Baywood recorded a 247% increase in revenue to $1,610,000, compared to $464,000 for the same period in 1999. The company attributed the sales increases to the continued expansion of its PURECHOICE(TM) and SOLUTIONS(TM) lines into health food channels, independent pharmacies and chain drug stores. In addition, sales were augmented by the company's introduction in November 2000 of its new Complete La Femme(TM) line of products that offer all-natural alternatives for a variety of health needs and issues for women.

"While we reiterate our intentions to continue to expand aggressively into further distribution channels as we did in 2000, we will also attempt for 2001 to manage marketing budgets in order to achieve a scalable business model that methodically supports sales growth and further strengthens our brands in the marketplace," stated Neil Reithinger, President & C.E.O. "As we proceed into the coming quarters, we will diligently focus on quality and efficacious products and the proper execution of innovative marketing plans that must work together simultaneously to build the strength of our company both internationally and domestically," Reithinger stated further.

Baywood is a consumer products company specializing in the development, marketing and distribution of its own brands of nutraceuticals. The company's product lines are marketed under the brand names PURECHOICE(TM), SOLUTIONS(TM) and Complete La Femme(TM), and are distributed through independent and chain health food stores, pharmacies, grocery stores, Vitamin World, GNC, CVS/pharmacy, Albertson's, Osco Drug, Sav-On and other direct-to-consumer channels both internationally and domestically. Contact Baywood International, Inc. at 1-888-350-0799 for more information visit www.bywd.com or www.otcsuccess.com.

This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Issuer's expectations among other things are dependent upon general economic conditions, continued demand for its products, the availability of raw materials, the success of it products and marketing plan, retention of its key management and operating personnel, as well as other uncontrollable or unknown factors