A Message From Frank VanderSloot Chief Executive Officer

Over the years, I have talked to many who say they are surprised at Melaleuca's unprecedented rise in the marketplace. They often ask what the secret is to our success. The answer is simply that we have much better products than the grocery store brands. People want to live healthier, longer, and more vibrant lives. They find Melaleuca products are a great asset in achieving those goals. Melaleuca is quickly becoming the world leader in quality wellness products.

The reason hundreds of thousands of families are choosing Melaleuca products over the grocery store brands is quite simple. Many manufacturers are yielding to the tremendous pressures in today's marketplace to cut prices and therefore cut quality. Wal-Mart and other national chains control the distribution channels. Even companies like Procter & Gamble are placed under tremendous pressure to cut prices in order to get shelf space in the stores. They are forced to lower their price on the one hand and to maintain profit margins on the other. The only answer for these manufacturers is to cut costs by using cheaper ingredients or diluting their products with cheap fillers such as water. The trend for many manufacturers to dilute products has gotten so bad that Wal-Mart announced that regardless of the price pressures they put on manufacturers, Wal-Mart would not carry any laundry products with less than a 2x concentration, which is twice as concentrated as these products were previously. Procter & Gamble responded by finally bringing its products (like Tide^®) up to the minimum 2x standard and advertising their "improvement" on national TV. Quite frankly, we are not very impressed. Melaleuca's products have always been more concentrated than Wal-Mart's new "standard." In fact, Melaleuca's MelaPower was at 3x concentration for more than 20 years and it's now concentrated at 6x.

The demand for these superior products makes building a Melaleuca business even more profitable and more rewarding. This brings up another good reason for you to buy Melaleuca products. Because when you purchase Melaleuca products, you are not buying from the wealthy owners of Wal-Mart, Lever Brothers, or Johnson & Johnson. You are actually buying from the family or friend that introduced you to Melaleuca. In other words, instead of buying from the corporate giants, you are buying from "the little guy." In most cases it is from someone you know. Almost all of our 350 products are significantly superior in effectiveness, quality, and safety to any of our competitors in the marketplace. There are hundreds of very good reasons to choose our products over the grocery store brands. Reducing costs by diluting products with water or other fillers is not the only way that national brands violate their customers' trust. Compromising quality ingredients to save a buck is also prevalent in many of the grocery store brands. When people are dealing with their health, they don't want to make compromises. And they know that Melaleuca will never compromise on effectiveness or safety. Because of the constant pressures of the mass manufacturers to lower price and quality, the demand for Melaleuca's superior and far more effective products is on the rise.

So thank you for your loyalty to Melaleuca's wellness products. We promise to keep our commitment to always provide the best so you can have a healthier, longer, and more vibrant life.

Sincerely,
Frank VanderSloot

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