**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 September 30, 2007**

**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 ofincorporation                or organization) |   | (I.R.S.                Employer Identification Number) |

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

----

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**INDEX      **

| PART                  I – FINANCIAL INFORMATION |                                                                                                                      |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                                       |                                                                                                                      |   |
| Item                No. 1                                  | Financial                Statements (Unaudited)                                                                           | 1 |
| Item                No. 2                                  | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 7 |
| Item                No. 3                                  | Quantitative                and Qualitative Disclosures Regarding Market Risk                                             | 13 |
| Item                No. 4                                  | Controls                and Procedures                                                                                    | 13 |
|                                                       |                                                                                                                      |   |
| Part                II – Other Information      |                                                                                                                      |
|                                                       |                                                                                                                      |   |
| Item                No. 1A                                 | Risk                Factors                                                                                               | 14 |
| Item                No. 2                                  | Unregistered                Sales of Equity Securities and Use of Proceeds                                                | 15 |
| Item                No. 6                                  | Exhibits                                                                                                                  | 16 |

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**PART        I — FINANCIAL INFORMATION**

**Item        No. 1 - Financial Statements**

Reliv        International, Inc. and Subsidiaries   

|                                                                                                                                   |   | September                  302007 |       | December                  312006 |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|----------------------------------|--------|
|                                                                                                                                   |   | (unaudited)                       |       |                             |   |
| Assets                                                                                                                                 |   |                              |       |                             |   |   |   |
|                                                                                                                                   |   |                              |       |                             |   |   |   |
| Current                  assets:                                                                                                       |   |                              |       |                             |   |   |   |
| Cash                  and cash equivalents                                                                                             |   | $                                 | 7,723,550  |                             | $      | 9,332,810 |   |
| Short-term                  investments                                                                                                |   |                              | 4,398,592  |                             |   | 7,864,000 |   |
| Accounts                  and notes receivable, less allowances of $6,600 in 2007 and $6,200                  in                  2006 |   |                              | 560,821    |                             |   | 669,379 |   |
| Accounts                  due from employees and distributors                                                                          |   |                              | 270,337    |                             |   | 223,246 |   |
| Inventories                                                                                                                            |   |                              |       |                             |   |   |   |
| Finished                  goods                                                                                                        |   |                              | 3,353,861  |                             |   | 2,752,770 |   |
| Raw                  materials                                                                                                         |   |                              | 1,629,376  |                             |   | 1,337,661 |   |
| Sales                  aids and promotional materials                                                                                  |   |                              | 732,903    |                             |   | 687,790 |   |
| Total                  inventories                                                                                                     |   |                              | 5,716,140  |                             |   | 4,778,221 |   |
|                                                                                                                                   |   |                              |       |                             |   |   |   |
| Refundable                  income taxes                                                                                               |   |                              | 821,818    |                             |   | 279,096 |   |
| Prepaid                  expenses and other current assets                                                                             |   |                              | 1,120,953  |                             |   | 1,103,996 |   |
| Deferred                  income taxes                                                                                                 |   |                              | 545,430    |                             |   | 594,430 |   |
| Total                  current assets                                                                                                  |   |                              | 21,157,641 |                             |   | 24,845,178 |   |
|                                                                                                                                   |   |                              |       |                             |   |   |   |
| Other                  assets                                                                                                          |   |                              | 2,993,114  |                             |   | 2,639,537 |   |
| Accounts                  due from employees and distributors                                                                          |   |                              | 335,056    |                             |   | 362,959 |   |
|                                                                                                                                   |   |                              |       |                             |   |   |   |
| Property,                  plant and equipment:                                                                                        |   |                              |       |                             |   |   |   |
| Land                                                                                                                                   |   |                              | 829,222    |                             |   | 829,222 |   |
| Building                                                                                                                               |   |                              | 9,779,252  |                             |   | 9,565,221 |   |
| Machinery                  & equipment                                                                                             |   |                              | 3,729,533  |                             |   | 4,199,714 |   |
| Office                  equipment                                                                                                      |   |                              | 1,575,077  |                             |   | 1,520,297 |   |
| Computer                  equipment & software                                                                                     |   |                              | 2,703,109  |                             |   | 2,441,264 |   |
|                                                                                                                                   |   |                              | 18,616,193 |                             |   | 18,555,718 |   |
| Less:                  Accumulated depreciation                                                                                        |   |                              | 9,201,401  |                             |   | 9,121,172 |   |
| Net                  property, plant and equipment                                                                                     |   |                              | 9,414,792  |                             |   | 9,434,546 |   |
|                                                                                                                                   |   |                              |       |                             |   |   |   |
| Total                  assets                                                                                                          |   | $                                 | 33,900,603 |                             | $      | 37,282,220 |   |

----

|                                                                                                                                                                                                                                                                                                         |   | September                  302007 |       | December                  312006 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                         |   | (unaudited)                       |       |                             |   |
| Liabilities                  and stockholders' equity                                                                                                                                                                                                                                                        |   |                              |       |                             |   |   |   |
|                                                                                                                                                                                                                                                                                                         |   |                              |       |                             |   |   |   |
| Current                  liabilities:                                                                                                                                                                                                                                                                        |   |                              |       |                             |   |   |   |
| Accounts                  payable and accrued expenses:                                                                                                                                                                                                                                                      |   |                              |       |                             |   |   |   |
| Trade                  accounts payable and other accrued expenses                                                                                                                                                                                                                                           |   | $                                 | 4,316,516  |                             | $      | 3,824,951 |   |
| Distributors                  commissions payable                                                                                                                                                                                                                                                            |   |                              | 3,565,325  |                             |   | 3,449,687 |   |
| Sales                  taxes payable                                                                                                                                                                                                                                                                         |   |                              | 455,669    |                             |   | 421,923 |   |
| Payroll                  and payroll taxes payable                                                                                                                                                                                                                                                           |   |                              | 594,723    |                             |   | 918,695 |   |
| Total                  accounts payable and accrued expenses                                                                                                                                                                                                                                                 |   |                              | 8,932,233  |                             |   | 8,615,256 |   |
|                                                                                                                                                                                                                                                                                                         |   |                              |       |                             |   |   |   |
| Income                  taxes payable                                                                                                                                                                                                                                                                        |   |                              | -          |                             |   | - |   |
| Total                  current liabilities                                                                                                                                                                                                                                                                   |   |                              | 8,932,233  |                             |   | 8,615,256 |   |
|                                                                                                                                                                                                                                                                                                         |   |                              |       |                             |   |   |   |
| Noncurrent                  liabilities:                                                                                                                                                                                                                                                                     |   |                              |       |                             |   |   |   |
| Deferred                  income taxes                                                                                                                                                                                                                                                                       |   |                              | -          |                             |   | 42,000 |   |
| Other                  non-current liabilities                                                                                                                                                                                                                                                               |   |                              | 1,124,580  |                             |   | 891,113 |   |
| Total                  noncurrent liabilities                                                                                                                                                                                                                                                                |   |                              | 1,124,580  |                             |   | 933,113 |   |
|                                                                                                                                                                                                                                                                                                         |   |                              |       |                             |   |   |   |
| Stockholders'                  equity:                                                                                                                                                                                                                                                                       |   |                              |       |                             |   |   |   |
| Preferred                  stock, par value $.001 per share; 3,000,000 shares authorized;                  -0- shares                  issued and outstanding in 2007 and 2006                                                                                                                               |   |                              | -          |                             |   | - |   |
| Common                  stock, par value $.001 per share; 30,000,000 authorized; 16,218,057                  shares                  issued and 15,881,754 shares outstanding as of 9/30/2007; 16,730,465                  shares issued and 16,605,523 shares outstanding as of                  12/31/2006 |   |                              | 16,218     |                             |   | 16,731 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                  |   |                              | 33,781,584 |                             |   | 34,732,421 |   |
| Accumulated                  deficit                                                                                                                                                                                                                                                                         |   |                              | (6,040,496 | )                                |   | (5,336,866 | ) |
| Accumulated                  other comprehensive loss:                                                                                                                                                                                                                                                       |   |                              |       |                             |   |   |   |
| Foreign                  currency translation adjustment                                                                                                                                                                                                                                                     |   |                              | (465,309   | )                                |   | (540,653 | ) |
| Treasury                  stock                                                                                                                                                                                                                                                                              |   |                              | (3,448,207 | )                                |   | (1,137,782 | ) |
|                                                                                                                                                                                                                                                                                                         |   |                              |       |                             |   |   |   |
| Total                  stockholders' equity                                                                                                                                                                                                                                                                  |   |                              | 23,843,790 |                             |   | 27,733,851 |   |
|                                                                                                                                                                                                                                                                                                         |   |                              |       |                             |   |   |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                                                                  |   | $                                 | 33,900,603 |                             | $      | 37,282,220 |   |

----

Reliv        International, Inc. and Subsidiaries

|                                                      |   | Three months ended September 30 |       | Nine months ended September 30 |   |
|-----------------------------------------------------------|--------|-----------------------------------------------------|------------|----------------------------------------------------|--------|
|                                                      |   | 2007                                                |       | 2006                                               |   | 2007 |   | 2006 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |
| Product                  sales                            |   | $                                                   | 22,501,899 |                                               | $      | 26,779,859 |   | $ | 77,450,784 |   | $ | 79,812,178 |   |
| Handling                  & freight income            |   |                                                | 2,619,260  |                                               |   | 2,999,544 |   |   | 8,958,556 |   |   | 9,011,644 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Net                  sales                                |   |                                                | 25,121,159 |                                               |   | 29,779,403 |   |   | 86,409,340 |   |   | 88,823,822 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Costs                  and expenses:                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Cost                  of products sold                    |   |                                                | 4,320,557  |                                               |   | 4,951,293 |   |   | 14,780,889 |   |   | 14,756,297 |   |
| Distributor                  royalties and commissions    |   |                                                | 9,926,735  |                                               |   | 11,923,943 |   |   | 34,458,125 |   |   | 35,707,259 |   |
| Selling,                  general and administrative      |   |                                                | 9,740,241  |                                               |   | 10,211,813 |   |   | 30,969,921 |   |   | 29,163,430 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Total                  costs and expenses                 |   |                                                | 23,987,533 |                                               |   | 27,087,049 |   |   | 80,208,935 |   |   | 79,626,986 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Income                  from operations                   |   |                                                | 1,133,626  |                                               |   | 2,692,354 |   |   | 6,200,405 |   |   | 9,196,836 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                  |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Interest                  income                          |   |                                                | 122,788    |                                               |   | 197,998 |   |   | 498,904 |   |   | 480,120 |   |
| Interest                  expense                         |   |                                                | (159       | )                                                  |   | (1,961 | ) |   | (732 | ) |   | (47,428 | ) |
| Other                  income                             |   |                                                | 73,302     |                                               |   | 83,720 |   |   | 268,540 |   |   | 182,239 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Income                  before income taxes               |   |                                                | 1,329,557  |                                               |   | 2,972,111 |   |   | 6,967,117 |   |   | 9,811,767 |   |
| Provision                  for income taxes               |   |                                                | 429,000    |                                               |   | 1,168,000 |   |   | 2,623,000 |   |   | 3,937,000 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Net                  income                               |   | $                                                   | 900,557    |                                               | $      | 1,804,111 |   | $ | 4,344,117 |   | $ | 5,874,767 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Earnings                  per common share - Basic        |   | $                                                   | 0.06       |                                               | $      | 0.11 |   | $ | 0.27 |   | $ | 0.36 |   |
| Weighted                  average shares                  |   |                                                | 15,938,000 |                                               |   | 16,919,000 |   |   | 16,166,000 |   |   | 16,390,000 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Earnings                  per common share - Diluted      |   | $                                                   | 0.06       |                                               | $      | 0.11 |   | $ | 0.27 |   | $ | 0.35 |   |
| Weighted                  average shares                  |   |                                                | 16,171,000 |                                               |   | 17,050,000 |   |   | 16,374,000 |   |   | 16,712,000 |   |
|                                                      |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Cash                  dividends declared per common share |   | $                                                   | -          |                                               | $      | - |   | $ | 0.05 |   | $ | 0.05 |   |

----

|                                                                                                                            |   | Nine months ended September 30 |       |
|---------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|
|                                                                                                                            |   | 2007                                               |       | 2006 |   |
|                                                                                                                            |   |                                               |       |   |   |
| Operating                  activities:                                                                                          |   |                                               |       |   |   |   |   |
| Net                  income                                                                                                     |   | $                                                  | 4,344,117  |   | $ | 5,874,767 |   |
| Adjustments                        to reconcile net income to net cash provided by operating                        activities: |   |                                               |       |   |   |   |   |
| Depreciation                  and amortization                                                                                  |   |                                               | 807,606    |   |   | 934,233 |   |
| Stock-based                  compensation                                                                                       |   |                                               | 90,865     |   |   | 139,659 |   |
| Deferred                  income taxes                                                                                          |   |                                               | 7,000      |   |   | 20,000 |   |
| Foreign                  currency transaction (gain)/loss                                                                       |   |                                               | (235,225   | ) |   | (104,421 | ) |
| (Increase)                  decrease in accounts and notes receivable                                                           |   |                                               | 112,585    |   |   | 24,176 |   |
| (Increase)                  decrease in inventories                                                                             |   |                                               | (853,100   | ) |   | 1,153,277 |   |
| (Increase)                  decrease in refundable income taxes                                                                 |   |                                               | (548,172   | ) |   | (389,192 | ) |
| (Increase)                    decrease in prepaid expenses and other current                    assets                          |   |                                               | 3,474      |   |   | 202,149 |   |
| (Increase)                  decrease in other assets                                                                            |   |                                               | (380,926   | ) |   | 49,373 |   |
| Increase                  (decrease) in accounts payable and accrued expenses                                                   |   |                                               | 475,666    |   |   | 715,428 |   |
| Increase                  (decrease) in income taxes payable                                                                    |   |                                               | -          |   |   | (812,205 | ) |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Net                  cash provided by operating activities                                                                      |   |                                               | 3,823,890  |   |   | 7,807,244 |   |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Investing                  activities:                                                                                          |   |                                               |       |   |   |   |   |
| Proceeds                  from the sale of property, plant and equipment                                                        |   |                                               | 4,904      |   |   | 42,009 |   |
| Purchase                  of property, plant and equipment                                                                      |   |                                               | (761,310   | ) |   | (401,130 | ) |
| Purchase                  of investments                                                                                        |   |                                               | (1,398,592 | ) |   | (6,000,000 | ) |
| Proceeds                  from sales or maturities of investments, at cost                                                      |   |                                               | 4,864,000  |   |   | - |   |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Net                  cash provided by (used in) investing activities                                                            |   |                                               | 2,709,002  |   |   | (6,359,121 | ) |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Financing                  activities:                                                                                          |   |                                               |       |   |   |   |   |
| Principal                  payments on long-term borrowings                                                                     |   |                                               | -          |   |   | (3,127,336 | ) |
| Net                  proceeds from issuance of common stock                                                                     |   |                                               | -          |   |   | 11,918,792 |   |
| Common                  stock dividends paid                                                                                    |   |                                               | (806,763   | ) |   | (840,887 | ) |
| Proceeds                  from options and warrants exercised                                                                   |   |                                               | 83,498     |   |   | 135,120 |   |
| Excess                  tax benefits from stock based compensation                                                              |   |                                               | -          |   |   | 102,914 |   |
| Purchase                  of stock for treasury                                                                                 |   |                                               | (7,677,124 | ) |   | (2,203,755 | ) |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Net                  cash provided by (used in) financing activities                                                            |   |                                               | (8,400,389 | ) |   | 5,984,848 |   |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Effect                  of exchange rate changes on cash and cash equivalents                                                   |   |                                               | 258,237    |   |   | 73,973 |   |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Increase                  (decrease) in cash and cash equivalents                                                               |   |                                               | (1,609,260 | ) |   | 7,506,944 |   |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Cash                  and cash equivalents at beginning of period                                                               |   |                                               | 9,332,810  |   |   | 5,653,594 |   |
|                                                                                                                            |   |                                               |       |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                                     |   | $                                                  | 7,723,550  |   | $ | 13,160,538 |   |

----

| **Note                  1—** | **Accounting                  Policies**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               | *Basis                  of Presentation*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                               | The                  accompanying unaudited consolidated financial statements and notes                  thereto                  have been prepared in accordance with the instructions to Form                  10-Q and                  reflect all adjustments which management believes necessary (which                  primarily include normal recurring accruals) to present fairly                  the                  financial position, results of operations and cash flows. These                  statements, however, do not include all information and footnotes                  necessary for a complete presentation of financial position, results                  of                  operations and cash flows in conformity with accounting principles                  generally accepted in the United States. Interim results may not                  necessarily be indicative of results that may be expected for any                  other                  interim period or for the year as a whole. These financial statements                  should be read in conjunction with the audited consolidated financial                  statements and footnotes included in the annual report on Form                  10-K for                  the year ended December 31, 2006, filed March 15, 2007 with the                  Securities                  and Exchange Commission. The accounting policies used in preparing                  these                  financial statements are the same as those applied in the prior                  year,                  except that the Company adopted a new financial accounting standard                  at the                  beginning of its 2007 fiscal year concerning its income tax accounting                  which is discussed in Note 5. This new standard was adopted prospectively                  and comparative periods were not restated. |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                               | *Reclassification —                  Consolidated Statements of Cash Flows*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                               | Investment                  grade, variable rate debt obligations issued by various state and                  municipal governments comprise a portion of the Company’s short-term                  investments. As a result of the regularly resetting interest rates,                  no                  cumulative gross unrealized or realized holding gains or losses                  exist from                  these investments. In accordance with management’s objective for these                  available-for-sale investments, each reset of these securities'                  interest                  rates is not considered a separate or individual sale and subsequent                  repurchase. To conform to the 2007 presentation of the consolidated                  statements of cash flows, amounts previously presented in the                  corresponding 2006 period as individual purchase and sales transactions                  have been reclassified and presented on a net basis. This reclassification                  had no impact to total net cash provided by (used in) investing                  activities                  within the consolidated statements of cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **Note                  2—** | **Recent                  Accounting Standards Pending Adoption**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                               | In                  February 2007, the Financial Accounting Standards Board ("FASB")                  issued                  Statement of Financial Accounting Standards (SFAS) No. 159, "The                  Fair                  Value Option for Financial Assets and Financial Liabilities, Including                  an                  Amendment of FASB Statement No. 115," which will become effective                  in 2008.                  SFAS No. 159 permits entities to measure eligible financial assets,                  financial liabilities, and firm commitments at fair value, on an                  instrument-by-instrument basis, that are otherwise not permitted                  to be                  accounted for at fair value under other generally accepted accounting                  principles. The fair value measurement election is irrevocable                  and                  subsequent changes in fair value must be recorded in earnings.                  The Company                  will adopt this Statement as of January 1, 2008 and is currently                  evaluating if it will elect the fair value option for any of its                  eligible                  financial instruments and other items.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                               | In                  September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements"                  which defines fair value, establishes a framework for measuring                  fair                  value, and expands disclosures about fair value measurements. This                  Statement clarifies how to measure fair value as permitted under                  other                  accounting pronouncments but does not require any new fair value                  measurements. The Company will be required to adopt SFAS No. 157                  as of                  January 1, 2008. The Company is currently evaluating the impact                  of SFAS                  No. 157 and has not yet determined the impact on its financial                  statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **Note                  3—** | **Comprehensive                  Income**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                               | Total                  comprehensive income was $899,159 and $4,419,461 for the three                  and nine                  months ended September 30, 2007, respectively. For the three and                  nine                  months ended September 30, 2006, comprehensive income was $1,896,475                  and                  $5,894,945, respectively. The Company's only component of other                  comprehensive income is the foreign currency translation adjustment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| **Note                  4—** | **Basic                  and Diluted Earnings per Share**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                               | Basic                  earnings per common share are computed using the weighted average                  number                  of common shares outstanding during the period. Diluted earnings                  per share                  are computed using the weighted average number of common shares                  and                  potential dilutive common shares that were outstanding during the                  period.                  Potential dilutive common shares consist of outstanding stock options,                  outstanding stock warrants, and convertible preferred                  stock. |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                               | The                  following table sets forth the computation of basic and diluted                  earnings                  per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

|                                                                                                                |   | Three months ended September 30 |       | Nine months ended September 30 |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|----------------------------------------------------|--------|
|                                                                                                                |   | 2007                                                |       | 2006                                               |   | 2007 |   | 2006 |   |
| Numerator:                                                                                                          |   |                                                |       |                                               |   |   |   |   |   |
| Net                  income                                                                                         |   | $                                                   | 900,557    |                                               | $      | 1,804,111 |   | $ | 4,344,117 |   | $ | 5,874,767 |   |
|                                                                                                                |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                        |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Denominator                  for basic earnings per share—weighted average shares                             |   |                                                | 15,938,000 |                                               |   | 16,919,000 |   |   | 16,166,000 |   |   | 16,390,000 |   |
| Dilutive                  effect of employee stock options and other warrants                                       |   |                                                | 233,000    |                                               |   | 131,000 |   |   | 208,000 |   |   | 322,000 |   |
|                                                                                                                |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Denominator                  for diluted earnings per share—adjusted weighted average                  shares |   |                                                | 16,171,000 |                                               |   | 17,050,000 |   |   | 16,374,000 |   |   | 16,712,000 |   |
|                                                                                                                |   |                                                |       |                                               |   |   |   |   |   |   |   |   |   |
| Basic                  earnings per share                                                                           |   | $                                                   | 0.06       |                                               | $      | 0.11 |   | $ | 0.27 |   | $ | 0.36 |   |
| Diluted                  earnings per share                                                                         |   | $                                                   | 0.06       |                                               | $      | 0.11 |   | $ | 0.27 |   | $ | 0.35 |   |

|                               | Warrants                  to purchase 25,303 shares of common stock for the three months                  and nine                  months ended September 30, 2007 and 2006, respectively, were not                  included                  in the denominator for diluted earnings per share because their                  effect                  would be antidilutive.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **Note                  5—** | **Income                  Taxes**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               | The                  Company adopted the provisions of FASB Interpretation No. 48, “Accounting                  for Uncertainty in Income Taxes” (“FIN No. 48”) on January 1, 2007. As a                  result of the implementation of FIN No. 48, the Company recognized no                  material adjustment in its estimated liability for unrecognized                  income tax                  benefits. At September 30, 2007, the Company had unrecognized tax                  benefits, including estimated interest and penalties thereon, totaling                  $140,000. This amount is included in “Other non-current liabilities” in                  the consolidated balance sheet. There has been no material change                  in this                  amount during the three months and nine months ended September                  30, 2007.                  In 2007, the Company is continuing its practice to recognize interest                  and/or penalties related to income tax matters in income tax                  expense. |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               | The                  Company, including its domestic and foreign subsidiaries, is subject                  to                  U.S federal income tax as well as income tax of multiple state                  and foreign                  jurisdictions. The Company has concluded all U.S. federal income                  tax                  matters for years through 2002 and concluded years through 2005                  with its                  primary state jurisdiction. During the third quarter of 2007, the                  Internal                  Revenue Service (IRS) commenced an examination of the Company's                  2005 U.S.                  federal income tax return.                                                                                                                                                                                                                                                                                                                                                                                                          |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **Note                  6—** | **Stock-Based                  Compensation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               | *Stock                  Options*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               | During                  the third quarter of 2007, the Company granted options to purchase                  216,000                  shares of common stock with an exercise price of $9.74 per share                  and a                  grant-date fair value of $4.07 per share. The options' fair value                  was                  determined using the Black-Scholes option pricing model, using                  a risk-free                  rate of 5.01%, a dividend rate of 1.0% and a volatility of 0.472.                  The                  options have a term of five years and vest in increments of 25%                  beginning                  August 7, 2009 and ending May 1, 2012.                                                                                                                                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               | The                  Company recognized stock-based compensation expense of $31,000                  ($21,000                  net of tax) for the three and nine months ended September 30, 2007,                  and                  $56,000 and $63,000 for the three and nine months ended September                  30,                  2006, respectively. These amounts have been recorded in selling,                  general,                  and administrative expense. At September 30, 2007, the Company                  has                  unrecognized stock-based compensation expense of $848,000 ($577,000                  net of                  tax) which is expected to be recognized over a remaining period                  of 4.58                  years.                                                                                                                                                                                                                                                                                                                            |

----

**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****September                30,** |   | **Nine                months ended****September                30,** |   |
|------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                 |   | **2007**                                                              |   | **2006**                                                             |   | **2007** |   | **2006** |   |
|                                                 |   |                                                                  |   |                                                                 |   |   |   |   |   |
| Net                sales                             |   |                                                                  | 100.0  | %                                                                    |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |
| Costs                and expenses:                   |   |                                                                  |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Cost                of products sold                 |   |                                                                  | 17.2   |                                                                 |   | 16.6 |   |   | 17.1 |   |   | 16.6 |   |
| Distributor                royalties and commissions |   |                                                                  | 39.5   |                                                                 |   | 40.1 |   |   | 39.9 |   |   | 40.2 |   |
| Selling,                general and administrative   |   |                                                                  | 38.8   |                                                                 |   | 34.3 |   |   | 35.8 |   |   | 32.8 |   |
|                                                 |   |                                                                  |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Income                from operations                |   |                                                                  | 4.5    |                                                                 |   | 9.0 |   |   | 7.2 |   |   | 10.4 |   |
| Interest                expense                      |   |                                                                  | (0.0   | )                                                                    |   | (0.0 | ) |   | (0.0 | ) |   | (0.1 | ) |
| Interest                and other income             |   |                                                                  | 0.8    |                                                                 |   | 1.0 |   |   | 0.9 |   |   | 0.7 |   |
|                                                 |   |                                                                  |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Income                before income taxes            |   |                                                                  | 5.3    |                                                                 |   | 10.0 |   |   | 8.1 |   |   | 11.0 |   |
| Provision                for income taxes            |   |                                                                  | 1.7    |                                                                 |   | 3.9 |   |   | 3.1 |   |   | 4.4 |   |
|                                                 |   |                                                                  |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income                            |   |                                                                  | 3.6    | %                                                                    |   | 6.1 | % |   | 5.0 | % |   | 6.6 | % |

----

*Net      Sales. *

|                                  | **Three                months ended September 30,** |   |                              |   |                                      |   |                                 |   |       |
|---------------------------------------|-----------------------------------------------------|--------|-----------------------------------|--------|-------------------------------------------|--------|--------------------------------------|--------|------------|
|                                  | **2007**                                            |   | **2006**                          |   | **Change                from prior year** |
|                                  | **Amount**                                          |   | **%                of Net Sales** |   | **Amount**                                |   | **%                of Net****Sales** |   | **Amount** |   | **%** |
|                                  | **(dollars                in thousands)**           |   |
| United                States          |  $                                             | 22,009 |                              |   |                                      | 87.6   | %                                    |   |  $    | 26,784 |   |   |   | 89.9 | % |   |  $ | (4,775 | ) |   |   | (17.8 | )% |
| Australia/New                Zealand  |                                                | 715    |                              |   |                                      | 2.8    |                                 |   |       | 701 |   |   |   | 2.4 |   |   |   | 14 |   |   |   | 2.0 |   |
| Canada                                |                                                | 378    |                              |   |                                      | 1.5    |                                 |   |       | 414 |   |   |   | 1.4 |   |   |   | (36 | ) |   |   | (8.7 | ) |
| Mexico                                |                                                | 351    |                              |   |                                      | 1.4    |                                 |   |       | 367 |   |   |   | 1.2 |   |   |   | (16 | ) |   |   | (4.4 | ) |
| United                Kingdom/Ireland |                                                | 242    |                              |   |                                      | 1.0    |                                 |   |       | 323 |   |   |   | 1.1 |   |   |   | (81 | ) |   |   | (25.1 | ) |
| Philippines                           |                                                | 809    |                              |   |                                      | 3.2    |                                 |   |       | 594 |   |   |   | 2.0 |   |   |   | 215 |   |   |   | 36.2 |   |
| Malaysia/Singapore                    |                                                | 419    |                              |   |                                      | 1.7    |                                 |   |       | 382 |   |   |   | 1.3 |   |   |   | 37 |   |   |   | 9.7 |   |
| Germany                               |                                                | 198    |                              |   |                                      | 0.8    |                                 |   |       | 214 |   |   |   | 0.7 |   |   |   | (16 | )  |   |   | (7.5 | )  |
|                                  |                                                |   |                              |   |                                      |   |                                 |   |       |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Consolidated                total     |  $                                             | 25,121 |                              |   |                                      | 100.0  | %                                    |   |  $    | 29,779 |   |   |   | 100.0 | % |   |  $ | (4,658 | ) |   |   | (15.6 | )% |

|                                  | **Nine                months ended September 30,** |   |                                 |   |                                      |   |                                 |   |       |
|---------------------------------------|----------------------------------------------------|--------|--------------------------------------|--------|-------------------------------------------|--------|--------------------------------------|--------|------------|
|                                  | **2007**                                           |   | **2006**                             |   | **Change                from prior year** |
|                                  | **Amount**                                         |   | **%                of Net****Sales** |   | **Amount**                                |   | **%                of Net****Sales** |   | **Amount** |   | **%** |
|                                  | **(dollars                in thousands)**          |   |
| United                States          |  $                                            | 77,215 |                                 |   |                                      | 89.4   | %                                    |   |  $    | 80,376 |   |   |   | 90.5 | % |   |  $ | (3,161 | ) |   |   | (3.9 | )% |
| Australia/New                Zealand  |                                               | 2,090  |                                 |   |                                      | 2.4    |                                 |   |       | 1,855 |   |   |   | 2.1 |   |   |   | 235 |   |   |   | 12.7 |   |
| Canada                                |                                               | 1,196  |                                 |   |                                      | 1.4    |                                 |   |       | 1,234 |   |   |   | 1.4 |   |   |   | (38 | ) |   |   | (3.1 | ) |
| Mexico                                |                                               | 1,155  |                                 |   |                                      | 1.3    |                                 |   |       | 1,011 |   |   |   | 1.1 |   |   |   | 144 |   |   |   | 14.2 |   |
| United                Kingdom/Ireland |                                               | 781    |                                 |   |                                      | 0.9    |                                 |   |       | 915 |   |   |   | 1.0 |   |   |   | (134 | ) |   |   | (14.6 | ) |
| Philippines                           |                                               | 2,108  |                                 |   |                                      | 2.4    |                                 |   |       | 1,602 |   |   |   | 1.8 |   |   |   | 506 |   |   |   | 31.6 |   |
| Malaysia/Singapore                    |                                               | 1,173  |                                 |   |                                      | 1.4    |                                 |   |       | 1,297 |   |   |   | 1.5 |   |   |   | (124 | ) |   |   | (9.6 | ) |
| Germany                               |                                               | 691    |                                 |   |                                      | 0.8    |                                 |   |       | 534 |   |   |   | 0.6 |   |   |   | 157 |   |   |   | 29.4 |   |
|                                  |                                               |   |                                 |   |                                      |   |                                 |   |       |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Consolidated                total     |  $                                            | 86,409 |                                 |   |                                      | 100.0  | %                                    |   |  $    | 88,824 |   |   |   | 100.0 | % |   |  $ | (2,415 | ) |   |   | (2.7 | )% |

----

|                                  | **September                30, 2007** |   | **September                30, 2006**      |   | **%                Change** |
|---------------------------------------|---------------------------------------|--------|--------------------------------------------|--------|-----------------------------|
|                                  | **ActiveDistributors**                |   | **Master****Affiliates and****Above** |   | **Active****Distributors**  |   | **Master****Affiliates andAbove** |   | **Active****Distributors** |   | **Master****Affiliates and****Above** |
|                                  |                                  |   |                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United                States          |                                  | 57,420 |                                       |   |                        | 13,600 |   |   |   | 52,760 |   |   |   | 15,660 |   |   |   | 8.8 | % |   |   | (13.2 | )% |
| Australia/New                Zealand  |                                  | 2,510  |                                       |   |                        | 280 |   |   |   | 2,420 |   |   |   | 270 |   |   |   | 3.7 |   |   |   | 3.7 |   |
| Canada                                |                                  | 1,150  |                                       |   |                        | 160 |   |   |   | 1,170 |   |   |   | 180 |   |   |   | (1.7 | ) |   |   | (11.1 | ) |
| Mexico                                |                                  | 1,380  |                                       |   |                        | 220 |   |   |   | 1,130 |   |   |   | 220 |   |   |   | 22.1 |   |   |   | 0.0 |   |
| United                Kingdom/Ireland |                                  | 790    |                                       |   |                        | 120 |   |   |   | 910 |   |   |   | 150 |   |   |   | (13.2 | ) |   |   | (20.0 | ) |
| Philippines                           |                                  | 4,460  |                                       |   |                        | 370 |   |   |   | 3,360 |   |   |   | 350 |   |   |   | 32.7 |   |   |   | 5.7 |   |
| Malaysia/Singapore                    |                                  | 2,230  |                                       |   |                        | 310 |   |   |   | 2,750 |   |   |   | 380 |   |   |   | (18.9 | ) |   |   | (18.4 | ) |
| Germany                               |                                  | 560    |                                       |   |                        | 140 |   |   |   | 320 |   |   |   | 110 |   |   |   | 75.0 |   |   |   | 27.3 |   |
|                                  |                                  |   |                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                total     |                                  | 70,500 |                                       |   |                        | 15,200 |   |   |   | 64,820 |   |   |   | 17,320 |   |   |   | 8.8 | % |   |   | (12.2 | )% |

----

*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**

----

**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**

***We      are affected by extensive laws, governmental regulations, administrative      determinations, court decisions and similar constraints, both domestically      and      abroad, and our or our distributors’ failure to comply with these restraints      could lead to the imposition of significant penalties or claims, which could      harm our financial condition and operating results.***

----

**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 orPrograms(1) |    |
|-------------------------------------|--------|--------------------------------------------------------------------------|---------|------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                |   |                                                                     |    |                                                             |   |                                                                                                                    |   |                                                                                                                                      |    |
| July                1-31, 2007      |   |                                                                     | 22,500  |                                                             | $      | 10.45                                                                                                                   |   |                                                                                                                                      | 22,500  |   | $ | 15,450,000 |   |
|                                |   |                                                                     |    |                                                             |   |                                                                                                                    |   |                                                                                                                                      |    |   |   |   |   |
| August                1-31, 2007    |   |                                                                     | 89,900  |                                                             | $      | 10.11                                                                                                                   |   |                                                                                                                                      | 89,900  |   | $ | 14,541,000 |   |
|                                |   |                                                                     |    |                                                             |   |                                                                                                                    |   |                                                                                                                                      |    |   |   |   |   |
| September                1-30, 2007 |   |                                                                     | 10,000  |                                                             | $      | 10.09                                                                                                                   |   |                                                                                                                                      | 10,000  |   | $ | 14,440,000 |   |
|                                |   |                                                                     |    |                                                             |   |                                                                                                                    |   |                                                                                                                                      |    |   |   |   |   |
| Total                               |   |                                                                     | 122,400 |                                                             |   |                                                                                                                    |   |                                                                                                                                      | 122,400 |   |   |   |   |

|   | (1) | In                March 2005, the Company’s Board of Directors approved a share repurchase                plan of up to $15 million over the following 36 months. In the third                quarter of 2007, the Company completed its $15 million purchase of                shares                under that plan. In May 2007, the Company’s Board of Directors approved                another share repurchase plan of up to $15 million through April                2010. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Item      No. 6 - Exhibits**

| Exhibit |   |                                                                                                                                                                                                                                    |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Document                                                                                                                                                                                                                                |
|    |   |                                                                                                                                                                                                                                    |
| 10.1    |   | Carl                W. Hastings Employment Agreement dated July 26, 2007 (incorporated                by                reference to Exhibit 10.1 to the Form 8-K of the Registrant filed                July 27,                2007). |
|    |   |                                                                                                                                                                                                                                    |
| 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 |

| By:  | /s/                Steven D. Albright                                                              |
|-----------|----------------------------------------------------------------------------------------------------|
|      | Steven                D. Albright, Chief Financial Officer (and accounting                officer) |

----

**Exhibit      Index**

| ExhibitNumber |   | Document                                                                                                                                                                                                                                                           |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                               |
| 10.1          |   | Carl                W. Hastings Employment Agreement dated July 26, 2007 (incorporated                by                reference to Exhibit 10.1 to the Form 8-K of the Registrant filed                July 27,                2007).                            |
|          |   |                                                                                                                                                                                                                                                               |
| 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). |

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