**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      DC 20549**

**FORM      10-Q**

**0-14983**

**NUTRITION      21, INC**

| **New                York**                                                   | **11-2653613**                                      |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |
|                                                                          |                                                |
| **4                Manhattanville Road**                                      |                                                     |
| **Purchase,                New York**                                         | **10577-2197**                                      |
| (Address                of Principal Executive Offices)                       | (Zip                Code)                           |

**(914)      701-4500**

**None**

| Large                  accelerated filer o | Accelerated                  filer x | Non-accelerated                  filer o | Smaller                  Reporting Company o |
|-------------------------------------------------|--------------------------------------|------------------------------------------|----------------------------------------------|

| Class                                                     | Outstanding                  at May 7, 2008 |
|-----------------------------------------------------------|---------------------------------------------|
| Common                  Stock, $0.005 par value per share | 62,748,162                  shares          |

----

**NUTRITION      21, INC.**

| PART                I  | FINANCIAL                INFORMATION | PAGE                                                                              |
|------------------------|--------------------------------------|-----------------------------------------------------------------------------------|
|                   |                                 |                                                                              |   |
| ITEM                1  | Financial                Statements  |                                                                              |
|                   |                                 |                                                                              |   |
|                   | (a)                                  | Condensed                Consolidated Balance Sheets at March 31, 2008            |   |
|                   |                                 | (unaudited)                and June 30, 2007                                      | 3                & 4 |
|                   |                                 |                                                                              |   |
|                   | (b)                                  | Condensed                Consolidated Statements of Operations for the three      |   |
|                   |                                 | and                nine month periods ended March 31, 2008 and 2007               |   |
|                   |                                 | (unaudited)                                                                       | 5 |
|                   |                                 |                                                                              |   |
|                   | (c)                                  | Condensed                Consolidated Statement of Stockholders’ Equity for |   |
|                   |                                 | the                nine month period ended March 31, 2008 (unaudited)             | 6 |
|                   |                                 |                                                                              |   |
|                   | (d)                                  | Condensed                Consolidated Statements of Cash Flows for the nine       |   |
|                   |                                 | month                periods ended March 31, 2008 and 2007 (unaudited)            | 7 |
|                   |                                 |                                                                              |   |
|                   | (e)                                  | Notes                to Condensed Consolidated Financial Statements (unaudited)   | 8 |
|                   |                                 |                                                                              |   |
| ITEM                2  |                                 | Management’s                Discussion and Analysis of                      |   |
|                   |                                 | Financial                Condition and Results of Operations                      | 17 |
|                   |                                 |                                                                              |   |
| ITEM                3  |                                 | Quantitative                and Qualitative Disclosures                           |   |
|                   |                                 | About                Market Risk                                                  | 20 |
|                   |                                 |                                                                              |   |
| ITEM                4  |                                 | Controls                and Procedures                                            | 20 |
|                   |                                 |                                                                              |   |
| PART                II | OTHER                INFORMATION     |                                                                              |
|                   |                                 |                                                                              |   |
| ITEM                1A |                                 | Risk                Factors                                                       | 21 |
|                   |                                 |                                                                              |   |
| ITEM                6  |                                 | Exhibits                                                                          | 21 |

----

**NUTRITION      21, INC.**

|                                                                                                                                                                                                                         |   | March                31,2008 |   | June                30,2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                         |   | (unaudited)                  |   | (Note                1)     |   |
| **ASSETS**                                                                                                                                                                                                                   |   |                         |   |                        |   |   |   |
|                                                                                                                                                                                                                         |   |                         |   |                        |   |   |   |
| Current                assets:                                                                                                                                                                                               |   |                         |   |                        |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                     |   | $                            | 1,581  |                        | $      | 2,417 |   |
| Short-term                investments                                                                                                                                                                                        |   |                         | ---    |                        |   | 1,000 |   |
| Restricted                cash                                                                                                                                                                                               |   |                         | 1,000  |                        |   | --- |   |
| Accounts                receivable (less allowances for doubtful accounts and returns of                $678 and                $827 at March 31, 2008 and June 30, 2007, respectively)                                      |   |                         | 4,792  |                        |   | 1,918 |   |
| Other                receivables                                                                                                                                                                                             |   |                         | 419    |                        |   | 344 |   |
| Inventories                                                                                                                                                                                                                  |   |                         | 1,205  |                        |   | 3,945 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                     |   |                         | 1,449  |                        |   | 1,369 |   |
| Total                current assets                                                                                                                                                                                          |   |                         | 10,446 |                        |   | 10,993 |   |
|                                                                                                                                                                                                                         |   |                         |   |                        |   |   |   |
| Property                and equipment, net                                                                                                                                                                                   |   |                         | 77     |                        |   | 64 |   |
|                                                                                                                                                                                                                         |   |                         |   |                        |   |   |   |
| Patents,                trademarks and other amortizable intangibles (net of accumulated                amortization of $25,024 and $23,387 at March 31, 2008 and June 30,                2007,                respectively) |   |                         | 1,937  |                        |   | 3,271 |   |
|                                                                                                                                                                                                                         |   |                         |   |                        |   |   |   |
| Goodwill                                                                                                                                                                                                                     |   |                         | 15,270 |                        |   | 14,715 |   |
|                                                                                                                                                                                                                         |   |                         |   |                        |   |   |   |
| Other                intangibles with indefinite lives                                                                                                                                                                       |   |                         | 5,379  |                        |   | 5,379 |   |
|                                                                                                                                                                                                                         |   |                         |   |                        |   |   |   |
| Other                assets                                                                                                                                                                                                  |   |                         | 2,058  |                        |   | 272 |   |
|                                                                                                                                                                                                                         |   |                         |   |                        |   |   |   |
| Investments                                                                                                                                                                                                                  |   |                         | 3,000  |                        |   | --- |   |
| TOTAL                ASSETS                                                                                                                                                                                                  |   | $                            | 38,167 |                        | $      | 34,694 |   |

----

**NUTRITION      21, INC. **

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | March                31, 2008 |     | June                30, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|----------|-----------------------------------|--------|
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (unaudited)                   |     | (Note                1)           |   |
| LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                          |     |                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                          |     |                              |   |
| Short-term                borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                             | 1,808    |                              | $      | -- |   |
| Accounts                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          | 5,507    |                              |   | 7,085 |   |
| Accrued                expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          | 3,493    |                              |   | 1,411 |   |
| Deferred                income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                          | 1,444    |                              |   | 2,929 |   |
| 6%                Series I convertible preferred stock subject to mandatory redemption                (redemption value $3,594)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          | 3,162    |                              |   | -- |   |
| Total                current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                          | 15,414   |                              |   | 11,425 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          | 2,396    |                              |   | 2,342 |   |
| Deferred                income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          | 2,152    |                              |   | 2,152 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| 6%                Series I convertible preferred stock subject to mandatory redemption                (redemption value $3,594)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          | --       |                              |   | 2,838 |   |
| 8%                Series J convertible preferred stock subject to mandatory redemption                (redemption value $17,750 at March 31, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | 11,221   |                              |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                          | 31,183   |                              |   | 18,757 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| Commitments                and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |     |                              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| STOCKHOLDERS’                EQUITY:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                          |     |                              |   |   |   |
| Preferred                stock, $0.01 par value, authorized 5,000,000 shares, 100,000 shares                designated as Series H, none issued and outstanding, 9,600 shares                designated as Series I convertible preferred stock, 9,600 shares                issued                and 3,594 shares outstanding at March 31, 2008 and June 30, 2007                (see                liabilities above); 17,750 shares designated as Series J convertible                preferred stock, 17,750 issued and outstanding at March 31, 2008                (see                liabilities above) |   |                          | --       |                              |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| Common                stock, $0.005 par value, authorized 150,000,000 and 100,000,000 shares;                62,748,162 shares and 60,946,443 issued and outstanding at March                31, 2008                and June 30, 2007, respectively                                                                                                                                                                                                                                                                                                                                                              |   |                          | 310      |                              |   | 301 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                          | 115,154  |                              |   | 107,069 |   |
| Accumulated                deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | (107,480 | )                                 |   | (91,433 | ) |
| Accumulated                other comprehensive loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                          | (1,000   | )                                 |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| Total                stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          | 6,984    |                              |   | 15,937 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |     |                              |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                             | 38,167   |                              | $      | 34,694 |   |

----

**NUTRITION      21, INC.**

|                                                                                                 |   | Three                Months Ended |       | Nine                MonthsEnded |   |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|---------------------------------|--------|
|                                                                                                 |   | March                31,          |       | March                31,        |   |
|                                                                                                 |   | 2008                              |       | 2007                            |   | 2008 |   | 2007 |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |
| Net                sales                                                                             |   | $                                 | 10,891     |                            | $      | 15,658 |   | $ | 35,457 |   | $ | 29,171 |   |
| Other                revenues                                                                        |   |                              | (71        | )                               |   | 107 |   |   | 569 |   |   | 380 |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| TOTAL                REVENUES                                                                        |   |                              | 10,820     |                            |   | 15,765 |   |   | 36,026 |   |   | 29,551 |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| COSTS                AND EXPENSES                                                                    |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Cost                of revenues                                                                      |   |                              | 6,064      |                            |   | 4,790 |   |   | 14,056 |   |   | 9,194 |   |
| Advertising                and promotion expenses                                                    |   |                              | 8,568      |                            |   | 10,249 |   |   | 28,277 |   |   | 21,933 |   |
| General                and administrative expenses                                                   |   |                              | 2,358      |                            |   | 1,052 |   |   | 4,767 |   |   | 4,467 |   |
| Research                and development expenses                                                     |   |                              | 330        |                            |   | 259 |   |   | 844 |   |   | 949 |   |
| Depreciation                and amortization                                                         |   |                              | 604        |                            |   | 962 |   |   | 1,708 |   |   | 2,593 |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| TOTAL                COSTS AND EXPENSES                                                              |   |                              | 17,924     |                            |   | 17,312 |   |   | 49,652 |   |   | 39,136 |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| OPERATING                LOSS                                                                        |   |                              | (7,104     | )                               |   | (1,547 | ) |   | (13,626 | ) |   | (9,585 | ) |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                       |   |                              | 95         |                            |   | 115 |   |   | 241 |   |   | 375 |   |
| Interest                expense                                                                      |   |                              | (1,159     | )                               |   | (760 | ) |   | (2,649 | ) |   | (1,766 | ) |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| LOSS                BEFORE INCOME TAXES                                                              |   |                              | (8,168     | )                               |   | (2,192 | ) |   | (16,034 | ) |   | (10,976 | ) |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Income                taxes                                                                          |   |                              | 7          |                            |   | 4 |   |   | 13 |   |   | 10 |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| NET                LOSS                                                                              |   | $                                 | (8,175     | )                               | $      | (2,196 | ) | $ | (16,047 | ) | $ | (10,986 | ) |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Basic                and diluted loss per common share                                               |   | $                                 | (0.13      | )                               | $      | (0.04 | ) | $ | (0.26 | ) | $ | (0.19 | ) |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares - basic and diluted                          |   |                              | 62,176,175 |                            |   | 59,524,369 |   |   | 61,796,508 |   |   | 56,616,985 |   |
|                                                                                                 |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to condensed consolidated financial                statements. |

----

**NUTRITION      21, INC.**

|                                                                                                                                                  |   | Common                Stock |       | AdditionalPaid-InCapital |   | AccumulatedDeficit |   | AccumulatedOtherComprehensiveLoss |    | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------------------------|--------|--------------------|--------|-----------------------------------|---------|--------|--------|
|                                                                                                                                                  |   | Shares                      |       | $                        |   | $                  |   | $                                 |    | $      |   | $ |   |
| Balance                at June 30, 2007                                                                                                               |   |                        | 60,946,443 |                     | $      | 301                |   | $                                 | 107,069 |   | $      | (91,433 | ) | $ | ---- |   | $ | 15,937 |   |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Issuance                of warrants and beneficial conversionfeatures                related to 8% Series J convertiblepreferred                stock |   |                        | ----       |                     |   | ----               |   |                              | 7,330   |   |   | ---- |   |   | ---- |   |   | 7,330 |   |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock for dividends on Series I preferred stock                                                                     |   |                        | 221,839    |                     |   | 1                  |   |                              | 161     |   |   | ---- |   |   | ---- |   |   | 162 |   |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock for the purchase ofIceland                Health, Inc.                                                        |   |                        | 1,500,000  |                     |   | 8                  |   |                              | (8      | )      |   | ---- |   |   | ---- |   |   | ---- |   |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Stock-based                compensation expense                                                                                                       |   |                        | ----       |                     |   | ----               |   |                              | 555     |   |   | ---- |   |   | ---- |   |   | 555 |   |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Exercise                of stock options and warrants                                                                                                 |   |                        | 87,755     |                     |   | ----               |   |                              | 47      |   |   | ---- |   |   | ---- |   |   | 47 |   |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Temporary                impairment on investments in auction rate securities                                                                         |   |                        | ----       |                     |   | ----               |   |                              | ----    |   |   | ---- |   |   | (1,000 | ) |   | (1,000 | ) |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Cancellations                of restricted stock                                                                                                      |   |                        | (133,749   | )                        |   | ----               |   |                              | ----    |   |   | ---- |   |   | ---- |   |   | ----- |   |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Net                loss for the period                                                                                                                |   |                        | ----       |                     |   | ----               |   |                              | ----    |   |   | (16,047 | ) |   | ---- |   |   | (16,047 | ) |
|                                                                                                                                                  |   |                        |       |                     |   |               |   |                              |    |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2008                                                                                                              |   |                        | 62,622,288 |                     | $      | 310                |   | $                                 | 115,154 |   | $      | (107,480 | ) | $ | (1,000 | ) | $ | 6,984 |   |

----

**NUTRITION      21, INC.**

|                                                                                                                                                          |   | **Nine                Months Ended****March                31,** |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|
|                                                                                                                                                          |   | ** ****2008**                                               |    | ** ****2007** |   |
| Cash                flows from operating activities:                                                                                                          |   |                                                             |    |   |   |   |   |
| Net                loss                                                                                                                                       |   | $                                                                | (16,047 | ) | $ | (10,986 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities:                                                     |   |                                                             |    |   |   |   |   |
| Depreciation                of property and equipment                                                                                                         |   |                                                             | 29      |   |   | 49 |   |
| Amortization                of intangibles                                                                                                                    |   |                                                             | 1,637   |   |   | 2,544 |   |
| Accretion                of preferred stock and amortization of deferred financing                costs                                                       |   |                                                             | 1,235   |   |   | 1,366 |   |
| Accretion                of note payable to Iceland Health, Inc.                                                                                              |   |                                                             | 54      |   |   | 73 |   |
| Convertible                preferred stock dividend paid in common stock charged asinterest                expense                                            |   |                                                             | 162     |   |   | 260 |   |
| Stock-based                compensation expense                                                                                                               |   |                                                             | 555     |   |   | 421 |   |
| Changes                in operating assets and liabilities, net of effects from acquisition                of                Iceland Health, Inc. in 2006:    |   |                                                             |         |   |   |   |   |
| Accounts                receivable                                                                                                                            |   |                                                             | (2,874  | ) |   | (2,092 | ) |
| Other                receivables                                                                                                                              |   |                                                             | (75     | ) |   | (122 | ) |
| Inventories                                                                                                                                                   |   |                                                             | 2,740   |   |   | (1,775 | ) |
| Prepaid                expenses and other current assets                                                                                                      |   |                                                             | (80     | ) |   | (1,404 | ) |
| Other                assets                                                                                                                                   |   |                                                             | (748    | ) |   | -- |   |
| Accounts                payable                                                                                                                               |   |                                                             | (1,632  | ) |   | 3,067 |   |
| Accrued                expenses                                                                                                                               |   |                                                             | 2,082   |   |   | 180 |   |
| Deferred                income                                                                                                                                |   |                                                             | (1,485  | ) |   | 1,763 |   |
| Net                cash used in operating activities                                                                                                          |   |                                                             | (14,447 | ) |   | (6,656 | ) |
| Cash                flows from investing activities:                                                                                                          |   |                                                             |    |   |   |   |   |
| Contingent                payments for acquisitions, allocated to goodwill, patents and                trademarks                                             |   |                                                             | (640    | ) |   | (170 | ) |
| Purchases                of property and equipment                                                                                                            |   |                                                             | (42     | ) |   | (7 | ) |
| Payments                for patents and trademarks                                                                                                            |   |                                                             | (164    | ) |   | (152 | ) |
| Increase                in restricted cash                                                                                                                    |   |                                                             | (1,000  | ) |   | -- |   |
| (Purchase)                redemption of investments available-for-sale                                                                                        |   |                                                             | (3,000  | ) |   | 7,500 |   |
| Cash                portion of purchase price for Iceland Health, Inc., net of cash                acquired                                                   |   |                                                             | --      |   |   | (446 | ) |
| Net                cash (used in) provided by investing activities                                                                                            |   |                                                             | (4,846  | ) |   | 6,725 |   |
| Cash                flows from financing activities:                                                                                                          |   |                                                             |         |   |   |   |   |
| Proceeds                from stock option and warrant exercises                                                                                               |   |                                                             | 47      |   |   | 915 |   |
| Proceeds                from private placement of 8% Series J convertible preferred stock,                net                of                issuance costs |   |                                                             | 16,602  |   |   | -- |   |
| Proceeds                from short-term borrowings, net                                                                                                       |   |                                                             | 1,808   |   |   | -- |   |
| Net                cash provided by financing activities                                                                                                      |   |                                                             | 18,457  |   |   | 915 |   |
| Net                (decrease) increase in cash and cash equivalents                                                                                           |   |                                                             | (836    | ) |   | 984 |   |
| Cash                and cash equivalents at beginning of period                                                                                               |   |                                                             | 2,417   |   |   | 2,414 |   |
| Cash                and cash equivalents at end of period                                                                                                     |   | $                                                                | 1,581   |   | $ | 3,398 |   |

----

**NUTRITION      21, INC.**

| Note                1 | BASIS                OF PRESENTATION |
|-----------------------|--------------------------------------|

|   |   | The                accompanying unaudited condensed consolidated financial statements                have                been prepared pursuant to the rules and regulations of the Securities                and                Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and do not                include all of the information and note disclosures required by accounting                principles generally accepted in the United States of America.                Accordingly, the unaudited condensed consolidated financial statements                should be read in conjunction with the Company’s audited consolidated                financial statements and notes thereto for the fiscal year ended                June 30,                2007 included in the Company’s Annual Report on Form 10-K/A filed on                October 24, 2007 (the “Form 10-K/A”). The accompanying unaudited condensed                consolidated financial statements reflect all adjustments (consisting                of                normal recurring adjustments) which are, in the opinion of the management,                considered necessary for a fair presentation of financial position,                results of operations and cash flows for the interim periods. The                June 30,                2007 balance sheet has been derived from the audited consolidated                financial statements included in the Form 10-K/A. Operating results                for                the three and nine month periods ended March 31, 2008 are not necessarily                indicative of the results that may be expected for the fiscal year                ending                June 30, 2008. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | We                have used significant cash in our operations and we may need to raise                additional funds. During the fiscal year ended June 30, 2007 cash                used in                operations was $10.3 million, and during the nine-month period from                July                1, 2007 through March 31, 2008 cash used in operations was $14.4                million.                To fund our cash flows and to support the marketing and other expenses                we                envision, we may need to raise funds. There is no assurance that                additional funds will be available on terms favorable to the Company                and                its stockholders, or at all The Series J preferred stock limits our                ability to incur indebtedness and to issue additional preferred                stock. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The                accompanying unaudited condensed consolidated financial statements                include                the accounts of Nutrition 21, Inc. and its subsidiaries, including                Iceland                Health, LLC from August 26, 2006 date of acquisition, collectively                the                “Company”. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Certain                reclassifications have been made to prior year’s financial statement                amounts to conform to the current                year. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note              2 | INVESTMENTS |
|---------------------|-------------|

|   |   | At                March 31, 2008, the Company reported its auction rate securities                (“ARS”)                at fair value. All of the Company’s ARSs are collateralized by student                loan portfolios (substantially all of which are guaranteed by the                United                States Government). Beginning in February 2008, the auctions for                all of                the ARSs then held by us were unsuccessful, resulting in our continuing                to                hold them beyond their typical auction reset dates. As a result of                the                lack of liquidity in the ARS market and not as a result of the quality                of                the underlying collateral, for the three months ended March 31, 2008,                we                recorded a temporary impairment on our ARSs of $1.0 million, which                is                reflected in accumulated comprehensive loss in our condensed consolidated                balance sheet. We assumed an average maturity of our ARSs in excess                of one                year due to the lack of liquidity in the ARS market and the long-term                remaining duration of the underlying securities; therefore, we have                classified these securities as non-current on our March 31, 2008                condensed                consolidated balance sheet. In addition to adjusting the carrying                value of                our ARSs, if our assessment of the valuation adjustment in future                periods                is other than temporary, we would record an impairment charge through                our                statement of operations. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Note              3 | STOCK-BASED                COMPENSATION                (continued) |
|---------------------|--------------------------------------------------------------------|

|   |   | The                Company adopted the provisions of revised Statement of Financial                Accounting Standards No. 123 (“SFAS 123R”) “Share Based Payments” on July                1, 2005. Since July 1, 2005, stock-based employee compensation cost                has                been measured at the grant date, based on the estimated fair value                of the                award, and is recognized as expense over the requisite service period.                The                Company has no awards with market or performance conditions. The                valuation provisions of SFAS 123R apply to new awards and to awards                that                were outstanding on the effective date and subsequently modified                or                cancelled. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**NUTRITION      21, INC.**

| Note              3 | STOCK-BASED                COMPENSATION (continued) |
|---------------------|-----------------------------------------------------|

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

|   |   | On                November 10, 2005, the FASB issued FASB Staff Position No. SFAS 123R-3,                “Transition Election Related to Accounting for Tax Effects of Share-Based                Payment Awards.” The Company has elected to adopt the alternative                transition method provided in this FASB Staff Position for calculating                the                tax effects of stock-based compensation pursuant to SFAS 123R. The                alternative transition method includes a simplified method to establish                the beginning balance of the additional paid-in capital pool (“APIC pool”)                related to the tax effects of employee stock-based compensation,                which is                available to absorb tax deficiencies recognized subsequent to the                adoption                of SFAS 123R. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The                assumptions used in the Company’s Black-Scholes option pricing model                related to stock option grants during the nine months ended March                31, 2008                were expected option life of 5.0 years, volatility factor of 100%                and                risk-free interest rate of 2.6%. The Company has not paid, nor does                it                contemplate paying a dividend on its common stock in the near future.                As                such a 0% dividend yield was used. The pre-vesting forfeiture rate                and the                years of expected life are based on the Company’s historical option                pre-vesting cancellation and employee exercise information,                respectively. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | As                stock-based compensation expense recognized in the condensed consolidated                statements of operations for the three month and nine month periods                ended                March 31, 2008 is based on awards ultimately expected to vest, and                is                reduced for estimated forfeitures. SFAS 123R requires forfeitures                to be                estimated at the time of grant and revised, if necessary, in subsequent                periods if actual forfeitures differ from those estimates. Pre-vesting                forfeitures are estimated to be approximately 6.6%, based on historical                experience. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The                Company granted 1,750,000 stock options during the nine month period                ended                March 31, 2008 with an exercise price equal to the market price at                the                date of grant with a fair value of $0.8 million based on the market                price                at the date of grant. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The                Company recorded $0.2 million and $0.1 million in stock-based compensation                expense for stock options and restricted stock in the three month                periods                ended March 31, 2008 and 2007, respectively, and $0.6 million and                $0.4                million in the nine month periods ended March 31, 2008 and 2007,                respectively. Stock-based compensation expense is recorded in general                and                administrative expenses. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The                following is a summary of option activity for the nine month period                ended                March 31, 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   **Options**                                                                                                                                   |   |  **Shares****(000)** |   |  **Weighted-Average****Exercise Price** |   | **Weighted-Average                Remaining**** ****Contractual****Term (Yrs.)** |   |   **Aggregate****Intrinsic                Value****($000)** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|----------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
| Outstanding                at July 1, 2007                                                                                                                |   |                      | 4,112  |                                         | $      | 0.91                                                                                  |   |                                                                  |   |   |   |   |   |
| Granted                                                                                                                                                   |   |                      | 1,750  |                                         | $      | 0.64                                                                                  |   |                                                                  |   |   |   |   |   |
| Exercised                                                                                                                                                 |   |                      | (88    | )                                            | $      | 0.97                                                                                  |   |                                                                  |   |   |   |   |   |
| Forfeited                or expired                                                                                                                       |   |                      | (1,197 | )                                            | $      | 1.15                                                                                  |   |                                                                  |   |   |   |   |   |
| Outstanding                at March 31, 2008                                                                                                              |   |                      | 4,577  |                                         | $      | 0.76                                                                                  |   |                                                                  | 5.8    |   | $ | 0 |   |
| Exercisable                at March 31, 2008                                                                                                              |   |                      | 3,312  |                                         | $      | 0.80                                                                                  |   |                                                                  | 5.8    |   | $ | 0 |   |
|                                                                                                                                                      |   |                      |   |                                         |   |                                                                                  |   |                                                                  |   |   |   |   |   |
| The                total intrinsic value of options exercised during the nine months                ended                March 31, 2008 was $37 thousand. |   |

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**NUTRITION      21, INC.**

| Note 3  | STOCK-BASED COMPENSATION                (continued) |
|--------------|-----------------------------------------------------|

| **Restricted                Stock**             |        | **Shares****(000)** |   |  **Weighted-Average****Exercise Price** |   | **Weighted-Average                Remaining Contractual****Term (Yrs.)** |        | **Aggregate****Intrinsic                Value****($000's)** |   |
|-------------------------------------------------|--------|---------------------|--------|----------------------------------------------|--------|--------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
| Outstanding                at July 1, 2007      |   |                | 501    |                                         | $      | 1.57                                                                     |   |                                                        |   |   |   |   |   |
| Granted                                         |   |                | --     |                                         |   | --                                                                       |   |                                                        |   |   |   |   |   |
| Exercised                                       |   |                | --     |                                         |   | --                                                                       |   |                                                        |   |   |   |   |   |
| Forfeited                / expired or cancelled |   |                | (134   | )                                            | $      | 1.62                                                                     |   |                                                        |   |   |   |   |   |
| Outstanding                at March 31, 2008    |   |                | 367    |                                         | $      | 1.55                                                                     |   |                                                        | 2.1    |   | $ | -- |   |
| Exercisable                at March 31, 2008    |   |                | 159    |                                         | $      | 0.77                                                                     |   |                                                        | --     |   |   | -- |   |

| Note 4 | RECENTLY ISSUED ACCOUNTING                PRONOUNCEMENTS |
|--------|----------------------------------------------------------|

| Note                5 | ACQUISITION                OF ICELAND HEALTH, INC. |
|-----------------------|----------------------------------------------------|

** **

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**NUTRITION      21, INC.**

| Note                5 |  ACQUISITION                OF ICELAND HEALTH, INC.                (continued) |
|-----------------------|-------------------------------------------------------------------------------------|

| Assets                  purchased:                       |   |   |   |
|----------------------------------------------------------|--------|--------|--------|
|                                                     |   |   |   |
| Net                  identifiable tangible assets        |   | $      | 181    |   |
| Other                  intangibles with indefinite lives |   |   | 5,379  |   |
| Customer                  relationships                  |   |   | 924    |   |
| Non-compete                  agreements                  |   |   | 375    |   |
| Goodwill                                                 |   |   | 15,270 |   |
| Deferred                  tax liability                  |   |   | (2,152 | ) |
|                                                     |   |   |   |   |
| Purchase                  Price                          |   | $      | 19,977 |   |

|                                                   |   | Consolidated                Pro-forma |    |
|--------------------------------------------------------|--------|---------------------------------------|---------|
|                                                   |   | Nine                Months Ended      |    |
|                                                   |   | March                31,              |    |
|                                                   |   |  2007                            |    |
|                                                   |   |                                  |    |
| Total                revenues                          |   | $                                     | 33,993  |   |
|                                                   |   |                                  |    |   |
| Net                loss                                |   | $                                     | (10,718 | ) |
|                                                   |   |                                  |    |   |
| Basic                and diluted loss per common share |   | $                                     | (0.19   | ) |

| Note 6 | INVENTORIES |
|--------|-------------|

| Note 7 | LOSS PER COMMON                SHARE |
|--------|--------------------------------------|

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**NUTRITION      21, INC.**

| Note 8 | SUPPLEMENTAL CASH FLOW                INFORMATION |
|--------|---------------------------------------------------|

|                                                                                                                                        |   | Nine                months endedMarch                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                                                                                                        |   |
|                                                                                                                                        |   |                  2008                               |   | 2007 |   |
| Supplemental                disclosure of cash flow information:                                                                            |   |                                                     |   |   |   |   |   |
|                                                                                                                                        |   |                                                     |   |   |   |   |   |
| Cash                paid for income taxes                                                                                                   |   | $                                                        | 57     |   | $ | 10 |   |
| Cash                paid for interest                                                                                                       |   | $                                                        | 204    |   |   | -- |   |
| Supplemental                schedule of non-cash financing activities:                                                                      |   |                                                     |   |   |   |   |   |
| Increase                in obligation for Nutrition 21 contingent payments                                                                  |   | $                                                        | 138    |   | $ | 138 |   |
| Issuance                of common stock on conversion of 2,542 shares of Series I convertible                preferred                stock |   |                                                     | ---    |   | $ | 2,564 |   |
| Issuance                of common stock for purchase of Iceland Health, Inc.                                                                |   |                                                     | ---    |   | $ | 17,754 |   |
| Issuance                of note payable for purchase of Iceland Health, Inc.                                                                |   |                                                     | ---    |   | $ | 2,282 |   |

| Note 9 | 6% SERIES I CONVERTIBLE PREFERRED                STOCK |
|--------|--------------------------------------------------------|

| Note 10 | 8% SERIES J CONVERTIBLE PREFERRED                STOCK |
|---------|--------------------------------------------------------|

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**NUTRITION      21, INC.**

| Note 10 | 8% SERIES J CONVERTIBLE PREFERRED STOCK                (continued) |
|---------|--------------------------------------------------------------------|

| Note 11 | SHORT-TERM                BORROWINGS |
|---------|--------------------------------------|

** **

| Note 12 | SEGMENT                REPORTING |
|---------|----------------------------------|

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**NUTRITION      21, INC.**

| Note 12 | SEGMENT                REPORTING (continued) |
|---------|----------------------------------------------|

|                                             |   | Three                MonthsEnded |   | Nine                MonthsEnded |   |
|--------------------------------------------------|--------|----------------------------------|--------|---------------------------------|--------|
|                                             |   | March                31,         |   | March                31,        |   | March                31, |   | March                31, |   |
|                                             |   | 2008                             |   | 2007                            |   | 2008 |   | 2007 |   |
| Net                sales                         |   |                             |   |                            |   |   |   |   |   |
| Ingredients                Group                 |   | $                                | 2,034  |                            | $      | 2,374 |   | $ | 5,729 |   | $ | 5,595 |   |
| Branded                Products Group            |   |                             | 8,857  |                            |   | 13,284 |   |   | 29,728 |   |   | 23,576 |   |
|                                             |   |                             |   |                            |   |   |   |   |   |   |   |   |   |
| Sales                to external customers       |   |                             | 10,891 |                            |   | 15,658 |   |   | 35,457 |   |   | 29,171 |   |
| Other                revenues                    |   |                             | (71    | )                               |   | 107 |   |   | 569 |   |   | 380 |   |
|                                             |   |                             |   |                            |   |   |   |   |   |   |   |   |   |
| Total                revenues                    |   |                             | 10,820 |                            |   | 15,765 |   |   | 36,026 |   |   | 29,551 |   |
|                                             |   |                             |   |                            |   |   |   |   |   |   |   |   |   |
| Income                (loss) before income taxes |   |                             |   |                            |   |   |   |   |   |   |   |   |   |
| Ingredients                Group                 |   |                             | 1,285  |                            |   | 1,597 |   |   | 3,425 |   |   | 3,319 |   |
| Branded                Products Group            |   |                             | (5,027 | )                               |   | (978 | ) |   | (10,302 | ) |   | (5,275 | ) |
| Unallocated                corporate expenses    |   |                             | (4,426 | )                               |   | (2,811 | ) |   | (9,157 | ) |   | (9,020 | ) |
|                                             |   |                             |   |                            |   |   |   |   |   |   |   |   |   |
| Loss                before income taxes          |   | $                                | (8,168 | )                               | $      | (2,192 | ) | $ | (16,034 | ) | $ | (10,976 | ) |
|                                             |   |                             |   |                            |   |   |   |   |   |   |   |   |   |
| Unallocated                corporate assets      |   | $                                | 38,167 |                            | $      | 40,008 |   |   |   |   |   |   |   |

| Note 13 | INCOME                TAXES |
|---------|-----------------------------|

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**NUTRITION      21, INC.**

| Note 13 | INCOME TAXES                (continued) |
|---------|-----------------------------------------|

| Note 14  | STOCKHOLDERS’EQUITY |
|---------------|---------------------------|

| Note 15 | COMPREHENSIVE                LOSS |
|---------|-----------------------------------|

|   |   |   | Comprehensive                loss includes unrealized losses on our auction rate securities that                are                classified as available-for-sale securities. The differences between                net                loss and comprehensive loss for each of these periods are as follows                (dollars are in thousands): |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | **Three                Months Ended** |   | **Nine                Months Ended** |   |
|----------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                         |   | **March                31,**          |   | **March                31,**         |   |
|                                         |   | **2008**                              |   | **2007**                             |   | **2008** |   | **2007** |   |
| Net                loss                      |   | $                                     | (8,175 | )                                    | $      | (2,196 | ) | $ | (16,047 | ) | $ | (10,986 | ) |
| Other              comprehensive loss:       |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Unrealized                  losses on        |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| available-for-sale                securities |   |                                  | (1,000 | )                                    |   | --- |   |   | (1,000 | ) |   | --- |   |
|                                              |   |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
| Comprehensive                loss            |   | $                                     | (9,175 | )                                    | $      | (2,196 | ) | $ | (17,047 | ) | $ | (10,986 | ) |

| Note 16 | SUBSEQUENT EVENT |
|---------|------------------|

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**NUTRITION      21, INC.**

| Note 17 | COMMITMENTS AND                CONTINGENCIES |
|---------|----------------------------------------------|

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**Item      2 - Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**Forward-Looking      Statements and Risk Factors**

**General**

|   |   | Cost                of revenues includes both direct and indirect manufacturing costs.                Research and development expenses include internal expenditures as                well as                expenses associated with third party providers. Advertising and promotion                expenses include fees and expenses directly related to the selling                of the                Company’s products including the cost of advertising, promotional expenses                and third party fees. General and administrative expenses include                salaries                and overhead, third party fees and expenses, and costs associated                with the                operations of the Company. The Company capitalizes patent costs and                intangible assets with finite lives, and amortizes them over periods                not                to exceed seventeen years. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | **Results                of Operations** |
|--------|--------|--------|------------------------------------------|

|   |   |   | Net                product sales of the Branded Products Group for the three months                ended                March 31, 2008 were $8.9 million compared to $13.3 million in the                same                period a year ago. Net product sales through the direct response                channel                of $6.2 million were $2.5 million less than the same period a year                ago,                due primarily to a shortfall in sales due to fewer long-form television                and radio infomercials being run than a year ago. Net product sales                to                retailers were $2.7 million compared to $4.6 million in the same                period a                year ago. Last year’s sales included a one-time shipment of Selenomax                ($2.7 million) which did not recur this                year. |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Item      2 - Management’s Discussion and Analysis of Financial Condition and Results of      Operations (continued)**

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**Item      2 - Management’s Discussion and Analysis of Financial Condition and Results of      Operations (continued)**

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**Item      3 - Quantitative and Qualitative Disclosures about Market      Risk**

**Item      4 - Controls and Procedures**

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**PART      II - OTHER INFORMATION**

**Items      1, 2, 3, 4 and 5 and are not applicable and have been      omitted**

**Item        1A - **
**Risk        Factors**

*We      have used significant cash in our operations and we may need to raise additional      funds. *

*Illiquidity      of Auction Rate Securities*

**Item      6 - Exhibits **

| **(a)** | **Exhibits** |                                                                                                                                                       |
|---------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |         |                                                                                                                                                       |
|    | 10.01        | Promissory                  Note dated April 7, 2008 between JP Morgan Chase Bank, NA and Nutrition                  21, Inc.                              |
|    | 10.02        | Commercial                  Pledge Agreement dated April 7, 2008 between JP Morgan Chase Bank,                  NA                  and                    |
|    |         | Nutrition                  21, Inc.                                                                                                                        |
|    | 10.03        | Control                  Agreement dated April 7, 2008 between JP Morgan Chase Bank, NA                  and                  Nutrition 21, Inc.           |
|    | 31.1         | Certifications                  of the Co- Chief Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002.             |
|    | 31.2         | Certifications                  of the Co- Chief Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002.             |
|    | 31.3         | Certifications                  of the Chief Financial Officer pursuant to Section 302 of the                  Sarbanes-Oxley                              |
|    |         | Act                  of 2002.                                                                                                                              |
|    | 32.1         | Certifications                  of the Co- Chief Executive Officer pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002.             |
|    | 32.2         | Certifications                  of the Co- Chief Executive Officer pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002.             |
|    | 32.3         | Certification                  of the Chief Financial Officer pursuant to Section 906 of the                  Sarbanes-Oxley Act                  of 2002. |

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|                                                 |   | NUTRITION                  21, INC.Registrant |
|------------------------------------------------------|--------|-----------------------------------------------|
|                                                 |   |                                          |
| Date:                  May                  12, 2008 | By:    | /s/                  Gerard Butler            |
|                                                 |   | Gerard                  Butler                |
|                                                 |   | Co-Chief                  Executive Officer   |
|                                                 |   |                                          |
|                                                 |   | /s/                  Michael Fink             |
|                                                 |   | Michael                  Fink                 |
|                                                 |   | Co-Chief                  Executive Officer   |

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