Hansen Natural Reports Record First Quarter Sales And Profits

09/05/06 Hansen Natural Corporation today reported record financial results, including sharp increases in sales and profits, for the first quarter ended March 31, 2006.

Gross sales for the first quarter increased 88.9 percent to $137.8 million from $73.0 million a year earlier. Net sales for the first quarter increased 99.5 percent to $119.7 million from $60.0 million a year ago. Operating income for the first quarter more than doubled to $34.8 million from $14.7 million a year ago. Net income for the first quarter also more than doubled to $21.1 million, or $0.84 per diluted share, from $8.8 million or $0.37 per diluted share last year.

The Company implemented Financial Accounting Standard No. 123 (revised 2004), Share-Based payments (FAS123R), in the first quarter of 2006. As a result, first quarter results are reported after $1.9 million of stock option related compensation expense, compared to nil stock option related compensation expense for the first quarter of 2005. The after-tax effect of stock option related compensation expense on net income was $0.05 per diluted share for the first quarter of 2006.

Rodney C. Sacks, chairman and chief executive officer, said the exceptional performance reflected record gross sales of Monster Energy(R) drinks, which were introduced in April 2002, including our low carbohydrate ("lo-carb") Monster Energy(R) drinks, which were introduced in 2003, sales of Monster Energy(R) Khaos(TM) energy drinks, which were introduced in August 2005, Monster Energy(R) Assault(TM) energy drinks, which were introduced in September 2004, increased sales by volume of Lost(R) Energy(TM) drinks, which were introduced in January 2004, as well as increased sales by volume of Hansen's(R) apple juice and juice blends, sports drinks, Junior Juice(R) juice drinks and Rumba(TM) energy juice, which was introduced in December 2004.

The sales increase was partially offset primarily by decreased sales of Hansen's(R) energy drinks, Joker Mad Energy(TM) drinks and Smoothies in cans.

Gross profit as a percentage of net sales for the quarter increased to 52.6 percent, from 50.5 percent for the comparable 2005 quarter. Operating expenses as a percentage of net sales decreased to 23.5 percent, from 26.0 percent in the previous year.

Hansen Natural Corporation markets and distributes Hansen's(R) Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade(R) energy sports drinks, E20 Energy Water(R), Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice(R) juice, iced teas, lemonades and juice cocktails, apple juice and juice blends, Blue Sky(R) brand beverages, Monster Energy(R) brand energy drinks, Lost(R) Energy(TM) brand energy drinks, Joker Mad Energy(TM) and Rumba(TM) brand energy drinks and Fizzit(TM) brand Powdered drink mixes. Hansen's can be found on the Web at www.hansens.com.

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