Nature's Sunshine Announces Supply Agreement and Investment in Cetalon Corporation.

Business Editors

PROVO, Utah--(BUSINESS WIRE)--May 10, 2001

Nature's Sunshine Products, Inc. (NASDAQ:NATR) announced today that its wholly-owned subsidiary, Innovative Botanical Solutions, Inc., has entered into an exclusive agreement with Cetalon Corporation (OTC:CETA.OB) to manufacture a proprietary, uniquely formulated, line of Cetalon-branded herbs and vitamins. In addition, Innovative Botanical Solutions is purchasing approximately $1.5 million in Cetalon common stock. Cetalon Corporation owns and operates 44 Sears Health and Fitness Shops in Canada and announced last month that it will operate 10 Sears Health Food Shops in the U.S.

As a result of this partnership, Nature's Sunshine has named Joseph A. Speirs, previously vice president of Marketing, as president of Innovative Botanical Solutions. Mr. Speirs has served as an officer of Nature's Sunshine since 1983 and has extensive experience and knowledge in product development and retail.

"This partnership with Cetalon will complement our core network marketing strategy and will be a valuable opportunity to leverage our expanding manufacturing capacity," said Daniel P. Howells, president and CEO of Nature's Sunshine. "We are confident that the products we design for Cetalon will draw customers to the Sears Health Food Shops in the U.S. and the Sears Health Food and Fitness Shops in Canada. We are excited about the potential offerings we can develop together to benefit both the end-users and our customers -- Cetalon and Sears."

In April, Cetalon signed an agreement with Sears, Roebuck and Company to open Health Food Shops in 10 California Sears department stores, offering vitamins, minerals, supplements and health information technology. Earlier this year, Cetalon announced the acquisition of 44 Sears Health Food and Fitness Shops in Canada.

Terms of the agreement include Innovative Botanical Solutions acquiring approximately 460,000 Cetalon common shares, or approximately 10 percent of the company's outstanding stock. Innovative Botanical Solutions also has the option to invest an additional $1.5 million in Cetalon. In exchange, Nature's Sunshine granted a warrant to Cetalon to purchase up to 5 percent of Nature's Sunshine's common stock at $11.13 per share, of which 20 percent of the warrant becomes exercisable each year that Cetalon meets its minimum annual product purchase requirements. The closing price of Nature's Sunshine stock on May 9, 2001, was $8.88.

"Nature's Sunshine has earned a reputation for producing high quality, natural herbal and vitamin products, and we anticipate that Sears Health Food Shops will benefit significantly from a private brand of supplements that feature the Cetalon brand name," said Anthony Bryan, Chairman of Cetalon.

"Sears is always looking for new opportunities to tailor our product offerings to meet the needs of our local customers," said Jack Krings, vice president and general manager of Sears Licensed Businesses. "As an expert in health supplements, Nature's Sunshine is providing our customers with the added benefit of being able to buy quality health and nutrition products at Sears."

About Nature's Sunshine Products:

Nature's Sunshine Products manufactures and markets through direct sales encapsulated and tableted herbal products, high quality natural vitamins and other complementary products. In addition to the U.S., the Company has operations in South Korea, Brazil, Mexico, Venezuela, Japan, Canada, Colombia, the United Kingdom and Ireland, the Russian Federation, Argentina, Peru, Chile, Central America, Ecuador and Israel. The Company also has exclusive distribution agreements with selected companies in Australia, New Zealand, Malaysia and Norway. More information can be obtained through the Company's web site at www.natr.com.

About Cetalon Corporation:

Cetalon is a "store within a store" retail and direct marketing company specializing in the sale of natural vitamins, minerals, and supplements as well as health information technologies and home health care products. Cetalon has 44 Sears Health Food and Fitness Shops in Sears Canada department stores and has announced plans to build 10 stores in Sears U.S. department stores this summer.

About Sears:

Sears, Roebuck and Company is a leading U.S. retailer of apparel, home and automotive products and services, with annual revenue of more than $40 billion. The company serves families throughout the country through more than 860 department stores, approximately 2,100 specialized retail locations, and a variety of online offerings accessible through the company's web site, www.sears.com.

Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, and product line growth, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those set forth in such statements. Such risks, uncertainties and factors include, but are not limited to, foreign business risks, industry cyclicality, fluctuations in customer demand and order pattern, the seasonal nature of the business, changes in pricing and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.