Mannatech Reports Third Quarter Results

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Company reports improvement in year-over-year quarterly operating results

(COPPELL, Texas) November 3, 2010 –Mannatech, Incorporated(NASDAQ: MTEX - News), a global pioneer in the development of high-qualityhealth,weight and fitnessandskin care solutionsbased onnutritional science, today reported a net loss of $1.3 million or $0.05 cents per diluted share for the third quarter ending September 30, 2010, compared to a net loss of $9.2 million or $0.35 cents per diluted share for the third quarter of 2009. The company reported an operating loss of $3.7 million for the third quarter 2010 compared to an operating loss of $8.6 million in the third quarter of 2009.

Third quarter net sales for 2010 were $54.9 million, a decrease of 23.0%, compared to $71.3 million in the third quarter of 2009. International sales were essentially flat with the second quarter of 2010, while North American sales declined 8% compared to the second quarter of 2010.

For the nine months ended September 30, 2010, net sales were $173.1 million, down 21.2% from $219.6 million for the same period in 2009. The company reported a net loss for the nine month period of $7.9 million, compared to last year’s nine month net loss of $19.5 million. The loss per share was $0.30, compared to a loss per share of $0.74 for the nine months ended September 2009.

“Our third quarter new Associate and Member recruiting levels were almost equal to second quarter levels. Historically, second quarter recruitment levels are bolstered by our annual sales incentive, so this year’s third quarter recruiting results are encouraging metrics showing that our Associates are excited again about what Mannatech offers,” said Dr. Robert Sinnott, co-CEO and chief science officer. “The recruiting performance also contributed to third quarter sales levels down slightly to that of second quarter 2010 sales levels.” Dr. Sinnott continued, “At our major convention in early September, we commenced our official partnership with the International Sport Karate Association (ISKA), launched our unique Mannatech LIFT skin care line, and delivered exceptional selling tools. Our Associates are embracing these new products, partnerships and tools with great enthusiasm and excitement.”

“We continue to manage our cost of sales, commission costs and operating expenses at efficient levels,” said Stephen Fenstermacher, Co-CEO and chief financial officer. “Our balance sheet reflects higher cash and cash equivalents as well as lower outstanding payables compared to the second  uarter of 2010, with essentially no long-term debt. Also, Associate excitement continues to build in anticipation of our launch of operations in Mexico on track for the first quarter of 2011.”

New independent Associates and Members totaled 22,296 in the third quarter compared to 22,775 in the second quarter of 2010, and 36,689 in the third quarter of 2009. Total independent Associate and Member count based on a 12-month trailing period was approximately 422,000 as of September 30, 2010, as compared to 534,000 as of September 30, 2009.

Conference Call

Mannatech will hold a conference call and webcast to discuss this announcement with investors on Thursday, November 4, 2010 at 9:00 a.m. Central Daylight Time, 10:00 a.m. Eastern Daylight Time. Investors may listen to the call by accessing Mannatech’s website athttp://phx.corporate-ir.net/phoenix.zhtml?p=iroleventDetails&c=62253&eventID=3419590.

Individuals interested in Mannatech’s products or in exploring its business opportunity can learn more atwww.mannatech.com.

About Mannatech

Mannatech, Incorporated, develops high-quality health, weight and fitness, and skin care solutions that are based on the solid foundation of nutritional science and development standards. These proprietary products are available through independent sales Associates around the globe including the United States, Canada, South Africa, Australia, New Zealand, Austria, Denmark, Germany, Norway, Sweden, the Netherlands, the United Kingdom, Japan, Taiwan, Singapore and the Republic of Korea.

Please Note: This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend”, “indicate”, “believe”, “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Mannatech’s objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Mannatech believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Mannatech’s ability to attract and retain Associates and Members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that the expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

Contact Information:

Gary Spinell
Senior Vice President Finance & Administration
972-471-6512
ir@mannatech.com

www.mannatech.com

Posted on Thursday, November 4th, 2010

News Source : Mannatech Reports Third Quarter Results