Herbalife Ltd. Announces Third Quarter 2009 Results and Provides Initial 2010 Guidance

http://www.businesswire.com/news/home/20091102006405/en

LOS ANGELES--(Business Wire)--
Herbalife Ltd. (NYSE: HLF) today reported third quarter 2009 net sales of $600.2
million, a decrease of 0.3 percent compared to the same period of 2008,
primarily reflecting the 780 basis point unfavorable impact from currency
fluctuations. Excluding the impact from currency fluctuations, local currency
year-over-year net sales were 7.5 percent higher than third quarter 2008
results. For the quarter ended September 30, 2009, the company reported net
income of $57.9 million, or $0.91 per diluted share, compared to $58.1 million,
or $0.89 per diluted share in the third quarter of 2008, reflecting lower net
sales and gross profit margins attributable to unfavorable currency
fluctuations, offset by a lower effective tax rate and accretion from the
company`s share repurchase program. Excluding the impact from adjusting items in
the third quarter 2009 (1), adjusted net income was $54.1 million, or $0.85 in
adjusted diluted earnings per share, reflecting a decrease of 6.9 percent and
4.5 percent, respectively, compared to the same period in 2008.

For the nine months ended September 30, 2009, the company produced cash flow
from operations of $227.3 million, paid dividends of $36.7 million, invested
$42.1 million in capital expenditures, repurchased $32.5 million in common stock
and paid approximately $10.0 million for certain acquired manufacturing assets.
The company`s net debt balance (1) at the end of the third quarter was $94.4
million, reflecting an improvement of $106.3 million from December 2008.

"We were very pleased with our local currency sales growth of 7.5 percent that
was driven by volume point growth of five percent this quarter and was well
ahead of our expectations. We believe that the increase in volume continues to
validate that our distributors are gaining traction and momentum through the use
of the daily consumption sales model around the globe. The ongoing
transformation of our business is enabling distributors to offer Herbalife
products to a broader customer base which is allowing for deeper market
penetration than in the past", said Chairman and Chief Executive Officer Michael
O. Johnson. "As we head into 2010, many of our key markets, led by engaged
distributors, are demonstrating the successful transition to a business model
more focused on daily consumption including the U.S., Taiwan, Korea, Brazil and
India."

During the third quarter 2009 the company added 48,040 new Sales Leaders (2),
which is 8.7 percent lower than the same period in 2008. Additionally, total
Sales Leaders (2) decreased 5.4 percent to 437,125 in the third quarter of 2009
compared to the same period in 2008. During the third quarter 2009, the
company's President's Team membership increased 8.4 percent to 1,262 members
versus the third quarter of 2008 and the company`s prestigious Chairman's Club
and China Brand Ambassador membership increased 8.3 percent to 39 members,
versus the third quarter of 2008.

1 See Schedule D - "Reconciliation of Non-GAAP Financial Measures" for more
detail
2 See Schedule titled "New Sales Leaders by Region" and "Total Sales Leaders by
Region" for more detail

Business Highlights

During the third quarter the company hosted three Extravaganzas in Europe: in
Prague, Turin, and St. Petersburg along with an Extravaganza in Mexico, which
collectively were attended by over 32,400 distributors. Additionally, Taiwan
hosted an Herbalife University event, attended by over 11,000, which focused on
providing detailed training to qualifying supervisors. Product launches during
the quarter included Mango Herbal Aloe Concentrate in the U.S., Formula 1 Meal
Replacement Bar in 11 countries within EMEA, all three flavors of the Protein
Bars in Russia and Herbal Aloe Powder in China.

In early July 2009, China's Ministry of Commerce granted five additional
licenses for the company to conduct direct-selling business in the provinces of
Fujian, Shan`Xi, Sichuan, Hubei, and Shanghai. Licenses for these new provinces
became effective immediately, except Shanghai which will be activated upon
government review of our service outlets for which the timing remains uncertain.
Additionally, the company`s license for Beijing, which was granted in July 2008
with the same exception as noted above for Shanghai, is now active. The company
now has direct-selling licenses in 11 provinces representing an addressable
population of approximately 599 million. Additionally, the company applied for
five new provincial licenses in August 2009.

Third Quarter 2009 Regional Key Metrics

Volume Increase/ New Increase/ Total Increase/
Points (Decrease) Sales (Decrease) Sales (Decrease)
Region (Mil) (Y/Y) Leaders (Y/Y) Leaders (Y/Y)
North America 207.6 2.4 % 10,569 (9.8 %) 87,348 (4.5 %)
Asia Pacific (excluding China) 148.2 36.1 % 13,262 25.9 % 89,750 11.2 %
EMEA 109.4 (5.8 %) 5,222 (13.7 %) 66,454 (11.5 %)
Mexico 126.4 (4.3 %) 6,132 (1.8 %) 64,438 (16.0 %)
South & Central America 102.2 0.7 % 6,376 (40.7 %) 84,936 (11.8 %)
China 32.3 6.8 % 6,479 (11.0 %) 44,199 6.3 %

The North America region reported volume points of 207.6 million in the third
quarter of 2009, reflecting an increase of 2.4 percent versus the same period of
2008. Volume point growth in the U.S., the largest country in the region,
increased 2.8 percent compared to 2008, reflecting an increase in the Latin
market of 7.0 percent and a decrease in the General market of 5.3 percent
compared to the third quarter of 2008. New Sales Leaders in the region were
10,569 during the quarter ended September 30, 2009, a decrease of 9.8 percent
versus the same period last year. Total Sales Leaders in the region decreased
4.5 percent to 87,348 as of September 30, 2009 versus September 30, 2008.

The Asia Pacific region reported volume points of 148.2 million in the third
quarter of 2009, reflecting an increase of 36.1 percent over the same period of
2008. Top markets in this region were Taiwan, with volume point growth of 37.2
percent; Korea, with volume point growth of 83.3 percent; Malaysia with volume
point growth of 16.8 percent and India with volume point growth of 111.4
percent, all compared to the same period in 2008. New Sales Leaders in the
region were 13,262 during the quarter ended September 30, 2009, an increase of
25.9 percent versus the same period last year. Total Sales Leaders increased
11.2 percent to 89,750 as of September 30, 2009 versus September 30, 2008.

The Europe, Middle East and Africa (EMEA) region reported volume points of 109.4
million in the third quarter of 2009, reflecting a decrease of 5.8 percent
versus the same period of 2008. The top market in this region was Italy, with
volume point growth of 6.7 percent compared to the same period in 2008. New
Sales Leaders in the region were 5,222 during the quarter ended September 30,
2009, a decrease of 13.7 percent versus the same period last year. Total Sales
Leaders in the region decreased 11.5 percent to 66,454 as of September 30, 2009
versus September 30, 2008.

The Mexico region reported volume points of 126.4 million in the third quarter
of 2009, reflecting a decrease of 4.3 percent versus the same period of 2008.
During the third quarter of 2008, the company began collecting a Value Added Tax
(VAT) from our Mexican distributors that has had a negative impact on our
financial results. Distributors in Mexico previously paid zero percent VAT on
their purchases for most of our nutrition products. This effective price
increase, which impacted approximately 60 percent of our volume points in the
Mexican market, adversely affected sales in Nutrition Clubs, which are retail
price-sensitive, and as a result has caused volume to decline from pre-VAT
levels. We are continuing to challenge this assessment on several fronts. New
Sales Leaders in the Mexico region were 6,132 during the quarter ended September
30, 2009, or 1.8 percent lower than the same period last year. Total Sales
Leaders in the region decreased 16.0 percent to 64,438 as of September 30, 2009
versus September 30, 2008.

The South and Central American region reported volume points of 102.2 million in
the third quarter of 2009, reflecting an increase of 0.7 percent versus the same
period of 2008. The top markets in this region were Brazil, with volume point
growth of 7.7 percent and Venezuela, with a volume point increase of 36.8
percent, both compared to the same period in 2008. New Sales Leaders in the
region were 6,376 during the quarter ended September 30, 2009, or 40.7 percent
lower than the same period last year. Total Sales Leaders in the region
decreased 11.8 percent to 84,936 as of September 30, 2009 versus September 30,
2008.

The China region reported volume points of 32.3 million in the third quarter of
2009, reflecting an increase of 6.8 percent over the same period of 2008. The
company is currently licensed for direct sales in 11 provinces. New Sales
Employees in China were 6,479 during the quarter ended September 30, 2009, a
decrease of 11.0 percent versus the same period last year. Total Sales Employees
increased 6.3 percent to 44,199 as of September 30, 2009 versus September, 2008.

2009 Guidance

Based on current business trends and late September spot FX rates, the company`s
fourth quarter 2009 and fiscal 2009 guidance is provided below. We expect to
exchange most of our excess cash in Venezuela, approximately 100 million
Venezuelan Bolivars, for U.S. dollars during the fourth quarter at a parallel
exchange rate that is unfavorable to the official exchange rate. In October
2009, we began, and will continue, to repatriate exchanged U.S. dollars which
would result in a reduction of cash of approximately $30 million. The P&L impact
of this expected repatriation will be recognized in the fourth quarter of 2009
as well as in 2010, and is excluded from both periods` guidance below.

Fourth Quarter - The company`s fourth quarter 2009 diluted earnings per share
guidance range is $0.88 to $0.91 (3) (4) (5) (6) on a volume point growth of 8.5
percent to 9.5 percent and a net sales growth of 15.5 percent to 16.5 percent
compared to the same period in 2008, respectively, and an effective tax rate
range of 30.0 percent to 31.0 percent. Assuming constant currency levels from
the fourth quarter of 2008, the company`s net sales growth range would be 11.0
percent to 12.0 percent and its diluted earnings per share range would be $0.79
to $0.82. The company`s fourth quarter 2009 capital expenditures are expected to
be in the range of $18 to $23 million.

Fiscal 2009 - The company`s new full year diluted earnings per share guidance is
$3.19 to $3.22 (3) (4) (5) (6) on volume point growth of 1.0 percent to 1.5
percent and a net sales decline of 2.5 percent to 3.0 percent compared to 2008,
respectively, along with an effective tax rate range of 30.5 to 31.0 percent.
Assuming constant currency levels from 2008, the company`s net sales growth
range would be 3.0 percent to 4.0 percent and its diluted earnings per share
range would be $3.99 to $4.02. Full year 2009 capital expenditures are expected
in the range of $60 million to $65 million.

2010 Guidance

Based on current business trends and late September spot FX rates, the company
is initiating guidance for 2010 with a diluted earnings per share guidance range
of $3.50 to $3.65 (7) on a volume point growth of 5.0 to 6.0 percent and a net
sales growth of 11.0 percent to 13.0 percent compared to the same period in
2009, respectively, and an effective tax rate range of 30.0 percent to 31.0
percent. The company`s guidance for capital spending in 2010 is in the range of
$65 to $75 million.

While 2010 guidance excludes the impact of repatriating approximately 100
million Venezuelan Bolivars of our existing excess cash in Venezuela described
above, 2010 guidance does include the ongoing repatriation of excess cash
generated in Venezuela during 2010 at rates which are unfavorable to the
official exchange rate. (8)

3 Excludes the potential impact of expenses relating to the company`s December
2008 restructuring.
4 Excludes the accretion/dilution impact should the company elect to repurchase
shares under its share repurchase program.
5 Excludes the impact of repatriating dollars from Venezuela at an exchange rate
which is less favorable than the official exchange rate.
6 Excludes the impact of the expense resulting from an international income tax
audit settlement, expiration of statute of limitation on a reserved issue, and
the expected Q4 reversal of a prior adjustment to income tax accrual.
7 Includes utilization of $50 million of the company`s share repurchase program.
8 Assumes a Parallel rate of no more than 6.5 Bolivars to 1 Dollar.

Third Quarter Earnings Conference Call

Herbalife's senior management team will host an investor conference call to
discuss its third quarter 2009 financial results and provide an update on
current business trends on Tuesday, November 3 at 8 a.m. PST (11 a.m. EST).

The dial-in number for this conference call for domestic callers is (866)
219-5268 and (703) 639-1120 for international callers. Live audio of the
conference call will be simultaneously webcast in the Investor Relations section
of the company`s Web site at http://ir.Herbalife.com.

An audio replay will be available following the completion of the conference
call in MP3 format or by dialing (866) 837-8032 (domestic callers) and (703)
925-2474 (international callers) and entering access code 336024. The webcast of
the teleconference will be archived and available on Herbalife`s Web site.

2009 Analyst and Investor Day

Herbalife's senior management team will host its annual analyst and investor day
on December 17, 2009 in New York at the Four Seasons. Chairman and CEO Michael
O. Johnson and Chief Financial Officer Richard Goudis will be joined by other
members of Herbalife`s management team to discuss the company`s initiatives and
operations.

The presentation will be webcast in the investor relations section of
Herbalife`s Web site at https://ir.Herbalife.com

To register for the event, email investorrelations@herbalife.com or call Amy
Greene at 213.745.0504.

About Herbalife Ltd.

Herbalife Ltd. (NYSE:HLF) is a global network marketing company that sells
weight-management, nutrition, and personal care products intended to support a
healthy lifestyle. Herbalife products are sold in 70 countries through a network
of approximately 1.9 million independent distributors. The company supports the
Herbalife Family Foundation and its Casa Herbalife program to help bring good
nutrition to children. Herbalife`s Web site contains a significant amount of
information about Herbalife, including financial and other information for
investors at http://ir.Herbalife.com. The company encourages investors to visit
its Web site from time to time, as information is updated and new information is
posted.

Disclosure Regarding Forward-Looking Statements

This document contains "forward-looking statements" within the meaning ofSection
27A of the Securities Act of 1933, as amended and Section 21E of theSecurities
Exchange Act of 1934, as amended. All statements other thanstatements of
historical fact are "forward-looking statements" for purposes offederal and
state securities laws, including any projections of earnings,revenue or other
financial items; any statements of the plans, strategies andobjectives of
management for future operations; any statements concerningproposed new services
or developments; any statements regarding future economicconditions or
performance; any statements of belief; and any statements ofassumptions
underlying any of the foregoing. Forward-looking statements mayinclude the words
"may," "will," "estimate," "intend," "continue," "believe,""expect" or
"anticipate" and any other similar words.

Although we believe that the expectations reflected in any of ourforward-looking
statements are reasonable, actual results could differmaterially from those
projected or assumed in any of our forward-lookingstatements. Our future
financial condition and results of operations, as wellas any forward-looking
statements, are subject to change and to inherent risksand uncertainties, such
as those disclosed or incorporated by reference in ourfilings with the
Securities and Exchange Commission. Important factors thatcould cause our actual
results, performance and achievements, or industryresults to differ materially
from estimates or projections contained in ourforward-looking statements
include, among others, the following:

• our relationship with, and our ability to influence the actions of, our
distributors;

• adverse publicity associated with our products or network marketing
organization;

• uncertainties relating to interpretation and enforcement of recently enacted
legislation in China governing direct selling;

• our inability to obtain the necessary licenses to expand our direct selling
business in China;

• adverse changes in the Chinese economy, Chinese legal system or Chinese
governmental policies;

• improper action by our employees or international distributors in violation of
applicable law;

• changing consumer preferences and demands;

• loss or departure of any member of our senior management team which could
negatively impact our distributor relations and operating results;

• the competitive nature of our business;

• regulatory matters governing our products, including potential governmental or
regulatory actions concerning the safety or efficacy of our products, and
network marketing program including the direct selling market in which we
operate;

• third party legal challenges to our network marketing program;

• risks associated with operating internationally, including foreign exchange
and devaluation risks;

• our dependence on increased penetration of existing markets;

• contractual limitations on our ability to expand our business;

• our reliance on our information technology infrastructure and outside
manufacturers;

• the sufficiency of trademarks and other intellectual property rights;

• product concentration;

• our reliance on our management team;

• uncertainties relating to the application of transfer pricing, duties, value
added taxes, and other tax regulations, and changes thereto;

• changes in tax laws, treaties or regulations, or their interpretation;

• taxation relating to our distributors;

• product liability claims;

• any collateral impact resulting from the ongoing worldwide financial "crisis,"
including the availability of liquidity to us, our customers and our suppliers
or the willingness of our customers to purchase products in a recessionary
economic environment; and

• whether we will purchase any of our shares in the open markets or otherwise.

We do not undertake any obligation to update or release anyrevisions to any
forward-looking statement or to report any events orcircumstances after the date
hereof or to reflect the occurrence ofunanticipated events, except as required
by law.

RESULTS OF OPERATIONS:

Herbalife Ltd.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

Quarter Ended Nine Months Ended
9/30/2009 9/30/2008 9/30/2009 9/30/2008

North America $ 140,829 $ 135,840 $ 402,294 $ 387,665
Mexico 68,290 91,632 193,881 287,962
South and Central America 93,035 94,364 253,702 299,066
EMEA 123,334 135,434 373,222 453,303
Asia Pacific 129,240 103,736 357,723 313,830
China 45,490 41,193 112,884 104,510
Worldwide net sales 600,218 602,199 1,693,706 1,846,336
Cost of Sales 131,777 116,620 356,619 362,335
Gross Profit 468,441 485,579 1,337,087 1,484,001
Royalty Overrides 194,639 200,323 556,921 628,343
SGA 195,968 196,761 568,220 584,274
Operating Income 77,834 88,495 211,946 271,384
Interest Expense - net 1,037 3,407 4,087 10,364
Income before income taxes 76,797 85,088 207,859 261,020
Income Taxes 18,902 27,004 60,169 73,489
Net Income 57,895 58,084 147,690 187,531

Basic Shares 61,234 63,594 61,467 64,062
Diluted Shares 63,397 65,439 63,049 66,269

Basic EPS $ 0.95 $ 0.91 $ 2.40 $ 2.93
Diluted EPS $ 0.91 $ 0.89 $ 2.34 $ 2.83

Dividends declared per share $ 0.20 $ 0.20 $ 0.60 $ 0.60

Herbalife Ltd.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
Sept 30, Dec 31,
2009 2008
ASSETS
Current Assets:
Cash & cash equivalents $ 215,401 $ 150,847
Receivables, net 84,747 70,002
Inventory, net 133,376 134,392
Prepaid expenses and other current assets 97,510 89,214
Deferred income taxes 43,490 40,313
Total Current Assets 574,524 484,768

Property and equipment, net 176,774 175,492
Deferred compensation plan assets 17,076 15,754
Deferred financing cost, net 1,622 1,989
Marketing related intangibles 310,060 310,060
Goodwill 115,351 110,677
Other assets 23,079 22,578

Total Assets $ 1,218,486 $ 1,121,318

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 41,324 $ 41,084
Royalty Overrides 144,170 130,369
Accrued compensation 57,105 60,629
Accrued expenses 127,271 104,795
Current portion of long term debt 12,361 15,117
Advance sales deposits 35,034 12,603
Income taxes payable 24,093 37,302
Total Current Liabilities 441,358 401,899

Non-current liabilities
Long-term debt, net of current portion 297,482 336,514
Deferred compensation 15,970 13,979
Deferred income taxes 102,648 103,675
Other non-current liabilities 23,695 23,520
Total Liabilities 881,153 879,587

Contingencies

Shareholders' equity:
Common shares 122 123
Additional paid in capital 210,748 197,715
Accumulated other comprehensive loss (26,956 ) (28,614 )
Retained earnings 153,419 72,507
Total Shareholders' Equity 337,333 241,731

Total Liabilities and Shareholders' Equity $ 1,218,486 $ 1,121,318

Herbalife Ltd.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Nine Months Ended
9/30/2009 9/30/2008

CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 147,690 $ 187,531
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 45,646 34,789
Deficiency (Excess) tax benefits from share-based payment arrangements 759 (12,659 )
Share based compensation expenses 15,100 13,877
Amortization of discount and deferred financing costs 367 359
Deferred income taxes (3,098 ) 1,348
Unrealized foreign exchange transaction loss (gain) 6,763 (4,580 )
Other 233 891
Changes in operating assets and liabilities:
Receivables (9,265 ) (16,483 )
Inventories 10,451 (11,232 )
Prepaid expenses and other current assets (5,724 ) (37,392 )
Other assets 354 (1,613 )
Accounts payable (4,851 ) 8,155
Royalty overrides 9,525 14,201
Accrued expenses and accrued compensation 5,870 18,851
Advance sales deposits 21,011 6,877
Income taxes payable (15,529 ) 359
Deferred compensation plan liability 1,992 (1,682 )
NET CASH PROVIDED BY OPERATING ACTIVITIES 227,294 201,597

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property (41,776 ) (68,325 )
Proceeds from sale of property 93 67
Acquisition of business (10,000 ) 0
Deferred compensation plan assets (1,321 ) 1,488
NET CASH USED IN INVESTING ACTIVITIES (53,004 ) (66,770 )

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid (36,727 ) (38,338 )
Borrowings from long-term debt 138,974 50,000
Principal payments on long-term debt (180,540 ) (117,652 )
Increase in deferred financing costs 0 (75 )
Share repurchases (33,630 ) (94,193 )
(Deficiency) Excess tax benefits from share-based payment arrangements (759 ) 12,659
Proceeds from exercise of stock options and sale of stock under employee stock purchase plan 2,209 18,275
NET CASH USED IN FINANCING ACTIVITIES (110,473 ) (169,324 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH 737 (3,516 )
NET CHANGE IN CASH AND CASH EQUIVALENTS 64,554 (38,013 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 150,847 187,407
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 215,401 $ 149,394
CASH PAID DURING THE PERIOD
Interest paid $ 8,443 $ 10,365
Income taxes paid $ 77,397 $ 68,597
NON CASH ACTIVITIES
Assets acquired under capital leases and other long-term debt $ 339 $ 28,785

Herbalife Ltd
New Sales Leaders by Region
(Unaudited)

For Three Months Ended September 30, 2009 For the Nine Months Ended September 30, 2009
2009 2008 % Change 2009 2008 % Change
North America 10,569 11,723 (9.8 %) 29,095 33,862 (14.1 %)
Mexico 6,132 6,243 (1.8 %) 16,799 21,810 (23.0 %)
South & Central America 6,376 10,758 (40.7 %) 22,212 36,666 (39.4 %)
EMEA 5,222 6,052 (13.7 %) 17,162 21,107 (18.7 %)
Asia Pacific (excluding China) 13,262 10,532 25.9 % 37,182 30,676 21.2 %
Total New Supervisors 41,561 45,308 (8.3 %) 122,450 144,121 (15.0 %)
New China Sales Employees 6,479 7,283 (11.0 %) 17,577 19,500 (9.9 %)
Worldwide Total New Sales Leaders (1) 48,040 52,591 (8.7 %) 140,027 163,621 (14.4 %)

Herbalife Ltd
Total Sales Leaders by Region
(Unaudited)

As of September 30
2009 2008 % Change
North America 87,348 91,496 (4.5 %)
Mexico 64,438 76,700 (16.0 %)
South & Central America 84,936 96,285 (11.8 %)
EMEA 66,454 75,071 (11.5 %)
Asia Pacific (excluding China) 89,750 80,706 11.2 %
Total Supervisors 392,926 420,258 (6.5 %)
China Sales Employees 44,199 41,580 6.3 %
Worldwide Total Sales Leaders (1) 437,125 461,838 (5.4 %)

Note: (1) - We refer to supervisors who qualified in 69 countries under our
traditional marketing plan plus China sales employees collectively as `Sales
Leaders`.

Herbalife Ltd
Volume Points by Region
(Unaudited, In thousands)

Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 % Change 2009 2008 % Change

North America 207,612 202,772 2.4 % 594,567 586,190 1.4 %
Mexico 126,375 132,083 (4.3 %) 371,035 433,023 (14.3 %)
South & Central America 102,166 101,475 0.7 % 302,708 331,476 (8.7 %)
EMEA 109,429 116,218 (5.8 %) 350,871 382,282 (8.2 %)
Asia Pacific (excluding China) 148,184 108,840 36.1 % 418,591 325,567 28.6 %
China 32,270 30,224 6.8 % 85,904 84,317 1.9 %
Worldwide 726,036 691,612 5.0 % 2,123,676 2,142,855 (0.9 %)

SUPPLEMENTAL INFORMATION
SCHEDULE A: FINANCIAL GUIDANCE

2009 Guidance

For the Three Months and Twelve Months Ending December 31, 2009

Three Months Ending Twelve Months Ending
December 31, 2009 December 31, 2009
Low High Low High

Volume point growth vs 2008 8.5 % 9.5 % 1.0 % 1.5 %
Net sales growth vs 2008 15.5 % 16.5 % (3.0 %) (2.5 %)
EPS (1) (2) (3) (4) $ 0.88 $ 0.91 $ 3.19 $ 3.22
Cap Ex ($ millions) $ 18.0 $ 23.0 $ 60.0 $ 65.0
Effective Tax Rate (4) 30.0 % 31.0 % 30.5 % 31.0 %

(1)Excludes the potential impact of expenses relating to the company`s December
2008 restructuring.
(2)Excludes any accretion/dilution impact should the company elect to repurchase
shares under its share repurchase program.
(3)Excludes the impact of repatriating dollars from Venezuela at an exchange
rate that is less favorable than the official exchange rate.
(4)Excludes the impact of the expense resulting from an international income tax
audit settlement, expiration of statute of limitation of a reserved issue, and
the expected Q4 reversal of a prior adjustment to income tax accrual.

2010 Guidance

For the Twelve Months Ending December 31, 2010

Twelve Months Ending
December 31, 2010
Low High

Volume point growth vs 2009 5.0 % 6.0 %
Net sales growth vs 2009 11.0 % 13.0 %
EPS (1) (2) $ 3.50 $ 3.65
Cap Ex ($ millions) $ 65.0 $ 75.0
Effective Tax Rate 30.0 % 31.0 %

(1)Includes utilization of $50 million of the company`s share repurchase
program.
(2) While 2010 guidance excludes the impact of repatriating approximately 100
million Venezuelan Bolivars of our existing excess cash in Venezuela, 2010
guidance does include the ongoing repatriation of excess cash generated in
Venezuela during 2010.

SCHEDULE B: NET SALES OF TOP 10 COUNTRIES
(In Millions)

Q3 2009 Q3 2008
Currency FX Benefit Currency FX Benefit
Reported Adjusted (Loss) Reported Adjusted (Loss)
1 USA $ 136.7 $ 136.7 $ 0.0 1 USA $ 130.9 $ 130.9 $ 0.0
2 Mexico $ 68.3 $ 87.8 ($19.5 ) 2 Mexico $ 91.6 $ 86.1 $ 5.5
3 China $ 45.5 $ 45.4 $ 0.1 3 Brazil $ 43.6 $ 37.8 $ 5.8
4 Brazil $ 45.1 $ 50.7 ($5.6 ) 4 China $ 41.2 $ 37.3 $ 3.9
5 Taiwan $ 41.3 $ 43.3 ($2.0 ) 5 Taiwan $ 32.4 $ 30.7 $ 1.7
6 South Korea $ 33.4 $ 38.9 ($5.5 ) 6 Italy $ 27.7 $ 25.3 $ 2.4
7 Italy $ 29.2 $ 30.8 ($1.6 ) 7 Korea $ 20.8 $ 23.9 ($3.1 )
8 Venezuela $ 21.9 $ 21.9 $ 0.0 8 Venezuela $ 15.9 $ 15.9 $ 0.0
9 Malaysia $ 12.3 $ 13.0 ($0.7 ) 9 France $ 13.2 $ 12.1 $ 1.1
10 Japan $ 11.8 $ 12.5 ($0.7 ) 10 Japan $ 13.0 $ 11.9 $ 1.1
Total of Top 10 $ 445.5 $ 481.0 ($35.5 ) Total of Top 10 $ 430.3 $ 411.9 $ 18.4
TOTAL NET SALES $ 600.2 $ 647.4 ($47.2 ) TOTAL NET SALES $ 602.2 $ 576.4 $ 25.8

Note: Currency adjusted net sales use the prior year foreign currency rates to adjust current year reported net sales figures.

SCHEDULE C: VOLUME POINTS FOR TOP 10 COUNTRIES
(In Millions)
Q3 2009 Q3 2008
1 USA 201.8 1 USA 196.3
2 Mexico 126.4 2 Mexico 132.1
3 Taiwan 51.3 3 Brazil 42.7
4 Brazil 45.9 4 Taiwan 37.4
5 Korea 41.6 5 China 30.2
6 China 32.3 6 Korea 22.7
7 Italy 22.9 7 Italy 21.5
8 Venezuela 16.1 8 Venezuela 11.8
9 Malaysia 12.5 9 Malaysia 10.7
10 India 9.5 10 Peru 10.6
Total of Top 10 560.3 Total of Top 10 516.0
TOTAL VOLUME POINTS 726.0 TOTAL VOLUME POINTS 691.6

SCHEDULE D: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Dollars in Thousands, Except Per Share Data)

In addition to its reported results, the Company has included in the tables
below adjusted results that the Securities and Exchange Commission defines as
"non-GAAP financial measures."Management believes that such non-GAAP financial
measures, when read in conjunction with the Company`s reported results, can
provide useful supplemental information for investors analyzing period to period
comparisons of the Company`s results.

The following is a reconciliation of net income, presented and reported in
accordance with U.S. generally accepted accounting principles, to net income
adjusted for certain items:

Three Months Ended Nine Months Ended
9/30/2009 9/30/2008 9/30/2009 9/30/2008
Net income, as reported $ 57,895 $ 58,084 $ 147,690 $ 187,531
Restructuring Expenses associated with realignment for growth initiative (1) 494 - 899 1,071
Expiration of statutes of limitations (4,852 ) - (4,852 ) -
Tax expense resulting from an international income tax audit settlement 537 - 1,628 -
Net income, as adjusted $ 54,074 $ 58,084 $ 145,365 $ 188,602

The following is a reconciliation of diluted earnings per share, presented and
reported in accordance with U.S. generally accepted accounting principles, to
diluted earnings per share adjusted for certain items:

Three Months Ended Nine Months Ended
9/30/2009 9/30/2008 9/30/2009 9/30/2008
Diluted earnings per share, as reported $ 0.91 $ 0.89 $ 2.34 $ 2.83
Restructuring Expenses associated with realignment for growth initiative (1) 0.01 0.01 0.02
Expiration of statutes of limitations (0.08 ) - (0.08 ) -
Tax expense resulting from an international income tax audit settlement 0.01 - 0.03 -
Diluted earnings per share, as adjusted (2) $ 0.85 $ 0.89 $ 2.31 $ 2.85

The following is a reconciliation of total long-term debt to net debt:

9/30/2009 12/31/2008

Total long-term debt (current and long-term portion) $ 309,843 $ 351,631
Less: Cash and cash equivalents 215,401 150,847
Net debt $ 94,442 $ 200,784

(1) The restructuring charge adjustments reflect items that although they, or similar items, might recur are of a nature and magnitude that identifying them separately provides investors with a greater ability to project the Company`s future performance.
(2) Amounts may not total due to rounding

Herbalife Ltd.
Media Contact:
Barbara Henderson
SVP, Worldwide Corp. Comm.
213-745-0517
Investor Contact:
Amy Greene
VP, Investor Relations
213-745-0504

Copyright Business Wire 2009