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NU SKIN AND PLAINTIFF WIN PRELIMINARY CLASS ACTION SETTLEMENT APPROVAL

NU SKIN AND PLAINTIFF WIN PRELIMINARY CLASS ACTION SETTLEMENT APPROVAL
 SAN FRANCISCO, Nov. 27 /PRNewswire/ -- Attorneys for Nu Skin International Inc. and plaintiff Patricia Arata appeared in federal court here on Tuesday to seek preliminary approval of a settlement of the class action lawsuit filed against the company by Arata in late August. Following a hearing before Hon. Fern M. Smith, the settlement recommended by both parties was given preliminary approval by the court.
 "Nu Skin was shocked, surprised and angered by this suit, and reacted accordingly," said John D. Shuff, Nu Skin's litigation attorney. "We were preparing to fight this suit on every single fact and issue of law to prove the company's position and legitimacy. The fact that we've jointly sponsored and received preliminary approval for a settlement less than 90 days after the suit was filed indicates that something very unusual happened to bring the parties together so quickly. I'll give credit to Dan Girard for what happened, because when he heard the company and me saying that Nu Skin had already initiated a refund program to take product back from anyone who wanted to withdraw, he suggested that if that was true, we ought to be discussing a settlement instead of beating each other up in court for the next few years," Shuff said.
 "We started the class action to address problems our inquiries had disclosed concerning how some distributors were presenting the Nu Skin marketing plan. We felt that it placed too much emphasis on recruiting and encouraged participants to load up on inventory of the products. We thought people should be able to get their money back if the opportunity did not work for them," said Daniel C. Girard, counsel for the plaintiff. "By the terms of the settlement, Nu Skin has agreed to refund 90 percent of the price paid for Nu Skin merchandise to anyone who wants to return it to the company. Both the company and its lawyers have approached this situation very responsibly and have 'put their money where their mouth is' by undertaking this settlement. They have consistently maintained that they were a responsible, consumer protective company and this agreement would certainly tend to bear them out."
 The terms of the settlement formalize a refund policy, already voluntarily undertaken by Nu Skin prior to the filing of the suit, and upon implementation will achieve final settlement of all unresolved issues arising from business transactions between independent distributors and the company over the last three years.
 The approval achieved in federal court is in no way considered an admission of wrongdoing or liability by either party but is entered for the express purpose of precluding the prospect of protracted litigation on a broad range of issues.
 "I think Nu Skin has again demonstrated its commitment to the protection of consumers by the voluntary refund program continued and expanded by this settlement. That program has the support of some of the most aggressive class action lawyers in the country and has now received preliminary approval of a United States District Court judge. I don't know what more they can be expected to do, but I do know that there comes a point where a definite line has to be drawn. That point obviously comes when the restrictions on Nu Skin are so stringent that it cannot conduct its business, which is especially offensive where other network marketing companies are not subjected to the same restrictions. At that point, Nu Skin will be left with no alternative but to seek some form of redress from the court system. I can assure you that the company doesn't want to litigate with any state's Attorney General any more than it did with the class action lawyers, but quite frankly that might be better than the effect that rumor and innuendo have on the morale of Nu Skin's all-volunteer sales force," Shuff emphasized.
 "We're very pleased with the quick settlement of what could have been an arduous, multi-year litigation procedure," said Steven J. Lund, Nu Skin's executive vice president. The settlement which allows a 90 percent refund for any unopened products and sales aids purchased by anyone who was a distributor in the last three years, and formalizing a future unlimited-in-time refund policy of 90 percent for unopened resalable products specifically demonstrates Nu Skin's long term commitment to company stability, consumer protection and customer satisfaction in all transactions.
 "We are confident that there are very few people with excessive product


inventories and we believe it is a fair resolution to buy back products from any that do," said Lund.
 The Nu Skin refund policy is broader than those of most other companies in the industry and exceeds the statutory refund requirements of most states. As such, the settlement should be instrumental in helping speed a favorable conclusion to any outstanding regulatory reviews of the marketing programs of Nu Skin International.
 Nu Skin International is a Provo, Utah based personal care company specializing in hair care, skin care and nutritional products. Nu Skin has over 100,000 independent distributors in the United States, Canada and Hong Kong. The corporation employees approximately 2,400 people. Nu Skin's form of personal retailing is expected to account for approximately $500 million in wholesale sales in 1991.
 -0- 11/27/91
 /CONTACT: Jason E. Chaffetz of Nu Skin International, 801-377-6056, Ext. 2776, 801-376-8895 (Cellular) or 801-373-6021 (Home); or John D. Shuff of Robins, Kaplan, Miller & Ciresi, 415-391-9799, for Nu Skin International/ CO: Nu Skin International Inc. ST: California, Utah IN: SU:


MC -- DV007 -- 7921 11/27/91 17:45 EST
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Date:Nov 27, 1991
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