NTOL Natrol (MM)

Natrol, Inc. (NASDAQ: NTOL), a leading manufacturer and distributor of nationally branded nutritional products, today announced the receipt of a Nasdaq letter on July 7, 2006, indicating that the company has regained compliance with Nasdaq's Marketplace Rule 4350(c)(1), which requires that the company have a majority of independent directors. As previously announced, on July 3, 2006, Natrol's board of directors appointed James R. Peters, an independent director, to the board as a Class II director. As a result, Natrol's board of directors is currently comprised of seven directors, four of whom are independent as defined under Nasdaq's listing requirements. The Nasdaq letter indicated that Nasdaq's staff now considers the matter closed. About Natrol Founded in 1980, Natrol, Inc. (NASDAQ: NTOL) is a diversified nutrition company that manufactures and markets premium-branded nutritional products, herbal teas and sports fitness products under the Natrol(R), Laci Le Beau(R) and Prolab(R) brands, respectively. Natrol markets more than 200 nutritional products designed to meet a wide range of consumer needs. The products are available at more than 54,000 food, drug, mass market and independent health food stores, catalogs and Internet sites, gyms and specialty stores nationally and in select foreign countries. For more information, visit www.natrol.com. The statements made in this press release which are not historical facts including statements regarding expectations for future growth of revenue and profits and trends concerning net sales, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As a result of a number of factors, the Company's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause Natrol's actual results to differ materially from those set forth in the forward-looking statements include adverse trends in the dietary supplements industry, intense competition, adverse effects of unfavorable publicity regarding particular products or the Company's industry generally, the Company's dependence on the introduction of successful new products, the Company's ability to gain market share and shelf space in each of its distribution channels, the Company experiencing high rates of product returns, and adverse government regulation, as well as those factors set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and in the Company's other filings with Securities and Exchange Commission.