Natural Health Trends Corp. Divests Kaire Subsidiaries DALLAS--(BUSINESS WIRE)--July 11, 2006--Natural Health Trends Corp. (NASDAQ: BHIP - News) today announced that it has sold its interest in its Kaire subsidiaries to Kaire International (Canada), Ltd., effective July 1, 2006. Specifically, the Company sold its 100% interest in eKaire.com, Inc., a Delaware corporation, as well as its 51% interest in each of Kaire Nutraceuticals Australia Pty. Limited, an Australian company, and Kaire Nutraceuticals New Zealand Pty. Limited, a New Zealand company. The purchase price was approximately the book value of the Kaire subsidiaries. The purchaser is a company formed and owned by Michael Lightfoot, who managed the business of eKaire.com, Inc. prior to this transaction. Chris T. Sharng, Executive Vice President and Chief Financial Officer of the Company, said, "We have regrettably been unable to focus any significant time or resources on the Kaire business, which has a very different commission system and product portfolio from our core NHT Global business. While we have always believed that the Kaire business has great potential, the Company's priority will continue to be the multinational markets of the NHT Global brand for some time to come. We think both the NHT Global and the Kaire businesses will be better served with a clear delineation of equity interest, and the Kaire business after this transaction will be placed in the capable, experienced hand of the current Kaire management." Michael Lightfoot, President of Kaire International (Canada) Ltd. said, "I have been involved with Kaire in different management roles since 1993 and, when the opportunity was presented to me to acquire eKaire.com and its subsidiaries, I was absolutely thrilled. The incredible growth and success that NHT Global has experienced has unfortunately overshadowed eKaire.com, which, as a result, has not evolved to its full potential. With my acquisition of eKaire.com, both of these great companies can now place their individual focus where it needs to be and create unparalleled opportunities for all of their distributors around the world." About Natural Health Trends Corp. Natural Health Trends Corp. is an international direct-selling company operating through its subsidiaries in 15 countries throughout Asia, North America, Eastern Europe and Latin America. The Company markets premium quality personal care products under the NHT Global (formerly Lexxus International) brand. Additional information can be found on the Company's Website, and management encourages interested parties to register for updated corporate information via e-mail on the Company's homepage, www.naturalhealthtrendscorp.com. 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 that may require further modification; regulatory matters governing our products and network marketing system; our ability to recruit and maintain key management; 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.
Contact: Natural Health Trends Corp. Chris Sharng, 972-241-4080 or Michael Porter - Investor Relations
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