Baywood Post 325 Percent Sales Increase.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Oct. 5, 1999--

Baywood International Inc. (OTC:BB: BYWD) Tuesday announced third quarter sales of $140,000 a 325 percent increase over the same period of 1998.

Baywood's President and Chief Executive Officer Neil Reithinger attributed the sharp sales increase to the introduction of its Purechoice(TM) and Solutions(TM) lines in July. Since July the company has added over 500 new retail health food stores and independent pharmacies to it customer base.

Baywood's top sellers are the patented and clinically tested Dr. Harris' original anti "Snore Formula" available in 60 count, 30 count and trial size 6 count, "SAMe" (S-Adenosyl Methionine)and "Dr. Harris' original Allergy Formula" available in 60 count, 30 count and trial size 6 count.

Reithinger said, "Our goal to be cash flow positive from internal growth by the end of the first quarter of 2000 while maintaining the present level of dealer education and product support."

He further stated that, "The company announced in May that it had signed a letter of intent to acquire DP Marketing, Inc. of Shreveport, Louisiana a distributor of similar products but that those negotiations have been put on hold by the seller due to the unexpected length of time it has take to complete the transaction."

Reithinger further stated that, "If this acquisition cannot be completed, Baywood will continue its aggressive marketing and distribution plan and will continue to look for another opportunity to expand its sales through acquisition."

Baywood International Inc. develops markets and distributes health and nutrition products. The company markets it products mainly under its own brand names (Purechoice(TM) and Solutions(TM)). All Baywood products are available in most chain and independent health food stores and pharmacies 

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 risk, uncertainties or other factors that could cause actual results to materially differ from the results, performance, or expectations implied by these forward-looking statements.

The Issuer'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, as well as other uncontrollable or unknown factors.