Reliv' International (RELV) 8-K Results of Operations and Financial Condition

EXHIBIT 99

NEWS RELEASE

FOR FURTHER INFORMATION, CONTACT:

Steven D. Albright
Vice President of Finance
(636) 537-9715 Fred A. Nielson
Investor Relations
(636) 733-1314 Al Palombo
Cameron Associates
(212) 554-5488

Relìv International Earnings Grow 24 Percent in 2004
on Rising Sales in the U.S. and Other Key Markets

FOR IMMEDIATE RELEASE

CHESTERFIELD, MO, March 2, 2005 – Relìv International, Inc. (Nasdaq/NM - RELV), an international manufacturer and network marketer of nutritional supplements and other food technology products, today announced its full-year results of operations for 2004, as well as for the three months ended December 31, 2004.

For the year, Relìv achieved a 24 percent increase in net income available to common shareholders, which reached $5.37 million or $0.34 per share basic, $0.31 per share diluted, compared to $4.34 million or $0.29 per share basic, $0.26 per share diluted in 2003. The company also recorded significant growth in net sales during the year increasing 26 percent to $96.98 million as compared to $76.96 million in 2003.

For the three months ended December 31, 2004, Relìv reported a 2 percent gain in net income available to common shareholders to $1.28 million, or $0.08 per share basic, $0.08 per share diluted on net sales of $25.4 million, compared to $20.9 million in the fourth quarter of 2003. The company’s fourth quarter 2004 earnings were impacted by certain one-time costs associated with the documentation and testing of internal controls in connection with the Company’s adoption of Section 404 of the Sarbanes-Oxley Act (“Act”). Also, the cost of products sold in the fourth quarter were impacted by additional expenses incurred in the start up of the company’s manufacturing equipment upgrade installed during the third and fourth quarter of 2004.

To complete the internal control requirements of the Sarbanes-Oxley Act, Relìv spent approximately $400,000 more on accounting and related fees during the fourth quarter of 2004 than it did in the prior-year period. Certain of these fees will be one-time costs, related to the initial start-up and documentation of financial reporting controls.

Relìv’s 2004 results were paced by continued sales growth in the United States, the company’s largest geographic market. For the year, net sales in the United States rose 27 percent. Relìv also reported an 18 percent increase in net sales from its international markets during 2004, led by accelerating results from Canada, Australia and New Zealand, the Philippines and the United Kingdom.

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Commenting on the Company’s financial results, Robert L. Montgomery, President and Chief Executive Officer of Relìv, said, “Our 2004 results indicate the continued viability of our business model and marketing strategy. We continue to deliver sales growth in our key markets without major product introductions and the fourth quarter of 2004 marked the 11th consecutive quarter that we have reported sales growth of at least 20 percent in the United States. We believe our international markets are capable of producing similar results and we are determined to make it happen.”

Mr. Montgomery noted that the company continued to reach new milestones in distributor development, with total Master Affiliates up 26 percent worldwide at the end of 2004, compared to the number who had earned that designation at the end of 2003. He said the company also expects to benefit from a clinical trial program initiated in 2004, designed to establish clinical evidence of the safety and efficacy of Relìv’s products. In February, 2005, Relìv announced the results of an independent clinical trial on a newly developed dietary supplement – Relìv CardioSentials(TM) – conducted under the direction of Joe Vinson, Ph.D., a Professor of Chemistry at the University of Scranton. Dr. Vinson’s summary report stated that the overall effect of the supplement for participants was a significant reduction in their 10-year risk of developing cardiovascular disease. Relìv launched the new product in February, 2005.

About Reliv International:

Relìv International, Inc., based in suburban St. Louis, Missouri, manufactures and distributes several lines of food products, including nutritional and fiber supplements, diet management products, functional foods, sports drink mixes and a line of premium skin care products. Its proprietary product lines include an extensive line of soy-based products. Relìv International’s common stock trades on The Nasdaq Stock Market® under the symbol RELV.

Conference Call Information:

The Company will host a conference call to discuss the fourth quarter and year ended December, 31 2004 earnings with investors at 1:00 p.m. Eastern Standard Time on March 2, 2005.

The dial-in number for investors is 800-510-0219. Participant pass code is 70979668. To register, please call in 15 minutes prior to start of call.

A replay of this call will be available for one week by telephone from 3:00 p.m. Eastern by calling 888-286-8010 and using pass code 70367732.

A live web cast of this call will be available through the Investor Relations section of the Company’s Web site,http://www.reliv.com/us/investor. An online archive of the broadcast will be available on the Company’s Web site in the Investor Relations section twenty-four hours after the call concludes. Please access the web site at least 15 minutes before the scheduled conference call to register.

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NOTE: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected or anticipated by the forward-looking statements, which involve a number of risks and uncertainties, including reliance on the Company’s network of independent distributors, government regulation of products, manufacturing and marketing, and the risks associated with international expansion. Forward looking statements in this release include the Company’s statement that “We believe our international markets are capable of producing similar results....” This statement and the other contents of this release should be considered in conjunction with the warnings and cautionary statements contained in Reliv’s most recent filings with the Securities and Exchange Commission on Forms 10-K and 10-Q.

-- FINANCIAL HIGHLIGHTS FOLLOW -

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Reliv International, Inc. and Subsidiaries

Consolidated Balance Sheets

	December 31 2004 (Unaudited)		December 31 2003 (Audited)
Assets
Current assets:
Cash and cash equivalents		10,151,503		7,902,508
Accounts and notes receivable, less allowances of
$11,500 in 2004 and $8,600 in 2003		872,592		751,887
Accounts due from employees and distributors		70,620		72,846
Inventories		5,896,782		4,670,319
Total current assets		13,721,833		9,751,344
Other assets		1,196,780		793,091
Accounts due from employees and distributors		213,123		52,291
Net Property, plant and equipment		9,968,149		9,413,871
Total assets	$	30,996,667	$	24,680,916
Liabilities and stockholders’ equity
Total current liabilities		8,151,968		7,165,368
Long-term debt, less current maturities		3,357,691		3,700,138
Deferred income taxes		289,000		77,000
Other non-current liabilities		1,007,255		666,032
Total non-current liabilities		4,653,946		4,443,170
Total stockholders’ equity		18,190,753		13,072,378
Total liabilities and stockholders’ equity	$	30,996,667	$	24,680,916

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Reliv International, Inc. and Subsidiaries

Consolidated Statements of Operations

	Three months ended December 31						Year ended December 31
	2004 (Unaudited)			2003 (Unaudited)			2004 (Unaudited)			2003 (Audited)
Sales at suggested retail	$	36,648,366		$	31,145,554		$	139,442,752		$	110,569,576
Less distributor allowances on
product purchases		11,207,028			10,237,654			42,460,319			33,609,853
Net sales		25,441,338			20,907,900			96,982,433			76,959,723
Costs and expenses:
Cost of products sold		4,668,384			3,611,510			16,662,935			13,228,050
Distributor royalties and commissions		10,205,080			8,147,942			38,622,537			29,916,744
Selling, general and administrative		8,441,657			7,070,221			32,710,657			26,438,447
Total Costs and Expenses		23,315,121			18,829,673			87,996,129			69,583,241
Income from operations		2,126,217			2,078,227			8,986,304			7,376,482
Other income (expense):
Interest income		41,265			28,381			118,467			91,038
Interest expense		(65,595	)		(46,526	)		(243,118	)		(234,956	)
Other income/expense		80,156			(10,897	)		146,036			66,876
Income before income taxes		2,182,043			2,049,185			9,007,689			7,299,440
Provision for income taxes		902,000			773,000			3,621,000			2,902,000
Net income	$	1,280,043		$	1,276,185		$	5,386,689		$	4,397,440
Preferred dividends accrued and paid		—			14,746			12,292			56,762
Net income available to common
shareholders		1,280,043			1,261,439			5,374,397			4,340,678
Basic earnings per share	$	0.08		$	0.08		$	0.34		$	0.29
Diluted earnings per share	$	0.08		$	0.08		$	0.31		$	0.26
Weighted average shares of common
stock and common stock equivalents
outstanding
Basic		16,239,000			15,004,000			15,662,000			14,969,000
Diluted		17,058,000			16,736,000			17,137,000			16,706,000

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Reliv International, Inc. and Subsidiaries

Active Distributors and Master Affiliates by Region

	as of 12/31/2004				as of 12/31/2003				Change in %
	Distributors		Master Affiliates		Distributors		Master Affiliates		Distributors			Master Affiliates
United States		47,190		12,460		41,000		9,150		15.1	%		36.2	%
Australia/New Zealand		3,040		290		2,570		230		18.3	%		26.1	%
Canada		1,480		210		1,140		180		29.8	%		16.7	%
Mexico		9,000		710		7,700		1,370		16.9	%		-48.2	%
United Kingdom/Ireland		450		60		410		70		9.8	%		-14.3	%
Philippines		6,760		650		7,380		810		-8.4	%		-19.8	%
Malaysia/Singapore		5,280		730		1,350		200		N/A			N/A
Consolidated total		73,200		15,110		61,550		12,010		18.9	%		25.8	%

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