SOURCE: Baywood International, Inc.

September 15, 2009 08:00 ET

New Leaf Expands Midwest Distribution by Adding Chain Store Presence in Iowa and Nebraska

Distributors in Des Moines and Omaha Add Four Additional Chain Stores and Numerous Independent Accounts

SCOTTSDALE, AZ--(Marketwire - September 15, 2009) - New Leaf Brands, a wholly-owned subsidiary of Baywood International, Inc. (OTCBB: BAYW) ("Company"), today announced that its new distributors, RBI Distributing in Des Moines, IA and Gateway Distributing in Omaha, NE, have expanded distribution of New Leaf with the addition of four chain stores including Hy-Vee, Dahl's Foods, No Frills Supermarkets and Bag 'N Save, as well as numerous other independent accounts.

"We believe New Leaf has brand appeal with captivating packaging, great taste profile and distinct points of difference. New Leaf's naturally sweetened tea and use of a variety of different teas and flavors is what sets it apart from the competition. When the customer tries it, they buy it," stated Scott Hodges, General Sales Manager at RBI Distributing. "We are happy with New Leaf and the potential the brand has as volume continues to grow and gains more widespread recognition."

"I am very excited about working with RBI Distributing in Iowa and their sister company, Gateway Distributing in the Omaha - Lincoln market," stated Paddy Sheya, Regional Manager for New Leaf. "They are a well-respected distributor in the Midwest and an excellent partner to help us make New Leaf Tea a success in their markets."

About New Leaf:

Founded by Eric Skae in 2004 in Orangeburg, New York, New Leaf Brands was created with the vision of providing healthy beverages for consumers that are great-tasting and made only with high quality ingredients. New Leaf Tea was the company's first product that was born out of that vision and now is available to consumers in 14 unique flavors and in over 8,000 outlets including restaurants, delis, pizzerias and other retail establishments. For more information, please visit www.newleafbrands.com.

About Baywood:

Baywood International, Inc. (OTCBB: BAYW) ("Baywood") develops, markets and sells nutraceutical and nutritionally enhanced products and new age beverages under its own brands. Baywood merges its expertise in nutritional formulation with its leverage in sales and distribution to deliver the most effective and progressive products to market. Currently, Baywood's products are sold under the LifeTime® nutraceutical brand and the New Leaf® Tea brand.

This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Company's expectations, among other things, are dependent upon general economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, its ability to operate its subsidiary companies effectively, need for and availability of additional capital as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's Form 10-Ks and 10-Qs on file with the United States Securities and Exchange Commission.

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