Mannatech (MTEX) 8-K Mannatech, Inc. Reports Third Quarter Earnings

Exhibit 99.1

MANNATECH, INC. REPORTS THIRD QUARTER EARNINGS

Coppell, TX November 9, 2006 Mannatech, Inc. (NASDAQ – MTEX)today reported record earnings for its third quarter 2006 of $0.36 cents per diluted share, up 13% from third quarter 2005 earnings of $0.32 per diluted share. Net income for the quarter reached a record of $9.7 million with a net profit ratio of 9.7%. The 1 point net profit rate improvement versus prior year was partially due to a lower effective tax rate in the quarter. Pretax profit was $12.7 million for the quarter compared to $13.0 million, down 0.2% versus prior year.

Total third quarter net sales were $99.6 million, slightly below prior year sales of $100.2 million. Total current Mannatech independent Associates and Members grew to 536,000 as of September 30, 2006, an increase of 14% compared with the same period of the prior year. The record current independent Associate and Member count resulted from a higher retention of continuing Associates, partially offset by a decrease in new Associates for the period.

Sam Caster, Board Chairman and CEO, commented, “Several factors contributed to our sales softness in the quarter. As I indicated in our second quarter call, sales momentum was impacted by a key product reformulation late last year. In addition, the VP of Sales position has remained open since April of this year and that combined with an overhang from negative press may have also impacted recruiting. However, we are pleased with our high retention rate for our Associates, as evidenced by the 36% growth in our continuing associate base and a 4% sales increase in finished product sales for the third quarter versus the prior year quarter.”

Mr. Caster continued, “We believe we have taken the necessary steps to address these issues which included the launch of a reformulated Advanced Ambrotose™ in mid 2006 and the introduction of a new recruiting incentive program. We expect to announce the addition of a highly experienced direct selling professional for our VP of Sales position in the near future. In addition in the Fourth Quarter we are launching PhytoMatrix, a revolutionary new vitamin/mineral supplement, which we believe will help revitalize both revenue and recruiting.”

Net income for the 9 months ending September 30, 2006, grew to $24.2 million, an increase of 26% compared to prior year, and diluted earnings per share grew to $0.89, up 29% through September 2006 versus the prior year. Year-to-date sales through September reached $303.3 million, up 5.3% from 2005. Sales of finished product grew 9% in the same period.

Mannatech also expended $3.0 million to repurchase 213,701 shares of its common stock in the third quarter

The number of new and continuing independent Associates and Members during the last 12-months ended September 30, 2005 and 2006 were as follows:

	For the twelve months ended September 30,
Current Independent Associates and Members	(revised*) 2005			2006			Number and percentage change
New	228,000	48.5	%	208,000	38.9	%	(20,000	)	(8.8	%)
Continuing	242,000	51.5	%	328,000	61.1	%	86,000		35.5	%
Total	470,000	100	%	536,000	100	%	66,000		14.0	%

* In the third quarter 2005, we originally reported on our Form 10-Q, the split between new and continuing independent Associates and members to be 219,000, 46.6%, and 251,000, 53.4%, respectively. The original calculation included a miscalculation in the allocation between new and continuing Associates. However, the total number of independent associates was correctly reported at 470,000.

Net sales primarily shipped to customers in these locations, in dollars, and as a percentage of consolidated net sales, were as follows:

	Three months ended September 30,								Nine months ended September 30,
	2005				2006				2005				2006
	(in millions)								(in millions)
United States	$	66.5	66.3	%	$	65.7	66.0	%	$	192.3	66.8	%	$	202.8	66.9	%
Canada		7.0	7.0	%		6.7	6.7	%		20.9	7.3	%		21.6	7.1	%
Australia		9.3	9.3	%		7.5	7.5	%		26.3	9.1	%		22.8	7.5	%
United Kingdom		2.1	2.1	%		1.8	1.9	%		6.9	2.4	%		5.7	1.9	%
Japan		9.1	9.1	%		10.0	10.0	%		25.9	9.0	%		30.1	9.9	%
New Zealand		3.7	3.7	%		2.1	2.1	%		11.3	3.9	%		6.8	2.2	%
Republic of Korea		1.5	1.5	%		3.3	3.3	%		2.9	1.0	%		7.2	2.4	%
Taiwan*		0.9	0.9	%		0.8	0.8	%		1.3	0.5	%		2.7	0.9	%
Denmark**		0.1	0.1	%		1.0	1.0	%		0.1	0.0	%		2.4	0.8	%
Germany***		—	—	%		0.7	0.7	%		—	—	%		1.2	0.4	%
Totals	$	100.2	100	%	$	99.6	100	%	$	287.9	100	%	$	303.3	100	%

* Taiwan began operations in June 2005.

** United Kingdom began shipping products to Denmark in August 2005.

*** United Kingdom began shipping products to Germany in March 2006.

Conference Call

Mannatech will hold a conference call and webcast to discuss this announcement with investors on Friday, November 10, 2006 at 10:00 AM ET. Investors may listen to the call by accessing Mannatech’s website at http://www.mannatech.com.

About Mannatech

Mannatech, Incorporated is a global wellness solutions provider that develops innovative, high-quality, proprietary nutritional supplements, topical and skin care products, and weight management products that are sold through approximately 536,0000 independent Associates and Members located in the United States and the international markets of Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark, and Germany.

Please Note: This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as “may,” “believes,” “enthusiastic,” “demonstrates,” “ intends,” “optimistic,” and “plans” or other similar words or the negative of such terminology. Similarly, descriptions of Mannatech’s objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Mannatech believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Mannatech’s inability to attract and retain associates and members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that its expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions its readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

Contact Information:

Gary Spinell, VP Treasury & Investor Relations

Investor Relations

(972) 471-6512

ir@mannatech.com

Corporate web site:www.mannatech.com

MANNATECH, INCORPORATED

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	December 31, 2005			September 30, 2006
				(unaudited)
ASSETS
Cash and cash equivalents	$	56,207		$	39,943
Short-term investments		1,974			—
Restricted cash		2,777			3,129
Accounts receivable		548			1,442
Income tax receivable		—			809
Inventories, net		19,811			20,145
Prepaid expenses and other current assets		3,471			4,052
Deferred tax assets		671			628
Note receivable from affiliate		153			160
Total current assets		85,612			70,308
Long-term investments		15,375			25,375
Property and equipment, net		10,951			14,961
Construction in progress		8,157			21,175
Long-term restricted cash		1,476			2,191
Other assets		1,121			1,450
Long-term deferred tax assets		103			144
Total assets	$	122,795		$	135,604
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current portion of capital lease	$	23		$	76
Accounts payable		5,476			4,742
Accrued expenses		16,941			16,584
Commissions and incentives payable		15,588			13,414
Taxes payable		5,773			1,865
Deferred revenue		3,712			3,954
Current deferred tax liabilities		—			184
Total current liabilities		47,513			40,819
Capital lease, excluding current portion		—			302
Long-term royalties due to an affiliate		3,341			2,990
Long-term deferred tax liabilities		1,086			6,155
Long-term liabilities		537			630
Total liabilities		52,477			50,896
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding		—			—
Common stock, $0.0001 par value, 99,000,000 shares authorized, 27,404,513 shares issued and 26,738,364 shares outstanding in 2005 and 27,607,081 shares issued and 26,399,987 shares outstanding in 2006		3			3
Additional paid-in capital		36,699			38,650
Retained earnings		42,505			62,459
Accumulated other comprehensive loss		(1,098	)		(1,613	)
		78,109			99,499
Less treasury stock, at cost, 666,149 shares in 2005 and 1,207,094 in 2006		(7,791	)		(14,791	)
Total shareholders’ equity		70,318			84,708
Total liabilities and shareholders’ equity	$	122,795		$	135,604

MANNATECH, INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS –(UNAUDITED)

(in thousands, except per share information)

	Three months ended September 30,						Nine months ended September 30,
	2005			2006			2005			2006
Net sales	$	100,216		$	99,558		$	287,960		$	303,300
Cost of sales		14,478			13,497			43,186			42,777
Commissions and incentives		44,403			43,977			129,326			135,349
		58,881			57,474			172,512			178,126
Gross profit		41,335			42,084			115,448			125,174
Operating expenses:
Selling and administrative expenses		16,136			16,562			48,595			52,569
Other operating costs		12,415			14,051			36,587			39,724
Total operating expenses		28,551			30,613			85,182			92,293
Income from operations		12,784			11,471			30,266			32,881
Interest income		469			599			1,254			1,763
Other income (expense), net		(288	)		670			(1,188	)		805
Income before income taxes		12,965			12,740			30,332			35,449
Provision for income taxes		(4,232	)		(3,052	)		(11,120	)		(11,241	)
Net income	$	8,733		$	9,688		$	19,212		$	24,208
Earnings per share:
Basic	$	0.32		$	0.37		$	0.71		$	0.91
Diluted	$	0.32		$	0.36		$	0.69		$	0.89
Weighted-average common shares outstanding:
Basic		27,015			26,446			27,065			26,663
Diluted		27,738			27,044			27,899			27,280