HLF Notes:

Wedbush Morgan 8/6/08

• Q2 revenue $640m and adjusted EPS $1.03 beat expectations

• Raised 2008 guidance – revenue $2.47-2.51b and EPS $3.64-3.69

• Negative publicity did not have as much impact as feared, SEC exonerated HLF, US saw 18% growth compared to 14% in Q1

  • US growth driven by Nutrition Clubs within Hispanic force

• Mexico saw 9% growth after several quarters

• China up 125% and is third quarter China has seen triple digit growth

• Wedbush increasing 2009 expectations to Revenue of $2.879B and EPS $4.30

• South America up 47% with sales of $94m - strong recruitment and positive currency trends

• Gross margins 80% up 100bp

• Net debt of $208m – using credit facility to re-purchase shares – Q2 bought 1.8m for $76.5m ($42.50) – this leaves $140m authorized

• Q3 management guiding Revenue $609-619m and EPS $0.81-0.84

Lehman Report 8/7/08

• Direct selling model has proved to be counter cyclical

• Extensive growth opportunities in Asia, N. America and S. America

• Expect continued capital to investors through dividend increases or share buyback

• Management team has historically been conservative with guidance.