Baywood International Inc. reports 1997 first quarter results.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 15, 1997--Baywood International Inc. (OTC BB:BYWD) reported revenues and earnings for the three months ended March 31, 1997.

Revenues for the three months ended March 31, 1997 decreased to $515,371 compared to $784,527 for the same period last year. This represents a decrease for the three months of $269,156 or 34.3% from the same period last year. The three months ended March 31, 1997 showed a loss of $(40,376) or $(.002) per share compared to net income of $59,740 or $.004 per share for the same period last year.

In May 1997, the company received a $1,510,000 order for nutritional product from a significant customer for shipment through the third quarter of 1997.

The following forward-looking statements are made in reliance upon Section 21D of the Exchange Act of 1934. Actual results could differ materially from those projected.

The results during the first quarter and the receipt of this large order at this time indicates to management that the decrease in net sales in the first quarter ended March 31, 1997 are not a result of a decrease in the demand for the products, but rather represents fluctuations in the timing of orders.

Important factors which could hinder the company's upward movement and adversely affect sales and profits are disruption of relationships between the U.S. and Pacific Rim countries where Baywood is pursuing business, delays in new product registration overseas, delays in the re-licensing existing products overseas and slower than expected penetration of U.S. domestic markets.

CONTACT: Investor Relations 

BLS Financial

Barrett Silver, 602/991-1872