For your information, Mr. Piccolo has been terminated by Nu Skin Enterprises. He has conducted himself in ways unacceptable to our standards, including violating our prohibition against personal advertising. In the process of running the ad you referred to on your web site, he has misrepresented our Nourish the Children initiative, positioning it as a business opportunity when it is only an auxiliary contribution initiative.

Just to give you some background, you need to know that one of Nu Skin's core values is to help improve the plight of underprivileged children worldwide. Over the past few years, our owners, employees, and distributors have devoted millions of dollars and thousands of hours to this cause through our non-profit affiliate, the Force For Good Foundation. The appeal of an idea like Nourish the Children is that it is an extension of our past and current efforts to help children in need. And it is a way we can invite our distributors to add some of their efforts to a problem that requires enormous resources.

Following is an outline of our Nourish the Children initiative:

• First of all, our Nourish the Children initiative is a for-profit venture. We are making certain everyone knows that up-front. We recognize it will be perceived as unique in that regard, despite the fact that a number of U.S. companies are similarly involved in aiding the pressing worldwide hunger problem. The real issue is feeding starving and malnourished children who die from malnutrition and related causes at the rate of 16,000 per day. This innovative business approach has the advantage of involving far more people than endeavors which rely on the limited availability of volunteers alone.

• Another way in which our initiative is innovative is the superior nutrition of the food. Meal packets are available as soups and casseroles that are nutrient-dense, with 20 vitamins and minerals that are necessary for healthy growth in children. The foods are micro-encapsulated in an enteric coating which does not break down during storage or cooking, assuring delivery of full nutritional potency into a child's body. The foods are vegetarian, non-dairy, and contain no fillers. They are both Kosher-certified for Jewish consumption and Halal-certified for Muslim consumption.

• Currently, Nu Skin distributors can purchase products from any Nu Skin affiliate, including Nu Skin personal care products, Pharmanex nutrition products and Big Planet technology and telecommunication services. These products are then resold to end-users or consumed by the distributor. The dehydrated food products produced by First Harvest International (the company recently acquired by Nu Skin and the sponsor of the former Nourish the World program) will be included in the broad product offering of Nu Skin, Pharmanex or Big Planet products. Any distributor can buy First Harvest products at a wholesale price and either resell or consume those products.

• Because of Nu Skin's desire to work with its distributors to help children in need, the company will donate products whenever Nu Skin distributors purchase 25 units of First Harvest food products. Among other uses, the First Harvest products are well suited for emergency, outdoor and humanitarian relief. Therefore, the company's contribution will initially consist of First Harvest food products whenever a multiple of 25 units of First Harvest food products is attained. Nu Skin will announce this corporate commitment and label the effort the "Nourish the Children" relief program.

• As part of the Nourish the Children campaign, if distributors or customers contribute Nu Skin products to a children's relief effort, Nu Skin will arrange the delivery of the products without charging any administrative fee for the service. For example, if they donated Nu Skin's Anti-Bacterial Hand-Sanitizer or First Harvest's Country Casserole food packets, the company will provide the an option to facilitate that contribution directly from the Nu Skin shipping facility rather than incurring shipping costs by sending the product to the distributor and then asking the distributor to make the delivery directly to a charitable organization in his town.

• All donations facilitated by Nu Skin will be donations in kind. Neither Nu Skin nor its distributors will accept or handle cash donations. The company will merely facilitate delivery of the donated products directly to a qualified relief agency registered under the Charitable Solicitations Act.

• All distributors and most retail customers will place their orders directly with the company.

• Nu Skin corporate will maintain a full accounting of products donated and information regarding the delivery of the donated products to charitable organizations. Those records will then be made available to state business regulatory agencies upon request.

We trust this will help you understand what we are really doing and that it is not only in full compliance with all regulations and laws governing such practices, but is in the best interests of those in need, because of its potential to bring greater resources to the problem of world hunger.