June 30, 2009. Actual results
could differ materially from the results referred to in the forward-looking
statements. In light of these risks and uncertainties, there can be no
assurance that the results referred to in the forward-looking statements
contained in this press release will in fact occur. Additionally, the company
makes no commitment to disclose any revisions to forward-looking statements,
or any facts, events or circumstances after the date hereof that may bear upon
forward-looking statements.

NUTRITION 21, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)

September 30, June 30,
2009 2009
---- ----
(unaudited) (Note 1)
ASSETS
Current assets:
Cash and cash equivalents $592 $1,373
Accounts receivable, net 2,357 2,752
Other receivables, net 90 516
Inventories, net 3,582 3,878
Other current assets 264 467
Property and equipment, net 44 46
Patents, trademarks and other intangibles, net 750 766
Goodwill and other intangibles with indefinite lives 3,636 3,636
Other assets 1,116 1,389
----- -----
TOTAL ASSETS $12,431 $14,823
======= =======
LIABILITIES AND STOCKHOLDERS' DEFICIT

Short-term borrowings $3,070 $4,457
Accounts payable 4,068 4,439
Accrued expenses 1,540 2,218
Deferred income 144 361
Deferred income taxes 1,200 1,200

8% Series J convertible preferred stock subject to
mandatory redemption 13,658 13,218
------ ------

Total liabilities 23,680 25,893
------ ------
Stockholders' Deficit (11,249) (11,070)
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $12,431 $14,823
======= =======

NUTRITION 21, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

Three Months
Ended
September 30,
2009 2008
---- ----

Net sales $4,542 $12,609
Other revenues 94 51
--- ---
Total Revenues 4,636 12,660
----- ------
Costs and Expenses

Cost of Revenues 1,813 4,745

Advertising and Promotion 1,303 5,362

General and Administrative 980 798

Research and Development 79 80

Depreciation and Amortization 105 363
--- ---

Total Costs and Expenses 4,280 11,348
----- ------

Operating Profit 356 1,312

Interest income (expense), net (999) (1,098)
----- -------

(Loss) income before income taxes (643) 214

Income taxes -- --
----- -----

Net (loss) income $(643) $214
====== ====

Basic and diluted (loss) earnings per
common share $(0.01) $0.00
======= =====

Weighted average number of common shares
- basic and diluted $72,455,162 $64,134,052
=========== ==========

CONTACT:
Nutrition 21, Inc. Lytham Partners, LLC
Alan Kirschbaum Joe Diaz, Joe Dorame, Robert Blum
914-701-4500 602-889-9700

SOURCE Nutrition 21, Inc.

Alan Kirschbaum of Nutrition 21, Inc., +1-914-701-4500; or Joe Diaz, Joe
Dorame, or Robert Blum, all of Lytham Partners, LLC, +1-602-889-9700, for
Nutrition 21, Inc.