Le-Nature's Inc. Announces First Half 2004 Results

Le-Nature's Inc. announces 2004 first half financial and sales results. Profit and sales growth continued on target, in part due to the continued expansion of Le-Nature's products and brand growth with the rapid expansion of all-natural, fully pasteurized juice drinks in recloseable PET plastic bottled, and the continued category growth of single-serve bottled water.

Sales increased by 9.7% to $113.4 million in the first half of 2004 as compared to $103.4 for the same period in 2003. Gross profit increased by 53.9% to $54.9 million for the six months ending June 30,2004 compared to $35.7 for the identical period in 2003. Volume of single serve products increased from 13.3 million equivalent cases in the first six months of 2003, to 25.3 million equivalent cases in the first half of 2004.

Le-Nature's Inc. continues to benefit from the full integration of its on-site PET plastic bottle injection and blow molding, which has reduced the cost of goods sold by approximately 26.4% versus same time frame, and continues to off-set the cost of rising raw material costs.

Gregory J. Podlucky, Le-Nature's Inc. CEO, commented on the first half results of increasing volume, sales, and profit growth, "Customer and consumer acceptance of our product and production platforms of fully pasteurized, all natural, better-for-you beverages and bottled water in reclosable PET plastic bottles, and the continued diligence by our production, sales, and financial managers to exceed our business mission of providing superior products at fair prices, are being rewarded."

Le-Nature's Inc. will hold an investor conference call Friday August 30 at 12:30 PM EST. Investors should join Greg Podlucky, CEO, and Bob Lynn, CRO, who will be hosting the call.

The call in number is 1-888-246-8886 and the pass code is 5900235637.

Le-Nature's, Inc.

Statements of Income
(Unaudited)

Six Months ended
June 30,
2004 2003

Sales:
Gross sales $ 113,402,163 $ 103,381,524
Trade spending (10,999,992) (11,496,689)
Net sales 102,402,171 91,884,835
Cost of goods sold 47,469,957 56,197,333

Gross profit 54,932,214 35,687,502

Operating expenses:
Selling, general and administrative 17,023,546 8,292,764
Total operating expenses 17,023,546 8,292,764

Income from operations 37,908,668 27,394,737

Interest expense (8,031,876) (3,763,249)
Other income/(loss) 107,095 8,887
Loss on refinancing (2,797,597) (10,283,473)
Income before income taxes 27,186,289 13,356,902

Provision for income taxes 10,061,219 5,473,039
Net income $ 17,125,070 $ 7,883,863

     
   General Manager
   Le-Nature's Inc.
   Latrobe,    PA,    15650
   USA
   724 532 0600 ext 111 (phone)
   rlynn@le-natures.com