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TheStreet Open House

Reliv International Reports First-Quarter Financial Results For 2013

"On March 1, 2013, Reliv implemented a new pricing structure in the United States, pairing a modest price increase with increased servings per unit, offset by a reduced shipping charge," he said. "The resulting cost per serving is only pennies higher for most products, and feedback from our distributors has been positive. Adjusting servings per unit to provide a full month's supply helps facilitate regular monthly sales and the reduced shipping helps eliminate a common point-of-sale objection."

"The network marketing industry is seeing e-commerce becoming as important as in-person sales, and Reliv is taking steps to stay in front of this shift in our industry's business model," Montgomery said. "Reliv is nearing the completion of the first step in this process, creating a custom content management system. This system will provide the platform to pursue additional online upgrades. This year will also see the launch of a new online shopping cart, designed to make it easier for consumers to purchase our products."

"As we work to build for the future, we continue to reduce costs where appropriate and to maintain a strong balance sheet," he added. Reliv had cash and cash equivalents of $5.87 million as of March 31, 2013, virtually unchanged from $5.80 million on December 31, 2012.

As of March 31, 2013, Reliv had 56,040 distributors – a decline of 4.3 percent from March 31, 2012 – of which 5,600 are Master Affiliate level and above. Master Affiliate is the level at which distributors are eligible to earn generation royalties.

About Reliv International, Inc.

Reliv International, based in Chesterfield, Mo., produces nutritional supplements that promote optimal nutrition along with premium skincare products. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging and healthy energy. Reliv is the exclusive provider of LunaRich® products, which optimize levels of lunasin, the peptide behind many of soy's health benefits. The company sells its products through an international network marketing system of independent distributors in 16 countries. Learn more about Reliv at www.reliv.com , or on Facebook, Twitter or YouTube.

Statements made in this news release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" or similar expressions. Factors that could cause actual results to differ are identified in the public filings made by Reliv with the Securities and Exchange Commission. More information on factors that could affect Reliv's business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on the Company's web site, www.reliv.com .

FINANCIAL HIGHLIGHTS FOLLOW –

Reliv International, Inc. and Subsidiaries    
     
Consolidated Balance Sheets    
  March 31 December 31
  2013 2012
  (Unaudited)  
Assets    
Current Assets:    
Cash and cash equivalents $5,865,285 $5,801,042
Accounts receivable, less allowances of $27,500 in 2013 and $35,700 in 2012 148,377 247,087
Accounts and note due from employees and distributors 139,052 109,346
Inventories 5,370,955 5,262,916
Other current assets 1,790,567 1,070,301
     
Total current assets 13,314,236 12,490,692
     
Other assets 5,870,734 5,656,077
Net property, plant and equipment 6,995,023 7,111,772
     
Total Assets $26,179,993 $25,258,541
     
Liabilities and Stockholders' Equity    
     
Total current liabilities $7,428,737 $6,614,631
Long-term debt, less current maturities 2,297,859 2,401,312
Other non-current liabilities 681,838 660,728
Stockholders' equity 15,771,559 15,581,870
     
Total Liabilities and Stockholders' Equity $26,179,993 $25,258,541
     
     
Consolidated Statements of Operations    
   
  Three months ended March 31
  2013 2012
  (Unaudited) (Unaudited)
Product sales $16,889,458 $17,614,840
Handling & freight income 1,967,806 2,128,804
     
Net Sales 18,857,264 19,743,644
     
Costs and expenses:    
Cost of products sold 3,903,858 3,900,581
Distributor royalties and commissions 7,003,204 7,455,160
Selling, general and administrative 7,515,488 7,474,246
     
Total Costs and Expenses 18,422,550 18,829,987
     
Income from operations 434,714 913,657
Other income (expense):    
Interest income 37,164 9,314
Interest expense (17,502) (30,919)
Other expense (26,575) (22,668)
     
Income before income taxes 427,801 869,384
Provision for income taxes 233,000 337,000
     
Net Income $194,801 $532,384
     
Earnings per common share - Basic $0.02 $0.04
Weighted average shares 12,620,000 12,512,000
     
Earnings per common share - Diluted $0.02 $0.04
Weighted average shares 12,708,000 12,633,000
     
Cash dividends declared per common share  $ --  $ --
 
Reliv International, Inc. and Subsidiaries
             
Net sales by Market      
(in thousands) Three months ended March 31, Change from
  2013 2012 prior year
  Amount % of Net Sales Amount % of Net Sales Amount %
             
United States 15,109 80.1% 15,770 79.9% (661) -4.2%
Australia/New Zealand 448 2.4% 540 2.7% (92) -17.0%
Canada 554 2.9% 550 2.8% 4 0.7%
Mexico 278 1.5% 287 1.4% (9) -3.1%
Europe 2,020 10.7% 1,595 8.1% 425 26.6%
Asia 448 2.4% 1,002 5.1% (554) -55.3%
             
Consolidated Total 18,857 100.0% 19,744 100.0% (887) -4.5%
             
The following table sets forth, as of March 31, 2013 and 2012, the number of our active distributors and Master Affiliates and above. The total number of active distributors includes Master Affiliates and above. We define an active distributor as one that enrolls as a distributor or renews its distributorship during the prior twelve months. Master Affiliates and above are distributors that have attained the highest level of discount and are eligible for royalties generated by Master Affiliates and above in their downline organization.
             
           
Active Distributors and Master Affiliates and above by Market    
             
  As of 3/31/2013 As of 3/31/2012 Change in %
  Active Distributors Master Affiliates and Above Active Distributors Master Affiliates and Above Active Distributors Master Affiliates and Above
 
             
United States 40,020 3,960 42,910 4,550 -6.7% -13.0%
Australia/New Zealand 1,710 180 1,950 120 -12.3% 50.0%
Canada 1,310 170 1,340 190 -2.2% -10.5%
Mexico 1,340 100 1,640 140 -18.3% -28.6%
Europe 7,090 730 4,900 480 44.7% 52.1%
Asia 4,570 460 5,790 500 -21.1% -8.0%
             
Consolidated Total 56,040 5,600 58,530 5,980 -4.3% -6.4%
CONTACT: Steve Albright
         Chief Financial Officer
         (636) 733-1305
         
         or:
         
         Fred Nielson
         Investor Relations
         (636) 733-1314
         
         Mark Murphy
         Media Relations
         (636) 733-1391

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