Natural Health Trends Corp. Announces Third Quarter and Nine Months 2006 Results.

* Revenues Continue to Be Impacted by Uncertainty in China

* Net Loss Narrowed from Prior Quarter by SG&A Cuts

* New Products, Promotions and Distributor Training Programs Introduced

DALLAS -- Natural Health Trends Corp. (NASDAQ NMS: BHIP), an international direct-selling company, today announced its financial results for the third quarter ended September 30, 2006.

Sales in the third quarter of 2006 were $29.9 million, compared to $58.1 million and $36.3 million for the third quarter a year ago and the second quarter of 2006, respectively. Part of this decrease of $28.2 million from the prior year was due to sale of the Company's 51% equity interest in KGC Networks ("KGC"), effective December 31, 2005. Excluding KGC, the Company's sales decreased $18.3 million, or 38%, over the comparable period in the prior year. This quarter's decline in revenue was primarily due to the distractions and disruptions caused by the management changes in the last twelve months as well as the reaction stemming from the uncertain regulatory environment in China that is currently impacting the Hong Kong-based business. Hong Kong sales decreased $18.5 million, or 49%, over the comparable period a year ago.

As of September 30, 2006, the Company had 103,000 active distributors, compared to 118,000 and 114,000 active independent distributors at the end of the third quarter of 2005 and the end of the second quarter of 2006, respectively, excluding KGC and the Kaire subsidiaries, which were sold effective July 1, 2006.

For the third quarter of 2006, the Company incurred a net loss of $2.5 million, or $0.30 per fully diluted share, compared to net income of $0.1 million, or $0.01 per fully diluted share, a year ago in the comparable quarter, and net loss of $2.8 million, or $0.34 per fully diluted share, in the prior quarter. For the first nine months of 2006, the Company incurred a net loss of $6.4 million, or $0.80 per fully diluted share, compared to net income of $0.8 million, or $0.09 per fully diluted share, a year ago in the comparable period.

Selling, general and administrative expenses ("SG&A") were $10.6 million for the third quarter of 2006, compared with $15.1 million for the same period in the prior year, and $12.2 million in the prior quarter. Compared to the second quarter, SG&A expenses decreased by $1.6 million, or 13%, mainly due to lower accounting fees.

On July 31, 2006, the Company announced the appointment of Stephanie S. Hayano as President and Chief Executive Officer. She also joined the Company's Board of Directors. Ms. Hayano has significant experience in marketing, sales and operations management of mass and direct marketed products. Her background includes extensive and successful track record managing corporate turnarounds and leading diverse, international management teams.

Ms. Hayano said, "We continue to be impacted by the decline in revenues resulting from the uncertainty in China, but measures are being put into place, such as training sessions and member support, that are designed to slow down and reverse this trend. We have also taken steps to correct the disruptions and distractions caused by certain management changes in the last year, which had an adverse effect on operating results. Our cost cutting efforts have resulted in narrowing our net loss from last quarter, and we will continue to be vigilant about cost control. Additionally, at our recent Las Vegas sales event, we introduced the first two of our new products: TriFusion Plus and Valura Extreme. We implemented new promotions in the third quarter in Japan and an exciting new program, "Be Light Mexico," last month in Mexico. We are excited about the progress in markets such as Korea, Mexico, Europe and Taiwan that are beginning to post revenue gains over the prior year."

As of September 30, 2006, the Company's cash and cash equivalents totaled $12.1 million, including $4.6 million in China that may not be freely transferable to other countries because the Company's Chinese subsidiary is subject to a business license capitalization requirement. The $12.1 million represented a decrease of $6.3 million from prior year end. Cash used in operations was $6.5 million for the nine months ended September 30, 2006. Cash was mainly utilized as a result of the net losses and decreases in current liabilities, including deferred revenue, partly offset by a reduction in existing inventories.

On October 26, 2006, the Company announced that it received a formal order of investigation issued by the Securities and Exchange Commission ("SEC") regarding possible securities laws violations by the Company and/or other persons. At this time, it is not possible to predict the outcome of the investigation nor is it possible to assess its impact on the Company. The Company intends to cooperate fully with the SEC with respect to its investigation. In August 2006, the Company had been advised by the Staff of the SEC that it was conducting an informal inquiry into matters that are the subject of previously disclosed investigations by the Company's Audit Committee, including the payments received by two former officers and directors of the Company from an independent distributor. The Company cooperated with the SEC's informal inquiry.

The Company will host a conference call at 2 p.m. EST, November 13, 2006. Those who wish to participate in the conference call may telephone [phone] (for international callers 973-582-2772), pass code #8109397, 15 minutes before 2 p.m. EST. If you cannot participate in the call, but wish to hear it, you may login to Natural Health Trends Corp.'s homepage at www.naturalhealthtrendscorp.com and click on either Windows Media or Real Player 1 1/2 hours after the completion of the call.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such statements may relate, among other things, to our relationship with our distributors; our need to continually recruit new distributors; our internal controls and accounting methods may require further modification; our need to raise additional capital if revenues continue to decline; risks related to an SEC investigation and securities litigation; adverse consequences from audit committee investigations or management changes; regulatory matters governing our products and network marketing system; regulatory matters pertaining to direct-selling laws, specifically in China; our ability to recruit and maintain key management and consultants; adverse publicity associated with our products or direct selling organizations; product liability claims; our reliance on outside manufacturers; risks associated with operating internationally, including foreign exchange risks; product concentration; dependence on increased penetration of existing markets; the competitive nature of our business; and our ability to generate sufficient cash to operate and expand our business. For a more detailed discussion of the risks and uncertainties of our business, please refer to our Annual Report on Form 10-K and our Amended Annual Report on Form 10-K/A for the fiscal year ended December 31, 2005 filed with the Securities and Exchange Commission. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

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