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<SEC-DOCUMENT>0000950134-07-016737.txt : 20071102
<SEC-HEADER>0000950134-07-016737.hdr.sgml : 20071102

<ACCEPTANCE-DATETIME>20070803143350

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950134-07-016737

CONFORMED SUBMISSION TYPE:	S-3/A

PUBLIC DOCUMENT COUNT:		5

FILED AS OF DATE:		20070803

DATE AS OF CHANGE:		20070827


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			NATURAL HEALTH TRENDS CORP

		CENTRAL INDEX KEY:			0000912061

		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-MISCELLANEOUS NONDURABLE GOODS [5190]

		IRS NUMBER:				592705336

		STATE OF INCORPORATION:			DE

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		S-3/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-144219

		FILM NUMBER:		071023639



	BUSINESS ADDRESS:	

		STREET 1:		2050 DIPLOMAT DRIVE

		STREET 2:		--

		CITY:			DALLAS

		STATE:			TX

		ZIP:			75234

		BUSINESS PHONE:		972-241-4080



	MAIL ADDRESS:	

		STREET 1:		2050 DIPLOMAT DRIVE

		STREET 2:		--

		CITY:			DALLAS

		STATE:			TX

		ZIP:			75234



</SEC-HEADER>

<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>d48521a1sv3za.htm
<DESCRIPTION>AMENDMENT TO FORM S-3
<TEXT>
<HTML>
<HEAD>
<TITLE>sv3za</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As
filed with the Securities and Exchange Commission on August&nbsp;3, 2007</B>
</DIV>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Registration
No.&nbsp;333-144219</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt; margin-top: 12pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, DC 20549</B>
</DIV>


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 20%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV><DIV align="center" style="font-size: 12pt; margin-top: 6pt"><B>Pre-Effective
Amendment No.&nbsp;1 to</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 6pt"><B>FORM S-3</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B></FONT></DIV>


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 20%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>NATURAL HEALTH TRENDS CORP.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 20%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>59-2705336</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification Number)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>2050 Diplomat Drive<BR>
Dallas, Texas 75234<BR>
(972)&nbsp;241-4080</B><BR>
(Address, including zip code, and telephone number, including area code, of registrant&#146;s principal executive offices)
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 20%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Gary C. Wallace<BR>
General Counsel<BR>
Natural Health Trends Corp.<BR>
2050 Diplomat Drive<BR>
Dallas, Texas 75234<BR>
(972)&nbsp;241-4080</B><BR>
(Name, address, including zip code, and telephone number, including area code, of agent for service)
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 20%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>Copy to</I>:
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>John B. McKnight<BR>
Locke Liddell &#038; Sapp PLLC<BR>
2200 Ross Avenue, Suite&nbsp;2200<BR>
Dallas, Texas 75201<BR>
(214)&nbsp;740-8000</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 20%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Approximate date of commencement of proposed sale to the public: From time to time after the
effectiveness of the registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the only securities being registered on this form are being offered pursuant to dividend or
interest reinvestment plans, please check the following box.&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any of the securities being registered on this Form are to be offered on a delayed or continuous
basis pursuant to Rule&nbsp;415 under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;),
other than securities offered only in connection with dividend or interest reinvestment plans,
check the following box.&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is filed to register additional securities for an offering pursuant to Rule 462(b)
under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a registration statement pursuant to General Instruction I.D. or a post effective
amendment thereto that shall become effective upon filing with the Commission pursuant to Rule
462(e) under the Securities Act, check the following box.&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a post-effective amendment filed pursuant to General Instruction I.D. filed to
register additional securities or additional classes of securities pursuant to Rule 413(b) under
the Securities Act, check the following box.&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>



<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>The Registrant hereby amends this Registration Statement on such date or dates as may be
necessary to delay its effective date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in
accordance with </B><B>Section 8(a)</B><B> of the Securities Act or until this Registration Statement shall
become effective on such date as the Commission, acting pursuant to said Section&nbsp;</B><B>8(a)</B><B>, may
determine.</B>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">









<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PROSPECTUS (Subject to Completion)<BR>
Dated &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 2007

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The information in this prospectus is not complete and may be changed. The selling stockholders may
not sell these securities until the registration statement filed with the Securities and Exchange
Commission is effective. This prospectus is not an offer to sell these securities and it is not
soliciting any offer to buy these securities in any jurisdiction where the offer or sale is not
permitted.</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NATURAL HEALTH TRENDS CORP.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">1,759,307 shares of common stock issuable upon conversion of Series&nbsp;A preferred stock<BR>
2,059,307 shares of common stock issuable upon exercise of warrants
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus relates to the disposition by the selling stockholders listed on pages 21-23
or their transferees, of up to 1,759,307 shares of our common stock issuable upon conversion of
Series&nbsp;A preferred stock and up to 2,059,307 shares of our common stock issuable upon the exercise
of warrants held by the selling stockholders. We will receive no proceeds from the disposition of
shares of our common stock by the selling stockholders. We will receive proceeds of $3.80 to $5.00
per share from the exercise of any of the warrants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a description of the plan of distribution of the shares, please see page 23 of this
prospectus.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is quoted on The NASDAQ Global Market under the symbol &#147;BHIP.&#148; The closing
price of our common stock on August&nbsp;2, 2007 was
$4.29&nbsp;per share.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK. PLEASE READ THE &#147;RISK FACTORS&#148;
BEGINNING ON PAGE 4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal offense.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The date of the prospectus is &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 2007.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">PROSPECTUS SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">THE OFFERING</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">RISK FACTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">PRINCIPAL STOCKHOLDERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">SHARES ELIGIBLE FOR FUTURE SALE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">SELLING STOCKHOLDERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">EXPERTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">WHERE YOU CAN FIND MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">INCORPORATION OF DOCUMENTS BY REFERENCE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d48521a1exv5w1.htm">Legal Opinion of Locke Liddell & Sapp PLLC</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d48521a1exv23w1.htm">Consent of Lane Gorman Trubitt, L.L.P.</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d48521a1exv23w2.htm">Consent of BDO Seidman, LLP.</A></FONT></TD></TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You should rely only on the information contained in or incorporated by reference into this
document or to which we have referred you. We have not, and the selling stockholders have not,
authorized anyone to provide you with information that is different. This document may only be
used where it is legal to sell these securities. The information in this document may only be
accurate on the date of this document.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain statements contained in this prospectus constitute &#147;forward-looking statements&#148; within
the meaning of Section&nbsp;27A of the Securities Act of 1933, as amended, and Section&nbsp;21E of the
Securities Exchange Act of 1934, as amended. All statements included in this prospectus, other than
statements of historical facts, regarding our strategy, future operations, financial position,
estimated revenues, projected costs, prospects, plans and objectives are forward-looking
statements. When used in this prospectus, the words &#147;believe,&#148; &#147;anticipate,&#148; &#147;intend,&#148; &#147;estimate,&#148;
&#147;expect,&#148; &#147;project,&#148; &#147;could,&#148; &#147;would,&#148; &#147;may,&#148; &#147;plan,&#148; &#147;predict,&#148; &#147;pursue,&#148; &#147;continue,&#148; &#147;feel&#148; and
similar expressions are intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot guarantee future results, levels of activity, performance or achievements, and you
should not place reliance on our forward-looking statements. Our actual results could differ
materially from those anticipated in these forward-looking statements as a result of various
factors, including the risks described in &#147;Risk Factors,&#148; and elsewhere in this prospectus. Our
forward-looking statements do not reflect the potential impact of any future acquisitions, mergers,
dispositions, joint ventures or strategic investments. In addition, any forward-looking statements
represent our expectation only as of the date of this prospectus and should not be relied on as
representing our expectations as of any subsequent date. While we may elect to update
forward-looking statements at some point in the future, we specifically disclaim any obligation to
do so, even if our expectations change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe that the expectations reflected in any of our forward-looking statements
are reasonable, actual results could differ materially from those projected or assumed in any of
our forward-looking statements. Our future financial condition and results of operations, as well
as any forward-looking statements, are subject to change and to inherent risks and uncertainties,
such as those disclosed in this prospectus under &#147;Risk Factors.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional factors that could cause actual results to differ materially from our
forward-looking statements are set forth in our Annual Report on Form 10-K, incorporated by
reference into this prospectus, including under the heading &#147;Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations&#148; and in our financial statements and the related
notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward-looking statements in this prospectus speak only as of the date hereof. The Company
does not undertake any obligation to update or release any revisions to any forward-looking
statement or to prospectus any events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, except as required by law. Unless otherwise noted, the terms
&#147;we,&#148; &#147;our,&#148; &#147;us,&#148; &#147;Company,&#148; refer to Natural Health Trends Corp. and its subsidiaries.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This <I>summary highlights information contained elsewhere in this prospectus. This summary does
not contain all of the information you should consider before investing in our common stock. You
should read the entire prospectus carefully, including the section describing the risks of
investing in our common stock under the caption &#147;Risk Factors,&#148; and the documents incorporated by
reference in the section entitled &#147;Incorporation of Certain Documents by Reference&#148; before making
an investment decision. Some of the statements in this summary constitute forward-looking
statements. For more information, please see &#147;Cautionary Note Regarding Forward-Looking
Statements.&#148;</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are an international direct-selling and e-commerce organization headquartered in Dallas,
Texas. Subsidiaries controlled by us sell personal care, wellness, and &#147;quality of life&#148; products
under the &#147;NHT Global&#148; brand to an independent distributor network that either uses the products
themselves or resells them to consumers. Prior to June&nbsp;1, 2006, we marketed our &#147;NHT Global&#148;
branded products under the name &#147;Lexxus International.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our majority-owned subsidiaries have an active physical presence in the following markets:
North America, which consists of the United States and Canada; Greater China, which consists of
Hong Kong, Macau, Taiwan and China; Southeast Asia, which consists of Singapore, the Philippines
and Indonesia; Australia and New Zealand; South Korea; Japan; Latin America, which primarily
consists of Mexico; and Slovenia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We seek to be a leader in the direct selling industry serving the health and wellness
marketplace by selling our products into multiple venues and markets through our direct selling
marketing operations. Our objectives are to enrich the lives of the users of our products and
enable our distributors to benefit financially from the sale of our products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were originally incorporated as a Florida corporation in 1988. We merged into one of our
subsidiaries and re-incorporated in the State of Delaware effective June&nbsp;29, 2005. We maintain
executive offices at 2050 Diplomat Drive, Dallas, Texas 75234 and our telephone number is (972)
241-4080. Our website is located at <U>www.naturalhealthtrendscorp.com</U>. The information
provided on our website should not be considered part of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Private Placement Financing</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;4, 2007, we consummated a private placement financing generating gross proceeds of
approximately $3.0&nbsp;million. The financing consisted of the sale of 1,759,307 shares of our Series
A preferred stock at a purchase price of $1.70 per share, and warrants representing the right to
purchase 1,759,307 shares of our common stock at a purchase price of $0.00001 per underlying share.
The selling stockholders identified in this prospectus are the original investors and the
placement agent in the private placement financing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series&nbsp;A preferred stock sold in the private placement financing is convertible at a fixed
rate into an equivalent number of shares of common stock, subject to adjustment only in the event
of stock splits, stock dividends, recapitalizations and similar events that would affect all of our
stockholders. The Series&nbsp;A preferred stock accrues cash dividends at the rate of 7% per annum,
payable upon declaration by our board of directors. The holders of Series&nbsp;A preferred stock are
generally entitled to vote together with the holders of common stock, provided that the holders of
Series&nbsp;A preferred stock are entitled to separately select one candidate to be considered for
nomination to our board of directors. The Series&nbsp;A preferred stock has a liquidation preference
equal to the original purchase price of the Series&nbsp;A preferred stock plus any accrued but unpaid
dividends. The warrants are exercisable at any time during the period beginning November&nbsp;4, 2007
(six months after their issuance) and ending May&nbsp;4, 2013 (six years after their issuance). The
exercise price for the warrants varies from $3.80 to $5.00 per share, depending on the time of
exercise. The number of shares of common stock for which the warrants are exercisable, and the
related exercise price per share, are subject to adjustment only in the event of stock splits,
stock dividends, recapitalizations and similar events that would affect all of our stockholders.
In connection with the financing, we agreed, subject to certain terms and conditions, to exercise
our reasonable best efforts to register for resale under the Securities Act of 1933 the shares of
common stock issuable upon conversion of the Series&nbsp;A preferred stock and exercise of the warrants,
and the registration statement of which this prospectus forms a part reflects our efforts to
fulfill this obligation.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each investor in the private placement financing represented to us that it purchased the
shares of Series&nbsp;A preferred stock and warrants for its own account for investment only and not
with a view to, or for sale in connection with, a distribution. Mr.&nbsp;Ken Wang, a principal of the
largest investor in the financing (Chief China Resources Ltd. (Samoa)), will in accordance with the
terms of the financing agreements and subject to evaluation by the nominating committee of our
board of directors, be the preferred stockholders&#146; initial candidate to be considered for
nomination to our board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the private placement financing, we incurred expenses which included
commissions to the placement agent, legal
fees and other miscellaneous expenses of approximately $308,000. We also issued to the placement
agent as partial consideration for its placement services, a warrant covering 300,000 shares of our
common stock on the same terms as those set forth in the warrants issued in the financing.
</DIV>
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE OFFERING</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Shares of common stock being registered for issuance upon the
conversion of Series&nbsp;A preferred stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,759,307</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Shares of common stock being registered for issuance upon the
exercise of warrants
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2,059,307</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Total
shares of common stock outstanding as of August&nbsp;3, 2007
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9,117,053</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Total proceeds raised by us from the
disposition of the common stock by
the selling stockholders or their
transferees
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We will receive no proceeds from the
disposition of shares of our common
stock upon conversion of the Series
A preferred stock by the selling
stockholders or their transferees.<BR><BR>
We could receive gross proceeds of
up to $7,825,400 (based on an
exercise price of $3.80 per share),
and up to $10,296,500 (based on an
exercise price of $5.00 per share),
from the exercise of the 2,059,307
warrants covered by the registration
statement of which this prospectus
forms a part.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">NASDAQ Global Market symbol
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">BHIP</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Risk factors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;Risk Factors&#148; beginning on page 4 of this prospectus for
a discussion of factors you should carefully consider before
deciding to invest in our common shares.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>An investment in our common stock involves a high degree of risk. You should carefully
consider the following risk factors in addition to the other information contained in this
prospectus, or incorporated by reference herein, before deciding whether to invest in our shares of
common stock. If any of the following risks actually occurs, our business, financial condition and
results of operations would suffer. In such case, you may lose all or part of your original
investment.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Risk Factors Related To Our Business and Industry</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We May Continue To Experience Substantial Negative Cash Flows, Which May Have A Significant Adverse
Effect On Our Business And Could Threaten Our Solvency.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have experienced substantial negative cash flows during the years ended December&nbsp;31, 2005
and 2006, primarily due to increase in investment in 2005 as well as declines in our revenues
without as much proportional decreases in expenditures in 2006. If this trend continued, the
decreasing cash balance could impair our ability to support our operations and, eventually,
threaten our solvency, which would have a material adverse effect on our business, results of
operations and financial condition as well as our stock price. Negative cash flows and the related
adverse market perception associated therewith may have negatively affected, and may in the future
negatively affect, our ability to attract new distributors and/or sell our products. There can be
no assurance that we will be successful in maintaining an adequate level of cash resources and we
could be forced to act more aggressively in the area of expense reduction in order to conserve cash
resources as we look for alternative solutions.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>If We Continue To Experience Negative Cash Flows, We May Need To Seek Debt Or Equity Financing,
Which May Not Be Available On Acceptable Terms Or At All. If Available, It Could Have A Dilutive
Effect On The Holdings Of Existing Stockholders.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless we are able to stabilize or grow revenues, control expenses and achieve positive cash
flows, our ability to support our obligations could be impaired and our liquidity could be
adversely affected and our solvency and our ability to repay our debts when they come due could be
threatened. We may need to seek additional debt or equity financing on acceptable terms in order to
improve our liquidity. However, we may not be able to obtain additional debt or equity financing on
satisfactory terms, or at all, and any new financing could have a dilutive effect to our existing
stockholders.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Face Risks Related To An SEC Investigation And Securities Litigation That Could Have A Material
Adverse Effect On Our Relationships With Our Distributors, Business, Financial Condition And
Results Of Operations. We May Face Additional Litigation In The Future That Could Also Harm Our
Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;2006, the SEC issued a formal order of investigation to determine whether there
have been violations of the federal securities laws by us and/or others involved with us. Although
we have fully cooperated with the SEC in this matter and intend to continue to fully cooperate, we
cannot predict when this investigation will be completed or its outcome. We could face sanctions in
connection with any resolution of the SEC investigation, including but not limited to, significant
monetary penalties and injunctive relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we and certain of our directors and former officers have been named as defendants
in a securities class action lawsuit. Due to the volatility of the stock market and particularly
the stock prices of network marketing companies, it is possible that we will face additional class
action lawsuits in the future. The findings and outcome of the SEC investigation may affect the
class action and other lawsuits that are pending and any future litigation that we may face.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any settlement of the class action and other litigation or any resolution of the SEC
investigation may involve significant cash payments that could create or increase negative cash
flows. If we are unable to achieve a settlement of the class action and other litigation, we could
be liable for large damage awards. There can be no assurance that damage awards, if any, and the
costs of litigation will be covered by insurance. If not, this could have a material adverse effect
on our business, results of operations and financial condition.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defending against existing and potential litigation and other governmental proceedings may
continue to require significant attention and resources of our management. There can be no
assurance that the significant time and effort spent will not adversely affect our business,
financial condition and results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Could Be Adversely Affected By Additional Audit Committee Investigations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, the Audit Committee of our Board of Directors may investigate, or employ an
independent investigator to investigate, reported or suspected violations of laws, ethics, or
policies by our officers, directors, employees or consultants. Any discovery of wrongdoing
resulting from any such investigation, or any disclosure of any such investigation or its results,
could have material adverse consequences for us.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Continued Adverse News About Us Could Have A Material Adverse Effect On Our Ability To Attract And
Maintain Distributors.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our recent operating performance, changes in management, decline in stock price, SEC
investigation of us and lawsuits filed against us may have negatively affected, and may continue to
negatively affect, our ability to attract and retain distributors, without whom we would be unable
to sell our products and generate revenues.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Could Be Adversely Affected By Additional Management Changes Or An Inability To Attract And
Retain Key Management And Consultants.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our future success depends to a significant degree on the skills, experience and efforts of
our top management and key consultants, particularly our management personnel responsible for our
Hong Kong and MarketVision subsidiaries. In November&nbsp;2005, we terminated two top employees, Mark
Woodburn, former President and director of the Company, and Terry LaCore, former Chief Executive
Officer of NHT Global and former director of the Company, due to misconduct. Although we have
recently settled our disputes with these individuals, the recent changes in senior management may
have had, and may in the future have, a material adverse effect on our business, results of
operations and financial condition. We also depend on the ability of our executive officers and
other members of senior management to work effectively as a team. The loss of one or more of our
executive officers, members of our senior management, or key consultants could have a material
adverse effect on our business, results of operations and financial condition. Moreover, as our
business grows and evolves, we may require additional management members or consultants, and there
can be no assurance that we will be able to locate, attract and retain them.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>As A Network Marketing Company, We Rely On An Independent Sales Force And We Do Not Have Direct
Control Over The Marketing Of Our Products.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on non-employee, independent distributors to market and sell our products. We have a
large number of distributors and a relatively small corporate staff to implement our marketing
programs and to provide motivational support and training to our distributors. Distributors may
voluntarily terminate their agreements with us at any time, and there is typically significant
turnover in our distributor ranks.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Since We Cannot Exert The Same Level Of Influence Or Control Over Our Independent Distributors As
We Could Were They Our Own Employees, Our Distributors Could Fail To Comply With Our Distributor
Policies And Procedures, Which Could Result in Claims Against Us That Could Harm Our Financial
Condition And Operating Results.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our distributors are independent contractors and, accordingly, we are not in a position to
directly provide the same direction, motivation and oversight as we would if distributors were our
own employees. As a result, there can be no assurance that our distributors will participate in our
marketing strategies or plans, accept our introduction of new products, or comply with our
distributor policies and procedures. Extensive federal, state and local laws regulate our
business, our products and our network marketing program. Because we have expanded into foreign
countries, our policies and procedures for our independent distributors differ due to the different
legal requirements of each country in which we do business. While we have implemented distributor
policies and procedures designed to govern distributor conduct and to protect the goodwill
associated with our trademarks and trade names, it can be difficult to enforce these policies and
procedures because of the large number of distributors and their independent status. Given the
size and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">diversity of our distributor force, we experience problems with distributors from time to
time, especially with respect to our distributors in foreign markets. Distributors often desire to
enter a market, before we have received approval to do business, to gain an advantage in the
marketplace. Improper distributor activity in new geographic markets could result in adverse
publicity and can be particularly harmful to our ability to ultimately enter these markets.
Violations by our distributors of applicable law or of our policies and procedures in dealing with
customers could reflect negatively on our products and operations, and harm our business
reputation. In addition, it is possible that a court could hold us civilly or criminally
accountable based on vicarious liability because of the actions of our independent distributors. If
any of these events occur, the value of an investment in our common shares could be impaired.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We May Be Unable To Protect Or Use Our Intellectual Property Rights.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on trade secret, copyright and trademark laws and confidentiality agreements with
employees and third parties, all of which offer only limited protection. Moreover, the laws of
some countries in which we market our products may afford little or no effective protection of our
intellectual property rights. The unauthorized copying or other misappropriation of our
intellectual property could enable third parties to benefit from such property without paying us
for it. For example, limited protection of intellectual property is available under Chinese law,
and the local manufacturing of our products may subject us to an increased risk that unauthorized
parties may attempt to copy or otherwise obtain or use our product formulations. This could have a
material adverse effect on our business, operating results and financial condition. If we resort
to legal proceedings to enforce our intellectual property rights, the proceedings could be
burdensome and expensive and could involve a high degree of risk. It is also possible that our
use of our intellectual property rights could be found to infringe on prior rights of others and,
in that event, we could be compelled to stop or modify the infringing use, which could be
burdensome and expensive.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Claims May Arise Against Us From Unknown Oral Agreements And Misconduct of Former Officers and
Directors.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have investigated oral agreements entered into and misconduct by Mark Woodburn, former
President and director of the Company, and Terry LaCore, former Chief Executive Officer of NHT
Global and former director of the Company. There can be no assurance that all such oral agreements
and misconduct have been discovered. Additional discoveries could lead to claims and proceedings
against us, our subsidiaries and their officers and directors. If it is determined that any
conduct by Messrs.&nbsp;Woodburn and LaCore violated any law, there can be no assurance that we or one
or more of our subsidiaries would not be subjected to prosecution or adverse proceedings. Any such
claims, prosecutions or other proceedings and the cost of their defense could have a material
adverse impact on our reputation, business and financial condition.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Adverse Publicity Associated With Our Products, Ingredients Or Network Marketing Program, Or Those
Of Similar Companies, Could Harm Our Financial Condition And Operating Results.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adverse publicity concerning any actual or claimed failure ours or our distributors to comply
with applicable laws and regulations regarding product claims and advertising, good manufacturing
practices, the regulation of our network marketing program, the licensing of our products for sale
in our target markets or other aspects of our business, whether or not resulting in enforcement
actions or the imposition of penalties, could have an adverse effect on our goodwill and could
negatively affect our ability to attract, motivate and retain distributors, which would negatively
impact our ability to generate revenue. We cannot ensure that all distributors will comply with
applicable legal requirements relating to the advertising, labeling, licensing or distribution of
our products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, our distributors&#146; and consumers&#146; perception of the safety and quality of our
products and ingredients as well as similar products and ingredients distributed by other companies
can be significantly influenced by national media attention, publicized scientific research or
findings, widespread product liability claims and other publicity concerning our products or
ingredients or similar products and ingredients distributed by other companies. Adverse publicity,
whether or not accurate or resulting from consumers&#146; use or misuse of our products, that associates
consumption of our products or ingredients or any similar products or ingredients with illness or
other adverse effects, questions the benefits of our or similar products or claims that any such
products are ineffective, inappropriately labeled or have inaccurate instructions as to their use,
could negatively impact our reputation or the market demand for our products.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Network marketing systems such as ours are frequently subject to laws and regulations directed
at ensuring that product sales are made to consumers of the products and that compensation,
recognition, and advancement within the marketing organization are based on the sale of products
rather than investment in the sponsoring company. We are subject to the risk that, in one or more
of our present or future markets, our marketing system could be found not to comply with these laws
and regulations or may be prohibited. Failure to comply with these laws and regulations or such a
prohibition could have a material adverse effect on our business, financial condition, and results
of operations. Further we may simply be prohibited from distributing products through a
network-marketing channel in some foreign countries, or be forced to alter our compensation plan.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Failure To Maintain And Expand Our Distributor Relationships Could Adversely Affect Our
Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We distribute our products through independent distributors, and we depend upon them directly
for all of our sales. Accordingly, our success depends in significant part upon our ability to
attract, retain and motivate a large base of distributors. Our direct selling organization is
headed by a relatively small number of key distributors. The loss of a significant number of
distributors, including any key distributors, could materially and adversely affect sales of our
products and could impair our ability to attract new distributors. Moreover, the replacement of
distributors could be difficult because, in our efforts to attract and retain distributors, we
compete with other direct selling organizations, including but not limited to those in the personal
care, cosmetic product and nutritional supplement industries. Our distributors may terminate their
services with us at any time and, in fact, like most direct selling organizations, we have a high
rate of attrition.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>If The Number Or Productivity Of Independent Distributors Does Not Increase, Our Revenue Could Not
Increase.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To increase revenue, we must increase the number and/or the productivity of our distributors.
We can provide no assurances that distributor numbers could increase or remain constant or that
their productivity could increase. We experienced a 19% decrease in active distributors during
2006 (excluding KGC and the Kaire Entities which were sold during 2005 and 2006, respectively),
following a 33% and 97% increase in active distributors in 2005 and 2004. The number of active
distributors or their productivity may not increase and could decline in the future. Distributors
may terminate their services at any time, and, like most direct selling companies, we experience a
high turnover in our distributor ranks. We cannot accurately predict any fluctuation in the number
and productivity of distributors because we primarily rely upon existing distributors to sponsor
and train new distributors and to motivate new and existing distributors. Operating results could
be adversely affected if our existing and new business opportunities and products do not generate
sufficient economic incentive or interest to retain existing distributors and to attract new
distributors.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Because Our Hong Kong Operations Account For A Majority Of Our Business, Any Adverse Changes In Our
Business Operations In Hong Kong Would Materially Harm Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2004, 2005 and 2006, approximately 56%, 62% and 67% of our revenue, respectively, was
generated in Hong Kong. Various factors could harm our business in Hong Kong, such as worsening
economic conditions or other events that are out of our control. For example, on April&nbsp;12, 2004, a
television program was aired in the People&#146;s Republic of China with respect to the operations of
our Hong Kong subsidiary and our representative office located in Beijing. The television program
alleged that our Hong Kong operations engaged in fraudulent activities and sold products without
proper permits. Due to the adverse publicity caused by the airing of the television program,
revenues from Hong Kong declined significantly. There have been other isolated cases of alleged
misconduct by our members in China. If the alleged misconduct of our members in China is finally
determined to be illegal and attributable to us or our subsidiaries, then this could have a
material adverse effect on our financial condition and results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Business In Hong Kong, Which Represented 67% Of Our Revenue In 2006, May Be Harmed By The
Results Of Increased Government Scrutiny Of Our Current And Proposed Operations In China.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since 1998, direct selling has been restricted in China to ten companies that have an approval
that we do not currently have. In November&nbsp;2005, the Chinese government adopted an anti-multilevel
marketing legislation ahead of its December&nbsp;2005 adoption of legislation to legalize direct
selling. The government has rigorously monitored multi-level marketing activities and enforced
these laws. In the past, the government has taken significant actions against companies that the
government found in violation of applicable laws. Governmental actions included shutting down
their businesses and arresting alleged perpetrators. Consequently, a few of our direct selling peer
companies have modified their business
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">models and started selling to Chinese consumers through owned, leased or franchised retail
outlets. We have not implemented a direct sales model in China although we have applied for a
direct selling license. Instead, we have begun the initial launch of a Preferred Customer
retail-only e-commerce model in China. This retail-only model would not have a compensation plan
until such time as a direct selling license may be issued. Further, the Chinese entity will
operate completely separate and apart from the Hong Kong entity, though a Chinese consumer may
elect to participate separately in both. While it is not certain if the Chinese government will
embrace this model, we believe that the China entity will be compliant as it will not be operating
a direct selling model in China until it receives a direct selling license.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Could Be Required To Modify Our Compensation Plan In China In A Way That Could Make It Less
Attractive To Members, And This Could Have A Significant Adverse Effect On Our Revenue.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We could be required to modify our compensation plan in China in a way that could make it less
attractive to members. Any such modification to our compensation plan could, therefore, have a
material adverse effect on revenue. Moreover, the business model that we anticipate implementing
in China will likely involve costs and expenses that we do not generally incur in the e-commerce
business that we have historically operated in other markets, including Hong Kong. As a result,
the business that we ultimately are able to conduct in China could be materially less profitable
than the e-commerce business that we have historically operated in Hong Kong.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our E-Commerce Business In Hong Kong, Which Represents A Significant Portion Of Our Total Revenue,
Could Be Adversely Affected By The Activities Of The Members in China, If Members In China Engage
In Activities That Are Deemed To Violate China&#146;s Anti-Multilevel Marketing Laws.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we have strictly forbidden any of our members in China to engage in activities that
violate China&#146;s anti-multilevel marketing laws, some of our members in China have engaged in such
activities. In Dongguan, four of our members were detained for questioning in October&nbsp;2005 with
regard to possible violation of Chinese law regarding the maximum number of people who can attend a
meeting as well as possible improper network marketing business activity. Charges were never filed
and all individuals were released. In April, 2006, a media report indicated that someone was
detained by Public Security in Changsha for investigation of similar allegations. We have not been
able to determine if the individual in question is, in fact, a member and whether or not any laws
were actually broken. Initial inquiries made by retained Chinese counsel indicate that no one is
still being detained or has been charged. Reviews and investigations of such activities by
government regulators, if any are commenced, could restrict our ability to conduct business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most of our Hong Kong revenues are derived from the sale of products that are delivered to
members in China. We operate an e-commerce direct selling model in Hong Kong and recognize this
revenue as being generated in Hong Kong. Orders are taken in Hong Kong. Commissions are earned by
members in China based on the same binary model used by us throughout the world and are recorded
and paid in Hong Kong and denominated in Hong Kong Dollars. Commission incomes are declared to the
tax authorities in Hong Kong. Members who order the products register themselves with a Hong Kong
address and tax identification number. None of the servers on which our Hong Kong e-commerce
activities are conducted are located in China. Products purchased by members in China are
delivered by us to a third party that acts as the importer of record under an agreement to pay
applicable duties. From April&nbsp;2005 through December&nbsp;2005, the importer of record was a related
party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the laws and regulations in China regarding direct selling and multi-level
marketing are not specifically applicable to our Hong Kong based e-commerce activity. Nor are we
aware of any specific laws or regulations in China, or any official interpretation thereof, that
govern this Hong Kong centered e-commerce activity. However, there can be no assurance that such
laws, regulations or interpretations will not be adopted in the future. Should such laws, rules or
interpretations be adopted or should the government determine that our e-commerce activity violates
China&#146;s anti-multilevel marketing legislation, there could be a material adverse effect on our
business, cash flow and financial statements. There is no way we can estimate the effect of such
an adverse effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we would attempt to work closely with both national and local governmental agencies
in implementing our plans, our efforts to comply with national and local laws may be harmed by a
rapidly evolving regulatory climate, concerns about activities resembling violations of
anti-multi-level marketing legislation and any subjective interpretation of laws. Any
determination that our operations or activities, or the activities of our employee sales
representatives, distributors living outside of China or importers of record are not in compliance
with applicable regulations could result in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the imposition of substantial fines, extended
interruptions of business, restrictions on our future ability to obtain business
license or expand into new locations, substantially diminishing our ability to retain existing
sales representatives and attract new sales representatives, changes to our business model, the
termination of required licenses to conduct business, or other actions, all of which would harm our
business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>If We Fail To Obtain A Direct Selling License In China, Our Future Business Could Be Harmed.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Chinese government has adopted new direct selling legislation as of December&nbsp;1, 2005. We
have submitted an application for a direct selling license in December&nbsp;2005 and, after rules
changes, re-submitted an application package in June&nbsp;2006. We think we met all of the legal
requirements, including capitalizing our Chinese entity with a $12.0&nbsp;million cash infusion, but
there can be no assurance that a license will be granted. We plan to operate a Preferred Customer
retail-only e-commerce model in China that is linked to a member&#146;s position in Hong Kong. If we
are able to obtain a direct selling license in China, the license would provide us with more
options to do business. If we do not, there would be some impact to us but it is not believed that
it would materially adversely affect us under our proposed model.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Failure To Properly Pay Business Taxes, Including Those In China, Could Have A Material Adverse
Effect.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the course of doing business we may be subject to various taxes, such as sales and use,
value-added, franchise, income, and import duty. The failure to properly calculate, report and pay
such taxes when we are subject to them could have a material adverse effect on our financial
condition and results of operations. Moreover, any change in the law or regulations regarding such
taxes, or any interpretation thereof, could result in an increase in the cost of doing business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between April and December&nbsp;2005, our Hong Kong subsidiary engaged a service provider to
facilitate product importation into China and act, or engage another party to act, as the importer
of record. The individual that owns that service provider was one of the directors of our
wholly-owned Chinese subsidiary. We believe that the amount of duty paid to Chinese Customs on the
imported goods by the importer of record was paid at the negotiated rate. However, there can be no
assurance that Chinese Customs will not elect, in the future, to examine the duty paid, and if they
conduct such examination, they may conclude that the valuation established was insufficient,
resulting in an underpayment of duties. As a consequence, the importer of record could be required
to pay additional duties and possible penalties to Chinese Customs. Additional duties could range
between zero and $46.0&nbsp;million, plus penalties. The extreme worst case was calculated using the
highest possible assessment to the highest possible declared value and assuming that negotiated
valuation practices do not apply. We believe that any such future assessment of additional duties
or penalties would be made against and become the responsibility of the importer of record. There
can be no assurance that we or our subsidiaries would not be assessed with such liability in the
event that the importer of record is unable to pay all or part of such amount.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>As We Continue To Expand Into Foreign Markets Our Business Becomes Increasingly Subject To
Political And Economic Risks. Changes In These Markets Could Adversely Affect Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that our ability to achieve future growth is dependent in part on our ability to
continue our international expansion efforts. However, there can be no assurance that we would be
able to grow in our existing international markets, enter new international markets on a timely
basis, or that new markets would be profitable. We must overcome significant regulatory and legal
barriers before we can begin marketing in any foreign market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, it is difficult to assess the extent to which our products and sales techniques would be
accepted or successful in any given country. In addition to significant regulatory barriers, we
may also encounter problems conducting operations in new markets with different cultures and legal
systems from those encountered elsewhere. We may be required to reformulate certain of our
products before commencing sales in a given country. Once we have entered a market, we must adhere
to the regulatory and legal requirements of that market. No assurance can be given that we would
be able to successfully reformulate our products in any of our current or potential international
markets to meet local regulatory requirements or attract local customers. The failure to do so
could have a material adverse effect on our business, financial condition, and results of
operations. There can be no assurance that we would be able to obtain and retain necessary permits
and approvals.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In many markets, other direct selling companies already have significant market penetration,
the effect of which could be to desensitize the local distributor population to a new opportunity,
or to make it more difficult for us to recruit
qualified distributors. There can be no assurance that, even if we are able to commence
operations in foreign countries, there would be a sufficiently large population of potential
distributors inclined to participate in a direct selling system offered by us. We believe our
future success could depend in part on our ability to seamlessly integrate our business methods,
including distributor compensation plan, across all markets in which our products are sold. There
can be no assurance that we would be able to further develop and maintain a seamless compensation
program.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>An Increase In The Amount Of Compensation Paid To Distributors Would Reduce Profitability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant expense is the payment of compensation to our distributors, which represented
approximately 51% of net revenues during 2006. Factors impacting the overall commission payout
include the growth and depth of the distributor network, the distributor retention rate, the level
of promotions, local promotional programs and business development agreements. We compensate our
distributors by paying commissions, bonuses, and certain awards and prizes. We closely monitor the
amount of compensation to distributors paid as a percentage of net sales and have recently
implemented adjustments to our compensation plan to provide, in our view, a more viable and
sustainable business model for both us and our distributors. There can be no assurance that these
changes or future changes to our compensation plan or product pricing would be successful in
maintaining the level of distributor compensation expense as a percentage of net sales.
Furthermore, these changes may make it difficult to recruit and retain qualified and motivated
distributors. An increase in compensation payments to distributors as a percentage of net sales
will reduce our profitability. Under our current compensation plan, commissions may be limited to
65% of sales.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Do Not Have Product Liability Insurance And Product Liability Claims Could Hurt Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, we do not have product liability insurance, although the insurance carried by our
suppliers may cover certain product liability claims against us. Nevertheless, we do not conduct or
sponsor clinical studies of our products. As a marketer of nutraceuticals, cosmetics and other
products that are ingested by consumers or applied to their bodies, we may become subjected to
various product liability claims, including that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our products contain contaminants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our products include inadequate instructions as to their uses; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our products include inadequate warnings concerning side effects and interactions with other substances.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our suppliers&#146; product liability insurance fails to cover product liability claims or other
product liability claims, or any product liability claims exceeds the amount of coverage provided
by such policies or if we are unsuccessful in any third party claim against the manufacturer or if
we are unsuccessful in collecting any judgment that may be recovered by us against the
manufacturer, we could be required to pay substantial monetary damages which could materially harm
our business, financial condition and results of operations. As a result, we may become required
to pay higher premiums and accept higher deductibles in order to secure adequate insurance coverage
in the future. Especially since we do not have direct product liability insurance, it is possible
that product liability claims and the resulting adverse publicity could negatively affect our
business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Internal Controls And Accounting Methods Require Further Modification.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We modified certain of our accounting policies and made other adjustments to our accounting
for past transactions, which resulted in the restatement of our financial statements for each
quarter in 2001, 2002, and 2003, for the years ended December&nbsp;31, 2001, 2002, 2003, and 2005, as
well as the first quarter in 2004. In connection with the restatement of our financial statements,
many of the restatement items are the result of material weaknesses in our internal controls and
procedures. Also, in November&nbsp;2005, our top two officers at the time, Mark Woodburn and Terry
LaCore, our President and the Chief Executive Officer of NHT Global U.S., respectively, were
terminated due to management misconduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continue to develop controls and procedures and plans to implement additional controls and
procedures sufficient to accurately report our financial performance on a timely basis in the
foreseeable future. Nevertheless, we continue to have material weaknesses. If we are unable to
develop and implement effective controls and procedures, we may not be able to report our financial
performance on a timely basis and our business and stock price would be adversely affected.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Non-Compliance With Section&nbsp;404 Of The Sarbanes-Oxley Act Of 2002 Could Materially Adversely Affect
Us.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Securities Exchange Commission, as directed by Section&nbsp;404 of the Sarbanes-Oxley Act of
2002, adopted rules which could require us to include in our annual reports on Form 10-K, beginning
in fiscal 2007, an assessment by management of the effectiveness of our internal controls over
financial reporting. In addition, our independent auditors must attest to and report on
management&#146;s assessment of the effectiveness of such internal controls over financial reporting
beginning in fiscal 2008. While we intend to diligently and thoroughly document, review, test and
improve our internal controls over financial reporting to comply with Section&nbsp;404 of the
Sarbanes-Oxley Act of 2002, if our independent auditors are not satisfied with the adequacy of our
internal controls over financial reporting, or if the independent auditors interpret the
requirements, rules and/or regulations differently than we do, then they may decline to attest to
management&#146;s assessment or may issue a report that is qualified. This could result in an adverse
reaction in the financial marketplace due to a loss of investor confidence in the reliability of
our financial statements, which could negatively impact the price of our common stock.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Rely On And Are Subject To Risks Associated With Our Reliance Upon Information Technology
Systems.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success is dependent on the accuracy, reliability, and proper use of information
processing systems and management information technology. Our information technology systems are
designed and selected to facilitate order entry and customer billing, maintain distributor records,
accurately track purchases and distributor compensation payments, manage accounting operations,
generate reports, and provide customer service and technical support. Although we acquired
MarketVision&#151;our distributor software service provider&#151;during the first half of 2004, in part, to
gain greater control over its operations, any interruption in these systems could have a material
adverse effect on our business, financial condition, and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with its acquisition of MarketVision Communications Corporation in 2004, we and
MarketVision entered into a Software License Agreement (the &#147;Software License Agreement&#148;) dated as
of March&nbsp;31, 2004, with MarketVision Consulting Group, LLC (the &#147;Licensee&#148;), a limited liability
company owned by John Cavanaugh, the President of MarketVision, and Jason Landry, a Vice President
of MarketVision. The Software License Agreement was filed on April&nbsp;15, 2004, as an Exhibit to our
Current Report on Form 8-K filed on that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon an Event of Default (as defined), the Software License Agreement grants, among other
things, the Licensee with an irrevocable, exclusive, perpetual, royalty free, fully-paid,
worldwide, transferable, sublicensable right and license to use, copy, modify, distribute, rent,
lease, enhance, transfer, market, and create derivative works to the MarketVision software. An
&#147;Event of Default&#148; under the Software License Agreement includes a &#147;Share Default,&#148; which is
defined as our market value per share failing to equal or exceed $10.00 per share for any one
rolling period of six months for a certain period following the acquisition of MarketVision. The
last time that our stock closed at or above $10.00 per share was February&nbsp;16, 2006, and a Share
Default would otherwise have occurred on August&nbsp;17, 2006. The parties to the Software License
Agreement amended that agreement to provide that no Share Default would occur prior to December&nbsp;31,
2006. No further amendments have been entered into, and as a result, we are currently in default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although an Event of Default has occurred, we believe that we continue to have the right to
continue using the MarketVision software for internal use only and not as an application service
provider or service bureau, but may not rent, lease, license, transfer or distribute the software
without the Licensee&#146;s prior written consent. Moreover, we believe that we have the right to
receive certain application service provider services from Licensee, if it chooses to do so. We do
not believe that the occurrence of the Event of Default has had or will have a material adverse
effect on us.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Regulatory Matters Governing Our Industry Could Have A Significant Negative Effect On Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In both our United States and foreign markets, we are affected by extensive laws, governmental
regulations, administrative determinations, court decisions and similar constraints. Such laws,
regulations and other constraints may exist at the federal, state or local levels in the United
States and at all levels of government in foreign jurisdictions. There can be no assurance that we
or our distributors are in compliance with all of these regulations. Our failure or our
distributors&#146; failure to comply with these regulations or new regulations could lead to the
imposition of significant penalties or claims and could negatively impact our business. In
addition, the adoption of new regulations or changes in the interpretations of existing regulations
may result in significant compliance costs or discontinuation of product sales and may negatively
impact the marketing of our products, resulting in significant loss of sales revenues.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Direct Selling System</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our direct selling system is subject to a number of federal and state regulations administered
by the Federal Trade Commission (the &#147;FTC&#148;) and various state agencies as well as regulations in
foreign markets administered by foreign agencies. Regulations applicable to direct selling
organizations generally are directed at ensuring that product sales ultimately are made to
consumers and that advancement within the organizations is based on sales of the organizations&#146;
products rather than investments in the organizations or other non-retail sales related criteria.
We are subject to the risk that, in one or more markets, our marketing system could be found not to
be in compliance with applicable regulations. The failure of our direct selling system to comply
with such regulations could have a material adverse effect on our business in a particular market
or in general.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also subject to the risk of private party challenges to the legality of our direct
selling system. The regulatory requirements concerning direct selling systems do not include
&#147;bright line&#148; rules and are inherently fact-based. An adverse judicial determination with respect
to our direct selling system, or in proceedings not involving us directly but which challenge the
legality of other direct selling marketing systems, could have a material adverse effect on our
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;12, 2006 the FTC issued a notice of proposed rulemaking which, if implemented, will
regulate all sellers of &#147;business opportunities&#148; in the United States. The proposed rule would,
among other things, require all sellers of business opportunities, which would likely include us,
to (i)&nbsp;implement a seven day waiting period before entering into an agreement with a prospective
business opportunity purchaser, and (ii)&nbsp;provide all prospective business opportunity purchasers
with substantial information in writing at the beginning of the waiting period regarding the
business opportunity, including information relating to: representations made as to the earnings
experience of other business opportunity purchasers, the names and telephone numbers of recent
purchasers in their geographic area, cancellation or refund policies and requests within the prior
two years, certain legal actions against the company, its affiliated companies and company
officers, directors, sales managers and certain others. The Direct Selling Association (the &#147;DSA&#148;)
and other interested parties have filed over 17,000 comments with the FTC that are publicly
available regarding the proposed rule through the FTC&#146;s website at
http://www.ftc.gov/os/comments/businessopprule/index.htm. The DSA and other interested parties
also filed &#147;rebuttal&#148; comments with the FTC in September&nbsp;2006. Based on information currently
available, we anticipate that the final rule may require several years to become final and
effective, and may differ substantially from the rule as originally proposed. Nevertheless the
proposed rule, if implemented in its original form, would negatively impact our business in the
United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Product Regulations</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The formulation, manufacturing, packaging, labeling, distribution, importation, sale and
storage of certain of our products are subject to extensive regulation by various federal agencies,
including the U.S. Food and Drug Administration (&#147;FDA&#148;), FTC, the Consumer Product Safety
Commission and the United States Department of Agriculture and by various agencies of the states,
localities and foreign countries in which our products are manufactured, distributed and sold.
Failure by our distributors or us to comply with those regulations could lead to the imposition of
significant penalties or claims and could materially and adversely affect our business. In
addition, the adoption of new regulations or changes in the interpretation of existing regulations
may result in significant compliance costs or discontinuation of product sales and may adversely
affect the marketing of our products, resulting in significant loss of sales revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;7, 2003, the FDA proposed a new regulation to require current Good Manufacturing
Practices (&#147;cGMPs&#148;), affecting the manufacture, packing, and holding of dietary supplements. The
proposed regulation would establish standards to ensure that dietary supplements and dietary
ingredients are not adulterated with contaminants or impurities, and are labeled to accurately
reflect the active ingredients and other ingredients in the products. It also includes proposed
requirements for designing and constructing physical plants, establishing quality control
procedures, and testing manufactured dietary ingredients and dietary supplements, as well as
proposed requirements for maintaining records and for handling consumer complaints related to
cGMPs. We are evaluating this proposal with respect to its potential impact upon the various
contract manufacturers that we use to manufacture our products, some of whom might not meet the new
standards.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Product Claims, Advertising and Distributor Activities</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our failure to comply with FTC or state regulations, or with regulations in foreign markets
that cover our product claims and advertising, including direct claims and advertising by us, as
well as claims and advertising by distributors for which we may be held responsible, may result in
enforcement actions and imposition of penalties or otherwise materially and adversely affect the
distribution and sale of our products. Distributor activities in our existing markets that violate
applicable governmental laws or regulations could result in governmental or private actions against
us in markets where we operate. Given the size of our distributor force, we cannot assure that our
distributors would comply with applicable legal requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Transfer Pricing and Similar Regulations</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In many countries, including the United States, we are subject to transfer pricing and other
tax regulations designed to ensure that appropriate levels of income are reported as earned by our
United States or local entities and are taxed accordingly. In addition, our operations are subject
to regulations designed to ensure that appropriate levels of customs duties are assessed on the
importation of our products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal domicile is the United States. Under tax treaties, we are eligible to receive
foreign tax credits in the United States for taxes paid abroad. As our operations expand outside
the United States, taxes paid to foreign taxing authorities may exceed the credits available to us,
resulting in the payment of a higher overall effective tax rate on our worldwide operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have adopted transfer pricing agreements with our subsidiaries to regulate inter-company
transfers, which agreements are subject to transfer pricing laws that regulate the flow of funds
between the subsidiaries and the parent corporation for product purchases, management services, and
contractual obligations, such as the payment of distributor compensation. In 2005, we implemented
a foreign holding and operating company structure for our non-United States businesses. This new
structure re-organized our non-United States subsidiaries in the Cayman Islands. Though our goal
is to improve the overall tax rate, there is no assurance that the new tax structure could be
successful. If the United States Internal Revenue Service or the taxing authorities of any other
jurisdiction were to successfully challenge these agreements, plans, or arrangements, or require
changes in our transfer pricing practices, we could be required to pay higher taxes, interest and
penalties, and our earnings would be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that we operate in compliance with all applicable transfer pricing laws and we
intend to continue to operate in compliance with such laws. However, there can be no assurance
that we will continue to be found to be operating in compliance with transfer pricing laws, or that
those laws would not be modified, which, as a result, may require changes in our operating
procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Taxation Relating To Distributors</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our distributors are subject to taxation, and in some instances legislation or governmental
agencies impose an obligation on us to collect the taxes, such as value added taxes, and to
maintain appropriate records. In addition, we are subject to the risk in some jurisdictions of
being responsible for social security and similar taxes with respect to our distributors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Other Regulations</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also subject to a variety of other regulations in various foreign markets, including
regulations pertaining to employment and severance pay requirements, import/export regulations and
antitrust issues. Our failure to comply or assertions that we fail to comply with these regulations
could have a material adverse effect on our business in a particular market or in general.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent we decide to commence or expand operations in additional countries, government
regulations in those countries may prevent or delay entry into or expansion of operations in those
markets. In addition, our ability to sustain satisfactory levels of sales in our markets is
dependent in significant part on our ability to introduce additional products into the markets.
However, government regulations in both our domestic and international markets can delay or prevent
the introduction, or require the reformulation or withdrawal, of some of our products.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Currency Exchange Rate Fluctuations Could Lower Our Revenue And Net Income.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2006, approximately 89% of our revenue was recorded by subsidiaries located outside of
North America. Revenue transactions and related commission payments, as well as other incurred
expenses, are typically denominated in the local currency. Accordingly, our international
subsidiaries use the local currency as their functional currency. The results of operations of our
international subsidiaries are exposed to foreign currency exchange rate fluctuations during
consolidation since we translate into U.S. dollars using the average exchanges rates for the
period. As exchange rates vary, revenue and other operating results may differ materially from our
expectations. Additionally, we may record significant gains or losses related to
foreign-denominated cash and cash equivalents and the re-measurement of inter-company balances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that our foreign currency exchange rate exposure is somewhat limited since the Hong
Kong dollar is pegged to the U.S. dollar. We also purchase almost all inventories in U.S. dollars.
Our foreign currency exchange rate exposure, mainly to Korean won, Singapore dollar, New Taiwan
dollar, Japanese yen, Mexican peso, Chinese yuan, and Australia dollar, represented approximately
23% of our revenue in 2006. Our foreign currency exchange rate exposure would significantly
increase if the Hong Kong dollar were no longer pegged to the U.S. dollar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given our inability to predict the degree of exchange rate fluctuations, we cannot estimate
the effect these fluctuations may have upon future reported results, product pricing or our overall
financial condition. Further, to date we have not attempted to reduce our exposure to short-term
exchange rate fluctuations by using foreign currency exchange contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Failure Of New Products To Gain Distributor And Market Acceptance Could Harm Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An important component of our business is our ability to develop new products that create
enthusiasm among our distributor force. If we fail to introduce new products on a timely basis, our
distributor productivity could be harmed. In addition, if any new products fail to gain market
acceptance, are restricted by regulatory requirements, or have quality problems, this would harm
our results of operations. Factors that could affect our ability to continue to introduce new
products include, among others, limited capital resources, government regulations, proprietary
protections of competitors that may limit our ability to offer comparable products and any failure
to anticipate changes in consumer tastes and buying preferences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>System Failures Could Harm Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of our diverse geographic operations and our internationally applicable distributor
compensation plans, our business is highly dependent on efficiently functioning information
technology systems provided by MarketVision. The MarketVision systems and operations are vulnerable
to damage or interruption from fires, earthquakes, telecommunications failures, computer viruses
and worms, software defects and other events. They are also subject to break-ins, sabotage, acts of
vandalism and similar misconduct. Despite precautions implemented by the staff of MarketVision,
problems could result in interruptions in services and materially and adversely affect our
business, financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>We Have A Limited Product Line.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a limited number of products under our NHT Global brand. Our <I>Premium Noni Juice&#153;</I>,
<I>Skindulgence</I><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, <I>Alura</I><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> and <I>La Vie&#153; </I>products each account for a significant portion of our total
sales and, together, account for a significant majority of our total sales. If demand for any of
these four products decreases significantly, government regulation restricts the sale of these
products, we are unable to adequately source or deliver these products, or we cease offering any of
these products for any reason without a suitable replacement, our business, financial condition and
results of operations could be materially and adversely affected.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Do Not Manufacture Our Own Products So We Must Rely On Independent Third Parties For The
Manufacturing And Supply Of Our Products.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of our products are manufactured by independent third parties. There is no assurance that
our current manufacturers will continue to reliably supply products to us at the level of quality
we require. In the event any of our third-party manufacturers become unable or unwilling to
continue to provide the products in required volumes and quality levels at acceptable prices, we
will be required to identify and obtain acceptable replacement manufacturing sources. There is no
assurance that we will be able to obtain alternative manufacturing sources or be able to do so on a
timely basis. An extended interruption in the supply of our products will result in a substantial
loss of sales. In addition, any actual or perceived degradation of product quality as a result of
our reliance on third party manufacturers may have an adverse effect on sales or result in
increased product returns and buybacks.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The High Level Of Competition In Our Industry Could Adversely Affect Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business of marketing personal care, cosmetic, nutraceutical, and lifestyle enhancement
products is highly competitive. This market segment includes numerous manufacturers, distributors,
marketers, and retailers that actively compete for the business of consumers both in the United
States and abroad. The market is highly sensitive to the introduction of new products, which may
rapidly capture a significant share of the market. Sales of similar products by competitors may
materially and adversely affect our business, financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to significant competition for the recruitment of distributors from other
direct selling organizations, including those that market similar products. Many of our
competitors are substantially larger than we are, offer a wider array of products, have far greater
financial resources and many more active distributors than we have. Our ability to remain
competitive depends, in significant part, on our success in recruiting and retaining distributors
through an attractive compensation plan and other incentives. We believe that our compensation and
incentive programs provide our distributors with significant earning potential. However, we cannot
be sure that our programs for recruitment and retention of distributors would be successful.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Terrorist Attacks, Acts Of War, Epidemics Or Other Communicable Diseases Or Any Other Natural
Disasters May Seriously Harm Our Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terrorist attacks, or acts of war or natural disasters may cause damage or disruption to us,
our employees, our facilities and our customers, which could impact our revenues, expenses and
financial condition. The potential for future terrorist attacks, the national and international
responses to terrorist attacks, and other acts of war or hostility, such as the Chinese objection
to the Taiwan independence movement and its resultant tension in the Taiwan Strait, could
materially and adversely affect our business, results of operations, and financial condition in
ways that we currently cannot predict. Additionally, natural disasters less severe than the Indian
Ocean tsunami that occurred in December&nbsp;2004 may adversely affect our business, financial condition
and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Risk Factors Related To Our Common Stock</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Disappointing Quarterly Revenue Or Operating Results Could Cause The Price Of Our Common Stock To
Fall.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our quarterly revenue and operating results are difficult to predict and may fluctuate
significantly from quarter to quarter. If our quarterly revenue or operating results fall below the
expectations of investors or securities analysts, the price of our common stock could fall
substantially.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Common Stock Is Particularly Subject To Volatility Because Of The Industry In Which We Operate.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market prices of securities of direct selling companies have been extremely volatile, and
have experienced fluctuations that have often been unrelated or disproportionate to the operating
performance of such companies. These broad market fluctuations could adversely affect the market
price of our common stock.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>There Is No Assurance That An Active Public Trading Market Will Continue.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that an active public trading market for our common stock will be
sustained. If for any reason an active public trading market does not continue, purchasers of the
shares of our common stock may have difficulty in selling their securities should they desire to do
so and the price of our common stock may decline.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>If Securities Analysts Do Not Publish Research Or Reports About Our Business Or If They Downgrade
Our Stock, The Price Of Our Stock Could Decline.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trading market for our shares of common stock could rely in part on the research and
reporting that industry or financial analysts publish about us or our business. We do not control
these analysts. Furthermore, if one or more of the analysts who do cover us downgrades our stock,
the price of our stock could decline. If one or more of these analysts ceases coverage of our
company, we could lose visibility in the market, which in turn could cause our stock price to
decline.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>We Have Broad Discretion To Use The Proceeds Of Our Recent Private Placement Financing.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have broad discretion in spending the net proceeds generated by our May&nbsp;2007 private
placement of Series&nbsp;A preferred stock and warrants. We may spend most of the net proceeds from the
private placement in ways that ultimately prove unsuccessful. Our failure to apply these funds
effectively could have a material adverse effect on our business, results of operations and
financial condition, and may also require further funding, which could dilute stockholders&#146;
ownership and cause a decline in the share price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Risk Factors Related To This Offering</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The Exercise Of Outstanding Options Or Warrants, Or Conversion Of Our Series&nbsp;A Preferred Stock, May
Result In Substantial Dilution And May Depress The Market Price Of Our Common Stock.</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of August&nbsp;3, 2007,
 we had outstanding 9,117,053&nbsp;shares of common stock and also (i)&nbsp;options
to purchase an aggregate of 151,000&nbsp;shares of our common stock, with exercise prices between $1.00
and $10.34, (ii)&nbsp;warrants outstanding from our October&nbsp;2004 private placement exercisable for
1,080,504 shares of our common stock at an exercise price equal to $12.47 per share, (iii)&nbsp;warrants
outstanding from our May&nbsp;2007 private placement exercisable for 2,059,307 shares of our common
stock at an exercise price ranging from $3.80 to $5.00 per share, depending on the time of
exercise, and (iv)&nbsp;1,759,307 shares of Series&nbsp;A preferred stock, convertible into the same number
of shares of common stock. If these options and warrants are exercised or the shares of Series&nbsp;A
preferred stock are converted, and the shares of common stock issued upon such exercise or
conversion are sold, our common stockholders may experience substantial dilution and the market
price of our shares of common stock could decline. Further, the perception that such options and
warrants might be exercised, or that the shares of Series&nbsp;A preferred stock might be converted,
could adversely affect the market price of our shares of common stock. In addition, holders of
such options and warrants are likely to exercise them when, in all likelihood, we could obtain
additional capital on terms more favorable to us than those provided by the options and warrants.
Further, while our options, warrants and shares of Series&nbsp;A preferred stock are outstanding, they
may adversely affect the terms on which we could obtain additional capital.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Future Sales By Us Or Our Existing Stockholders Could Depress The Market Price Of Our Common Stock.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we or our existing stockholders sell a large number of shares of our common stock, the
market price of our common stock could decline significantly. Further, even the perception in the
public market that we or our existing stockholders might sell shares of common stock could depress
the market price of the common stock.
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any proceeds from the disposition of the shares of common stock by the
selling stockholders or their transferees. We may receive gross proceeds of up to $7,825,400
(based on an exercise price of $3.80 per share), and up to $10,296,500 (based on an exercise price
of $5.00 per share), upon the exercise of the 2,059,307 warrants covered by the registration
statement of which this prospectus forms a part. As we cannot predict when or if we would receive
such
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proceeds, we expect to use these proceeds, if received, for working capital purposes. The
proceeds received from the securities sold in the May&nbsp;2007 private placement financing are also
intended to provide us additional working capital.
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRINCIPAL STOCKHOLDER</B>S
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the amount of the Company&#146;s common stock beneficially owned (unless
otherwise indicated) as of August&nbsp;2, 2007 by (i)&nbsp;each stockholder we know is the beneficial owner of
more than 5% of the Company&#146;s common stock, (ii)&nbsp;each director or director nominee, (iii)&nbsp;each of
the executive officers named in the Summary Compensation Table set forth under &#147;Compensation of
Named Executive Officers&#148; in our proxy statement for the 2007 Annual Meeting of Stockholders, and
(iv)&nbsp;all executive officers and directors as a group. Beneficial ownership is determined in
accordance with the rules and regulations of the Securities and Exchange Commission and generally
includes those persons who have voting or investment power with respect to the securities. Except
as otherwise indicated, and subject to applicable community property laws, the persons named in the
table have sole voting and investment power with respect to all of our shares of common stock
beneficially owned by them.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>



<DIV align="left"><FONT size="1">

</FONT></DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Nature of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Beneficial</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Address of Beneficial Owner</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Ownership</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Class</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Officers and Directors (current and former):</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Chris Sharng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">148,180</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Timothy S. Davidson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28,750</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Gary C. Wallace</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">31,000</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">John Cavanaugh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">310,065</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Stephanie S. Hayano<BR>220 Morsehill Road<br>Millerton, NY 12546</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Robert H. Hesse<SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP><BR>
360 Thornton Road<BR>
Englewood, NJ 07631<Br></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6,984</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Anthony B. Martino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33,750</TD>
    <TD nowrap> <SUP style="font-size: 85%; vertical-align: text-top">&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Randall A. Mason</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">140,446</TD>
    <TD nowrap>
<SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Stefan W. Zuckut</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8,750</TD>
    <TD nowrap>
<SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Directors and Executive Officers As a Group (8
persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">804,091</TD>
    <TD nowrap>
<SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>5% Or More Stockholders:</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Chief China Resources Ltd. (Samoa)<BR>
18 Chaoyangmenwai Street, Suite&nbsp;B710<BR>
Full Link Plaza<BR>
Beijing, China 100020</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1,239,073</TD>
    <TD nowrap>
<SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Mark D.
Woodburn<SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP><BR>
809 Dominion Drive<BR>
Southlake, TX 76092</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">544,501</TD>
    <TD nowrap>
<SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Terry A.
LaCore<SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP><BR>
3105 Brookhollow Lane<BR>
Flower Mound, TX 75028</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">544,501</TD>
    <TD nowrap>
<SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><DIV align="left"><DIV style="font-size: 3pt; margin-top: 13pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">* Indicates beneficial ownership of less than 1%
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise indicated, the address of each beneficial owner is c/o Natural Health
Trends Corp., 2050 Diplomat Drive, Dallas, Texas 75234.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any securities not outstanding that are subject to options or conversion privileges
exercisable within 60&nbsp;days of August&nbsp;2, 2007 are deemed outstanding for the purpose of
computing the percentage of outstanding securities of the class owned by any person holding
such securities but are not deemed outstanding for the purpose of computing the percentage of
the class owned by any other person in accordance with Item&nbsp;403 of Regulation&nbsp;S-K of the
Securities Act 1933 and Rule&nbsp;13(d)-3 of the Securities Exchange
Act, and based upon 9,117,053
shares of common stock outstanding (excluding treasury shares) as of
August&nbsp;2, 2007.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left"><FONT size="1">

</FONT></DIV>



<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes (i)&nbsp;1,984 shares of common stock issuable upon the exercise of warrants held
by Mr.&nbsp;Sharng and (ii)&nbsp;142,712 shares of restricted stock subject to vesting over a three-year
period. Mr.&nbsp;Sharng shares voting and investment power over 1,500 of the shares with his wife.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 28,750 shares of restricted stock subject to vesting over a three-year
period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 31,000 shares of restricted stock subject to vesting over a three-year
period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes (i)&nbsp;1,984 shares of common stock issuable upon the exercise of warrants held
by Mr.&nbsp;Cavanaugh and (ii)&nbsp;187,677 shares of restricted stock subject to vesting over a
three-year period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ms.&nbsp;Hayano is a former director of the Company and the former Chief Executive Officer
of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;Hesse is a former director of the Company and the former Interim Chief Executive
Office of the Company, and therefore the shares beneficially owned by him are not included in
&#147;Directors and Executive Officers as a Group.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 1,984 shares of common stock issuable upon the exercise of warrants held by
Mr.&nbsp;Hesse.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes (i)&nbsp;27,399 shares owned by Marden Rehabilitation Associates, Inc., an entity
controlled by Mr.&nbsp;Mason, and (ii)&nbsp;31,363 shares of common stock owned by Magco, Inc, an
entity controlled by Mr.&nbsp;Mason.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 8,750 shares of restricted stock subject to vesting over a three-year
period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes (i)&nbsp;78,968 shares that may be acquired upon the exercise of outstanding
warrants that currently are exercisable  by our directors and executive officers and
 (ii)&nbsp;502,039 shares of restricted stock
subject to vesting over a three-year period that are beneficially owned by our executive
officers and a director.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 941,171 shares of common stock that Chief China Resources Ltd. (&#147;Chief
China&#148;) has the right to acquire upon conversion of 941,171 shares of Series&nbsp;A preferred
stock. Excludes warrants to purchase 941,171 shares of common stock, which are not
exercisable until November&nbsp;4, 2007. Chief China is a limited partnership organized under the
laws of Samoa, the principal business of which is investments. Ken Wang is the general
partner of Chief China and as such Mr.&nbsp;Wong may direct the voting and disposition of the
1,239,073 shares held by Chief China.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;Woodburn is a former director and the former President and Secretary of the
Company, and therefore the shares beneficially owned by him are not included in &#147;Directors and
Executive Officers as a Group.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(15)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;Woodburn has provided to the Company information regarding his beneficial
ownership of shares of the Company&#146;s common stock, which the Company believes to be accurate.
The indicated figure includes (i)&nbsp;1,984 shares of common stock held by the LaCore and Woodburn
Partnership, a general partnership with respect to which Mr.&nbsp;Woodburn is a general partner,
(ii)&nbsp;1,984 shares of common stock issuable upon the exercise of warrants held by the LaCore
and Woodburn Partnership, and (iii)&nbsp;540,533 shares of common stock that are pledged by Mr.
Woodburn to secure a note payable to the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(16)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;LaCore is a former director of the Company and the former Chief Executive Office
of NHT Global, Inc., and therefore the shares beneficially owned by him are not included in
&#147;Directors and Executive Officers as a Group.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(17)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;LaCore has provided to the Company information regarding his beneficial ownership
of shares of the Company&#146;s common stock, which the Company believes to be accurate. The
indicated figure includes (i)&nbsp;1,984 shares of common stock held by the LaCore and Woodburn
Partnership, a general partnership with respect to which Mr.&nbsp;LaCore is a general partner, (ii)
1,984 shares of common stock issuable upon the exercise of warrants held by the LaCore and
Woodburn Partnership, and (iii)&nbsp;540,533 shares of common stock that are pledged by Mr.&nbsp;LaCore
to secure a note payable to the Company.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SHARES ELIGIBLE FOR FUTURE SALE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future sales of substantial amounts of our common stock in the public market, or the
perception that these sales could occur, could adversely affect prevailing market prices for our
common stock and our ability to raise equity capital in the future.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on 9,117,053&nbsp;shares
 of our common stock outstanding on August&nbsp;2, 2007, as well as
151,000&nbsp;shares issuable upon the exercise of outstanding options, 1,080,504 shares issuable upon exercise
of the warrants issued as part of our October&nbsp;2004 private placement, 1,759,307 shares issuable
upon conversion of all outstanding shares of our Series&nbsp;A preferred stock and 2,059,307 shares
issuable upon exercise of the warrants issued as part of our May&nbsp;2007 private placement financing,
upon completion of this offering we will have 14,167,171&nbsp;shares of common stock outstanding or
subject to outstanding securities that are exercisable for or convertible into shares of common
stock. The 3,818,614 shares registered in this offering, the 960,186&nbsp;shares issuable upon
exercise of outstanding options and outstanding shares of restricted stock registered under
separate registration statements on Form S-8, and the other outstanding shares of our common stock
that are not &#147;restricted securities&#148; within the meaning of Rule&nbsp;144 promulgated under the
Securities Act, are or will be freely transferable without restriction under the Securities Act,
unless they are held by our &#147;affiliates&#148; as that term is defined under Rule&nbsp;144 under the
Securities Act and the rules and regulations promulgated thereunder. The remaining outstanding
shares of our common stock and shares of common stock issuable upon the exercise of our outstanding
options or warrants may be sold in the public market only if registered under the Securities Act or
if they qualify for an exemption from registration under Rule&nbsp;144 or another rule promulgated under
the Securities Act. The Rule&nbsp;144 exemption is summarized below.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Rule&nbsp;144</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, under Rule&nbsp;144 as currently in effect, a person who has beneficially owned shares
of our common stock for at least one year, including the holding period of any prior owner other
than one of our affiliates, would be entitled to sell within any three-month period the number of
restricted shares that does not exceed the greater of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>one percent of the number of shares of our common stock then
outstanding, which will equal approximately 90,091 shares immediately
after this offering; or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the average weekly trading volume of our common stock on The NASDAQ
Global Market during the four calendar weeks preceding the filing of a
notice on Form&nbsp;144 with the SEC with respect to the sale.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of restricted shares under Rule&nbsp;144 are also subject to requirements regarding the
manner of sale, notice, and the availability of current public information about us. Rule&nbsp;144 also
provides that affiliates that sell shares of common stock that are not restricted shares must
nonetheless comply with the same restrictions applicable to restricted shares, other than the
holding period requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Registration Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the agreements we entered into as part of our May&nbsp;2007 private placement
financing included the granting of certain registration rights to the original investors and the
placement agent in the financing. The registration statement of which this prospectus forms a part
is being filed as part of these obligations. We are obligated to file a registration statement no
later than 60&nbsp;days after the closing date of the financing (the &#147;Filing Date&#148;). We are also
obligated to use reasonable best efforts to cause the registration statement to become effective
within four calendar months of the closing date if the registration statement is not reviewed by
the SEC, or within six calendar months of the closing date if the registration statement is
reviewed by the SEC (the &#147;Effectiveness Deadline&#148;). We are required to file such amendments and
supplements to the registration statement as may be necessary to keep the registration statement
current and effective until the earlier of the date when all of the shares covered by the
registration statement are sold or the stockholders may sell the shares under Rule 144(k) (the
&#147;Effectiveness Period&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pay all expenses relating to the filing of this registration statement, other than
underwriting discounts and commissions and stock transfer taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will be subject to certain financial penalties if we do not fully comply with our
registration obligations. If the registration statement is not filed on or prior to the Filing
Date, or if the registration statement is filed and declared effective, but thereafter ceases to be
effective prior to the expiration of the Effectiveness Period due to an intentional and willful act
by us without being succeeded immediately by a subsequent registration statement filed with SEC
covering the shares into which the Series&nbsp;A preferred stock are convertible and for which the
warrants are exercisable (the &#147;Underlying Shares&#148;), we will pay in cash an amount equal to 2% of
the product of $1.70 times the number of shares of Series&nbsp;A preferred stock purchased by the
holder. If the registration statement is not declared effective with respect to all of the
Underlying Shares on or prior to the Effectiveness Deadline, we will pay in cash an amount equal to
2% of the product of $1.70 times the number of Underlying Shares that the holder obtained the right
to acquire pursuant to the terms of the share and warrant purchase agreement and that were not
registered under the registration statement; provided, however, that, with respect to the
Underlying Shares that the holder has the right to acquire upon exercise of the warrant only, no
damages will be due and payable with respect to any such Underlying Shares unless and until such
time as the registration statement continues not to be effective with respect to some or all of
such Underlying Shares and the closing per share market price of the common stock exceeds the then
applicable per share exercise price of the warrant.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELLING STOCKHOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock being offered by the selling stockholders are shares of common
stock issuable upon conversion of Series&nbsp;A preferred stock, and shares of common stock issuable
upon exercise of the warrants which were sold by the Company in a private placement transaction.
For additional information regarding the common shares and warrants, see &#147;Prospectus Summary &#151;
Private Placement Financing.&#148; This prospectus relates to the sale of up to 3,818,614 shares of our
common stock for the selling stockholders named in the table below. A total of up to 1,759,307
shares of the common stock are issuable to the selling stockholders upon conversion of Series&nbsp;A
preferred stock. A total of up to 2,059,307 of shares of the common stock are issuable to the
selling stockholders upon the exercise of warrants to purchase our common stock. We are
registering the shares of common stock in order to permit the selling stockholders to offer the
shares for resale from time to time. Chief China Resources Ltd. (British Virgin Islands) acted as
the placement agent in the 2007 private placement financing. See &#147;Prospectus Summary &#151; Private
Placement Financing&#148; for further information regarding the Chief China Resources Ltd. Except for
that relationship and the ownership of the shares and
warrants as set forth below, none of the selling stockholders have had any material
relationship with us within the past three years.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below lists the selling stockholders and other information regarding the beneficial
ownership of the common stock by each of the selling stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the terms of agreements with the holders of the Company&#146;s shares of Series
A preferred stock and warrants, this prospectus covers the resale of a number of shares of common
stock into which the Series&nbsp;A preferred stock issued to the selling stockholders is convertible,
plus the number of shares of common stock issuable upon exercise of the warrants, determined as if
all of the outstanding shares of Series&nbsp;A preferred stock were converted, and as if the outstanding
warrants were exercised in full, as of the trading day immediately preceding the date this
registration statement was initially filed with the SEC. Because the number of shares of common
stock for which the warrants are exercisable, and the related exercise price per share, are subject
to adjustment only in the events of stock splits, stock dividends, recapitalizations and similar
events that would affect all of our stockholders, the number of shares that would actually be
issued may be more or less than the number of shares being offered by this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders may sell all, some or none of their shares in this offering. See
&#147;Plan of Distribution.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information provided below with respect to the selling stockholders has been obtained from
the selling stockholders and is current as of July&nbsp;27, 2007.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the selling stockholders may sell none, all or some portion of the shares of common
stock owned by them, we cannot estimate the number of shares of common stock that will be
beneficially owned by the selling stockholders after this offering. In addition, the selling
stockholders may sell, transfer or otherwise dispose of, at any time or from time to time since the
date on which the selling stockholders provided the information regarding the shares of common
stock owned by them, all or a portion of the shares of common stock owned by them in transactions
exempt from the registration requirements of the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as indicated, the selling stockholders are neither broker-dealers nor affiliates of
broker-dealers that are NASD members.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Common</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Stock Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Before the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>After the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Selling Stockholder</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offered (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Offering
(3)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">George Broady<BR>
751 Canyon Drive<BR>
Coppell, TX 75229</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">1.3%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gregory W. Olin<BR>
10933 Geis Woods S. Dr.<BR>
Indianapolis, IN 46256</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Craig-Hallum
Partners (4)(5)<BR>
222 South Ninth Street, Suite&nbsp;350<BR>
Minneapolis, MN 55402</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">411,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin P.
Harris (5)(6)<BR>
222 South Ninth Street, Suite&nbsp;350<BR>
Minneapolis, MN 55402</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">470,586</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert J.
Evans (5)<BR>
222 South Ninth Street, Suite&nbsp;350<BR>
Minneapolis, MN 55402</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Common</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Stock Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Before the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>After the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Selling Stockholder</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offered (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Offering
(3)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bradley W.
Baker (5)<BR>
222 South Ninth Street, Suite&nbsp;350<BR>
Minneapolis, MN 55402</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John L.
Flood (5)<BR>
222 South Ninth Street, Suite&nbsp;350<BR>
Minneapolis, MN 55402</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James Henry
Zavoral (5)<BR>
222 South Ninth Street, Suite&nbsp;350<BR>
Minneapolis, MN 55402</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wenge Yang
(5)<BR>
44668 Japala Place<BR>
Fremont, CA 94539</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Raymond
Xerri (5)(7)<BR>
3490 Frederick Street<BR>
Oceanside, NY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joanne Yan<BR>
3405-1111 West Pender St.<BR>
Vancouver, BC, Canada V6E 2P4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Randall Matkaluk<BR>
632 Crescent Blvd. SW<BR>
Calgary, AB, Canada T2S IL2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony P. Fierro<BR>
428 East 36<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue<BR>
Vancouver, BC, Canada V5W 1C8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cao Hui<BR>
21-6B Costal Rose Garden<BR>
Narishan District<BR>
Shen Zhen, Guangdong, China 510086</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Qian Xin Hui<BR>
D5-2-301<BR>
86 Ben Yuan Road<BR>
Beijing, China 100101</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhao Yan Tao<BR>
Yue Hai Guo Ji Hua Yuan 27 Hao Lou<BR>
1004 Shi Guo Fang Lu 101 Hao<BR>
Gong Be Qu Zhu Hai Shi<BR>
Guangdong Sheng, China 519020</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief China
Resources Ltd. (Samoa)(8)<BR>
18 Chaoyangmenwai Street, Suite&nbsp;B710<BR>
Full Link Plaza<BR>
Beijing, China 100020</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="right">1,239,073</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,882,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">3.3%</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Percentage of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Common</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Stock Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Before the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>After the</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>After the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Selling Stockholder</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offered (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chief China Resources Ltd. (British
Virgin Islands)(1)(9)<BR>
A1-D905, Chateau Edinburgh<BR>
1 Bai Jia Zhuang Lu<BR>
Chao Yang Qu<BR>
Beijing, China 100022</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">*</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><DIV align="left"><DIV style="font-size: 3pt; margin-top: 13pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
* Less than 1%.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of shares beneficially owned by the selling stockholders does not include a total
of 2,059,307 shares issuable upon the exercise of warrants that are not exercisable within 60
days. Each of the selling stockholders holds warrants exercisable for shares of common stock,
but is not currently deemed to be the beneficial owner of such shares of common stock, because
the warrants cannot be exercised within 60&nbsp;days. These warrants include a warrant to purchase
300,000 shares of common stock which was granted to Chief China Resources, Ltd. (British
Virgin Islands) as partial compensation for financial advisory services performed with respect
to the May&nbsp;2007 private placement financing.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We have determined the number and percentage of shares of common stock owned after the
offering by assuming that each of the selling stockholders will sell all of its shares being
offered pursuant to this prospectus, but will not sell any other shares that they own. In
fact, the selling stockholders may sell none, all or some portion of their holdings.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any securities not outstanding that are subject to options or
conversion privileges exercisable within 60&nbsp;days of
July&nbsp;27, 2007 are deemed outstanding for the purpose of
computing the percentage of outstanding securities of the class owned
by a person holding such securities, but are not deemed outstanding
for the purpose of computing the percentage of the class owned by any
other person in accordance with Item&nbsp;403 of Regulation&nbsp;S-K
of the Securities Act of 1933 and Rule&nbsp;13(d)-3 of the Securities
Exchange Act, and based upon 9,117,053&nbsp;shares of Common Stock
outstanding (excluding treasury shares) as of July&nbsp;27, 2007.</TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Craig-Hallum Partners is a partnership organized under the
laws of the State of Delaware, the principal business of which is
investments. Kevin&nbsp;P. Harris is the sole owner of Craig-Hallum Partners
and as such may direct the voting and disposition of the 245,903
shares held by Craig-Hallum Partners.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of these stockholders is an affiliate of a broker-dealer that is an NASD member, acquired
the securities in the ordinary course of business, and at the time of the acquisition of the
securities, did not have any agreements or understandings, directly or indirectly, with any
person to distribute the securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information for Mr.&nbsp;Harris includes 40,021&nbsp;shares
of common stock held by Craig-Hallum Partners, 205,882&nbsp;shares of
common stock issuable upon conversion of Series&nbsp;A preferred
stock held by Craig-Hallum Partners, and 205,882&nbsp;shares of
common stock issuable upon exercise of warrants held by Craig-Hallum
Partners. Mr.&nbsp;Harris is the sole owner of Craig-Hallum Partners,
and as such may direct the voting and disposition of the shares held
by Craig-Hallum Partners and may be deemed to be the beneficial owner
of such shares.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 300 shares held by two minor children of Mr.&nbsp;Xerri.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Includes 941,171 shares of common stock that Chief China
(Samoa) has the right to acquire upon
conversion of 941,171 shares of Series&nbsp;A preferred stock. Excludes warrants to purchase
941,171 shares of common stock, which are not exercisable until
November&nbsp;4, 2007. Chief China (Samoa)
is a limited partnership organized under the laws of Samoa, the principal business of which is
investments. Ken Wang is the general partner of Chief China (Samoa) and as
such Mr.&nbsp;Wang may direct
the voting and disposition of the 1,239,073 shares held by Chief
China (Samoa).</TD>
</TR>

</TABLE>
</DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Chief China (BVI) is a limited partnership organized under the
laws of the British Virgin Islands, the principal business of which
is investments. Ken Wang is the general partner of Chief China (BVI)
and as such Mr.&nbsp;Wang may direct the voting and disposition of
any shares held by Chief China (BVI).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are registering the shares of common stock on behalf of the selling stockholders. All
costs, expenses and fees in connection with the registration of the shares offered by this
prospectus will be borne by our company, other than brokerage commissions and similar selling
expenses, if any, attributable to the sale of shares of common stock, which will be borne by the
selling stockholders. We have also agreed to indemnify the selling stockholders against certain
losses, claims, damages and liabilities, including liabilities under the Securities Act. Sales of
shares of common stock may be effected by selling stockholders from time to time in one or more
types of transactions (which may include block transactions) on NASDAQ, in the over-the-counter
market, in privately negotiated transactions, through put or call options transactions relating to
the shares of common stock, through short sales of shares of common stock, or a combination of such
methods of sale, at market prices prevailing at the time of sale, or at negotiated prices, and by
using any other method permitted pursuant to applicable law. Such transactions may or may not
involve brokers or dealers. The selling stockholders have advised us that they have not entered
into any agreements, understandings or arrangements
with any underwriters or broker-dealers regarding the sale of their securities, nor is there
an underwriter or coordinated broker acting in connection with the proposed sale of shares of
common stock by the selling stockholders.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders may enter into hedging transactions with broker-dealers or other
financial institutions. In connection with such transactions, broker-dealers or other financial
institutions may engage in short sales of the shares of common stock or of securities convertible
into or exchangeable for the shares of common stock in the course of hedging positions they assume
with the selling stockholders. The selling stockholders may also enter into options or other
transactions with broker-dealers or other financial institutions which require the delivery to such
broker-dealers or other financial institutions of the shares of common stock offered by this
prospectus, which the broker-dealer or other financial institution may resell pursuant to this
prospectus (as amended or supplemented to reflect such transaction).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders may make these transactions by selling shares of common stock
directly to purchasers or to or through broker-dealers, which may act as agents or principals.
These broker-dealers may receive compensation in the form of discounts, concessions or commissions
from selling stockholders and/or the purchasers of shares of common stock for whom these
broker-dealers may act as agents or to whom they sell as principal, or both (which compensation as
to a particular broker-dealer might be in excess of customary commissions).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders may from time to time pledge or grant a security interest in some or
all of the securities owned by them and, if they default in the performance of their secured
obligations, the pledgees or secured parties may offer and sell shares of common stock from time to
time under this prospectus, or under an amendment or supplement to this prospectus under Rule
424(b)(7) or other applicable provision of the Securities Act of 1933 modifying the list of selling
stockholders to include the pledgee, transferee or other successors in interest as selling
stockholders under this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders and any broker-dealers that act in connection with the sale of shares
of common stock may be &#147;underwriters&#148; within the meaning of Section&nbsp;2(11) of the Securities Act,
and any commissions received by these broker-dealers or any profit on the resale of the shares of
common stock sold by them while acting as principals might be deemed to be underwriting discounts
or commissions under the Securities Act. The selling stockholders may agree to indemnify any
agent, dealer or broker-dealer that participates in transactions involving sales of the shares of
common stock against certain liabilities, including liabilities arising under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders also may transfer the shares of common stock in other circumstances,
in which case the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because the selling stockholders may be &#147;underwriters&#148; within the meaning of Section&nbsp;2(11) of
the Securities Act, the selling stockholders may be subject to the prospectus delivery requirements
of the Securities Act. Our company has informed the selling stockholders that the anti-manipulative
provisions of Regulation&nbsp;M promulgated under the Exchange Act and other applicable Exchange Act
rules will apply to their sales in the market. In addition, our company has made copies of this
prospectus available to the selling stockholders and has informed them of the need for delivery of
copies of this prospectus to purchasers at or prior to the time of any sale of the shares offered
hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders also may resell all or a portion of the shares of common stock in
open market transactions in reliance upon Rule&nbsp;144 under the Securities Act, provided that they
meet the criteria and conform to the requirements of Rule&nbsp;144.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon our company being notified by a selling stockholder that a material arrangement has been
entered into with a broker-dealer for the sale of shares of common stock through a block trade,
special offering, exchange distribution or secondary distribution or a purchase by a broker or
dealer, a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under
the Securities Act, disclosing:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the name of each selling stockholder and of the participating broker-dealer(s);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of shares of common stock involved;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the initial price at which shares of common stock were sold;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the commissions paid or discounts or concessions allowed to the broker-dealer(s), where applicable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by
reference in this prospectus; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other facts material to the transactions.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, upon our company being notified by a selling stockholder that a donee or pledgee
intends to sell more than 500 shares of common stock, a supplement to this prospectus will be
filed.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our certificate of incorporation incorporates certain provisions permitted under the Delaware
General Corporation Law relating to the liability of directors. The provisions eliminate a
director&#146;s liability for monetary damages for a breach of fiduciary duty, including gross
negligence, except in circumstances involving certain wrongful acts, such as the breach of a
director&#146;s duty of loyalty or acts or omissions which involve intentional misconduct or a knowing
violation of law. These provisions do not eliminate a director&#146;s duty of care. Moreover, the
provisions do not apply to claims against a director for violations of certain laws, including
federal securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Certificate of Incorporation, as amended, also contains provisions to indemnify the
directors and officers, or other agents to the fullest extent permitted by the Delaware General
Corporation Law. These provisions may have the practical effect in certain cases of eliminating
the ability of stockholders to collect monetary damages from directors. The Company believes that
these provisions will assist the Company in attracting or retaining qualified individuals to serve
as officers or directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to our directors, officers and controlling persons pursuant to the foregoing provisions,
or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act of 1933 and is,
therefore, unenforceable.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the shares of common stock offered hereby and certain other legal matters will
be passed upon for us by Locke Liddell &#038; Sapp PLLC, Dallas, Texas.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left">
<A name="112"></A>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements as of December&nbsp;31, 2006 and for the year then ended
incorporated by reference in this prospectus have been so included in reliance on the report of
Lane Gorman Trubitt, L.L.P., an independent registered public accounting firm, given upon the
authority of said firm as experts in auditing and accounting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements as of December&nbsp;31, 2004 and 2005 and for the years then
ended incorporated by reference in this prospectus have been so included in reliance on the report
of BDO Seidman, LLP, an independent registered public accounting firm, given upon the authority of
said firm as experts in auditing and accounting.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have filed a registration statement on Form S-3 with the Securities and Exchange Commission
under the Securities Act with respect to the shares of common stock offered by this prospectus.
This prospectus, which constitutes a part of the registration statement, does not contain all of
the information included in the registration statement or the schedules, exhibits and amendments to
the registration statement. You should refer to the registration statement and its exhibits and
schedules for further information. Statements made in this prospectus as to any of our contracts,
agreements or other documents referred to are not necessarily complete. In each instance, if we
have filed a copy of such contract, agreement or other document as an exhibit to the registration
statement, you should read the exhibit for a more complete understanding of the matter involved.
Each statement regarding a contract, agreement or other document is qualified in all respects by
reference to the actual document. Certain information is also incorporated by reference into this
prospectus as described under &#147;Incorporation of Documents by Reference.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may read and copy information omitted from this prospectus but contained in the
registration statement at the Public Reference Section of the SEC at 100 F Street, N.E., Room&nbsp;1580,
Washington, D.C. 20549 at prescribed rates. Please call the Securities and Exchange Commission at
1-800-SEC-0330 for further information on the operation of the public reference rooms. In addition,
materials filed electronically with the SEC are available at the SEC&#146;s world wide web site at
<U>http://www.sec.gov</U>.<U> </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the information and periodic reporting requirements of the Securities
Exchange Act of 1934, and, in accordance therewith, file periodic reports, proxy statements and
other information with the SEC. Such periodic reports, proxy statements and other information are
available for inspection and copying at the Public Reference Room and web site of the SEC referred
to above. We also furnish our stockholders with annual reports containing our financial statements
audited by an independent registered public accounting firm and quarterly reports containing our
unaudited financial information. We maintain a web site at
<U>www.naturalhealthtrendscorp.com</U><I>. </I>You may access our annual report on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, filed or
furnished pursuant to section 13(a) or 15(d) of the Exchange Act with the SEC free of charge at our
web site as soon as reasonably practicable after this material is electronically filed with, or
furnished to, the SEC. The reference to our web address does not constitute incorporation by
reference of the information contained at that site.
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INCORPORATION OF DOCUMENTS BY REFERENCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to incorporate by reference the information we file with it. This means
that we can disclose information to you by referring you to those documents. The documents that
have been incorporated by reference are an important part of the prospectus, and you should review
that information in order to understand the nature of any investment by you in our common stock.
We are incorporating by reference the documents listed below:
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Annual Report on Form 10-K for the fiscal year ended
December&nbsp;31, 2006; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Quarterly Report on Form 10-Q for the fiscal quarter ended March&nbsp;31, 2007; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our shares of common stock contained in our Form 8-A dated June&nbsp;20, 1995; and</TD>
</TR>
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 6pt"></TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Forms&nbsp;8-K filed on January&nbsp;9, 2007,
February&nbsp;26, 2007, March&nbsp;6, 2007, March&nbsp;19, 2007,
April&nbsp;17, 2007, April&nbsp;26, 2007, April&nbsp;26, 2007,
May&nbsp;9, 2007, May&nbsp;16, 2007 and May&nbsp;30, 2007; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All documents subsequently filed by us pursuant to Section&nbsp;13(a), 13(c), 14 or 15(d) of
the Exchange Act, prior to the termination of the offering, shall be deemed to be
incorporated by reference into this prospectus.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will provide to each person, including any beneficial owner, to whom this prospectus is
delivered, a copy of any or all of the reports or documents that have been incorporated by
reference into this prospectus. If you would like a copy of any of these documents, at no cost,
please write or call us at:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Natural Health Trends Corp.<BR>
2050 Diplomat Drive<BR>
Dallas, Texas 75234<BR>
(972)&nbsp;241-4080<BR>
Attn: General Counsel
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any statement contained in a document which is incorporated by reference in this prospectus is
automatically updated and superceded if information contained in the prospectus modifies or
replaces this information.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II &#151; INFORMATION NOT REQUIRED IN PROSPECTUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;13. Other Expenses of Issuance and Distribution.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the costs and expenses, other than underwriting discounts and
commissions, payable in connection with the sale and distribution of the common shares being
registered. All of these expenses will be paid by us. All amounts except for the SEC registration
fee are estimated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC registration fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">396</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Filing costs
and other miscellaneous fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,396</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;14. Indemnification of Officers and Directors.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The General Corporation Law of the State of Delaware and the Company&#146;s Certificate of
Incorporation and Bylaws provide for indemnification of the Company&#146;s directors and officers for
liabilities and expenses that they may incur in such capacities. In general, directors and officers
are indemnified with respect to actions taken in good faith in a manner reasonably believed to be
in, or not opposed to, the Company&#146;s best interests and, with respect to any criminal action or
proceeding, actions that the indemnitee had no reasonable cause to believe were unlawful.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the indemnification provided by the Delaware General Corporation Law and the
Company&#146;s Certificate of Incorporation and Bylaws, the Company has entered into an Indemnification
Agreement with each of its directors and one executive officer (each, an &#147;Indemnified Party&#148;)
pursuant to which the Company agrees to indemnify each Indemnified Party (1)&nbsp;in general, for all
reasonable expenses (including attorneys&#146; fees) (which shall be advanced to the Indemnified Party)
incurred by the Indemnified Party in connection with any action, suit, arbitration, alternate
dispute resolution mechanism, investigation (including any internal corporate investigation),
administrative hearing or any other actual, threatened or completed proceeding, whether civil,
criminal, administrative or investigative, formal or informal and any appeal from any of the
foregoing, other than one initiated by the Indemnified Party (unless initiated by the Indemnified
Party to enforce the Indemnified Party&#146;s rights under such Indemnified Party&#146;s Indemnification
Agreement) (each of the foregoing, a &#147;Proceeding&#148;) to the fullest extent permitted by applicable
law, (2)&nbsp;for all reasonable expenses (including attorneys&#146; fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by such Indemnified Party or on behalf of such
Indemnified Party in connection with a Proceeding in which the Indemnified Party is, or is
threatened to be made, a party to or is otherwise involved in, other than a Proceeding by or in the
right of the Company, provided that the Indemnified Party acted in good faith and has not been
adjudged during the course of such Proceeding to have derived an improper personal benefit from the
transaction or occurrence forming the basis of such Proceeding, and (3)&nbsp;for all reasonable expenses
(including attorneys&#146; fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such Indemnified Party or on behalf of such Indemnified Party in connection
with a Proceeding brought by or in the right of the Company to procure a judgment in its favor in
which the Indemnified Party is, or is threatened to be made, a party to or is otherwise involved
in, provided that the Indemnified Party acted in good faith and has not been adjudged during the
course of such Proceeding to have derived an improper personal benefit from the transaction or
occurrence forming the basis of such Proceeding, and provided further that no indemnification will
be provided in respect of any claim, issue or matter as to which such Indemnified Party is adjudged
to be liable to the Company if applicable law prohibits such indemnification, proved that, if
applicable law so permits, indemnification shall nevertheless be made by the Company in such event
if and only to the extent that the court which is considering the matter shall so determine.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-1<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16. Exhibits and Financial Statement Schedules.</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Exhibit Description</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Reference</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Certificate for shares of common stock, $.001 par
value per share, of Natural Health Trends Corp.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(a)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Opinion of Locke Liddell
&#038; Sapp PLLC.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Lane Gorman Trubitt, L.L.P.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of BDO Seidman, LLP.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Locke Liddell &#038;
Sapp PLLC (included in Exhibit&nbsp;5.1).
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(b)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock and Warrant to Purchase
Agreement (U.S. Purchaser) dated May&nbsp;4, 2007 between the Company
and certain Purchasers.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(c)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock and Warrant Purchase
Agreement (Non-U.S. Purchaser) dated May&nbsp;4, 2007 between the Company
and certain Purchasers.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(c)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Warrant to Purchase Shares
of Common Stock of the Company, dated May&nbsp;4, 2007 and issued to
certain Purchasers.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(c)</TD>
</TR>


<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><DIV align="left"><DIV style="font-size: 3pt; margin-top: 13pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">* Filed herewith
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Previously filed May&nbsp;8, 2006, as an Exhibit to the Company&#146;s Annual
Report on Form 10-K, and incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Previously filed June&nbsp;29, 2007, on the signature page of
this Registration Statement.</TD>
</TR>

</TABLE>
</DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Previously filed May&nbsp;9, 2007, as an Exhibit to the
Company&#146;s Form 8-K, and incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;17. Undertakings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;To include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities
offered (if the total dollar value of the securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum offering range may
be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than a 20&nbsp;percent change in the
maximum aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148; table in the
effective registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;To include any material information with respect to any plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if
the information required to be included in a post-effective amendment by those paragraphs is
contained in reports filed with or furnished to the Commission by the registrant pursuant to
Section&nbsp;13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by
reference in the registration statement, or is contained in a form of prospectus filed pursuant to
Rule 424(b) that is part of the registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial <I>bona fide </I>offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;That, for the purpose of determining liability under the Securities Act of 1933 to any
purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule&nbsp;430B or other than
prospectuses filed in reliance on Rule&nbsp;430A, shall be deemed to be part of and included in the
registration statement as of the date it is first used after effectiveness. <I>Provided, however,</I>
that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement will, as to a
purchaser with a time of contract of sale prior to such first use, supersede or modify any
statement that was made in the registration statement or prospectus that was part of the
registration statement or made in any such document immediately prior to such date of first use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The undersigned registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the registrant&#146;s annual report pursuant
to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each
filing of an employee benefit plan&#146;s annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial <I>bona fide </I>offering
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Dallas, State of Texas, on
August&nbsp;3, 2007.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NATURAL HEALTH TRENDS CORP.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: August&nbsp;3, 2007&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Chris T. Sharng
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chris T. Sharng&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">President<BR>(Principal Executive Officer)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">/s/ Chris T. Sharng
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Chris T. Sharng</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
President<BR>
(Principal Executive Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;3, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">*
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Timothy S. Davidson</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Senior Vice President and Chief
Financial<BR>Officer<BR>
(Principal Financial and
Accounting Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;3, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">*
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Randall A. Mason</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Chairman of the Board and Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;3, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">*
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Anthony B. Martino</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;3, 2007</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">*
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Stefan W. Zuckut</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;3, 2007</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">*By: /s/ Chris T. Sharng
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Chris T. Sharng, Attorney-in-Fact</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;3, 2007</TD>
</TR>

<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>EXHIBIT INDEX</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Reference</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Certificate for shares of common stock, $.001 par
value per share, of Natural Health Trends Corp.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(a)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Opinion of Locke Liddell
&#038; Sapp PLLC.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Lane Gorman Trubitt, L.L.P.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of BDO Seidman, LLP.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Locke Liddell &#038;
Sapp PLLC (included in Exhibit&nbsp;5.1).
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">*</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(b)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock and Warrant to Purchase
Agreement (U.S. Purchaser) dated May&nbsp;4, 2007 between the Company
and certain Purchasers.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(c)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock and Warrant Purchase
Agreement (Non-U.S. Purchaser) dated May&nbsp;4, 2007 between the Company
and certain Purchasers.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(c)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Warrant to Purchase Shares
of Common Stock of the Company, dated May&nbsp;4, 2007 and issued to
certain Purchasers.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(c)</TD>
</TR>

<!-- End Table Body --></TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><DIV align="left"><DIV style="font-size: 3pt; margin-top: 13pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">* Filed herewith
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Previously filed May&nbsp;8, 2006, as an Exhibit to the Company&#146;s Annual
Report on Form 10-K, and incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Previously filed June&nbsp;29, 2007, on the signature page of
this Registration Statement.</TD>
</TR>

</TABLE>
</DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Previously filed May&nbsp;9, 2007, as an Exhibit to the
Company&#146;s Form 8-K, and incorporated herein by reference.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-5<!-- /Folio -->
</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>d48521a1exv5w1.htm
<DESCRIPTION>LEGAL OPINION OF LOCKE LIDDELL & SAPP PLLC
<TEXT>
<HTML>
<HEAD>
<TITLE>exv5w1</TITLE>
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<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;5.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;LLS LETTERHEAD&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">August&nbsp;3, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural Health Trends Corp.<BR>
2050 Diplomat Drive<BR>
Dallas, Texas<BR>
Ladies and Gentlemen:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as special counsel to Natural Health Trends Corp., a Delaware corporation (the
&#147;Company&#148;), in connection with the Registration Statement on Form S-3 (the &#147;Registration
Statement&#148;) filed by the Company with the Securities and Exchange Commission pursuant to the
Securities Act of 1933, as amended (the &#147;Securities Act&#148;), relating to the registration of
3,818,614 shares of common stock, par value $.001 per share (the &#147;Shares&#148;), 1,759,307 of which are
issuable upon conversion of the Series&nbsp;A preferred stock, par value $.001 per share, and 2,059,307
of which are issuable upon the exercise of certain warrants (collectively, the &#147;Underlying Common
Stock&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In that connection, we have examined originals, or copies certified or otherwise identified to
our satisfaction, of the Registration Statement and the exhibits thereto and such documents,
corporate records and other instruments as we have deemed necessary or appropriate for the purposes
of this opinion, including, without limitation, (a)&nbsp;the Certificate of Incorporation of the
Company, (b)&nbsp;the Bylaws of the Company and (c)&nbsp;certain resolutions adopted by the board of
directors of the Company. We have relied, with respect to certain factual matters, on the
representations of officers of the Company and documents furnished to us by the Company without
independent verification of their accuracy. We have also assumed the genuineness of all
signatures, the authenticity of all documents submitted to us as originals and the conformity to
authentic original documents of all documents submitted to us as copies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon the foregoing, we are of the opinion that the Underlying Common Stock has been duly
authorized by all necessary corporate action and such Underlying Common Stock, when issued and
delivered upon conversion in accordance with the terms of the Series&nbsp;A preferred stock or the
exercise of the warrants, as the case may be, will be validly issued, fully paid and nonassessable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is limited to the laws of the State of Delaware and the federal laws of the
United States of America, each as presently in effect, and is based upon our review of such laws
and the reported judicial decisions interpreting such laws. We do not express any opinion as to
the laws of any other jurisdiction and we express no opinion as to the effect of any other laws on
the opinions stated herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is being furnished in accordance with the requirements of Item&nbsp;601(b)(5) of
Regulation&nbsp;S-K under the Securities Act.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the filing of this opinion as an Exhibit to the Registration Statement.
We also consent to the reference to our firm under the caption &#147;Legal Matters&#148; in the Registration
Statement. In giving such opinion and consent, we do not thereby admit that we are acting within
the category of persons whose consent is required under Section&nbsp;7 of the Securities Act and the
rules and regulations promulgated thereunder.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
<BR>
LOCKE LIDDELL &#038; SAPP PLLC<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ John B. McKnight
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">John B. McKnight&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>d48521a1exv23w1.htm
<DESCRIPTION>CONSENT OF LANE GORMAN TRUBITT, L.L.P.
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;23.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural Health Trends Corp.<BR>
Dallas, Texas

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent
to the reference to our firm under the caption &#147;Experts&#148; in
the Pre-Effective Amendment No.&nbsp;1 to the Registration Statement
(Form S-3) and related Prospectus of Natural Health Trends Corp. for the registration of 3,818,614
shares of its common stock and to the incorporation by reference therein of our report dated March
20, 2007, with respect to the consolidated financial statements of Natural Health Trends Corp.
included in its Annual Report (Form 10-K) for the year ended December&nbsp;31, 2006 filed with the
Securities and Exchange Commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Lane Gorman Trubitt, L.L.P.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dallas, Texas<BR>
August&nbsp;3, 2007

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>4
<FILENAME>d48521a1exv23w2.htm
<DESCRIPTION>CONSENT OF BDO SEIDMAN, LLP.
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;23.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural Health Trends Corp.<BR>
Dallas, Texas

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the incorporation by reference in the prospectus constituting a part of this
Registration Statement on Form S-3 our report dated April&nbsp;28, 2006 except for Note 17 as to
which the date is May&nbsp;5, 2006 and Note 2 as to which the date is May&nbsp;29, 2006 relating to the
consolidated financial statements of Natural Health Trends Corp. appearing in the Company&#146;s Annual
Report on Form 10-K. Our report contains an explanatory (emphasis)&nbsp;paragraph stating sales of
products to members in China represent a significant portion of the Company&#146;s net sales. Any
disruption of such sales would have a negative impact upon the Company&#146;s future operations.
Further, if it were determined that import duties in China are underpaid, the Company could be
required to satisfy part or all of the liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also consent to the reference to us under the caption &#147;Experts&#148; in the prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ BDO Seidman, LLP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">August&nbsp;3, 2007<BR>
Dallas, Texas

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>5
<FILENAME>filename5.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NATURAL HEALTH TRENDS CORP.<BR>
2050 Diplomat Drive<BR>
Dallas, TX 75234</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">August&nbsp;3, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">H. Christopher Owings<BR>
Assistant Director<BR>
Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Re:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Natural Health Trends Corp.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Statement on Form&nbsp;S-3</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed June&nbsp;29, 2007</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">File No.&nbsp;333-144219</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form&nbsp;10-K for Fiscal Year Ended December&nbsp;31, 2006</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed March&nbsp;28, 2007</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form&nbsp;10-Q for Fiscal Quarter Ended March&nbsp;31, 2007</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed May&nbsp;11, 2007</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">File No.&nbsp;0-26272</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Mr.&nbsp;Owings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below are the responses of Natural Health Trends Corp. (the &#147;<U>Company</U>&#148;) to
the Commission&#146;s comment letter dated July&nbsp;26, 2007. Where appropriate, we have included
references to Amendment No.&nbsp;1 to the referenced Registration Statement on Form S-3 (the
&#147;<U>Amended Registration Statement</U>&#148;), which we have concurrently filed with the Commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For your convenience, the Commission&#146;s comments have been repeated herein, with the Company&#146;s
response immediately following each of the Commission&#146;s comments and highlighted in bold font.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Selling Stockholders, page 20</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please expand the table to include the natural persons with the power to vote
or to dispose of the securities offered for resale by the entities that are listed as
selling securityholders. We note, for example, you have not indicated the natural
person(s) controlling Craig-Hallum Partners. If more than one holder is listed as
beneficial owner for the same securities, include explanatory text or footnotes. See
Interpretation 4S of the Regulation&nbsp;S-K portion of the March&nbsp;1999 supplement to the CF
telephone interpretation manual.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The table has been expanded to include the identity of all natural persons having
the power to vote or to dispose of the securities offered for resale by the entities
that are listed as selling stockholders. In particular, please note that such
information is provided for Craig-Hallum Partners in footnote 4</B></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Page 2

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>to the table, for Chief China Resources Ltd. (Samoa) in footnote 8 to the table and
for Chief China Resources Ltd. (British Virgin Islands) in footnote 9 to the table.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please update the table on page 21 to the latest practicable date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The table has been updated to provide all information as of July&nbsp;27, 2007, the
latest practicable date.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Incorporation of Documents by Reference, page 26</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please specifically incorporate by reference all other reports filed pursuant
to Section 13(a) or 15(d) of the Exchange Act since the end of your fiscal year. We
note, for example, you have not specifically incorporated by reference numerous Forms
8-K. See Item&nbsp;12(a)(2) of Form S-3.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company intended to incorporate by reference in the Registration Statement all
Current Reports on </B><B>Form 8-K</B><B> filed in 2007 by incorporating by reference &#147;all of our
filings pursuant to </B><B>Sections 13(a)</B><B> or </B><B>15(b)</B><B> under the Securities Exchange Act of
1934 ...&#148; The Amended Registration Statement now </B><U><B>specifically</B></U><B> incorporates
by reference all Current Reports on </B><B>Form 8-K</B><B> filed since January&nbsp;1, 2007 (please
note that on March&nbsp;28, 2007 and May&nbsp;11, 2007 the Company </B><U><B>furnished</B></U><B> to the
Commission certain Current Reports on </B><B>Form 8-K</B><B> that are not listed).</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Exhibits and Financial Statement Schedules, page II-2</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please file or incorporate by reference the form of securities purchase
agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company has added as Exhibits to the Amended Registration Statement both
versions of the Form of Stock and Warrant Purchase Agreement and the Form of Warrant
to Purchase Shares of Common Stock, which Exhibits are incorporated by reference.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Exhibit&nbsp;5.1 Opinion of Locke Liddell &#038; Sapp LLP</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We note in the second paragraph that counsel has assumed the legal capacity of
natural persons. We also note in the third paragraph that counsel has assumed that the
&#147;...parties...other than the Company, had or will have the power, corporate or other,
to enter into and perform all obligations...&#148; It is not appropriate to assume away
legal issues that relate directly to the legality of the securities. Please delete the
assumptions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Our legal counsel, Locke Liddell &#038; Sapp PLLC, has revised its legal opinion and is
submitting such revised legal opinion as Exhibit&nbsp;5.1 to the Amended Registration
Statement. As requested, our legal counsel has eliminated its assumption of or
reliance upon certain matters. However,</B></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Page 3

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>please note that our legal counsel references in the revised legal opinion certain
factual assumptions, and its reliance on certain facts, that it advises must be made
in order to properly deliver the required legal opinion. For example, in order to
provide the required legal opinion, our legal counsel advises that it must be
assured that certain of the Company&#146;s corporate documents are authentic and that no
action has been taken that would amend, modify or rescind such documents or the
corporate matters to which they relate.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the last sentence of the second paragraph, counsel states that it has relied
upon certain facts necessary to form the basis of its opinion. Please have counsel
revise the opinion or advise us on this matter.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Please see the above response to Comment #5.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the reference in the penultimate paragraph to updating the opinion is
retained, please file a legality opinion that is dated the day you plan to go effective
on the registration statement. In such case, please furnish to us the form of the
opinion for our review prior to requesting effectiveness.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The referenced paragraph in the legal opinion has been eliminated, thus obviating
the need to have the legal opinion dated the date of expected effectiveness of the
Amended Registration Statement.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Form&nbsp;10-K for Fiscal Year Ended December&nbsp;31, 2006</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Form&nbsp;10-Q for Fiscal Quarter Ended March&nbsp;31, 2007</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Controls and Procedures, page 72</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please refer to your president as your principal executive officer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company undertakes to refer to its president as its principal executive officer
in its future filings.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We note on page 72 that you state that your disclosure controls and procedures
were not effective to provide reasonable assurance that information required to be
disclosed is recorded, processed, summarized and reported within the time periods
specified. In future filings, please revise to clarify, if true, that your officers
concluded that your disclosure controls and procedures are also effective (or not
effective) to ensure that information required to be disclosed in the reports that you
file or submit under the Exchange Act is accumulated and communicated to your
management, including your principal executive and principal financial officer, to
allow timely decisions regarding required disclosure. See Exchange Act Rule&nbsp;13a-15(e).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company undertakes to clarify and expand the referenced disclosure in future
filings.</B></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
Page 4

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please provide the attestation statement required by Item&nbsp;308(a)(4) of
Regulation&nbsp;S-K and the report required by Item 308(b) also of that regulation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company understands that the Commission has withdrawn this comment.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Exhibits 31.1 and 31.2</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please remove the titles of your CEO and CFO from the introduction to your
certifications.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company undertakes to remove the indicated titles from the Certifications and to
conform the Certifications exactly to the form required by Item&nbsp;</B><B>601(b)(31)(i)</B><B> of
Regulation&nbsp;S-K in future filings.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please revise paragraph 4 (c)&nbsp;to state: &#147;Disclosed in this report any change in
the registrant&#146;s internal control over financial reporting that occurred during the
registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the
case of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant&#146;s internal control over financial reporting; and.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company undertakes to make </B>t<B>he requested revision to the Certifications in
future filings.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please revise your certifications to conform exactly to the form required by
Item&nbsp;601(b)(31) of Regulation&nbsp;S-B. Refile the Item&nbsp;601(b)(31) certifications with each
of the entire amended periodic reports, including all certifications.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>The Company undertakes to conform </B>t<B>he certifications exactly to the form required by
Item&nbsp;</B><B>601(b)(31)(i)</B><B> of Regulation&nbsp;S-K in future filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">***
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thank you for your consideration of the foregoing responses. Should you have any questions
regarding the above responses, please do not hesitate to contact the undersigned at (972)&nbsp;241-4080.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Sincerely,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">/s/ Chris T. Sharng

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Chris T. Sharng

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">cc: John B. McKnight, Esq.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


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