Cub Foods to Distribute Baywood Products.

Business Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 19, 2000

Baywood International Inc. (OTCBB:BYWD) has expanded the distribution of its anti-snore product, Dr. Harris' Original Snore Formula, into Cub Foods, a superstore owned and operated by Supervalu Inc.

The product is being rolled out during the months of December 2000 and January 2001 into approximately 100 stores.

Supervalu Inc. (NYSE: SVU) is the 10th largest supermarket retailer and the nation's largest distributor in the grocery industry with a geographic reach that spans the country in over 1,120 stores across 38 states.

With $8.0 billion in revenues, Supervalu retail offers customers a wide variety of grocery shopping alternatives. Supervalu's 194 price superstores, 108 of which include pharmacies, are operated under the Cub Foods, Shop 'n Save, Shoppers Food Warehouse, Metro and biggs' banners in 14 states.

"Gaining Cub Foods as a customer further emphasizes our business plan of building a consistent base of business that can methodically grow over time. Expansion of our distribution channels is an evolutionary process that takes time to develop," stated Neil Reithinger, president & chief executive officer.

"As we work with Cub Foods on a small scale, we look forward to the further development of our relationship and confidence with Supervalu to build for other stores under their umbrella," he further stated.

Baywood is a consumer products company specializing in the development, marketing and distribution of natural-based products. The company's product lines are marketed under the brand names, PURECHOICE(TM), SOLUTIONS(TM) and Complete La Femme(TM).

The company's products are distributed through independent and chain health food stores, pharmacies, grocery stores, Vitamin World, GNC, CVS/pharmacy, Albertson's, Osco Drug, Sav-On, Cub Foods and other direct-to-consumer channels both internationally and domestically. Contact Baywood International Inc. at 888/350-0799 for more information or 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 Issuer's expectations among other things are dependent upon general economic conditions, continued demand for its products, the availability of raw materials, the success of it products and marketing plan, retention of its key management and operating personnel, as well as other uncontrollable or unknown factors.