SCOTTSDALE, Ariz., Oct. 16, 2008 (GLOBE NEWSWIRE) -- Baywood International, Inc. (OTCBB:BAYW) ("Company") announced expansion of its business plan and unaudited sales results for its recently acquired Orangeburg, NY-based Skae Beverage International, LLC ("Skae Beverage"), maker of natural, ready-to-drink New Leaf brand of teas.

Sales Results

Skae Beverage unaudited sales for the nine months ended September 30, 2008 grew 183% to $2,500,000, compared to $885,000 in the year-ago period. Volume growth was primarily driven by the growing sales into the distribution network and increasing turn of the brand from consumers in the independent grocery/restaurant "street" channel.

The New Leaf brand is already established in the Northeast and is emerging in the Southeast, Midwest and South Florida through over 50 distributors and approximately 5,000 accounts in the independent grocery/restaurant "street" channel. The Company's goal is to build the New Leaf brand and drive sales growth through expanded distribution, marketing support and new product additions.

"The track record and continuing momentum of the New Leaf brand with distributors and consumers is compelling. The growth of Skae Beverage is the result of a great product coupled with great management, and we intend to support this enterprise and Mr. Eric Skae to its fullest potential," stated Neil Reithinger, President & C.E.O. of Baywood.

Teas are a component of the fast growing functional beverage category. The Company believes that it is essential to expand its business aggressively in this category. As previously announced, it has appointed Mr. Eric Skae to run the Skae Beverage division and to its Board of Directors to oversee these plans.