**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

----

**FORM      10-Q**

**(Mark      One)**

| x                                                                     | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE                ACT OF                1934**  |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| **For                the quarterly period ended June 30, 2008**  |
| **OR**                                                           |
| o                                                                     | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE                ACT OF                1934**      |

**For      the transition period from _________to_________**

**Commission      File Number**

**1-11768**

**RELIV’      INTERNATIONAL, INC.**

| Delaware                                       |   | 371172197                                              |
|------------------------------------------------|--------|--------------------------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                Employer Identification Number) |
| incorporation                or organization)  |   |                                                   |

| 136                Chesterfield Industrial Boulevard    |   |                      |
|---------------------------------------------------------|--------|---------------------------|
| Chesterfield,                Missouri                   |   | 63005                     |
| (Address                of principal executive offices) |   | (Zip                Code) |

----

**INDEX      **

| Part                I – Financial Information |                                                                                                                      |
|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                                     |                                                                                                                      |   |
| Item                No. 1                                | Financial                Statements                                                                                       | 1 |
| Item                No. 2                                | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 8 |
| Item                No. 3                                | Quantitative                and Qualitative Disclosures Regarding Market Risk                                             | 14 |
| Item                No. 4                                | Controls                and Procedures                                                                                    | 15 |
|                                                     |                                                                                                                      |   |
| Part                II – Other Information         |                                                                                                                      |
|                                                     |                                                                                                                      |   |
| Item                No. 1A                               | Risk                Factors                                                                                               | 15 |
| Item                No. 2                                | Unregistered                Sales of Equity Securities and Use of Proceeds                                                | 15 |
| Item                No. 4                                | Submission                of Matters to a Vote of Security Holders                                                        | 16 |
| Item                No. 6                                | Exhibits                                                                                                                  | 17 |

----

| **PART                  I — FINANCIAL INFORMATION** |
|----------------------------------------------------------------|
|                                                           |
| **Item                  No. 1 - Financial Statements**         |
|                                                           |
| Reliv                  International, Inc. and Subsidiaries    |
|                                                           |
| Consolidated                  Balance Sheets                   |

|                                                                                                                                   |   | June 30 |       | December 31 |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|------------------|--------|
|                                                                                                                                   |   | 2008         |       | 2007             |   |
|                                                                                                                                   |   | (unaudited)  |       |             |   |
| Assets                                                                                                                                 |   |         |       |             |   |   |   |
|                                                                                                                                   |   |         |       |             |   |   |   |
| Current                  assets:                                                                                                       |   |         |       |             |   |   |   |
| Cash                  and cash equivalents                                                                                             |   | $            | 10,352,319 |             | $      | 11,694,699 |   |
| Short-term                  investments                                                                                                |   |         | 1,521,111  |             |   | 398,592 |   |
| Accounts                  and notes receivable, less allowances of $8,600 in 2008 and $8,300                  in                  2007 |   |         | 443,045    |             |   | 811,634 |   |
| Accounts                  due from employees and distributors                                                                          |   |         | 238,842    |             |   | 204,705 |   |
| Inventories                                                                                                                            |   |         |       |             |   |   |   |
| Finished                  goods                                                                                                        |   |         | 3,515,945  |             |   | 3,290,114 |   |
| Raw                  materials                                                                                                         |   |         | 2,296,110  |             |   | 1,630,976 |   |
| Sales                  aids and promotional materials                                                                                  |   |         | 1,075,446  |             |   | 1,258,148 |   |
| Total                  inventories                                                                                                     |   |         | 6,887,501  |             |   | 6,179,238 |   |
|                                                                                                                                   |   |         |       |             |   |   |   |
| Refundable                  income taxes                                                                                               |   |         | 256,825    |             |   | 362,330 |   |
| Prepaid                  expenses and other current assets                                                                             |   |         | 1,371,602  |             |   | 862,172 |   |
| Deferred                  income taxes                                                                                                 |   |         | 531,430    |             |   | 574,430 |   |
| Total                  current assets                                                                                                  |   |         | 21,602,675 |             |   | 21,087,800 |   |
|                                                                                                                                   |   |         |       |             |   |   |   |
| Other                  assets                                                                                                          |   |         | 3,032,874  |             |   | 2,999,903 |   |
| Accounts                  due from employees and distributors                                                                          |   |         | 231,544    |             |   | 319,883 |   |
|                                                                                                                                   |   |         |       |             |   |   |   |
| Property,                  plant and equipment:                                                                                        |   |         |       |             |   |   |   |
| Land                                                                                                                                   |   |         | 829,222    |             |   | 829,222 |   |
| Building                                                                                                                               |   |         | 9,808,973  |             |   | 9,817,692 |   |
| Machinery                  & equipment                                                                                             |   |         | 3,332,135  |             |   | 3,673,515 |   |
| Office                  equipment                                                                                                      |   |         | 1,531,099  |             |   | 1,525,905 |   |
| Computer                  equipment & software                                                                                     |   |         | 2,737,763  |             |   | 2,665,610 |   |
|                                                                                                                                   |   |         | 18,239,192 |             |   | 18,511,944 |   |
| Less:                  Accumulated depreciation                                                                                        |   |         | 9,110,792  |             |   | 9,312,759 |   |
|                    Net property, plant and equipment                                                                              |   |         | 9,128,400  |             |   | 9,199,185 |   |
|                                                                                                                                   |   |         |       |             |   |   |   |
| Total                  assets                                                                                                          |   | $            | 33,995,493 |             | $      | 33,606,771 |   |

----

| Reliv                  International, Inc. and Subsidiaries |
|-------------------------------------------------------------|
|                                                        |
| Consolidated                  Balance Sheets                |

|                                                                                                                                                                                                                                                                                                         |   | June 30 |       | December 31 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|------------------|--------|
|                                                                                                                                                                                                                                                                                                         |   | 2008         |       | 2007             |   |
|                                                                                                                                                                                                                                                                                                         |   | (unaudited)  |       |             |   |
| Liabilities and                  stockholders' equity                                                                                                                                                                                                                                                   |   |         |       |             |   |   |   |
|                                                                                                                                                                                                                                                                                                         |   |         |       |             |   |   |   |
| Current                  liabilities:                                                                                                                                                                                                                                                                        |   |         |       |             |   |   |   |
| Accounts                  payable and accrued expenses:                                                                                                                                                                                                                                                      |   |         |       |             |   |   |   |
| Trade                  accounts payable and other accrued expenses                                                                                                                                                                                                                                           |   | $            | 4,898,012  |             | $      | 4,288,481 |   |
| Distributors                  commissions payable                                                                                                                                                                                                                                                            |   |         | 3,079,599  |             |   | 3,285,270 |   |
| Sales                  taxes payable                                                                                                                                                                                                                                                                         |   |         | 327,118    |             |   | 390,585 |   |
| Payroll                  and payroll taxes payable                                                                                                                                                                                                                                                           |   |         | 510,704    |             |   | 499,921 |   |
| Total                  accounts payable and accrued expenses                                                                                                                                                                                                                                                 |   |         | 8,815,433  |             |   | 8,464,257 |   |
|                                                                                                                                                                                                                                                                                                         |   |         |       |             |   |   |   |
| Income                  taxes payable                                                                                                                                                                                                                                                                        |   |         | 10,000     |             |   | 110,000 |   |
| Total                  current liabilities                                                                                                                                                                                                                                                                   |   |         | 8,825,433  |             |   | 8,574,257 |   |
|                                                                                                                                                                                                                                                                                                         |   |         |       |             |   |   |   |
| Other                  noncurrent liabilities                                                                                                                                                                                                                                                                |   |         | 1,156,335  |             |   | 1,227,313 |   |
|                                                                                                                                                                                                                                                                                                         |   |         |       |             |   |   |   |
| Stockholders'                  equity:                                                                                                                                                                                                                                                                       |   |         |       |             |   |   |   |
| Preferred                  stock, par value $.001 per share; 3,000,000 shares authorized;                  -0- shares                  issued and outstanding in 2008 and 2007                                                                                                                               |   |         | -          |             |   | - |   |
| Common                  stock, par value $.001 per share; 30,000,000 authorized; 15,877,179                  shares                  issued and 15,662,052 shares outstanding as of 6/30/2008; 15,877,179                  shares issued and 15,873,754 shares outstanding as of                  12/31/2007 |   |         | 15,877     |             |   | 15,877 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                  |   |         | 33,221,932 |             |   | 33,100,351 |   |
| Accumulated                  deficit                                                                                                                                                                                                                                                                         |   |         | (7,567,534 | )                |   | (8,869,332 | ) |
| Accumulated                  other comprehensive loss:                                                                                                                                                                                                                                                       |   |         |       |             |   |   |   |
| Foreign                  currency translation adjustment                                                                                                                                                                                                                                                     |   |         | (407,990   | )                |   | (419,179 | ) |
| Treasury                  stock                                                                                                                                                                                                                                                                              |   |         | (1,248,560 | )                |   | (22,516 | ) |
|                                                                                                                                                                                                                                                                                                         |   |         |       |             |   |   |   |
| Total                  stockholders' equity                                                                                                                                                                                                                                                                  |   |         | 24,013,725 |             |   | 23,805,201 |   |
|                                                                                                                                                                                                                                                                                                         |   |         |       |             |   |   |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                                                                  |   | $            | 33,995,493 |             | $      | 33,606,771 |   |

----

| Reliv                  International, Inc. and Subsidiaries |
|-------------------------------------------------------------|
|                                                        |
| Consolidated                  Statements of Income          |
| (unaudited)                                                 |

|                                                      |   | Three months ended June 30 |       | Six months ended June 30 |   |
|-----------------------------------------------------------|--------|------------------------------------------------|------------|----------------------------------------------|--------|
|                                                      |   | 2008                                           |       | 2007                                         |   | 2008 |   | 2007 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |
| Product                  sales                            |   | $                                              | 21,295,574 |                                         | $      | 23,550,919 |   | $ | 46,492,752 |   | $ | 54,948,885 |   |
| Handling                  & freight income            |   |                                           | 2,664,136  |                                         |   | 2,773,618 |   |   | 5,738,344 |   |   | 6,339,296 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Net                  sales                                |   |                                           | 23,959,710 |                                         |   | 26,324,537 |   |   | 52,231,096 |   |   | 61,288,181 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Costs                  and expenses:                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Cost                  of products sold                    |   |                                           | 4,110,910  |                                         |   | 4,398,940 |   |   | 8,945,436 |   |   | 10,460,332 |   |
| Distributor                  royalties and commissions    |   |                                           | 9,422,481  |                                         |   | 10,602,827 |   |   | 20,544,853 |   |   | 24,531,390 |   |
| Selling,                  general and administrative      |   |                                           | 9,589,478  |                                         |   | 10,199,831 |   |   | 19,521,277 |   |   | 21,229,680 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Total                  costs and expenses                 |   |                                           | 23,122,869 |                                         |   | 25,201,598 |   |   | 49,011,566 |   |   | 56,221,402 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Income                  from operations                   |   |                                           | 836,841    |                                         |   | 1,122,939 |   |   | 3,219,530 |   |   | 5,066,779 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                  |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Interest                  income                          |   |                                           | 100,691    |                                         |   | 163,514 |   |   | 235,564 |   |   | 376,116 |   |
| Interest                  expense                         |   |                                           | (9,981     | )                                            |   | (447 | ) |   | (10,394 | ) |   | (573 | ) |
| Other                  income (expense)                   |   |                                           | 17,523     |                                         |   | 98,305 |   |   | (17,589 | ) |   | 195,238 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Income                  before income taxes               |   |                                           | 945,074    |                                         |   | 1,384,311 |   |   | 3,427,111 |   |   | 5,637,560 |   |
| Provision                  for income taxes               |   |                                           | 376,000    |                                         |   | 561,000 |   |   | 1,332,000 |   |   | 2,194,000 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Net                  income                               |   | $                                              | 569,074    |                                         | $      | 823,311 |   | $ | 2,095,111 |   | $ | 3,443,560 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Earnings                  per common share - Basic        |   | $                                              | 0.04       |                                         | $      | 0.05 |   | $ | 0.13 |   | $ | 0.21 |   |
| Weighted                  average shares                  |   |                                           | 15,821,000 |                                         |   | 16,135,000 |   |   | 15,847,000 |   |   | 16,282,000 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Earnings                  per common share - Diluted      |   | $                                              | 0.04       |                                         | $      | 0.05 |   | $ | 0.13 |   | $ | 0.21 |   |
| Weighted                  average shares                  |   |                                           | 15,821,000 |                                         |   | 16,308,000 |   |   | 15,847,000 |   |   | 16,453,000 |   |
|                                                      |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Cash                  dividends declared per common share |   | $                                              | 0.05       |                                         | $      | 0.05 |   | $ | 0.05 |   | $ | 0.05 |   |

----

| Reliv                  International, Inc. and Subsidiaries |
|-------------------------------------------------------------|
|                                                        |
| Consolidated                  Statements of Cash Flows      |
| (unaudited)                                                 |

|                                                                                                                |   | Six months ended June 30 |       |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                                                                                                                |   | 2008                                         |       | 2007 |   |
|                                                                                                                |   |                                         |       |   |   |
| Operating                  activities:                                                                              |   |                                         |       |   |   |   |   |
| Net                  income                                                                                         |   | $                                            | 2,095,111  |   | $ | 3,443,560 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |                                         |       |   |   |   |   |
| Depreciation                  and amortization                                                                      |   |                                         | 543,958    |   |   | 525,069 |   |
| Stock-based                  compensation                                                                           |   |                                         | 119,309    |   |   | 40,013 |   |
| Deferred                  income taxes                                                                              |   |                                         | (29,000    | ) |   | 110,000 |   |
| Foreign                  currency transaction (gain)/loss                                                           |   |                                         | (24,200    | ) |   | (126,570 | ) |
| (Increase)                  decrease in accounts and notes receivable                                               |   |                                         | 433,486    |   |   | (246,060 | ) |
| (Increase)                  decrease in inventories                                                                 |   |                                         | (665,730   | ) |   | (904,016 | ) |
| (Increase)                  decrease in refundable income taxes                                                     |   |                                         | 106,931    |   |   | (946,952 | ) |
| (Increase)                    decrease in prepaid expenses and other current                    assets              |   |                                         | (512,058   | ) |   | (200,604 | ) |
| (Increase)                  decrease in other assets                                                                |   |                                         | 20,830     |   |   | (382,155 | ) |
| Increase                  (decrease) in accounts payable and accrued expenses                                       |   |                                         | 249,481    |   |   | 1,543,712 |   |
| Increase                  (decrease) in income taxes payable                                                        |   |                                         | (100,000   | ) |   | - |   |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Net                  cash provided by operating activities                                                          |   |                                         | 2,238,118  |   |   | 2,855,997 |   |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Investing                  activities:                                                                              |   |                                         |       |   |   |   |   |
| Proceeds                  from the sale of property, plant and equipment                                            |   |                                         | 8,716      |   |   | 4,532 |   |
| Purchase                  of property, plant and equipment                                                          |   |                                         | (457,074   | ) |   | (620,689 | ) |
| Purchase                  of investments                                                                            |   |                                         | (1,521,111 | ) |   | (1,398,592 | ) |
| Proceeds                  from sales or maturities of investments, at cost                                          |   |                                         | 398,592    |   |   | 2,328,000 |   |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Net                  cash provided by (used in) investing activities                                                |   |                                         | (1,570,877 | ) |   | 313,251 |   |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Financing                  activities:                                                                              |   |                                         |       |   |   |   |   |
| Common                  stock dividends paid                                                                        |   |                                         | (793,313   | ) |   | (806,763 | ) |
| Proceeds                  from options and warrants exercised                                                       |   |                                         | -          |   |   | 49,626 |   |
| Purchase                  of stock for treasury                                                                     |   |                                         | (1,226,044 | ) |   | (6,432,527 | ) |
| Other                                                                                                               |   |                                         | 2,272      |   |   | - |   |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Net                  cash used in financing activities                                                              |   |                                         | (2,017,085 | ) |   | (7,189,664 | ) |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Effect                  of exchange rate changes on cash and cash equivalents                                       |   |                                         | 7,464      |   |   | 170,305 |   |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Increase                  (decrease) in cash and cash equivalents                                                   |   |                                         | (1,342,380 | ) |   | (3,850,111 | ) |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Cash                  and cash equivalents at beginning of period                                                   |   |                                         | 11,694,699 |   |   | 9,332,810 |   |
|                                                                                                                |   |                                         |       |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                         |   | $                                            | 10,352,319 |   | $ | 5,482,699 |   |

----

| **Note                1—** | **Accounting                  Policies** |
|----------------------------------|------------------------------------------|

*Basis        of Presentation*

| **Note                2—** | **Comprehensive                  Income** |
|----------------------------------|-------------------------------------------|

| **Note                3—** | **Basic                  and Diluted Earnings per                  Share** |
|----------------------------------|----------------------------------------------------------------------------|

|                                                                                                                |   | Three months ended June 30 |       | Six months ended June 30 |   |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|----------------------------------------------|--------|
|                                                                                                                |   | 2008                                      |       | 2007                                         |   | 2008 |   | 2007 |   |
| Numerator:                                                                                                          |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                         |   | $                                              | 569,074    |                                         | $      | 823,311 |   | $ | 2,095,111 |   | $ | 3,443,560 |   |
|                                                                                                                |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                        |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Denominator                  for basic earnings per share—weighted average shares                             |   |                                           | 15,821,000 |                                         |   | 16,135,000 |   |   | 15,847,000 |   |   | 16,282,000 |   |
| Dilutive                  effect of employee stock options and other warrants                                       |   |                                           | -          |                                         |   | 173,000 |   |   | - |   |   | 171,000 |   |
|                                                                                                                |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Denominator                  for diluted earnings per share—adjusted weighted average                  shares |   |                                           | 15,821,000 |                                         |   | 16,308,000 |   |   | 15,847,000 |   |   | 16,453,000 |   |
|                                                                                                                |   |                                           |       |                                         |   |   |   |   |   |   |   |   |   |
| Basic                  earnings per share                                                                           |   | $                                              | 0.04       |                                         | $      | 0.05 |   | $ | 0.13 |   | $ | 0.21 |   |
| Diluted                  earnings per share                                                                         |   | $                                              | 0.04       |                                         | $      | 0.05 |   | $ | 0.13 |   | $ | 0.21 |   |

----

| **Note                4—** | **Adoption                  of New Accounting Standards — Fair Value** |
|----------------------------------|------------------------------------------------------------------------------|

|                                          |   |        |      | Using Quoted                |   | Using Significant           |   |
|-----------------------------------------------|--------|-------------|-----------|----------------------------------|--------|----------------------------------|--------|
|                                          |   | Total       |      | Prices in              |   | Other Observable            |   |
|                                          |   | Carrying    |      | Active Markets              |   | Inputs                           |   |
| Description                         |   |  Value |      |  (Level                  1) |   |  (Level                  2) |   |
|                                          |   |        |      |                             |   |                             |   |   |   |   |
| Certificates                  of deposits (1) |   | $           | 4,507,183 |                             | $      | 4,507,183                        |   | $ | - |   |
|                                          |   |        |      |                             |   |                             |   |   |   |   |
| Marketable                  securities (2)    |   |        | 924,658   |                             |   | 924,658                          |   |   | - |   |
|                                          |   |        |      |                             |   |                             |   |   |   |   |
| Derivatives                  (3)              |   |        | 13,622    |                             |   | -                                |   |   | 13,622 |   |
|                                          |   |        |      |                             |   |                             |   |   |   |   |
|                                          |   | $           | 5,445,463 |                             | $      | 5,431,841                        |   | $ | 13,622 |   |

|  | (1) | Representing                  certificates of deposits recorded in cash, cash equivalents, and                  short                  term investments. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Representing                  assets of the Company's Supplemental Executive Retirement Plan                  (trading                  securities). Presented within                  Other Assets in the consolidated balance                  sheets. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Representing                  recorded asset of forward currency contracts and is presented within                  Prepaid Expenses and Other Current Assets in the consolidated balance                  sheets. The fair values of derivatives are determined either through                  quoted market prices in active markets for exchange traded derivatives                  or                  through pricing from brokers who develop values based on inputs                  observable                  in active markets such as interest rates and currency                  volatilities. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Note                5—** | **Recent                  Accounting Standards Pending                  Adoption** |
|----------------------------------|------------------------------------------------------------------------------------|

----

| **Note                6—** | **Restructuring                  of European Operations** |
|----------------------------------|-----------------------------------------------------------|

|                                                    |   | Employee  |    | Lease  |   |    |   |
|---------------------------------------------------------|--------|-----------|---------|--------|--------|---------|--------|
|                                                    |   | Severance |    | Exit   |   | Total   |   |
|                                                    |   |      |    |   |   |    |   |
| Original                  charges and reserve balance   |   | $         | 107,000 |   | $      | 108,000 |   | $ | 215,000 |   |
|                                                    |   |      |    |   |   |    |   |   |   |   |
| Amounts                  settled in second quarter 2008 |   |      | 22,000  |   |   | -       |   |   | 22,000 |   |
|                                                    |   |      |    |   |   |    |   |   |   |   |
| Reserve                  balance at June 30, 2008       |   | $         | 85,000  |   | $      | 108,000 |   | $ | 193,000 |   |

| **Note                7—** | **Subsequent                  Event** |
|----------------------------------|---------------------------------------|

----

**FORWARD-LOOKING      STATEMENTS**

**Item      No. 2 - Management’s Discussion and Analysis of      Financial**
**Condition      and Results of Operations**

*The      following discussion and analysis of our financial condition and results of      operations should be read in conjunction with our financial statements and      related notes included elsewhere in this Quarterly Report on Form 10-Q. The      following discussion and analysis discusses the financial condition and results      of our operations on a consolidated basis, unless otherwise indicated.*

**Overview      **

**Components      of Net Sales and Expense **

----

**Results      of Operations **

|                                                   |   | **Three                  months ended****June                  30,** |   | **Six                  months ended****June                  30,** |   |
|--------------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                   |   | **2008**                                                             |   | **2007**                                                           |   | **2008** |   | **2007** |   |
|                                                   |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Net                  sales                             |   |                                                                 | 100.0  | %                                                                  |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |
| Costs                  and expenses:                   |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Cost                  of products sold                 |   |                                                                 | 17.2   |                                                               |   | 16.7 |   |   | 17.1 |   |   | 17.1 |   |
| Distributor                  royalties and commissions |   |                                                                 | 39.3   |                                                               |   | 40.3 |   |   | 39.3 |   |   | 40.0 |   |
| Selling,                  general and administrative   |   |                                                                 | 40.0   |                                                               |   | 38.8 |   |   | 37.4 |   |   | 34.6 |   |
|                                                   |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Income                  from operations                |   |                                                                 | 3.5    |                                                               |   | 4.2 |   |   | 6.2 |   |   | 8.3 |   |
| Interest                  expense                      |   |                                                                 | (0.0   | )                                                                  |   | (0.0 | ) |   | (0.0 | ) |   | (0.0 | ) |
| Interest                  and other income             |   |                                                                 | 0.5    |                                                               |   | 1.0 |   |   | 0.4 |   |   | 0.9 |   |
|                                                   |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Income                  before income taxes            |   |                                                                 | 4.0    |                                                               |   | 5.2 |   |   | 6.6 |   |   | 9.2 |   |
| Provision                  for income taxes            |   |                                                                 | 1.6    |                                                               |   | 2.1 |   |   | 2.6 |   |   | 3.6 |   |
|                                                   |   |                                                                 |   |                                                               |   |   |   |   |   |   |   |   |   |
| Net                  income                            |   |                                                                 | 2.4    | %                                                                  |   | 3.1 | % |   | 4.0 | % |   | 5.6 | % |

----

*Net      Sales. *

|                                    |   | **Three                  months ended June 30,** |   |                                   |   |                                      |   |
|-----------------------------------------|--------|--------------------------------------------------|--------|----------------------------------------|--------|-------------------------------------------|--------|
|                                    |   | **2008**                                         |   | **2007**                               |   | **Change from prior year** |   |
|                                    |   | **Amount**                                       |   | **%                  of Net****Sales** |   | **Amount**                                |   | **%                  of Net****Sales** |   | **Amount** |   | **%** |   |
|                                    |   | **(dollars                  in thousands)**      |   |                                   |   |                                      |   |
| United                  States          |   | $                                                | 20,435 |                                   |   | 85.3                                      | %      | $ | 23,303 |   |   | 88.5 | % | $ | (2,868 | ) |   | (12.3 | )% |
| Australia/New                  Zealand  |   |                                             | 682    |                                   |   | 2.8                                       |   |   | 722 |   |   | 2.7 |   |   | (40 | ) |   | (5.5 | ) |
| Canada                                  |   |                                             | 436    |                                   |   | 1.8                                       |   |   | 378 |   |   | 1.4 |   |   | 58 |   |   | 15.3 |   |
| Mexico                                  |   |                                             | 481    |                                   |   | 2.0                                       |   |   | 393 |   |   | 1.5 |   |   | 88 |   |   | 22.4 |   |
| United                  Kingdom/Ireland |   |                                             | 270    |                                   |   | 1.1                                       |   |   | 252 |   |   | 1.0 |   |   | 18 |   |   | 7.1 |   |
| Philippines                             |   |                                             | 695    |                                   |   | 2.9                                       |   |   | 671 |   |   | 2.6 |   |   | 24 |   |   | 3.6 |   |
| Malaysia/Singapore                      |   |                                             | 850    |                                   |   | 3.6                                       |   |   | 424 |   |   | 1.6 |   |   | 426 |   |   | 100.5 |   |
| Germany                                 |   |                                             | 111    |                                   |   | 0.5                                       |   |   | 182 |   |   | 0.7 |   |   | (71 | ) |   | (39.0 | ) |
| Consolidated                  total     |   | $                                                | 23,960 |                                   |   | 100.0                                     | %      | $ | 26,325 |   |   | 100.0 | % | $ | (2,365 | ) |   | (9.0 | )% |

|                                    |   | **Six                  months ended June 30,** |   |                                   |   |                                      |   |
|-----------------------------------------|--------|------------------------------------------------|--------|----------------------------------------|--------|-------------------------------------------|--------|
|                                    |   | **2008**                                       |   | **2007**                               |   | **Change from prior year** |   |
|                                    |   | **Amount**                                     |   | **%                  of Net****Sales** |   | **Amount**                                |   | **%                  of Net****Sales** |   | **Amount** |   | **%** |   |
|                                    |   | **(dollars                  in thousands)**    |   |                                   |   |                                      |   |
| United                  States          |   | $                                              | 45,120 |                                   |   | 86.4                                      | %      | $ | 55,206 |   |   | 90.1 | % | $ | (10,086 | ) |   | (18.3 | )% |
| Australia/New                  Zealand  |   |                                           | 1,428  |                                   |   | 2.7                                       |   |   | 1,375 |   |   | 2.3 |   |   | 53 |   |   | 3.9 |   |
| Canada                                  |   |                                           | 897    |                                   |   | 1.7                                       |   |   | 818 |   |   | 1.3 |   |   | 79 |   |   | 9.7 |   |
| Mexico                                  |   |                                           | 880    |                                   |   | 1.7                                       |   |   | 804 |   |   | 1.3 |   |   | 76 |   |   | 9.5 |   |
| United                  Kingdom/Ireland |   |                                           | 557    |                                   |   | 1.1                                       |   |   | 539 |   |   | 0.9 |   |   | 18 |   |   | 3.3 |   |
| Philippines                             |   |                                           | 1,509  |                                   |   | 2.9                                       |   |   | 1,299 |   |   | 2.1 |   |   | 210 |   |   | 16.2 |   |
| Malaysia/Singapore                      |   |                                           | 1,492  |                                   |   | 2.8                                       |   |   | 754 |   |   | 1.2 |   |   | 738 |   |   | 97.9 |   |
| Germany                                 |   |                                           | 348    |                                   |   | 0.7                                       |   |   | 493 |   |   | 0.8 |   |   | (145 | ) |   | (29.4 | ) |
| Consolidated                  total     |   | $                                              | 52,231 |                                   |   | 100.0                                     | %      | $ | 61,288 |   |   | 100.0 | % | $ | (9,057 | ) |   | (14.8 | )% |

----

|                                  |   | **June 30, 2008**      |   | **June 30, 2007**                            |   | **% Change**                |   |
|---------------------------------------|--------|----------------------------------|--------|--------------------------------------------------------|--------|----------------------------------|--------|
|                                  |   | **Active ****Distributors** |   | **Master ****Affiliates and ****Above** |   | **Active ****Distributors** |   | **Master ****Affiliates and ****Above** |   | **Active ****Distributors** |   | **Master ****Affiliates and ****Above** |   |
|                                  |   |                             |   |                                                   |   |                             |   |   |   |   |   |   |   |   |  |   |   |   |   |
| United                States          |   |                             | 55,070 |                                                   |   | 10,080                           |   |   | 56,930 |   |   | 13,200 |   |   | (3.3 | )% |   | (23.6 | )% |
| Australia/New                Zealand  |   |                             | 2,420  |                                                   |   | 220                              |   |   | 2,510 |   |   | 280 |   |   | (3.6 | ) |   | (21.4 | ) |
| Canada                                |   |                             | 1,230  |                                                   |   | 150                              |   |   | 1,130 |   |   | 150 |   |   | 8.8 |   |   | 0.0 |   |
| Mexico                                |   |                             | 1,540  |                                                   |   | 220                              |   |   | 1,300 |   |   | 190 |   |   | 18.5 |   |   | 15.8 |   |
| United                Kingdom/Ireland |   |                             | 750    |                                                   |   | 90                               |   |   | 830 |   |   | 130 |   |   | (9.6 | ) |   | (30.8 | ) |
| Philippines                           |   |                             | 4,900  |                                                   |   | 430                              |   |   | 3,990 |   |   | 300 |   |   | 22.8 |   |   | 43.3 |   |
| Malaysia/Singapore                    |   |                             | 3,040  |                                                   |   | 490                              |   |   | 2,260 |   |   | 290 |   |   | 34.5 |   |   | 69.0 |   |
| Germany                               |   |                             | 500    |                                                   |   | 80                               |   |   | 520 |   |   | 150 |   |   | (3.8 | ) |   | (46.7 | ) |
| Consolidated                total     |   |                             | 69,450 |                                                   |   | 11,760                           |   |   | 69,470 |   |   | 14,690 |   |   | 0.0 | % |   | (19.9 | )% |

----

*Cost      of Products Sold. *

*Distributor      Royalties and Commissions. *

*Selling,      General and Administrative Expenses. *

----

*Interest      Income/Expense. *

*Income      Taxes. *

*Net      Income. *

**Financial      Condition, Liquidity and Capital Resources **

----

**Critical      Accounting Policies**

*Recent      Accounting Pronouncements *

**Item      No. 3 - Quantitative and Qualitative Disclosures Regarding Market      Risk**

**Foreign      Currency Risk**

----

**–**

**Item      No. 4 - Controls and Procedures **

**PART      II – OTHER INFORMATION**

**Item      No. 1A – Risk Factors **

**Item      No. 2 – Unregistered Sales of Equity Securities and Use of      Proceeds**

**ISSUER      PURCHASES OF EQUITY SHARES **

|     Period    |   |   Total Numberof SharesPurchased |    | Average PricePaid per Share |   |  Total Number of SharesPurchased as Part ofPublicly AnnouncedPrograms |   | Approximate DollarValue of Shares thatMay Yet Be PurchasedUnder the Plans or Programs(1) |    |
|-----------------------------------|--------|------------------------------------------------------|---------|--------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                              |   |                                                 |    |                                       |   |                                                                                                          |   |                                                                                                                                            |    |   |   |   |   |
| April                  1-30, 2008 |   |                                                 | — |                                       |   | —                                                                                                       |   |                                                                                                                                            | — |   | $ | 14,440,000 |   |
|                              |   |                                                 |    |                                       |   |                                                                                                          |   |                                                                                                                                            |    |   |   |   |   |
| May                  1-31, 2008   |   |                                                 | 61,580  |                                       | $      | 5.75                                                                                                          |   |                                                                                                                                            | 61,580  |   | $ | 14,086,000 |   |
|                              |   |                                                 |    |                                       |   |                                                                                                          |   |                                                                                                                                            |    |   |   |   |   |
| June                  1-30, 2008  |   |                                                 | 150,122 |                                       | $      | 5.81                                                                                                          |   |                                                                                                                                            | 150,122 |   | $ | 13,214,000 |   |
|                              |   |                                                 |    |                                       |   |                                                                                                          |   |                                                                                                                                            |    |   |   |   |   |
| Total                             |   |                                                 | 211,702 |                                       |   |                                                                                                          |   |                                                                                                                                            | 211,702 |   |   |   |   |

|   | (1) | In                May 2007, the Company’s Board of Directors approved a share repurchase                plan of up to $15 million through April                2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Item      No. 4 – Submission of Matters to a Vote of Security Holders**

|   | 1. | Election                of nine directors; and |
|--------|----|------------------------------------------------|

|   | 2. | Ratification                of the Board’s selection of Ernst & Young LLP as our independent                certified public accountants. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   |                          |       | **Total Votes**              |   |
|-------------------------------------|--------|-------------------------------|------------|-----------------------------------|--------|
| **Name**                            |   | **Total Votes For** |       | **Against or Withheld** |   |
|                                |   |                          |       |                              |   |
| Robert                L. Montgomery |   |                          | 12,507,403 |                              |   | 146,043 |   |
|                                |   |                          |       |                              |   |  |   |
| Carl                W. Hastings     |   |                          | 12,509,193 |                              |   | 144,253 |   |
|                                |   |                          |       |                              |   |   |   |
| Donald                L. McCain     |   |                          | 12,508,699 |                              |   | 144,747 |   |
|                                |   |                          |       |                              |   |   |   |
| Stephen                M. Merrick   |   |                          | 12,547,610 |                              |   | 105,836 |   |
|                                |   |                          |       |                              |   |   |   |
| John                B. Akin         |   |                          | 12,541,905 |                              |   | 111,541 |   |
|                                |   |                          |       |                              |   |   |   |
| Denis                St. John       |   |                          | 12,544,748 |                              |   | 108,698 |   |
|                                |   |                          |       |                              |   |   |   |
| Robert                M. Henry      |   |                          | 12,545,148 |                              |   | 108,398 |   |
|                                |   |                          |       |                              |   |  |   |
| Michael                D. Smith     |   |                          | 12,544,148 |                              |   | 109,298 |   |
|                                |   |                          |       |                              |   |  |   |
| Patrick                G. Doherty   |   |                          | 12,544,548 |                              |   | 108,898 |   |

| 2. | Ratification                of the Board of Directors selection of Ernst & Young LLP as our                certified public accountants. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   |                              |   | **Total Broker Non-Votes**       |   |
|-------------------------------|--------|-----------------------------------|--------|--------------------------------------------|--------|
| **Total Votes For** |   | **Total Votes Against** |   | **and Total Votes Abstain** |   |
|                          |   |                              |   |                                       |   |   |   |
| 12,593,359                    |   |                              | 45,611 |                                       |   | 14,475 |   |

----

**Item      No. 6 – Exhibits **

| Exhibit |   |                                                                                                                                                                                                                                                                  |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Document                                                                                                                                                                                                                                                              |
|    |   |                                                                                                                                                                                                                                                                  |
| 10.1    |   | Rule                10b5-1 Stock Repurchase Plan dated June 12, 2008 between the Registrant                and Canaccord Adams, Inc. (incorporated by reference to Exhibit 10.1                to                the Form 8-K of the Registrant filed June 13, 2008). |
|    |   |                                                                                                                                                                                                                                                                  |
| 31.1    |   | Certification                of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)                of the Securities Exchange Act, as amended (filed                herewith).                                                                      |
|    |   |                                                                                                                                                                                                                                                                  |
| 31.2    |   | Certification                of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)                of the Securities Exchange Act, as amended (filed                herewith).                                                                      |
|    |   |                                                                                                                                                                                                                                                                  |
| 32      |   | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley                Act                of 2002 (filed herewith).    |

----

**SIGNATURES**

| **RELIV’                INTERNATIONAL, INC.** |
|-----------------------------------------------------|
|                                                |   |
| By:                                                 | /s/                Robert L. Montgomery |
|                                                | Robert                L. Montgomery, Chairman of the Board of Directors, President and                Chief                Executive Officer |
|                                                |   |
| Date:                August 8, 2008                 |
|                                                |   |
| By:                                                 | /s/                Steven D. Albright |
|                                                | Steven                D. Albright, Chief Financial Officer (and accounting                officer) |
|                                                |   |
| Date:                August 8, 2008                 |

----

**Exhibit      Index **

| Exhibit |   |                                                                                                                                                                                                                                                                  |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Document                                                                                                                                                                                                                                                              |
|    |   |                                                                                                                                                                                                                                                                  |
| 10.1    |   | Rule                10b5-1 Stock Repurchase Plan dated June 12, 2008 between the Registrant                and Canaccord Adams, Inc. (incorporated by reference to Exhibit 10.1                to                the Form 8-K of the Registrant filed June 13, 2008). |
|    |   |                                                                                                                                                                                                                                                                  |
| 31.1    |   | Certification                of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)                of the Securities Exchange Act, as amended (filed                herewith).                                                                      |
|    |   |                                                                                                                                                                                                                                                                  |
| 31.2    |   | Certification                of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)                of the Securities Exchange Act, as amended (filed                herewith).                                                                      |
|    |   |                                                                                                                                                                                                                                                                  |
| 32      |   | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley                Act                of 2002 (filed herewith).    |

----