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MICHIGAN, NU SKIN REACH SETTLEMENT

 MICHIGAN, NU SKIN REACH SETTLEMENT
 PROVO, Utah, Dec. 27 /PRNewswire/ -- Following more than eight


months of intensive discussion, sometimes characterized by heated disagreement and debate, Nu Skin International and the Michigan Attorney General have reached a formal resolution of their differences relating to Nu Skin's marketing practices, according to Nu Skin executive vice president Steven J. Lund.
 Several other states, including Florida, participated in the last of a series of meetings between Michigan and Nu Skin at which the agreement was reached. The company and those states are expected to formalize agreements shortly.
 Michigan Attorney General Frank Kelley initially notified Nu Skin in March that he was considering filing a legal complaint against the company. He claimed its independent distributors were violating some of Michigan's business laws. At that time, Kelley asserted that Nu Skin might be operating as an "illegal pyramid scheme," an assertion which Nu Skin hotly contested. Company officials have debated Kelley on several national television programs, defending the company's marketing plan and practices as both legal and ethical.
 The agreement with Michigan, anticipated to be filed on Jan. 2, 1992, constitutes a full and complete resolution of all matters covered by Michigan's review, said Lund. As stated in the settlement document, the agreement is "...expressly entered without admission by either party of any guilt or wrongdoing with respect to any issue of fact or law contained herein and shall not, in any circumstances, constitute evidence or admission by any party with respect to any such issue."
 Under the terms of the agreement, Nu Skin has consented to formalize and make permanent its current policy of offering, with no time limit, a 90 percent refund to distributors who wish to return reasonably sound, unopened, unaltered products and sales aids. Nu Skin has also agreed to reemphasize its retail sales program and sponsor a retail sales and procedural training meeting for its Michigan distributors. Nu Skin will also reimburse the State of Michigan $25,000 to help defray investigation costs, according to Lund.
 "I'm confident the Michigan Attorney General's staff will confirm that we have cooperated fully with every facet and phase of their investigation--and we will continue to do so in the future," explained Lund. "In some cases, we will go so far as to either help pay for investigations or contribute to consumer education or protection funds. We stand by our reputation as a consumer-protective company and are proud to place ourselves at the forefront of consumer-oriented standards that others in the network marketing community can emulate."
 Lund said Nu Skin is grateful to the Michigan Attorney General's staff for the professional way in which they conducted their investigation of the corporation's business practices. "They have been as responsive to our inquiries and concerns as we have been to theirs. Their willingness to engage in meaningful and constructive discussions made this settlement possible. The fact that we have come to a resolution without a long and costly court battle is a credit to the professionalism of the Attorney General's office and again demonstrates our commitment to being a responsible corporate citizen," he said.
 Nu Skin is a Utah-based, privately held corporation that distributes hair care, skin care, and nutritional products through a network of more than 100,000 independent distributors in the United States, Canada, Hong Kong and Taiwan. The corporation was organized less than eight years ago, and has grown to nearly $500 million in annual wholesale sales. It recently opened a new 200,000 square-foot warehouse and distribution center in Provo and will open its new 10- story headquarters building in February 1992. It also has distribution centers in Atlanta, Toronto, Hong Kong and Taipei, and plans to expand into several other foreign markets in the coming year.
 Blake Roney, president and chief executive officer of Nu Skin, has indicated that the Michigan settlement is exciting news for Nu Skin distributors worldwide. "We can now refocus our energies to expanding the finest personal retailing organization in the personal care industry and strive to serve our customers even better," he said. "Our commitment has been, and always will be, to provide exceptional products that contain only good ingredients and none of the bad."
 -0- 12/27/91
 NOTE: Nu Skin International is a Provo, Utah based corporation specializing in personal care products. Wholesale sales are expected to reach $500 million in 1991. That is up from $230 million in wholesale sales in 1990.
 The corporation employs approximately 2,400 people company-wide who support more than 100,000 independent distributors throughout the United States, Canada and Hong Kong. Nu Skin distributes nearly 60 premium-quality hair care, skin care, and nutritional products.
 /CONTACT: Jason E. Chaffetz of Nu Skin, 801-377-6056 (Office), 801-376-8895 (Cellular) or 801-373-6021 (Home)/ CO: Nu Skin International Inc. ST: Utah, Michigan, Florida IN: SU:


MC -- DV001 -- 5492 12/27/91 13:30 EST
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Date:Dec 27, 1991
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