Business Journal Ranks Natrol as Los Angeles' No. 2 ROE Performer.

CHATSWORTH, Calif.--(BUSINESS WIRE)--May 11, 1999--

Natrol Inc. (NASDAQ:NTOL), a manufacturer and marketer of branded dietary supplements, is the Los Angeles area's second most profitable public company in terms of one-year return on equity (ROE) performance, according to an article and listing in the April 26 - May 2 issue of the "Los Angeles Business Journal."

Based on a review of 50 public companies with the highest ROE in 1998, Natrol ranked second at 50.3 percent. Hilton Hotels Corp. was first at 95.2 percent.

According to the Journal: "Return on equity is one of the most popular yardsticks used by investors to measure how effectively a company uses its investors' capital. The percentage is calculated by dividing net income by the average shareholders' equity over a given period.

"It demonstrates, in essence, how much net income earned in relation to the total amount of money investors have put into the company," the Journal continued. "In general terms, an ROE of over 30 percent is exceptional, in the 20s is above average, and under 10 percent is sluggish."

Natrol's net income in 1998 grew to $7.5 million, up 79 percent over the previous year. Revenue in 1998 was $68.2 million, a 59 percent increase over 1997. The company recently announced 1999 first quarter income of $2 million, up 74.2 percent over the first three months of 1998. First quarter revenues were $17.8 million, an increase of 35.4 percent over the first quarter of 1998.

The article -- headlined "There's Just No Respect" -- noted there was "little relation between ROE and stock price" and that Natrol's stock price declined 34.8 percent from the time of its July 1998 initial public offering (IPO) to the end of 1998 when it traded at $11.

The stock was trading in the $6 to $6.50 range on May 3 when the company announced that its board of directors had approved a stock re-purchase program authorizing management to purchase up to $10 million of the company's stock.

"Given the current market valuation of Natrol's stock, we feel that re-purchasing shares is a sound investment," said Elliott Balbert, Natrol's president and chief executive officer.

Additional information on the company can be secured from its Web site in the Internet at www.natrol.com.

The statements made in this news release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As a result of a number of factors, including factors that Natrol may not currently foresee, Natrol's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause Natrol's actual results to differ materially from those set forth in the forward-looking statements include those factors set forth under the heading "Risk Factors" in the company's Final Prospectus filed with the Securities and Exchange Commission on July 22, 1998, and its 10-K filed on March 31, 1999.