SOURCE: Baywood International, Inc.

September 29, 2009 08:00 ET

New Leaf Initiates Distribution in Arkansas

Distribution Agreement With New Age Distributing in Little Rock Covers 22 Counties

SCOTTSDALE, AZ--(Marketwire - September 29, 2009) - New Leaf Brands, a wholly owned subsidiary of Baywood International, Inc. (OTCBB: BAYW) ("Company"), today announced that a new distributor, New Age Distributing in Little Rock, AR, has begun distributing New Leaf Tea through its network of retailers including Doublebee's Exxon, Knight's Super Foods, LRAFB Shoppettes, USA Drug, as well as numerous other independent accounts. In total this distribution agreement covers 22 counties.

"We brought in New Leaf because of its superior packaging and taste. During the kick-off we have been impressed with how professional, informative and knowledgeable the New Leaf team has been. They provided product specialist support rarely seen from the larger beverage companies, helping our team drive to launch the product," stated Rick Davis, Sales Manager at New Age Distributing. "We were pleasantly surprised and encouraged when we sold out the first truckload of product within the first week. We look forward to continuing our early success and building a long-lasting relationship with New Leaf."

"We are building on the momentum of gaining widespread distribution of New Leaf in the Midwest and are excited to be working with New Age Distributing in the Southern United States through Central Arkansas. Given their strong track record with major brands such as 7-Up, we are confident that we have chosen the right partner to build our brand through a wide network of retailers and independents," stated Tim Brown, Vice-President of Sales Midwest for New Leaf.

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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