As a weight loss/management product in Baywood's SOLUTIONS(TM) line, N-Cal(TM) is an all-natural alternative to other weight-loss medications that are designed to block the fat that enters our intestinal tract from the foods we eat where the undigested fat is then eliminated in a bowel movement. Vanson, from whom Baywood licenses LipoSanULTRA(TM), announced that the analysis of initial data from a clinical study involving the unique and patented chitosan product clearly shows a statistically significant weight loss for the test group compared to placebo. The double-blind, placebo-controlled study involved 59 women and was conducted by the Genesis Center for Integrative Medicine in Graham, Washington over an eight week period that included Thanksgiving and Christmas. The data shows that 62% of the LipoSanULTRA(TM) test group lost weight while 83% of the placebo group either gained weight or stayed even. By the end of the study, the average weight differential per person between the LipoSanULTRA(TM) test group and the placebo group was 5 lbs. The study was based on a free-living protocol and did not involve a calorie reduced diet or exercise program. Vanson expects to publish the study in a peer reviewed journal later this year. The new clinical data also supports previous laboratory findings showing that LipoSanULTRA(TM)'s unique formula resulted in exceptional fat-binding performance far in excess of competitive chitosan products. Vanson expects to conduct additional clinical trials in order to build a solid foundation of science that will support strong structure/function claims for LipoSanULTRA(TM).

"Currently, other widely used chitosan-based fat-blockers on the market today have two inherent limitiations," stated Neil Reithinger, President & C.E.O. "First, they take over an hour to become fully soluble in stomach acid, making them ineffective if the user does not remember to take the required dose at least one hour before each meal. Secondly, up to eight (8) capsules of chitosan have to be taken before each meal. N-Cal(TM) alleviates these two limitations," Reithinger continued. "LipoSanULTRA(TM) is solubilized in less than one minute allowing the user to take the product just as they sit down to eat. In addition, because N-Cal(TM) absorbs up to 300% more dietary fat, taking only two (2) capsules at each meal is more effective than taking four (4) to eight (8) capsules of other chitosan products," he further stated.

According to separate laboratory tests conducted on LipoSanULTRA(TM) by Vanson, it binds significantly more oil following one (1) minute, fifteen (15) minute, thirty (30) minute, and sixty (60) minute solubilization times compared to all other chitosans. This significantly increased oil binding capacity of LipoSanULTRA(TM) following one (1) minute is a result of faster dissolving time. LipoSanULTRA(TM) is a trademark of Vanson.

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 or visit www.bywd.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.