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DNP International Co., Inc. Agrees To Immediately Exit The Beta-Alanine Business As Part Of A Settlement With Natural Alternatives International, Inc.

SAN MARCOS, Calif., Natural Alternatives International, Inc. ("NAI") (NASDAQ: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, announced today that it has settled its unfair competition and patent infringement claims against DNP International Co., Inc. in U.S. District Court for the District of Delaware. As a result of the settlement, DNP will immediately end its involvement in business related to beta-alanine, or any salt, ester, amide or derivative of beta-alanine. DNP and its officers, directors, agents, employees, shareholders, and affiliates, including DNP's President David Ji, have agreed not to import, export, supply, make, use, distribute, offer for sale or sell beta-alanine.

In the Delaware lawsuit, NAI alleged that DNP infringed U.S. Patent No. 8,067,381 ("the '381 patent"), entitled "Methods and compositions for increasing the anaerobic working capacity in tissues." The '381 patent, issued by the U.S. Patent and Trademark Office on November 29, 2011, is part of NAI's worldwide portfolio covering CarnoSyn® beta-alanine. NAI alleged that DNP supplied Chinese beta-alanine to nutritional supplement contract manufacturers, formulators and distributors in the United States. In a separate case brought in Delaware, NAI and its co-plaintiff, Compound Solutions, Inc. ("CSI"), alleged that DNP engaged in false advertising and unfair competition based on statements DNP made to the beta-alanine market in 2011. CSI is NAI's licensed distributor of CarnoSyn® beta-alanine in the United States. On July 29, 2014, the District Court signed an Order confirming dismissal of the cases.

Mark A. LeDoux, NAI's CEO and Chairman of the Board, said that "NAI is pleased that this dispute against DNP has been resolved. By its agreement to immediately exit from the beta-alanine business, DNP has self-enjoined from infringing the '381 patent and other valid NAI patents. In a document filed with the Court, DNP also agreed that the '381 patent has not been found invalid by any final decision of a court or the Patent and Trademark Office." LeDoux went on to say that "NAI will continue to protect and defend its valuable beta-alanine intellectual property portfolio."

NAI, headquartered in San Marcos, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI's comprehensive partnership approach offers a wide range of innovative nutritional products and services to NAI's clients including: scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see its website at For more information about CarnoSyn® beta-alanine, see

This press release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our expectations and beliefs with respect to our future financial and operating results, the outcome of pending litigation, the continued validity of our patents, and our ability to successfully develop, license and enforce our intellectual property rights. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI's financial performance and the forward-looking statements contained herein are further qualified by other risks including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

CONTACT – Kenneth Wolf, Chief Operating and Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or