Nature’s Sunshine Products Reports Fourth Quarter and Full Year Financial Results

including its subsidiary Synergy Worldwide, Inc., a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, today reported consolidated financial results for the fourth quarter and full year ended December 31, 2011.

For the Fourth Quarter of 2011:

          --  Net sales were $92.1 million, compared with $89.9 million in the same
              quarter a year ago, an increase of 2.4 percent.

          --  Operating income from continuing operations was $9.6 million, compared
              with $3.5 million in the same quarter a year ago, an increase of 170.8
              percent.

          --  Adjusted EBITDA, defined here as net income before taxes, depreciation
              and amortization, other income adjusted to exclude share-based
              compensation expense, was $12.3 million, compared with $4.7 million in
              the same quarter a year ago, an increase of 163.9 percent.

          --  Net income from continuing operations was $7.6 million, compared with a
              net loss of $0.4 million in the same quarter a year ago.

          --  Basic and diluted net income per share from continuing operations was
              $0.49 and $0.48, respectively, compared with a net loss per share of
              $0.02 and $0.02, respectively, for the same quarter a year ago.

          --  As of December 31, 2011, shareholders' equity was $87.4 million,
              compared to $68.4 million on December 31, 2010, an increase of 27.9
              percent.

          --  As of December 31, 2011, active Managers worldwide were 27,800, a
              decrease of 1.1 percent from the end of the prior quarter, while active
              Distributors and customers worldwide were 668,400, a decrease of 2.0
              percent from the end of the prior quarter.

For the Full Year 2011:

          --  Net sales were $367.8 million, compared with $349.9 million in 2010, an
              increase of 5.1 percent.

          --  Operating income from continuing operations was $20.2 million, compared
              with $11.3 million in 2010, an increase of 79.0 percent. Excluding
              contract termination costs of $14.7 million related to our third quarter
              arbitration settlement with NutriPlus LLC, operating income from
              continuing operations was $34.9 million in 2011, compared with $11.3
              million in 2010, an increase of 210.0 percent.

          --  Adjusted EBITDA, defined here as net income before taxes, depreciation
              and amortization, other income adjusted to exclude share-based
              compensation expense and contract termination costs, was $42.8 million,
              compared with $16.0 million in 2010, an increase of 168.0 percent.

          --  Net income from continuing operations was $17.6 million, compared with
              $8.5 million in 2010, an increase of 107.8 percent.  Excluding the
              contract termination costs described above, net income from continuing
              operations was $27.6 million, compared with $8.5 million in 2010, an
              increase of 225.9 percent.

          --  Basic and diluted net income per share from continuing operations was
              $1.13 and $1.12, respectively, compared with earnings per share of $0.55
              and $0.54, respectively, in 2010.

NSP United States Results for the Fourth Quarter:

          --  Net sales were $33.2 million, compared with $34.1 million in the same
              quarter a year ago, a decrease of 2.8 percent. NSP United States
              Managers and Distributors are predominantly practitioners of nutritional
              supplement therapies and retailers or consumers of our products, who
              continue to be adversely affected by the economic downturn.  Net sales
              revenues also decreased due to changes to some of our less profitable
              promotional programs.

          --  Operating income was $2.5 million, compared with $1.3 million in the
              same quarter a year ago, an increase of 97.1 percent. The improvement
              despite lower sales in 2011 was due to the cancellation in 2011 of some
              less profitable promotional programs and severance costs incurred in
              2010 in connection with employee reductions in that year.

NSP International Results for the Fourth Quarter:

          --  Net sales were $33.0 million, compared with $36.0 million in the same
              quarter a year ago, a decrease of 8.3 percent. In local currencies, net
              sales decreased by 6.9 percent compared to the same quarter a year ago.
              Higher sales in our Russian markets (excluding Belarus), which are
              traditionally more network marketing oriented, and positive currency
              fluctuations were offset by 1) lower sales in Belarus related to the
              significant weakening of the Belarusian ruble, and 2) lower sales in the
              Dominican Republic, Japan and Mexico markets, which are predominately
              practitioners of nutritional supplement therapies and retailers or
              consumers of our products. These markets continue to be adversely
              affected by the economic downturn, as well as the cancellation of some
              less profitable promotional programs.

          --  Operating income was $4.5 million, compared with operating income of
              $0.7 million in the same quarter a year ago, an increase of 509.9
              percent. This increase was the result of lower royalty costs in 2011 due
              to the termination of the Company's contract with NutriPlus LLC, the
              impact of current year value-added tax reserve reductions in our Mexico
              business, and prior year reserves taken in 2010 related to reduction of
              our worldwide employee count.

Synergy Worldwide Results for the Fourth Quarter:

          --  Net sales were $25.9 million, compared with $19.8 million in the same
              quarter a year ago, an increase of 31.0 percent. In local currencies,
              net sales increased 30.2 percent compared to the same quarter a year
              ago. The increase in net sales was primarily due to strong growth in our
              United States, Korean and European markets, which within Synergy are
              traditionally more network marketing oriented.

          --  Operating income was $2.6 million, compared with $1.5 million for the
              same quarter in the prior year, an increase of 67.9 percent. This
              increase was primarily due to significant sales growth and improved
              expense management.

Effective Income-tax Rate

The effective income tax rate for the quarter was 26.7 percent compared with 109.9 percent in the same quarter a year ago. The effective income tax rate of 26.7 percent for the current quarter was below the U.S. federal statutory tax rate of 35.0 percent and was primarily attributed to increased foreign tax credit utilization, foreign deductible items, lower tax rates in foreign jurisdictions than the rates in the U.S., and a decrease in the recognition of previous expense related to unremitted earnings. The effective income tax rate of 109.9 percent for the same quarter a year ago was the result of the impact that discontinued operation had on foreign tax credit utilization during the quarter.

The effective income tax rate for the year was 20.0 percent compared with 39.5 percent in 2010. The effective tax rate for 2011 was below the federal statutory tax rate of 35.0 percent, primarily due to increased foreign tax credit utilization, foreign deductible items, lower tax rates in foreign jurisdictions than the rate in the U.S., and a decrease in the recognition of previous expense related to unremitted earnings. The effective income tax rate in 2010 of 39.5 percent was, in part, the result of our inability to utilize certain foreign losses and tax credits, offset by a onetime tax deduction related to the Company’s exit from Brazil.

Non-GAAP Financial Measures

The Company has included information concerning EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to fund its business. EBITDA has not been prepared in accordance with generally accepted accounting principles (GAAP). This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net income as an indicator of the Company’s operating performance. Moreover, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has included a reconciliation of EBITDA to reported earnings under GAAP in the attached financial tables.

About Nature’s Sunshine Products

Nature’s Sunshine Products , a leading natural health and wellness company, markets and distributes nutritional and personal care products through a global direct sales force of over 600,000 independent distributors in more than 40 countries. Nature’s Sunshine manufactures its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety and efficacy on the market today. The Company has two reportable business segments that operate under the Nature’s Sunshine Products brand and are divided based on their geographic operations in the United States (NSP United States) and in countries outside the United States (NSP International), as well as a third reportable business segment operates under the Synergy Worldwide brand. The Company also supports health and wellness for children around the world through its partnership with the Little Heroes Foundation. Additional information about the Company can be obtained at its website,
www.natr.com .

Cautionary Statement Regarding Forward-Looking Statements

In addition to historical information, this release contains forward-looking statements. Nature’s Sunshine may, from time to time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Nature’s Sunshine’s beliefs, expectations, hopes, or intentions regarding future events. Words such as “expects,” “intends,” “believes,” “anticipates,” “should,” “likely,” and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to the Company as of such date. Nature’s Sunshine assumes no obligation to update any forward-looking statement. Actual results will vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others: further reviews of the Company’s financial statements by the Company and its Audit Committee; modification of the Company’s accounting practices; foreign business risks; industry cyclicality; fluctuations in customer demand and order pattern; changes in pricing and general economic conditions; as well as other risks detailed in the Company’s previous filings with the SEC.

           NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
                        (Amounts in thousands)

                                          December  December
                                             31,       31,
                                            2011      2010
          ------------------------------  --------  --------
          Assets
          Current assets:
           Cash and cash equivalents       $58,969   $47,604
           Accounts receivable, net of
            allowance for doubtful
            accounts of $647 and
           $918, respectively                9,868     5,947
           Investments available for
            sale                             5,677     6,470
           Inventories                      41,611    36,235
           Deferred income tax assets        3,945     4,582

           Prepaid expenses and other        4,583     5,700
                                          --------  --------
             Total current assets          124,653   106,538

          Property, plant and equipment,
           net                              25,137    27,391
          Investment securities              1,429     1,778
          Intangible assets, net             1,151     1,303
          Deferred income tax assets        17,026    12,916

          Other assets                       6,415     9,489
                                          --------  --------

                                          $175,811  $159,415
                                          ========  ========

          Liabilities and Shareholders'
           Equity
          Current liabilities:
           Accounts payable                 $5,980    $4,855
           Accrued volume incentives        19,326    18,619
           Accrued liabilities              27,938    34,601
           Deferred revenue                  2,603     3,385
           Current installments of
            long-term debt                   3,296        --

           Income taxes payable              8,655     3,708
                                          --------  --------
             Total current liabilities      67,798    65,168

          Liability related to
           unrecognized tax benefits        10,426    21,366
          Long-term debt                     5,894        --
          Deferred compensation payable      1,429     1,778

          Other liabilities                  2,826     2,721
                                          --------  --------

             Total long-term liabilities    20,575    25,865
                                          --------  --------

          Shareholders' equity:
           Common stock, no par value;
            50,000 shares authorized,
            15,569 and 15,533
           shares issued and outstanding
            as of December 31, 2011 and
            2010, respectively              71,628    67,752
           Retained earnings                25,879     8,278
           Accumulated other
            comprehensive loss            (10,069)   (7,648)
                                          --------  --------

             Total shareholders' equity     87,438    68,382
                                          --------  --------

                                          $175,811  $159,415
                                          ========  ========
               NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (Amounts in thousands, except per share information)

                                                      Three Months
                                                         Ended
                                                      December 31,
                                                   -----------------

                                                     2011     2010
                                                   --------  -------

          Net sales revenue (net of the rebate
           portion of volume incentives of
          $10,813 and $11,157, respectively)        $92,056  $89,889
                                                   --------  -------
          Cost and expenses:
           Cost of goods sold                        16,850   17,732
           Volume incentives                         33,462   33,205

           Selling, general and administrative       32,147   35,408
                                                   --------  -------

                                                     82,459   86,345
                                                   --------  -------
          Operating income                            9,597    3,544

          Other income, net                             798      353
                                                   --------  -------

          Income before provision for income
           taxes                                     10,395    3,897

          Provision for income taxes                  2,774    4,283
                                                   --------  -------
          Net income (loss) from continuing
           operations                                 7,621    (386)

          Loss from discontinued operations              --    (314)
                                                   --------  -------

          Net income (loss)                          $7,621   $(700)
                                                   ========  =======

          Basic and diluted net income per common
           share

           Basic:
             Net income (loss) from continuing
              operations                              $0.49  $(0.02)
                                                   ========  =======

             Loss from discontinued operations          $--  $(0.02)
                                                   ========  =======

             Net income (loss)                        $0.49  $(0.04)
                                                   ========  =======

           Diluted:
             Net income (loss) from continuing
              operations                              $0.48  $(0.02)
                                                   ========  =======

             Loss from discontinued operations          $--  $(0.02)
                                                   ========  =======

             Net income (loss)                        $0.48  $(0.04)
                                                   ========  =======

                                                   ========  =======
          Weighted average basic common shares
           outstanding                               15,567   15,515
                                                   ========  =======
          Weighted average diluted common shares
           outstanding                               15,568   15,605
                                                   ========  =======
               NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (Amounts in thousands, except per share information)

                                                      Year Ended
                                                     December 31,
                                                  ------------------

                                                    2011      2010
                                                  --------  --------

          Net sales revenue (net of the rebate
           portion of volume incentives of
          $44,628 and $44,099, respectively)      $367,813  $349,918
                                                  --------  --------
          Cost and expenses:
           Cost of goods sold                       69,410    69,040
           Volume incentives                       133,883   130,367
           Selling, general and administrative     129,605   139,248

           Contract termination costs               14,750        --
                                                  --------  --------

                                                   347,648   338,655
                                                  --------  --------
          Operating income                          20,165    11,263

          Other income, net                          1,847     2,727
                                                  --------  --------

          Income before provision for income
           taxes                                    22,012    13,990

          Provision for income taxes                 4,411     5,521
                                                  --------  --------
          Net income from continuing operations     17,601     8,469

          Loss from discontinued operations             --   (9,702)
                                                  --------  --------

          Net income (loss)                        $17,601  $(1,233)
                                                  ========  ========

          Basic and diluted net income per
           common share

           Basic:
             Net income from continuing
              operations                             $1.13     $0.55
                                                  ========  ========

             Loss from discontinued operations         $--   $(0.63)
                                                  ========  ========

             Net income (loss)                       $1.13   $(0.08)
                                                  ========  ========

           Diluted:
             Net income from continuing
              operations                             $1.12     $0.54
                                                  ========  ========

             Loss from discontinued operations         $--   $(0.62)
                                                  ========  ========

             Net income (loss)                       $1.12   $(0.08)
                                                  ========  ========

                                                  ========  ========
          Weighted average basic common shares
           outstanding                              15,550    15,515
                                                  ========  ========
          Weighted average diluted common shares
           outstanding                              15,695    15,605
                                                  ========  ========
             NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
             RECONCILIATION OF NET INCOME to Adjusted EBITDA
                          (Amounts in thousands)

                                              Three Months Ended
                                                 December 31,
                                              ------------------

                                                2011      2010
                                              --------  --------

          Net income (loss)                     $7,621    $(700)
          Adjustments:
           Loss from discontinued operations        --       314
           Depreciation and amortization         1,158     1,011
           Share-based compensation expense      1,561       112
           Other income, net*                    (798)     (353)

           Taxes                                 2,774     4,283
                                              --------  --------

          Adjusted EBITDA                      $12,316    $4,667
                                              ========  ========

                                                  Year Ended
                                                 December 31,
                                              ------------------

                                                2011      2010
                                              --------  --------

          Net income (loss)                    $17,601  $(1,233)
          Adjustments:
           Loss from discontinued operations        --     9,702
           Depreciation and amortization         4,362     4,254
           Share-based compensation expense      3,478       437
           Contract termination costs**         14,750        --
           Other income, net*                  (1,847)   (2,727)

           Taxes                                 4,411     5,521
                                              --------  --------

          Adjusted EBITDA                      $42,755   $15,954
                                              ========  ========

          * Other income, net is primarily comprised of foreign
           exchange gains (losses), interest
          income, and interest expense.

          ** The Contract termination costs occurred in the
           third quarter of 2011 and are therefore
          included as an adjustment to the 2011 year-to-date
           results. There were no contract
          termination costs during the fourth quarter of 2011 or
           any of the periods presented for 2010.

This news release was distributed by GlobeNewswire,
www.globenewswire.com

SOURCE: Nature’s Sunshine Products, Inc.

        CONTACT: Stephen M. Bunker
        Chief Financial Officer
        Nature's Sunshine Products, Inc.
        Provo, Utah 84606
        (801) 342-4370