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A Statement from Mannatech.


COPPELL, Texas Coppell is a city in Dallas County, Texas, a suburb and bedroom community of the DFW Metroplex. The population was 35,958 at the 2000 census. A small area in the far northern portion of the city extends into neighboring Denton County.  -- This week Mannatech (Nasdaq:MTEX MTEX Mega Texel ), a global network marketing provider of nutritional products, reported its tenth consecutive quarter of volume growth with record first quarter sales up 46% from the prior year and earnings per share which were up 55%. Mannatech's high quality proprietary glyconutritional products put it at the forefront of the worldwide boom in sales of nutritional supplements Nutritional Supplements Definition

Nutritional supplements include vitamins, minerals, herbs, meal supplements, sports nutrition products, natural food supplements, and other related products used to boost the nutritional content of the diet.
 in the U.S. as well as other markets where the company does business including Australia, Japan, Canada, New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , the U.K. and Korea. Nutritional supplements account for sales of $19 billion in the U.S. and are growing about 7% annually, and 150 million Americans take dietary supplements each year. (Source: Council for Responsible Nutrition)

The direct sales industry has proven to be one of the most dynamic forms of marketing in the world. Direct selling Direct selling is the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls. It is sometimes also considered to be a sale that does not utilize a "middle man" such as a retail outlets, distributors or brokers.  and network marketing comprise a $30 billion business segment in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  alone, with more than 13 million people engaged in direct selling activities. Furthermore, according to the World Federation of Direct Selling Associations, global sales through direct selling total $92 billion fueled by the efforts of 52 million individuals involved in this type of marketing. The network marketing business model has grown dynamically in popularity and is a leading method for new small-business growth in the U.S. and around the world. Mannatech's dedicated current Associate force of 401,000 grew by more than 52% since the beginning of 2004.

Mannatech's incredible success reflects its professional management team and highly experienced Board of Directors. While it is not unusual for executives and board members of public companies to sell stock from time to time, the proxy statement Proxy Statement

A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting.
 submitted to the SEC in April 2005 shows that the company's Board and management continue to beneficially own 42% of the company's stock. It should be noted that several Board members have made recent investments in the stock of the company.

Investors can find complete information on insider purchases and sales of Mannatech's stock, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
, regulatory issues and the background of its executives and board members in the company's filings with the SEC. The company believes it complies with applicable FDA FDA
abbr.
Food and Drug Administration


FDA,
n.pr See Food and Drug Administration.

FDA,
n.pr the abbreviation for the Food and Drug Administration.
 and FTC FTC

See Federal Trade Commission (FTC).
 regulations governing its business and takes action against sales associates who are found to have violated the company's policies concerning advertising and marketing of products. Mannatech has disclosed that it is the subject of pending litigation, although Mannatech strongly denies the allegations and will continue to vigorously defend itself.

Mannatech believes that its products and business model are sound, that its compliance efforts are strong, and that its CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , management, and Board fully comply with firm codes of ethical conduct. Mannatech intends to continue its focused growth efforts which have resulted in volume increases and outstanding financial results as it prepares to enter new markets in Taiwan, Germany, and Denmark.

About Mannatech

Based in Coppell, Texas, Mannatech, Inc. is a wellness solutions provider that develops innovative, high-quality, proprietary nutritional supplements, topical products and weight management products, which are sold through a global network marketing system throughout the United States and the international markets of Canada, Australia, the United Kingdom, Japan, New Zealand, and South Korea.

Please Note: This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as "may," "believes," "estimates," "projects," and "plans" or other similar words or the negative of such terminology. Similarly, descriptions of Mannatech's objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Mannatech believes this release should be read in conjunction with all of its filings with the Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Mannatech's inability to attract and retain associates and members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that its expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions its readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K Form 10-K

A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.


Form 10-K

See 10-K.
, and other filings filed with the Securities and Exchange Commission, including its current reports.
COPYRIGHT 2005 Business Wire
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Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:May 11, 2005
Words:754
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