Balance Bar Company Named 14th Fastest-Growing Private Company in America by Inc. Magazine; Balance Bar Company Positioned for Sustained Growth.

CARPINTERIA, Calif.--(BUSINESS WIRE)--Oct. 16, 1998--Balance Bar Company has been named one of the fastest-growing companies in the country by Inc. magazine, which released its annual ranking of the 500 fastest-growing companies in America on Wednesday, Oct. 14.

Balance Bar Company is the only consumer food product in the top thirty-five and the fourth fastest-growing company in California.

The Balance Bar Company markets branded food and beverage products in a nutritionally balanced, great-tasting and convenient format to consumers via a variety of distribution channels including natural foods, mass merchandise, club, grocery, convenience, drug and health and fitness outlets.

The Balance Bar Company's sales have increased from 1 million in 1995 to 10 million in 1996 to 40 million in 1997. SPINS(a) data notes sales are up an astounding 1,507.8 percent from November/December 1996 to the same period in 1997, compared with only 20.7 percent growth for its main competitor.

In recent SPINS distributor data for natural foods, Balance Bar's top two flavors outsold its primary competitor's top two flavors by an impressive 2:1 ratio.

"These sales figures demonstrate consumers are choosing healthy alternatives and turning away from empty, quick fixes," said James Wolfe, chief executive officer and president of the Balance Bar Company. "We are honored to be named No. 14 on Inc.'s prestigious fastest-growing company list saluting our rapid sales growth during the past five years."

The Balance Bar Company went public in June 1998 (NASDAQ:BBAR). Since then the Company introduced Balance+(tm)(Plus) in September, a new line of nutraceutical-enhanced nutrition bars in three flavors each with different functional ingredients: Honey Peanut with Siberian Ginseng, Yogurt Berry with Ginkgo Biloba and Chocolate Covered Banana with Rose Hips and Antioxidants.

Honey Peanut Big Bar was also recently launched as an extension to the original Balance Bar line.

The secret to the company's tremendous success is that it provides what today's consumers want, a nutritionally-balanced, great-tasting and convenient food or beverage. All products are all-natural and based on the popular 40-30-30 nutrition program, a plan designed to help provide sustained energy and appetite satisfaction.

To sustain its growth momentum, the Balance Bar Company is expanding its distribution to new channels and introducing new products. The company is also implementing a comprehensive marketing communications campaign that includes advertising, event sponsorships and sampling.

Balance Bars, Balance+ Bars and 40-30-30 Balance(tm) Drink Mix are marketed by the Balance Bar Company, based in Carpinteria. The Balance Bar Company can be reached at 800/678-4246.

This year marks the 17th year that Inc. magazine has charted the progress of America's most innovative and successful entrepreneurs. To be eligible for the Inc. 500, companies have to be independent and privately held through 1997, and must demonstrate a sales increase from fiscal year 1996 to 1997.

Inc. verified all information using tax forms and financial statements from certified public accountants and by conducting interviews with company officials.

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 maintaining acceptance in new distribution channels, volatility in sales and earnings, anticipating changes in dietary trends, no adverse publicity, successful development and sale of new products, 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 June 1, 1998, prospectus.

(a) SPINS (Spence Information Services) is a leader in providing reliable, nationwide sales and consumer information to the natural products industry by tracking sales of natural products through natural products distributors. Figures come from November/December 1997 data. SPINS primary research markets are Los Angeles, San Francisco, Portland, Chicago, Boston, New York.