Company Contact

Investor Contact

Scott Davidson

Brett Maas

Chief Financial Officer

Managing Partner

Natural Health Trends Corp.

Hayden IR

Tel: 972-241-4080

Tel: 646-536-7331

scott.davidson@nthglobal.com

brett@haydenir.com

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Total revenues were $8.7 million compared to $9.1 million in the first quarter last year and $8.1 million in the fourth quarter of 2012. The year-over-year decrease in revenues for the first quarter reflects a change in the Company's promotional plans. In 2013, a cash promotion in Greater China runs through the entire year. In 2012, the comparable cash promotion ended at June 30th.

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Net income available to common stockholders of Natural Health Trends was $283,000, or $0.03 per diluted share, compared to net income of $503,000, or $0.04 per diluted share last year.

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Cash and cash equivalents increased to $5.2 million as of March 31, 2013 from $4.2 million at December 31, 2012. Cash flow from operations increased 18% year on year.

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Natural Health Trends continued to execute promotional and incentive activities around the world, including:

o

Held Macau event at the Banyan Tree Hotel, with more than 1,000 members in attendance.

o

Launched a new program, called "Supreme Bonus," in Hong Kong and Taiwan. This is a year-long program designed around the Company's International Recognition Program offering cash and prize incentives throughout the year.

o

Embarked on Singapore incentive trip with qualifiers from Hong Kong.

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Launched a new product line in Hong Kong, and introduced two new products to the Russian market:

o

The NHT Global Herbal product line, which is the best of Eastern traditional Chinese herbal ingredients and western technology. The first product in this line is Natural Health Trends' Cordyceps CS-4 and Agaricus blazei Extract blend.

o

Triotien™ and HerBalance™ launched in Russia in April.

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Expanded training programs, designed to increase product awareness, market new products, and grow sales. Activities included:

o

A multi-city training roadshow in Russia, Kazakhstan and Ukraine in February 2013.

o

A training event in St. Petersburg, Russia in April 2013 to introduce Triotien™ and HerBalance™ to the market.

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Identified a new Korean office in the premier Gangnam district with the expectation of a grand opening in June 2013.

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Date: Wednesday, May 8, 2013

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Time: 4:30 p.m. ET/3:30 p.m. CT

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Dial-in number: 1-877-941-4775 (domestic) 1-480-629-9761 (international)

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Webcast link: http://public.viavid.com/index.php?id=104596

December 31, 2012

March 31, 2013

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

Accounts receivable

Inventories, net

Other current assets

Total current assets

Property and equipment, net

Goodwill

Restricted cash

Other assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

Income taxes payable

Accrued distributor commissions

Other accrued expenses

Deferred revenue

Deferred tax liability

Other current liabilities

Total current liabilities

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.001 par value; 5,000,000 shares authorized; 1,761,900 shares designated Series A convertible preferred stock, 138,400 shares issued and outstanding at December 31, 2012 and March 31, 2013, aggregate liquidation value of $333

Common stock, $0.001 par value; 50,000,000 shares authorized; 11,324,048 and 11,323,369 shares issued and outstanding at December 31, 2012 and March 31, 2013, respectively

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss:

Foreign currency translation adjustments

Total stockholders’ equity

Total liabilities and stockholders’ equity

Three Months Ended March 31,

2012

2013

Net sales

Cost of sales

Gross profit

Operating expenses:

Distributor commissions

Selling, general and administrative expenses (including stock-based compensation expense of $20 and $30 during the three months ended March 31, 2012 and 2013, respectively)

Depreciation and amortization

Total operating expenses

Income from operations

Other income (expense), net

Income before income taxes

Income tax provision (benefit)

Net income

Preferred stock dividends

Net income available to common stockholders

Income per share:

Basic

Diluted

Weighted-average number of shares outstanding:

Basic

Diluted

Three Months Ended March 31,

2012

2013

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Stock-based compensation

Changes in assets and liabilities:

Accounts receivable

Inventories, net

Other current assets

Other assets

Accounts payable

Income taxes payable

Accrued distributor commissions

Other accrued expenses

Deferred revenue

Other current liabilities

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment, net

Decrease in restricted cash

–

Net cash provided by (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchase of common stock

–

Net cash used in financing activities

–

Effect of exchange rates on cash and cash equivalents

Net increase in cash and cash equivalents

CASH AND CASH EQUIVALENTS, beginning of period

CASH AND CASH EQUIVALENTS, end of period