----

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* *

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

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**FORM      10-Q**

| **ý**                                                        | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934**  |
|-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
| **For                the quarterly period ended August 31, 2007** |
|                                                              |
| **q**                                                             | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|                                                              |
|                                                              |
| **For                the transition period from ____ to ____.**   |
|                                                              |
| Commission                file number:                            |
| **001-14608**                                                     |

**SCHIFF      NUTRITION INTERNATIONAL, INC.**

| **Delaware**                                                                                               |   | **87-0563574**                                                    |
|------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                or                other jurisdictionof                incorporation or organization) |   | (I.R.S.                EmployerIdentification                No.) |
|                                                                                                       |   |                                                              |
| **2002                South 5070 West****Salt                Lake City, Utah**                             |   | **84104-4726**                                                    |
| (Address                of                principalexecutive                offices)                       |   | (Zip                Code)                                         |

**(801)      975-5000**

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**SCHIFF        NUTRITION INTERNATIONAL, INC.**

**TABLE        OF CONTENTS**

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**PART        I. FINANCIAL INFORMATION**

|                           ITEM 1.   | FINANCIAL                  STATEMENTS |
|---------------------------------------------------------------------------------------|---------------------------------------|

|   | CONDENSED                  CONSOLIDATED BALANCE                  SHEETS |
|--------|-------------------------------------------------------------------------|

|   | CONDENSED                  CONSOLIDATED STATEMENTS OF                  INCOME |
|--------|-------------------------------------------------------------------------------|

|   | CONDENSED                  CONSOLIDATED STATEMENTS OF CASH                  FLOWS |
|--------|-----------------------------------------------------------------------------------|

|   | NOTES                  TO CONDENSED CONSOLIDATED FINANCIAL                  STATEMENTS |
|--------|----------------------------------------------------------------------------------------|

| 1.   | BASIS                  OF PRESENTATION AND OTHER                  MATTERS |
|----------------|---------------------------------------------------------------------------|

| 2.   | AVAILABLE-FOR-SALE                  SECURITIES |
|----------------|------------------------------------------------|

| 3.   | RECEIVABLES,                  NET |
|----------------|-----------------------------------|

| 4.   | INVENTORIES |
|----------------|-------------|

| 5.   | GOODWILL                  AND INTANGIBLE ASSETS,                  NET |
|----------------|-----------------------------------------------------------------------|

| 6.   | ACCRUED                  EXPENSES |
|----------------|-----------------------------------|

| 7.   | CONCENTRATION                  RISK |
|----------------|-------------------------------------|

| 8.   | COMMITMENTS                  AND                  CONTINGENCIES |
|----------------|-----------------------------------------------------------------|

| 9.   | RECENTLY                  ISSUED ACCOUNTING                  STANDARDS |
|----------------|------------------------------------------------------------------------|

|                           ITEM 2.   | MANAGEMENT’S                  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION                  AND RESULTS OF OPERATIONS |
|---------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

General

Results        of Operations (unaudited)

Liquidity        and Capital Resources

Critical        Accounting Policies and Estimates

Impact        of Inflation

Seasonality

|                           ITEM 3.   | QUANTITATIVE                  AND QUALITATIVE DISCLOSURES ABOUT MARKET                  RISK |
|---------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|

|                           ITEM 4.   | CONTROLS                  AND                  PROCEDURES |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------|

|                           ITEM 4T.   | CONTROLS                  AND                  PROCEDURES |
|----------------------------------------------------------------------------------------|-----------------------------------------------------------|

**PART        II. OTHER INFORMATION**

|                           ITEM 1.   | LEGAL                  PROCEEDINGS |
|---------------------------------------------------------------------------------------|------------------------------------|

| ITEM                  1A.   | RISK                  FACTORS |
|---------------------------------------|-------------------------------|

|                           ITEM 2.   | UNREGISTERED                  SALES OF EQUITY SECURITIES AND USE OF                  PROCEEDS |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|

|                           ITEM 3.   | DEFAULTS                  UPON SENIOR                  SECURITIES |
|---------------------------------------------------------------------------------------|-------------------------------------------------------------------|

|                           ITEM 4.   | SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY                  HOLDERS |
|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|

|                           ITEM 5.   | OTHER                  INFORMATION |
|---------------------------------------------------------------------------------------|------------------------------------|

|                           ITEM 6.   | EXHIBITS |
|---------------------------------------------------------------------------------------|----------|

**SIGNATURES**

|   | **Exhibit                  31.1**- Certification                  of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **Exhibit                  31.2**- Certification                  of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | **Exhibit                    32.1** - CEO and CFO                    Certifications pursuant to Section 906 of the Sarbanes-Oxley                    Act of                    2002 |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART              I. FINANCIAL              INFORMATION**

| **ITEM 1.  ** | **FINANCIAL                STATEMENTS** |
|------------------------------|-----------------------------------------|

**SCHIFF      NUTRITION INTERNATIONAL, INC. AND      SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

*(in      thousands,      except share data)*

|                                                                                                                                                                               |   | August                31,                2007 |    |   | May                31,                2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|--------------------------------------------|--------|
|                                                                                                                                                                               |   | *(unaudited)*                                 |    |   |                                       |   |
| **ASSETS**                                                                                                                                                                         |   |                                          |    |   |                                       |   |
| Current                assets:                                                                                                                                                     |   |                                          |    |   |                                       |   |
| Cash                and cash                equivalents                                                                                                                            |   | $                                             | 15,109  |   |                                       | $      | 34,463 |   |
| Available-for-sale                securities                                                                                                                                       |   |                                          | 24,005  |   |                                       |   | 45,817 |   |
| Receivables,                net                                                                                                                                                    |   |                                          | 18,032  |   |                                       |   | 17,732 |   |
| Inventories                                                                                                                                                                        |   |                                          | 25,475  |   |                                       |   | 23,698 |   |
| Prepaid                expenses and other                                                                                                                                          |   |                                          | 1,343   |   |                                       |   | 2,151 |   |
| Deferred                taxes, net                                                                                                                                                 |   |                                          | 1,340   |   |                                       |   | 1,992 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Total                current                assets                                                                                                                                 |   |                                          | 85,304  |   |                                       |   | 125,853 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Property                and                equipment, net                                                                                                                          |   |                                          | 14,878  |   |                                       |   | 14,438 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Other                assets:                                                                                                                                                       |   |                                          |    |   |                                       |   |   |   |
| Goodwill                                                                                                                                                                           |   |                                          | 4,346   |   |                                       |   | 4,346 |   |
| Deposits                and                other assets                                                                                                                            |   |                                          | 70      |   |                                       |   | 105 |   |
| Deferred                taxes, net                                                                                                                                                 |   |                                          | 1,291   |   |                                       |   | 337 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Total                other                assets                                                                                                                                   |   |                                          | 5,707   |   |                                       |   | 4,788 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Total                assets                                                                                                                                                        |   | $                                             | 105,889 |   |                                       | $      | 145,079 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                            |   |                                          |    |   |                                       |   |   |   |
| Current                liabilities:                                                                                                                                                |   |                                          |    |   |                                       |   |   |   |
| Accounts                payable                                                                                                                                                    |   | $                                             | 7,693   |   |                                       | $      | 7,962 |   |
| Accrued                expenses                                                                                                                                                    |   |                                          | 8,341   |   |                                       |   | 10,542 |   |
| Dividends                payable                                                                                                                                                   |   |                                          | 1,075   |   |                                       |   | — |   |
| Income                taxes                payable                                                                                                                                 |   |                                          | 2,254   |   |                                       |   | 2,480 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Total                current                liabilities                                                                                                                            |   |                                          | 19,363  |   |                                       |   | 20,984 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Long-term                liabilites:                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Dividends                payable                                                                                                                                                   |   |                                          | 1,224   |   |                                       |   | — |   |
| Other                                                                                                                                                                              |   |                                          | 487     |   |                                       |   | — |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Total                long-term liabilites                                                                                                                                          |   |                                          | 1,711   |   |                                       |   | — |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Commitments                and contingencies (Note 8)                                                                                                                              |   |                                          |    |   |                                       |   |   |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Stockholders'                equity:                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Preferred                stock, par value $.01 per share; shares authorized-10,000,000; no                shares                issued and outstanding                             |   |                                          | — |   |                                       |   | — |   |
| Class                A                common stock, par value $.01 per share; shares authorized-50,000,000;                shares issued and outstanding-11,658,111 and 11,664,284 |   |                                          | 116     |   |                                       |   | 116 |   |
| Class                B                common stock, par value $.01 per share; shares authorized-25,000,000;                shares issued and outstanding-14,973,148                |   |                                          | 150     |   |                                       |   | 150 |   |
| Additional                paid-in capital                                                                                                                                          |   |                                          | 84,377  |   |                                       |   | 92,640 |   |
| Retained                earnings                                                                                                                                                   |   |                                          | 172     |   |                                       |   | 31,189 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Total                stockholders' equity                                                                                                                                          |   |                                          | 84,815  |   |                                       |   | 124,095 |   |
|                                                                                                                                                                               |   |                                          |    |   |                                       |   |   |   |
| Total                liabilities and stockholders' equity                                                                                                                          |   | $                                             | 105,889 |   |                                       | $      | 145,079 |   |

***Jump      to Table of      Contents***

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**SCHIFF              NUTRITION INTERNATIONAL, INC. AND              SUBSIDIARIES**

**CONDENSED              CONSOLIDATED STATEMENTS OF INCOME**

*(in              thousands,              except share data)*

*(unaudited)*

|                                                                 |   | Three                Months                Ended August                31, |       |
|----------------------------------------------------------------------|--------|----------------------------------------------------------------------------|------------|
|                                                                 |   | 2007                                                                       |       |   | 2006 |   |
|                                                                 |   |                                                                       |       |   |   |   |
| Net                sales                                             |   | $                                                                          | 40,727     |   |   | $ | 45,652 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Cost                of goods                sold                     |   |                                                                       | 24,306     |   |   |   | 28,536 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Gross                profit                                          |   |                                                                       | 16,421     |   |   |   | 17,116 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Operating                expenses:                                   |   |                                                                       |       |   |   |   |   |   |
| Selling                and                marketing                  |   |                                                                       | 6,756      |   |   |   | 8,289 |   |
| General                and                administrative             |   |                                                                       | 6,787      |   |   |   | 3,699 |   |
| Research                and                development               |   |                                                                       | 1,026      |   |   |   | 816 |   |
| Reimbursement                of import costs                         |   |                                                                       | —    |   |   |   | (20 | ) |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Total                operating expenses                              |   |                                                                       | 14,569     |   |   |   | 12,784 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Income                from                operations                 |   |                                                                       | 1,852      |   |   |   | 4,332 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Other                income                (expense):                |   |                                                                       |       |   |   |   |   |   |
| Interest                income                                       |   |                                                                       | 821        |   |   |   | 743 |   |
| Interest                expense                                      |   |                                                                       | (27        | ) |   |   | (58 | ) |
| Other,                net                                            |   |                                                                       | 4          |   |   |   | — |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Total                other                income, net                |   |                                                                       | 798        |   |   |   | 685 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Income                before                income taxes             |   |                                                                       | 2,650      |   |   |   | 5,017 |   |
| Income                tax                expense                     |   |                                                                       | 1,002      |   |   |   | 1,754 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Net                income                                            |   | $                                                                          | 1,648      |   |   | $ | 3,263 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Weighted                average shares outstanding:                  |   |                                                                       |       |   |   |   |   |   |
| Basic                                                                |   |                                                                       | 26,622,423 |   |   |   | 26,482,198 |   |
| Diluted                                                              |   |                                                                       | 27,426,939 |   |   |   | 27,314,718 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Net                income                per share-basic and diluted |   | $                                                                          | 0.06       |   |   | $ | 0.12 |   |
|                                                                 |   |                                                                       |       |   |   |   |   |   |
| Comprehensive                income                                  |   | $                                                                          | 1,648      |   |   | $ | 3,263 |   |

***Jump to Table of      Contents***

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**SCHIFF              NUTRITION INTERNATIONAL, INC. AND              SUBSIDIARIES**

**CONDENSED              CONSOLIDATED STATEMENTS OF CASH FLOWS**

*(in              thousands)*

*(unaudited)*

|                                                                                                            |   | Three                Months                Ended August                31, |    |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|---------|
|                                                                                                            |   | 2007                                                                       |    |   | 2006 |   |
| Cash                flows                from operating activities:                                             |   |                                                                       |    |   |   |   |
| Net                income                                                                                       |   | $                                                                          | 1,648   |   |   | $ | 3,263 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                                                       |    |   |   |   |   |   |
| Deferred                taxes                                                                                   |   |                                                                       | (264    | ) |   |   | (62 | ) |
| Depreciation                and amortization                                                                    |   |                                                                       | 886     |   |   |   | 779 |   |
| Amortization                of financing fees                                                                   |   |                                                                       | 4       |   |   |   | 14 |   |
| Stock-based                compensation                                                                         |   |                                                                       | 3,937   |   |   |   | 846 |   |
| Excess                tax                benefit from equity instruments                                        |   |                                                                       | (262    | ) |   |   | (148 | ) |
| Other                                                                                                           |   |                                                                       | 2       |   |   |   | 2 |   |
| Changes                in                operating assets and liabilities:                                      |   |                                                                       |    |   |   |   |   |   |
| Receivables                                                                                                     |   |                                                                       | (300    | ) |   |   | (2,209 | ) |
| Inventories                                                                                                     |   |                                                                       | (1,777  | ) |   |   | (976 | ) |
| Prepaid                expenses and other                                                                       |   |                                                                       | 808     |   |   |   | 1,536 |   |
| Deposits                and                other assets                                                         |   |                                                                       | 31      |   |   |   | (139 | ) |
| Accounts                payable                                                                                 |   |                                                                       | 67      |   |   |   | (2,117 | ) |
| Other                current                liabilities                                                         |   |                                                                       | (1,850  | ) |   |   | 933 |   |
| Other                long-term liabilites                                                                       |   |                                                                       | 10      |   |   |   | — |   |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Net                cash                provided by operating activities                                         |   |                                                                       | 2,940   |   |   |   | 1,722 |   |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Cash                flows                from investing activities:                                             |   |                                                                       |    |   |   |   |   |   |
| Purchase                of                property and equipment                                                |   |                                                                       | (1,664  | ) |   |   | (1,183 | ) |
| Purchase                of                available-for-sale securities                                         |   |                                                                       | (6,040  | ) |   |   | (7,255 | ) |
| Proceeds                from                sale of available-for-sale securities                               |   |                                                                       | 27,852  |   |   |   | 3,807 |   |
| Collection                of                notes receivable                                                    |   |                                                                       | — |   |   |   | 150 |   |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Net                cash                provided by (used in) investing activities                               |   |                                                                       | 20,148  |   |   |   | (4,481 | ) |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Cash                flows                from financing activities:                                             |   |                                                                       |    |   |   |   |   |   |
| Proceeds                from                stock options exercised                                             |   |                                                                       | 34      |   |   |   | 35 |   |
| Purchase                and                retirement of common stock                                           |   |                                                                       | (120    | ) |   |   | (170 | ) |
| Excess                tax                benefit from equity instruments                                        |   |                                                                       | 262     |   |   |   | 148 |   |
| Dividends                paid                                                                                   |   |                                                                       | (42,618 | ) |   |   | — |   |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Net                cash                provided by (used in) financing activities                               |   |                                                                       | (42,442 | ) |   |   | 13 |   |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Effect                of                exchange rate changes on cash                                           |   |                                                                       | — |   |   |   | (2 | ) |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Decrease                in                cash and cash equivalents                                             |   |                                                                       | (19,354 | ) |   |   | (2,748 | ) |
| Cash                and cash                equivalents, beginning of period                                    |   |                                                                       | 34,463  |   |   |   | 24,899 |   |
|                                                                                                            |   |                                                                       |    |   |   |   |   |   |
| Cash                and cash                equivalents, end of period                                          |   | $                                                                          | 15,109  |   |   | $ | 22,151 |   |

***Jump to Table of      Contents***

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**SCHIFF              NUTRITION INTERNATIONAL, INC. AND              SUBSIDIARIES**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*(dollars              in              thousands, except share data)*

| **1.  ** | **BASIS                OF PRESENTATION AND OTHER                MATTERS** |
|--------------------|---------------------------------------------------------------------------|

***Jump to Table of      Contents***

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**SCHIFF            NUTRITION INTERNATIONAL, INC. AND SUBSIDIARIES**

**NOTES              TO**
**CONDENSED **
**CONSOLIDATED FINANCIAL STATEMENTS–**
*(continued)*

*(dollars              in              thousands, except share data)*

| **2.  ** | **AVAILABLE-FOR-SALE                SECURITIES** |
|--------------------|--------------------------------------------------|

|                                                        |   | August                31,                2007 |   |   | May                31,                2007 |   |
|-------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                                        |   |                                          |   |   |                                       |   |
| Federal,                state and municipal debt securities |   | $                                             | 17,872 |   |                                       | $      | 32,529 |   |
| Corporate                debt securities                    |   |                                          | 2,583  |   |                                       |   | 9,038 |   |
| Corporate                equity securities                  |   |                                          | 3,550  |   |                                       |   | 4,250 |   |
|                                                        |   |                                          |   |   |                                       |   |   |   |
| Total                                                       |   | $                                             | 24,005 |   |                                       | $      | 45,817 |   |

| Less                than one                year |   | $      | 4,010  |   |
|--------------------------------------------------|--------|--------|--------|--------|
| One                to five                years  |   |   | 600    |   |
| Over                five                years    |   |   | 15,845 |   |
|                                             |   |   |   |   |
| Total                                            |   | $      | 20,455 |   |

| **3.  ** | **RECEIVABLES,                NET** |
|--------------------|-------------------------------------|

|                                                                                             |   | August                31,                2007 |   |   | May                31,                2007 |   |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                                                                             |   |                                          |   |   |                                       |   |
| Trade                accounts                                                                    |   | $                                             | 19,820 |   |                                       | $      | 19,467 |   |
| Other                                                                                            |   |                                          | 282    |   |                                       |   | 426 |   |
|                                                                                             |   |                                          |   |   |                                       |   |   |   |
|                                                                                             |   |                                          | 20,102 |   |                                       |   | 19,893 |   |
| Less                allowances for doubtful accounts, sales returns and                discounts |   |                                          | (2,070 | )      |                                       |   | (2,161 | ) |
|                                                                                             |   |                                          |   |   |                                       |   |   |   |
| Total                                                                                            |   | $                                             | 18,032 |   |                                       | $      | 17,732 |   |

| **4.  ** | **INVENTORIES** |
|--------------------|-----------------|

|                                          |   | August                31,                2007 |   |   | May                31,                2007 |   |
|-----------------------------------------------|--------|-----------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                          |   |                                          |   |   |                                       |   |
| Raw                materials                  |   | $                                             | 8,753  |   |                                       | $      | 8,960 |   |
| Work                in                process |   |                                          | 1,942  |   |                                       |   | 2,340 |   |
| Finished                goods                 |   |                                          | 14,780 |   |                                       |   | 12,398 |   |
|                                          |   |                                          |   |   |                                       |   |   |   |
| Total                                         |   | $                                             | 25,475 |   |                                       | $      | 23,698 |   |

***Jump to Table of      Contents***

----

**SCHIFF              NUTRITION INTERNATIONAL, INC. AND SUBSIDIARIES**

**NOTES              TO**
**CONDENSED **
**CONSOLIDATED FINANCIAL STATEMENTS–**
*(continued)*

*(dollars              in              thousands, except share data)*

| **5.  ** | **GOODWILL                AND INTANGIBLE ASSETS,                NET** |
|--------------------|-----------------------------------------------------------------------|

|                                                    |   | August                31,                2007 |   |   | May                31,                2007 |   |
|---------------------------------------------------------|--------|-----------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                                    |   | Gross                Carrying Amount          |   |   | Accumul.                Amortiz.           |   |   | Net                Book                Value |   |   | Gross                Carrying Amount |   |   | Accumul.                Amortiz. |   |   | Net                Book                Value |   |
|                                                    |   |                                          |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                |   | $                                             | 4,346  |   |                                       | $      | — |   |   | $ | 4,346 |   |   | $ | 4,346 |   |   | $ | — |   |   | $ | 4,346 |   |
|                                                    |   |                                          |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible                assets-patents and trademarks |   | $                                             | 2,090  |   |                                       | $      | (2,090 | ) |   | $ | — |   |   | $ | 2,090 |   |   | $ | (2,090 | ) |   | $ | — |   |

| **6.  ** | **ACCRUED                EXPENSES** |
|--------------------|-------------------------------------|

|                                           |   | August                31, 2007 |   |   | May                31,                2007 |   |
|------------------------------------------------|--------|-------------------------------------|--------|--------|--------------------------------------------|--------|
|                                           |   |                                |   |   |                                       |   |
| Accrued                personnel related costs |   | $                                   | 1,616  |   |                                       | $      | 3,495 |   |
| Accrued                promotional costs       |   |                                | 4,469  |   |                                       |   | 4,642 |   |
| Other                                          |   |                                | 2,256  |   |                                       |   | 2,405 |   |
|                                           |   |                                |   |   |                                       |   |   |   |
| Total                                          |   | $                                   | 8,341  |   |                                       | $      | 10,542 |   |

| **7.  ** | **CONCENTRATION                RISK** |
|--------------------|---------------------------------------|

| **8.  ** | **COMMITMENTS                AND                CONTINGENCIES** |
|--------------------|-----------------------------------------------------------------|

| **9.  ** | **RECENTLY                ISSUED ACCOUNTING                STANDARDS** |
|--------------------|------------------------------------------------------------------------|

** **
** **
** **

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**SCHIFF          NUTRITION INTERNATIONAL, INC. AND SUBSIDIARIES**

**NOTES          TO**
**CONDENSED **
**CONSOLIDATED FINANCIAL STATEMENTS –**
*(continued)*

*(dollars          in          thousands, except share data)*

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| **ITEM                2.  ** | **MANAGEMENT'S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS** |
|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------|

**General**

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**Results      of Operations (unaudited)**

*Three      Months      Ended August 31, 2007 Compared to Three Months*

*Ended      August      31, 2006*

|                                                     |   | 2007   |    |   | 2006   |   |
|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                     |   |   |    |   |   |   |
| Net                sales                                 |   | $      | 40,727  |   |   |   | 100.0 | % |   | $ | 45,652 |   |   |   | 100.0 | % |
| Cost                of goods                sold         |   |   | 24,306  |   |   |   | 59.7 |   |   |   | 28,536 |   |   |   | 62.5 |   |
|                                                     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                profit                              |   |   | 16,421  |   |   |   | 40.3 |   |   |   | 17,116 |   |   |   | 37.5 |   |
| Operating                expenses:                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling                and                marketing      |   |   | 6,756   |   |   |   | 16.6 |   |   |   | 8,289 |   |   |   | 18.1 |   |
| General                and                administrative |   |   | 6,787   |   |   |   | 16.6 |   |   |   | 3,699 |   |   |   | 8.1 |   |
| Research                and                development   |   |   | 1,026   |   |   |   | 2.5 |   |   |   | 816 |   |   |   | 1.8 |   |
| Reimbursement                of import costs             |   |   | — |   |   |   | — |   |   |   | (20 | ) |   |   | — |   |
| Total                operating expenses                  |   |   | 14,569  |   |   |   | 35.7 |   |   |   | 12,784 |   |   |   | 28.0 |   |
|                                                     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from                operations     |   |   | 1,852   |   |   |   | 4.6 |   |   |   | 4,332 |   |   |   | 9.5 |   |
| Other                income,                net          |   |   | 798     |   |   |   | 2.0 |   |   |   | 685 |   |   |   | 1.5 |   |
| Income                tax                expense         |   |   | (1,002  | )      |   |   | (2.5 | ) |   |   | (1,754 | ) |   |   | (3.9 | ) |
|                                                     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                |   | $      | 1,648   |   |   |   | 4.1 | % |   | $ | 3,263 |   |   |   | 7.1 | % |

**Net      Sales.**

**Gross      Profit. **

**Operating      Expenses. **

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**Other      Income/Expense. **

**Provision      for Income Taxes. **

**Liquidityand      Capital Resources**

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| Contractual Cash                Obligations |   | Total                Amounts                Committed |   |   | Less                than1                Year |   |   | 1-3Years |   |   | 3-5Years |   |   | After5                Years |    |
|--------------------------------------------------|--------|-------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|----------|--------|--------|----------|--------|--------|-----------------------------|---------|
|                                             |   |                                                  |   |   |                                          |   |   |     |   |   |     |   |   |                        |    |
| Operating                leases                  |   | $                                                     | 13,245 |   |                                          | $      | 2,538  |     |   | $      | 4,734    |   |   | $                           | 4,625   |   |   | $ | 1,348 |   |
| Purchase                obligations(1)           |   |                                                  | 13,817 |   |                                          |   | 13,817 |     |   |   | —  |   |   |                        | — |   |   |   | — |   |
| Total                obligations                 |   | $                                                     | 27,062 |   |                                          | $      | 16,355 |     |   | $      | 4,734    |   |   | $                           | 4,625   |   |   | $ | 1,348 |   |

|   |   |
|--------|--------|

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|   | (1) | Purchase                obligations consist primarily of open purchase orders for goods and                services, including primarily raw materials, packaging and outsourced                contract manufacturing commitments. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**CriticalAccounting      Policies and      Estimates**

| ·   | We                provide                for inventory valuation adjustments for estimated obsolescence or                unmarketable inventory equal to the difference between the cost of                inventory and the estimated market value based upon assumptions about                future demand, market conditions and/or liquidation value. For the                fiscal                2008 and 2007 first quarters, inventory valuation                adjustments resulted in a decrease in our gross profit and operating                income of approximately $0.1 million and $0.2 million, respectively.                If                actual demand and/or market conditions are less favorable than those                projected by management, additional inventory write-downs would be                required. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | We                maintain                allowances for doubtful accounts, sales returns and discounts for                estimated losses resulting from known customer exposures, including                among                others, product returns, inability to make payments and expected                utilization of offered discounts. Changes in our allowances for doubtful                accounts, sales returns and discounts did not significantly impact                our                gross profit and operating income for the fiscal 2008 first quarter.                Changes in these allowances resulted in a decrease in our gross                profit and operating income of approximately $0.4 million for the                fiscal                2007 first quarter. At August 31, 2007 and May 31, 2007, our allowances                for doubtful accounts, sales returns and discounts amounted to                approximately $2.1 million and $2.2 million, respectively. Actual                results                may differ from our current estimates, resulting in adjustment of                the                respective allowance(s). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                recognize                tax benefits relative to certain tax positions in which we may be                uncertain as to whether that tax position will ultimately be sustained                as                filed in our tax return. The recognition or derecognition of these                tax                benefits is subject to periodic evaluation of the sustainability                of the                tax position based upon changes in facts, circumstances or available                information. Changes in the recognition of these tax benefits did                not                significantly impact net income for the fiscal 2008 and 2007 first                quarters. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                currently                have deferred tax assets resulting from temporary differences between                financial and income tax reporting. These deferred tax assets are                subject                to periodic recoverability assessments. The realization of these                deferred                tax assets is primarily dependent on future operating results. Changes                in                these valuation allowances did not significantly impact net income                for the                fiscal 2008 and 2007 first quarters. At August 31, 2007 and May 31,                2007,                deferred tax asset valuation allowances were                nil. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                recognize                compensation expense for certain performance based equity instrument                awards (share-based payments) over the performance period based on                a                periodic assessment of the probability that the performance criteria                will                be achieved. Our periodic assessment of the profitability that the                performance criteria will be achieved considers such factors as historical                financial results and future financial expectations, including an                analysis                of sales trends and operating margins; as well as changes in the                nutritional supplements industry and competitive environment. For                the                fiscal 2008 and 2007 first quarters, we recognized compensation expense                related to these awards of approximately $0.8 and $0.7 million,                respectively. At August 31, 2007, total unrecognized compensation                expense,                based on our assessment of the probability that the performance criteria                will be achieved, was approximately $2.5                million. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                have                certain intangible assets, primarily consisting of goodwill which                are                tested for impairment at least annually. The determination of whether                or                not goodwill is impaired involves significant judgment. Changes in                strategy or market conditions could significantly impact our judgment                and                require adjustment to the recorded goodwill                balance. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Impactof      Inflation**

**Seasonality**

| **ITEM                3.  ** | **QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK** |
|----------------------------------------|----------------------------------------------------------------------------------------------|

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| **ITEM                4.  ** | **CONTROLS                AND PROCEDURES** |
|----------------------------------------|--------------------------------------------|

| **ITEM                4T.  ** | **CONTROLS                AND PROCEDURES** |
|-----------------------------------------|--------------------------------------------|

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**PART              II. OTHER              INFORMATION**

| **ITEM                1.  ** | **LEGAL                PROCEEDINGS** |
|----------------------------------------|--------------------------------------|

| **ITEM                1A.  ** | **RISK                FACTORS** |
|-----------------------------------------|---------------------------------|

| **ITEM                2.  ** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS** |
|----------------------------------------|-----------------------------------------------------------------------------------------------|

| Period                                             |   | Total                number                of shares                purchased |   | Average                price                paid per share |   | Total                number                of shares purchased as part of publicly announced plans or                programs |   | Maximum                number of shares that                may yet                be purchased under                the                plans or programs |
|----------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                               |   |                                                                          |   |                                                       |   |                                                                                                                          |   |                                                                                                                                                      |
| June                1 - June                30     |   | —                                                                       |   | —                                                    |   | —                                                                                                                       |   | —                                                                                                                                                   |
|                                               |   |                                                                          |   |                                                       |   |                                                                                                                          |   |                                                                                                                                                      |
| July                1 - July                31     |   | —                                                                       |   | —                                                    |   | —                                                                                                                       |   | —                                                                                                                                                   |
|                                               |   |                                                                          |   |                                                       |   |                                                                                                                          |   |                                                                                                                                                      |
| August                1 -                August 31 |   | 22,676(1)                                                                     |   | $5.29                                                      |   | —                                                                                                                       |   | —                                                                                                                                                   |
|                                               |   |                                                                          |   |                                                       |   |                                                                                                                          |   |                                                                                                                                                      |
| Total                                              |   | 22,676                                                                        |   | $5.29                                                      |   | —                                                                                                                       |   | —                                                                                                                                                   |

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| (1) | Repurchase                of                these shares was to satisfy employee tax withholding obligations                due upon                vesting of restricted shares. See Note 1 to the Notes to Condensed                Consolidated Financial Statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **ITEM                3.  ** | **DEFAULTS                UPON SENIOR SECURITIES** |
|----------------------------------------|----------------------------------------------------|

| **ITEM                4.  ** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS** |
|----------------------------------------|---------------------------------------------------------------------------------------|

| **ITEM                5.  ** | **OTHER                INFORMATION** |
|----------------------------------------|--------------------------------------|

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| **ITEM                6.  ** | **EXHIBITS** |
|----------------------------------------|--------------|

| 3.1.   | Amended                and                Restated Certificate of Incorporation of Weider Nutrition International,                Inc. (1)                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2.   | Amended                and                Restated Bylaws of Weider Nutrition International, Inc.                (2)                                                                                                                                                                     |
| 4.1.   | Revolving                Credit Agreement dated as of June 30, 2004 between Weider Nutrition                Group,                Inc. and KeyBank National Association. (3)                                                                                                        |
| 4.2.   | Form                of                specimen Class A common stock certificate. (4)                                                                                                                                                                                                |
| 10.1.  | Build-To-Suit                Lease Agreement, dated March 20, 1996, between SCI Development Services                Incorporated and Weider Nutrition Group, Inc. (2)                                                                                                               |
| 10.2.  | 1997                Equity                Participation Plan of Weider Nutrition International,                Inc. (2)                                                                                                                                                             |
| 10.3.  | Form                of Tax                Sharing Agreement by and among Weider Nutrition International, Inc.                and                its subsidiaries and Weider Health and Fitness and its                subsidiaries. (2)                                             |
| 10.4.  | License                Agreement between Mariz Gestao E Investmentos Limitada and Weider                Nutrition Group, Limited. (2)                                                                                                                                               |
| 10.5.  | Amendments                to                1997 Equity Participation Plan of Weider Nutrition International,                Inc. (5)*                                                                                                                                              |
| 10.6.  | Consulting                Agreement between Weider Nutrition Group, Inc. and Gustin Foods,                LLC dated                as of February 1, 2004. (6)                                                                                                                      |
| 10.7.  | Schiff                Nutrition International, Inc. 2004 Incentive Award                Plan. (7)*                                                                                                                                                                                  |
| 10.8.  | Amendment                effective as of March 1, 2005 to License Agreement between Mariz                Gestao E                Investmentos Limitada and Weider Nutrition Group,                Inc. (8)                                                                          |
| 10.9.  | Stock                and                Asset Purchase Agreement effective as of March 1, 2005 among Weider                Nutrition International, Inc., Weider Nutrition Group, Inc. and Weider                Global Nutrition, LLC. (8)                                         |
| 10.10. | Promissory                Note of Weider Global Nutrition, LLC payable to Weider Nutrition                Group,                Inc. (8)                                                                                                                                            |
| 10.11. | Guarantee                by                Weider Health and Fitness in favor of Weider Nutrition International,                Inc.                and Weider Nutrition Group, Inc. (8)                                                                                            |
| 10.12. | Share                Sale                and Transfer Agreement dated June 17, 2005 among Weider Nutrition                GmbH,                Haleko Management GmbH, Atlantic Grupa d.o.o., Hopen Investments                BV and                Svalbard Investments GmbH. (9) |
| 10.13. | Form                of                Indemnification Agreement between Weider Nutrition Group, Inc. and                certain                of its executives and directors. (10)*                                                                                               |
| 10.14. | Form                of                Restricted Stock Unit Award Grant Notice, Restricted Stock Unit Award                Agreement and Deferral Election between Schiff Nutrition International,                Inc. and certain of its executives. (11)*                         |
| 10.15. | Amendment                No.                1 to the Schiff Nutrition International, Inc. 2004 Incentive Award                Plan.                (12)*                                                                                                                                 |
| 10.16. | Amended                and                Restated License and Product Supply Agreement dated as of October                13, 2006                between Unigen Pharmaceuticals, Inc. and Schiff Nutrition Group,                Inc. (13)                                        |
| 10.17. | Form                of                Director Restricted Stock Unit Agreement and Deferral Election.                (14)*                                                                                                                                                               |
| 10.18. | Form                of                Director Restricted Stock Agreement. (14)*                                                                                                                                                                                                         |
| 10.19. | License                Agreement dated as of September 19, 2007 between Mariz Gestao E                Investimentos Limitada and Schiff Nutrition Group, Inc.                (15)                                                                                                        |
| 10.20. | Employment                and Change in Control Agreement dated as of June 1, 2007 between                Schiff                Nutrition Group, Inc. and Bruce J. Wood. (15)*                                                                                                           |
| 10.21. | Form                of                Amended and Restated Agreement between Schiff Nutrition Group, Inc.                and                certain of its executive officers. (15)*                                                                                                     |
| 21.1.  | Subsidiaries                of Weider Nutrition International, Inc. (4)                                                                                                                                                                                                             |
| 31.1.  | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act. (16)                                                                                                                                                      |
| 31.2.  | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act. (16)                                                                                                                                                      |
| 32.1.  | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                906 of the Sarbanes-Oxley                Act. (17)                                                                                            |

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| (1)  | Previously                field in the Company’s Quarterly Report on Form 10-Q filed on January 17,                2006 and incorporated herein by reference.                                    |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Previously                filed in the Company's Registration Statement on Form S-1 (File No.                333-12929) and incorporated herein by reference.                                          |
| (3)  | Previously                filed in the Company's Current Report on Form 8-K filed on July 8,                2004                and incorporated herein by reference.                                  |
| (4)  | Previously                filed in the Company’s Annual Report on Form 10-K filed on August 29, 2006                and incorporated herein by reference.                                        |
| (5)  | Previously                filed in the Company's Quarterly Report on Form 10-Q filed on January                14,                2002 and incorporated herein by reference.                           |
| (6)  | Previously                filed in the Company's Quarterly Report on Form 10-Q filed on April                14,                2004 and incorporated herein by reference.                             |
| (7)  | Previously                filed in the Company's Definitive Proxy Statement on Form 14A filed                on                September 28, 2004 and incorporated herein by                reference. |
| (8)  | Previously                filed in the Company's Current Report on Form 8-K filed on April                4, 2005                and incorporated herein by reference.                                 |
| (9)  | Previously                filed in the Company's Current Report on Form 8-K filed on June 23,                2005                and incorporated herein by reference.                                 |
| (10) | Previously                filed in the Company's Current Report on Form 8-K filed on August                10, 2005                and incorporated herein by reference.                               |
| (11) | Previously                filed in the Company’s Current Report on Form 8-K filed March 23, 2006 and                incorporated herein by reference.                                            |
| (12) | Previously                filed in the Company’s Definitive Proxy Statement on Form 14A filed on                September 27, 2006 and incorporated herein by                reference.          |
| (13) | Previously                filed in the Company's Quarterly Report on Form 10-Q filed on October                16,                2006 and incorporated herein by reference.                           |
| (14) | Previously                filed in the Company’s Current Report on Form 8-K filed on October 30,                2006 and incorporated herein by reference.                                       |
| (15) | Previously                filed in the Company’s Current Report on Form 8-K filed September 25, 2007                and incorporated herein by reference.                                        |
| (16) | Filed                herewith.                                                                                                                                                                         |
| (17) | Furnished                herewith.                                                                                                                                                                     |
|      |
| *    | Management                contract.                                                                                                                                                                    |

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**SIGNATURES**

**SCHIFF      NUTRITION INTERNATIONAL, INC.**

| Date:                October                15, 2007 | By:                */s/*  *Bruce J. Wood*                           |
|------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                 | Bruce                J.                Wood                                   |
|                                                 | President,                Chief Executive Officer and                Director |

| Date:                October                15, 2007 | By:*/s/*  *Joseph W. Baty*                                               |
|------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                 | Joseph                W.                Baty                                       |
|                                                 | Executive                Vice President and Chief Financial                Officer |

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