July 25, 2002

On October 21, 2002, The USDA National Organic Program (NOP) will be put into effect. Over the past year, The Hain Celestial Group has been working diligently to ensure that all of our products are in full compliance. These new standards will offer U.S. consumers the assurance that all food products labeled as organic in the United States are governed by consistent standards. For those of you unfamiliar with the new regulations, the national organic standards will allow four different labeling options based on the percentage of organic ingredients in a product.

• 100% Organic. Only products that have been exclusively produced using organic methods will be allowed to carry a label declaring "100% Organic."
• Organic. This will signify that at least 95% of the ingredients have been organically produced.
• Made with Organic. Products with 70% to 94% organic ingredients may display "Made with Organic" with up to three specific ingredients listed.
• Products with less than 70% Organic ingredients may only state organic ingredients within the ingredient declaration. There can be no mention of organic on the main panel.

We have improved our packaging to ensure full compliance with all NOP standards. Brands most affected by the new regulations include Garden of Eatin, Little Bear, Bearitos, Arrowhead Mills, Earth's Best, Health Valley and Hain. For the Celestial Seasonings brand, only the 4 Organic tea sku's will be affected by these new regulations. Many of these new labels are already on the shelf. The remaining sku's affected by the new regulations will be phased in over the next few months.

Please note that the regulations state that all products manufactured after October 21 must be labeled according to the new regulations. This does not include products already in the warehouse, within the distribution system or in-store. Customers should not be concerned if they receive shipments with labels that are not in compliance after October 21. This simply means the product was produced before October 21 and in the chain of commerce and therefore still in compliance.

The Hain Celestial Group applauds the new regulations and is committed to the new organic program.