Some Highlights from Herbalife's Q3 Earnings Conference Call

• “The American Heart Association said in the December 2012 report that with the current trends in the growth in obesity continues total healthcare costs attributable to obesity could account for 16% to 18% of U.S. healthcare expenditures. Herbalife nutrition products and our distributors are well positioned to help combat this epidemic.” • “In Mexico, Herbalife members serve an estimated 700,000 shakes per day to customers through their nutrition clubs. While the amount of money earned by many members through simply selling the product, it may not seem meaningful to some people, it is to many of our members. A couple hundred dollars a month can make a material difference to many, many families in the world.” • “We recently announced that we've changed our nomenclature, to reflect the intent of many participants who are discount customers, by now calling them members rather than distributors.” • “We have added our statement of average gross compensation as part of our membership application, ensuring that all new participants are provided this information before they join.” • “We have enhanced our industry-leading product buyback guarantee program. We provide 100% money-back guarantee for any product or business purchase, and we pay the return shipping costs. This ensures that any member who resigns for any reason can get their money back for any unsold product purchased in the prior 12 months. In addition, we will refund 100% of the cost of the startup kit for any member who decides to resign in the first 90 days after joining, and they don't even have to return the kit.” • “As part of our membership application, all new members will be required to acknowledge that they are aware of the core protections offered by Herbalife, including our buyback policy. Such acknowledgment would be required before a participant's first order.” • “Any participant wishing to pursue our business opportunity be required to complete a formal company training program prior to becoming a sales leader, and before becoming eligible for royalty compensation.” • “We are experiencing tremendous growth all around the world, driven by increasing daily consumption of our nutrition products, as a result of the global obesity epidemic and an aging population.” • “The North American region had another great quarter. It posted 10% net sales growth and 9% growth in volume points, each compared to the prior year. Average active sales leaders with volume points increased 9%, and Herbalife new members increased 9% compared to last year's third quarter results.” • “In excess of 75,000 new U.S. members joined Herbalife this quarter. Coupled with the approximately 150,000 new members during the first 6 months of the year, this record number demonstrates the continuing solid public interest in consumption of Herbalife products and access to our business opportunity.” • “And as further indication of the broad base of our continued record performance in the U.S. 21 of the top 25 metro U.S. markets posted growth in the third quarter over the same period last year.” • “Now let's turn to Mexico where local currency net sales for the quarter increased 9% and volume points increased 4%, each as compared to the prior-year period. For the third quarter average sales leaders with volumes increased 8% compared to the prior year. “ • “Let's move on now to China where local currency net sales increase 70% and volume points grew 71% in the third quarter, each as compared to the prior year period. Average active sales leaders increased 25% over the same period last year.” • “Now the Asia Pacific region. In the third quarter this region experienced a 1% increase in local currency net sales and a 3% decline in volume points,each as compared to the prior-year period. Average active sales leaders with volume grew by 10% and new members grew 4% over the same quarter last year.” • “Two markets in the Asian Pacific Region, Korea, and India together now represent about 50% of the total volume points in the region. Korea remains a top Asia-Pacific market, with per capita volume point penetration of 9.2. In India, local currency net sales grew 6% over the same quarter last year.” • “In Brazil, volume points grew 22%, and average active sales leaders grew 23% in the third quarter, each as compared to the same period prior year.” • “Venezuela experienced a 49% increase in average active sales leaders, and a 54% increase in new members, each as compared to third quarter 2012. During this period, Herbalife Venezuela signed sponsorship agreements with two leading new professional soccer teams.” • “Moving onto our EMEA region, local currency net sales increased 21% and volume points in the region grew 19%, each as compared to the third quarter of 2012. Average active sales leaders with volume points in the region was up 13% and new members advanced 40% over the prior-year period.” • “Within EMEA, the U.K. market continued its exemplary performance. This quarter, we experienced a 95% growth in volume and a 67% increase in average active sales leaders, each as compared to the same period last year.” • “In Russia, volume points increased 25% and local currency net sales increased 31%, each over the same quarter last year.”