Natural Alternatives International, Inc. Announces Resolution of Patent Litigation Case and Renewal of Beta-Alanine Licensing Agreement With Compound Solutions, Inc.

Natural Alternatives International, Inc. NAII today announced that it reached a settlement with one of the defendants to litigation pending before the U.S. District Court for the District of Delaware, Vital Pharmaceutical, Inc. As part of the settlement, NAI granted VPX a limited and restricted covenant not to sue on certain claims of NAI's asserted beta-alanine patents and VPX agreed to dismiss its claims of invalidity and to cease certain business activities. Other terms of the confidential settlement were not disclosed. On August 3, 2011 NAI amended its complaint originally filed in August 2009 against the second defendant, DNP International Co., Inc. ("DNP"), to reassert its federal claims for unfair competition and false advertising as well as state claims for deceptive trade practices. According to the amended complaint, "DNP has repeatedly attempted to unfairly compete" with NAI's CarnoSyn® beta-alanine product licensed to Compound Solutions, Inc. ("CSI"), a science and marketing based distributor of raw materials to the sports nutrition, dietary supplement, food, pharmaceutical and personal care industries. CSI is also a plaintiff in the case. NAI's amended and supplemented claims arise from "knowingly false and misleading statements made by DNP to improperly boost sales of its imported beta-alanine product."