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HERBALIFE INTERNATIONAL INC. CONTINUES TO REPORT RECORD QUARTERLY SALES AND EARNINGS

 HERBALIFE INTERNATIONAL INC. CONTINUES TO REPORT
 RECORD QUARTERLY SALES AND EARNINGS
 LOS ANGELES, July 30 /PRNewswire/ -- Herbalife International Inc. (NASDAQ: HERB) today reported record second quarter, 1992 retail sales and earnings. For the second quarter, retail sales of $93,334,000 were 84 percent greater than the $50,592,000 reported in the same period of 1991.
 Accompanying this growth in sales in the second quarter of 1992 were net earnings of $4,802,000 or $0.18 per share on a fully diluted basis, representing a three-fold increase over net earnings of $1,639,000 or $0.06 per share on a fully diluted basis, reported for the comparable period a year earlier.
 For the first half of 1992, retail sales of $169,098,000 were 96 percent greater than the $86,303,000 reported a year earlier.
 Accompanying this gain in first half 1992 sales, net earnings for the six months ended June 30, 1992, of $8,589,000 or $0.32 on a fully diluted basis, represented a four-fold increase over the level of $2,162,000 or $0.08 reported a year earlier on a comparable basis.
 According to Mark Hughes, chairman of the board and chief executive officer, "Continued growth in retail sales and associated growth in net income is attributable to the sustained high demand, worldwide, for the company's products."
 The disproportionate gain in 1992 earnings per share for the first half, compared to the gain in revenues for the same period, was primarily attributable to the company's continuing cost-control efforts; particularly in selling, general and administrative expenses.
 Reflecting its commitment to continued growth, the company announced that effective July 1, 1992, a new incentive compensation plan for senior members of management has been adopted. Under the new plan, to be administered by the compensation committee of the board, the entire senior executive group of the company will be entitled to participate in a performance-driven cash bonus program, with awards to participants under the plan to be based both on individual as well as overall company performance. The plan differs from its predecessor in effect through June 30, 1992, in several important regards. First, participation in the plan is extended from the president and executive vice president, sales to the entire senior management group. Second, bonus accruals are based on bottom line or pre-tax income, not retail sales, and third, despite a significant increase in the number of individuals entitled to participate in the plan, the maximum accrual will continue at the level in effect through June 30, 1992 of 20 percent of the company's pre-tax, pre-bonus income.
 The new incentive compensation plan, in conjunction with an existing non-qualified stock option plan, as well as, other incentive plans is believed essential to stimulate and sustain the high level of compounded annual growth, and high return on sales set forth in the company's five-year plan.
 In July 1992, the company announced plans to expand its product offerings into Czechoslovakia, effective July 13, 1992, and Portugal beginning in August 1992. This will bring to a total of 13, the number of countries in which the company offers its products.
 In June 1992, Herbalife International Inc. announced the initiation of a cash dividend policy, with the initial quarterly divided of $0.04 per share paid to common stockholders on July 15, 1992.
 Thermojetics, a revolutionary weight-loss product, was made available for sale to U.S. distributors commencing on May 12, 1992. At this time, it would appear that the product will be responsible for the first significant turnaround in U.S. sales since 1985. According to Hughes, "Although it is a bit early to tell, the initial demand for the product is not only exceeding our expectations but, as a result, we are seriously considering its accelerated introduction in other regions of the world as well."
 On July 17, 1992, the company announced the opening of its newest distribution center in Frankfurt, Germany. This was the first of the company's centers to be equipped with an on-line, real time order processing facility at the time of opening; materially enhancing the center's capacity to acquire and move product.
 Herbalife International Inc., founded in 1980, is engaged in the distribution and marketing of weight loss and weight management products, health and nutritional supplements, and skin and hair care products worldwide. Sold under the Herbalife, Cellular Nutrition, Thermojetics and Mark Hughes Collection names, Herbalife products are available only through a network of independent distributors who purchase the goods from the company.
 HERBALIFE INTERNATIONAL INC.
 Selected Comparative Financial Highlights
 (In thousands except per share data)
 (Unaudited)
 Three months ended Six months ended
 June 30, June 30, June 30, June 30,
 1992 1991 1992 1991
 Retail sales $93,334 $50,592 $169,098 $86,303
 Less distributor
 allowance (44,044) (23,142) (79,092) (39,661)
 Net sales 49,290 27,450 90,006 46,642
 Operating margin 19,342 9,429 35,565 17,080
 Selling, general and
 administrative
 expenses 11,825 7,532 22,140 14,011
 Interest income
 (expense), net 113 53 207 6
 Income before
 taxes 7,630 1,950 13,632 3,075
 Net income 4,802 1,639 8,589 2,162
 Earnings per share,
 fully diluted 0.18 0.06 0.32 0.08
 Equivalent shares
 outstanding 27,023,792 26,085,558 27,023,792 26,085,558
 June 30, Dec. 31,
 1992 1991
 Ending cash & cash equivalents $22,887 $10,741
 -0- 7/30/92
 /CONTACT: Chris Pair of Herbalife International, 310-410-9600/
 (HERB) CO: Herbalife International Inc. ST: California IN: SU: ERN


AL-EH -- LA028 -- 5285 07/30/92 16:40 EDT
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Date:Jul 30, 1992
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