Baywood International, Inc. Engages Bischoff-Hervey Entertainment for Direct Response Campaign.

SCOTTSDALE, Ariz. -- Baywood International, Inc. (OTCBB: BYWD) ("Company") announced today that it has engaged Bischoff-Hervey Entertainment ("BHE TV LLC") to expand the distribution of the Company's products into the direct response market, a form of marketing that is designed to generate immediate response directly from consumers for a product or products via television.

In conjunction with the engagement, BHE TV LLC will collaborate with the Company to:

* Identify which products are best suited for a direct response campaign;

* assign the best-of-breed writers/producers and develop the creative elements of the direct response format;

* develop and manage a budget for the production, test and distribution of the initial campaign;

* create a media plan for a test;

* establish appropriate fulfillment;

* create a web strategy to support additional retail traffic as a result of the direct response campaign;

* launch and manage a regional and national media rollout strategy based on test results;

* create continuity and up-sell program to maximize revenues; and

* evaluate and manage new product introduction campaigns.

The Company intends to launch the program through a separate, wholly owned division that will have access to the Company's existing base of over 370 products that are currently being sold through retailers.

"A direct response strategy is an essential part of our business plan in order to provide consumers access to our products on a much wider basis," stated Neil Reithinger, President & CEO of the Company. "The development and implementation of this plan is intense, and requires the support and teamwork of an organization like BHE that is focused and just as intense to make the program successful."

"We look forward to working closely with Baywood and LifeTime in building a best-of-breed direct response television distribution platform. Baywood and LifeTime have a phenomenal line of high quality products, and an impressive and experienced management team in the nutraceutical field," said Eric Bischoff of BHE TV LLC. "The market for wellness products has shown explosive growth over the last couple of years, and is one of the consistent leaders in direct response business. We also look forward to other benefits of this strategy at the retail level, where distribution and modular placement should be enhanced as corporate buyers recognize the 'pull' that a direct response campaign creates at the retail level," Bischoff added.

About BHE TV LLC

Bischoff-Hervey Entertainment was formed in 2003 by Eric Bischoff and Jason Hervey, who combined their collective experience in the entertainment industry, both in front of the camera and as executive producers, with Bischoff as president of a division of Turner/Time Warner, and Hervey as a partner with Peter Guber in Mandalay Sports Entertainment. The television division specializes in creating content and production for various broadcast outlets, has created and produced series and pilots for NBC, CMT, E!, and is currently in production on a new series for VH-1. The BHE TV LLC consulting division specializes in creating non-traditional brand-building and marketing opportunities for their clients by leveraging its extensive relationships in the industry, and experience in entertainment licensing and merchandising. BHE TV LLC is headquartered in Santa Monica, California, and is represented by the William Morris Agency in Beverly Hills, California.

About Eric Bischoff

Eric Bischoff began his career in syndication and sales for AWA in Minneapolis in 1987. In 1991 Mr. Bischoff moved to Turner Broadcasting and moved up the corporate ranks at Turner Broadcasting, eventually becoming President in 1997 of Turner/Time Warner's WCW division. During that time, he grew the division into a leader in the industry worldwide, with revenues from $24 million in sales, to more than $300 million, with profits of more than $30 million.

About Baywood

Baywood International, Inc. (OTCBB: BYWD) is a nutraceutical company specializing in the development, marketing and distribution of its own proprietary brands under the names Baywood PURECHOICE[R], Baywood SOLUTIONS[R] and Complete La Femme[R]. The Company's products are distributed through independent and chain health food stores, pharmacies, grocery stores, and other direct-to-consumer channels both internationally and domestically. On April 9, 2007, the Company acquired, through a wholly owned subsidiary, substantially all of the assets and related liabilities of Nutritional Specialties, Inc./dba LifeTime[R] or LifeTime[R] Vitamins ("LifeTime"). LifeTime is a nutraceutical company that was established in 1988 and specializes in the development, marketing and distribution of its own brands under the LifeTime[R] name. LifeTime's brands currently consist of approximately 370 products that are sold directly to independent and chain health food stores, pharmacies, natural food stores, and other direct-to-consumer channels across the United States. In addition, LifeTime's products are sold internationally through distributors in Canada, Croatia, Turkey, England, Dubai, Holland, Sweden, Portugal and certain parts of Asia. LifeTime had audited sales of $11,900,000 for its fiscal year ended August 31, 2006 and taxable income of $1,250,000. Unaudited sales for calendar 2006 were $12,000,000 and taxable income was $1,500,000. For more information, call [phone], or for more information, visit www.bywd.com.

This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Company's expectations, among other things, are dependent upon general economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, its ability to integrate the business of LifeTime, need for and availability of additional capital as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's Form 10-KSBs and 10-QSBs on file with the United States Securities and Exchange Commission.