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HERBALIFE REPORTS SIGNIFICANT INCREASE FOR 1991 SALES AND EARNINGS

HERBALIFE REPORTS SIGNIFICANT INCREASE FOR 1991 SALES AND EARNINGS
 LOS ANGELES, March 27 /PRNewswire/ -- Herbalife International Inc. (NASDAQ: HERB) today reported higher sales and earnings for the fourth quarter and year ended Dec. 31, 1991, reflecting resumed growth in the company's distributor base, strength in overseas sales and the success of new marketing programs.
 For the year ended Dec. 31, 1991, Herbalife reported net income of $7,083,000 or $.33 per primary share and $.27 per share, fully diluted. This contrasts with a loss in 1990 of $2,382,000 or $.13 per primary share.
 Net sales for 1991 rose 38.5 percent to $102,445,000, compared to $73,994,000 a year earlier. Net income for 1991 was taxed at a rate of approximately 19 percent reflecting utilization of the balance of a net operating loss carryforward for federal tax purposes. Company income taxes in 1990 were primarily on profits of its foreign operations.
 For the quarter ended Dec. 31, 1991, Herbalife recorded net income of $1,955,000, or $.09 per primary share and $.07 per fully diluted share, compared to a loss of $2,056,000, or $.11 per primary and fully diluted share for the comparable quarter a year earlier. Net sales for the fourth quarter of 1991 increased by 61.2 percent to $27,452,000 from $17,030,000 for the same period a year ago.
 "This dramatic improvement signals the success of Herbalife's new marketing programs, which have served to build our distributor base and expand sales significantly overseas," said Mark Hughes, Herbalife's chairman, president and chief executive officer.
 In 1991, Hughes explained, Herbalife introduced a new product concept, "Cellular Nutrition," and implemented a number of basic marketing strategies that had previously proven to be successful. Additionally, Herbalife historically has suffered erosion of its distributor base because of competition. Herbalife effectively countered this challenge by introducing an enhanced marketing plan with greater distributor compensation incentives. These events combined resulted in an 82.8 percent increase in new distributors for 1991 compared to 1990. Last year, Herbalife initiated successful operations in Germany and the company also experienced strong growth in other international markets as well.
 He continued: "Our success in 1991 extended to our balance sheet. Shareholders' equity grew five-fold to $8.9 million. Our operations are generating cash, meaning we will be able to continue our relatively debt-free position. Herbalife's cash position at year end was over $10 million -- up nearly four times -- and working capital was a comfortable $5.5 million."
 Herbalife International markets weight control, health and nutritional products in 12 countries including the United States through a network of independent distributors.
 HERBALIFE INTERNATIONAL INC.
 Consolidated Balance Sheets
 Dec. 31, 1991 and 1990
 1991 1990
 Assets
 Current Assets:
 Cash and cash equivalents $10,741,000 $2,822,000
 Receivables 655,000 553,000
 Inventories 8,535,000 5,443,000
 Prepaid expenses and
 other current assets 495,000 689,000
 Deferred income taxes 2,415,000 ---
 Total current assets 22,841,000 9,507,000
 Property -- at cost:
 Furniture and fixtures 4,375,000 4,551,000
 Equipment 7,163,000 6,904,000
 Leasehold improvements
 and building 10,275,000 10,293,000
 Total 21,813,000 21,748,000
 Less accumulated
 depreciation and amortization (19,962,000) (19,945,000)
 Total 1,851,000 1,803,000
 Other assets 88,000 40,000
 Goodwill (net of accumulated
 amortization of $553,000 and
 $461,000 in 1991 and 1990,
 respectively) 3,132,000 3,224,000
 Total $27,912,000 $14,574,000
 Liabilities and Shareholders' Equity
 Current Liabilities:
 Accounts payable $4,770,000 $4,927,000
 Royalty overrides 6,552,000 2,264,000
 Accrued expenses 1,733,000 1,504,000
 Current portion of
 bank loans and
 contracts payable 131,000 752,000
 Due to retired partners 1,376,000 2,603,000
 Advance sales deposits 1,283,000 216,000
 Income taxes payable 1,301,000 ---
 Other current liabilities 176,000 327,000
 Total current liabilities 17,322,000 12,593,000
 Bank loans & contracts payable --
 Net of current portion 324,000 356,000
 Deferred income taxes --
 noncurrent 1,395,000 ---
 Commitments and Contingencies
 Shareholders' Equity:
 12 percent senior convertible
 preferred stock, $1.00 par
 value; authorized 100,000,000
 shares, issued and outstanding
 1,796,107 shares (liquidation
 preference $11,387,000) 1,796,000 1,796,000
 Common stock $.01 par value;
 authorized 100,000,000 shares,
 issued 20,429,760 shares at
 Dec. 31, 1991 and 1990 204,000 204,000
 Paid-in capital in excess
 of par value 101,000 ---
 Retained earnings (includes
 cumulative translation
 adjustment of $506,000 and
 $234,000 at Dec. 31, 1991
 and 1990, respectively) 6,797,000 (342,000)
 Less: Treasury stock,
 at cost, 43,250 shares
 in 1991 and 1990 (11,000) (11,000)
 Notes issued for stock (16,000) (22,000)
 Total shareholders' equity 8,871,000 1,625,000
 Total $27,912,000 $14,574,000
 HERBALIFE INTERNATIONAL INC.
 Statements of Consolidated Operations
 For the Years Ended Dec. 31, 1991, 1990 and 1989
 1991 1990 1989
 Retail sales $190,852,000 $137,842,000 $121,507,000
 Less: Distributor
 allowances
 on product
 purchases 88,407,000 63,848,000 54,554,000
 Net sales 102,445,000 73,994,000 66,953,000
 Licensee income 124,000 191,000 2,585,000
 Cost of sales 33,892,000 24,802,000 21,564,000
 Royalty overrides 28,312,000 20,789,000 17,674,000
 Operating margin 40,365,000 28,594,000 30,300,000
 Selling, general and
 administrative
 expenses 31,737,000 30,232,000 28,280,000
 Total 8,628,000 (1,638,000) 2,020,000
 Interest income
 (expense) - net 118,000 (72,000) (173,000)
 Income (loss) before
 income taxes 8,746,000 (1,710,000) 1,847,000
 Income taxes 1,663,000 672,000 815,000
 Net income (loss) $7,083,000 ($2,382,000) $1,032,000
 Earnings (loss)
 per share:
 Primary $0.33 ($0.13) $0.05
 Fully diluted $0.27 (0.13) 0.05
 -0- 3/27/92
 /CONTACT: Christopher Pair of Herbalife International, 310-410-9600/
 (HERB) CO: Herbalife International Inc. ST: California IN: HEA SU: ERN


DM-JL -- LA003 -- 2231 03/27/92 08:02 EST
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