Natural Health Trends Corp. Announces Additional Investment In China; Company Aims to Apply for a Direct Selling License

Business Wire, Nov 29, 2005

DALLAS -- Natural Health Trends Corp. (NASDAQ NMS: BHIP), (the "Company"), an international direct selling company, today announced that its Board of Directors has approved, and the Company has invested, an additional $10 million cash into its Chinese subsidiary. This additional investment is specifically aimed to qualify for the capital requirements as set forth in China's Direct Selling Laws, expected to be adopted on December 1, 2005. The Company intends to apply for a direct selling license in early December.

In the past year, the Chinese government has circulated a few iterations of the draft Direct Selling Laws. The latest version requires, among other criteria, that applicants make at least $10 million investment into their proposed Chinese operating subsidiary, a prerequisite to their request for such license.

Robert H. Hesse, the Company's Interim Chief Executive Officer, said: "We have drawn upon our operating experience in the Asian theater and developed a comprehensive business plan which, in our opinion, is in full compliance with the new legislation. China presents the greatest opportunity in our lifetime. Our products have already been permitted, the capital is now committed, and we have offices working in Zhuhai and Guongzhou of the Guongdong Province as well as in Beijing. We opened an experience center, where consumers can sample our products, in Guongzhou in July, and we have a warehouse operating in Zhuhai. We are confident that this latest initiative will propel Natural Health Trends into the highest tier of direct selling companies, and one of the few which will be approved by the government to operate in mainland China."

Natural Health Trends Corp. is an international direct-selling company operating in more than 30 markets throughout Asia, North America, Eastern Europe and Latin America. The Company markets premium quality personal care products under the Lexxus 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 for the fiscal year ended December 31, 2004 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.