Balance Bar Co. Reports First Quarter 1999 Operating Results.

CARPINTERIA, Calif.--(BUSINESS WIRE)--April 19, 1999--

Balance Bar Co. (Nasdaq:BBAR) reported operating results for the first quarter ended March 31, 1999 that were slightly higher than the preliminary results announced in late-March.

The company's sales increased 19% to $20.8 million for the three months ended March 31, 1999 compared with $17.5 million for the three months ended March 31, 1998. Net income was $960,000 in 1999 compared with $1.3 million in 1998. Several customers ran special sales promotions in the first quarter of 1999 and 1998, and approximately $700,000 and $2.8 million of sales in 1999 and 1998, respectively, was due to sales to those customers. Net income per diluted share for the first quarter of 1999 was 7 cents compared with 11 cents for the same period in 1998.

Sales to customers other than natural foods distributors and retailers were 62% of first quarter 1999 sales compared with 41% in the first quarter of 1998. Sales to the company's six largest 1999 customers were 64% of first quarter 1999 sales compared with 60% in the first quarter of 1998. The majority of sales were to customers in the United States, representing 99% of first quarter 1999 and 1998 sales. Sales of the Balance Bar product line were 96% of first quarter 1999 sales compared with 90% in the first quarter of 1998.

The company began shipping a new product, Total Balance(TM), the complete nutritional drink, in late-March 1999. This new ready-to-drink product is available, in 10 oz. cans, to the western one-third of the United States, in four flavors. The company also began shipping three new nutraceutically enhanced Balance Bars in November 1998 under the Balance+(TM) brand. Although sales of Total Balance were minor in the first quarter of 1999, retailer reception to the new product was strong. Sales of the Balance+ brand were 14% of sales in the first quarter of 1999.

Jim Wolfe, Balance Bar Co. chief executive officer and president, stated "We are quite pleased with the performance of Balance+ this quarter. We are also excited about the initial success that Total Balance has had. This new ready-to-drink product was approved for introduction into many of our major western United States natural foods and grocery distributors and retailers. Building the Balance brand by introducing new products is a key element of our long term plans." The company is producing four new television commercials and expects to launch a major new television advertising campaign in May 1999.

Balance Bar Co. develops and markets branded natural food and beverage products and its current product lines consist of the Balance Bar, 40-30-30 Balance(TM) powdered drink mix and Total Balance.

This news release contains forward-looking statements made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include developing and selling new products, avoiding adverse publicity, maintaining sales to significant customers and other risk factors. For a more detailed description of the risk factors facing the company, please refer to the company's 1998 Annual Report on Form 10-K. -0-

                           Balance Bar Co.
                          Income Statements
               (amounts in 000s, except per share data)
                             (unaudited)

                                       Three Months Ended
                                           March 31,
                                      1999           1998

Sales                                $20,837       $17,457
Cost of sales                         10,767         9,014
  Gross profit                        10,070         8,443

Expenses:
 Advertising                           2,321         1,630
 Selling and marketing                 4,784         3,522
 General and administrative            1,417         1,057
 Interest (income) expense               (79)           58
   Total expenses                      8,443         6,267

 Income before income taxes            1,627         2,176
Income taxes                             667           892
  Net income                            $960        $1,284

Earnings per share:
 Basic                                 8 cents      13 cents
 Diluted                               7 cents      11 cents

Weighted shares outstanding:
 Basic                                11,697         9,599
 Diluted                              12,967        11,683

                           Balance Bar Co.
                       Condensed Balance Sheets
                          (amounts in 000s)

                                    March 31,       Dec. 31,
                                      1999            1998
                                   (unaudited)      (audited)
Current assets:
 Cash and marketable securities      $6,986         $7,172
 Accounts receivable, net            10,181         10,686
 Inventories                          5,322          5,002
 Prepaid and other                    1,684          2,362
 Deferred taxes                         580            624
  Total current assets               24,753         25,846

Property and equipment, net           1,372          1,105
Other assets                             33             30
  Total assets                      $26,158        $26,981

Current liabilities:
 Accounts payable                    $3,347         $5,080
 Accrued liabilities                  1,460          1,974
  Total current liabilities           4,807          7,054

Stockholders' equity                 21,351         19,927
  Total liabilities and equity      $26,158        $26,981