Patrick Rea, Editorial Director & Publisher, NBJ Global Business Program U.S. Nutrition Market Figures, Trends & Opportunities September 26, 2007 Patrick Rea, Editorial Director & Publisher, NBJ Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

NBJ Products NBJ Subscriptions: Individual paper copy ($995) Corporate ($2.5-$30k depending on users and level of access) Reports: ($2,995) NBJ’s Healthy Foods Report 2007 NBJ’s Supplement Business Report 2007 NBJ’s Organic Foods Report 2006 NBJ’s Healthy Foods Report 2006 NBJ’s Raw Material & Ingredient Supply Report 2006 NBJ’s Sports Nutrition & Weight Loss Report 2007 NBJ’s M&A Report: Segment Modules Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

NBJ Products (cont’d) New Trend & Market Niche Reports: ($995) CAM and Practitioner Supplement Sales Report 2007 Natural & Organic Personal Care Report 2006 Natural Pet Product and Pet Nutrition Report 2006 Nutrition Bar Trend Report 2006 Joint Health Report 2006 Chinese Nutrition Market Report 2007 Data Charts: Downloadable excel files of 150+ data charts NBJ Back Issues & Data Packs Web Seminars; Custom Research, M&A Database Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

NBJ Research Methodology Assess all levels of the value chain Manufacturer: NBJ manufacturer & brand sales survey: NBJ database of 400-500 supplement companies with annual wholesale sales with product and sales channel breakdown; compiled company and category research; executive & analyst interviews Retail: USA Model: Nielsen mainstream FDM data; IRI scanned data in FDM; SPINS data from A-size (>$2mil) natural stores, survey of 600+ natural independent and chain stores with Natural Food Merchandiser; Costco, WalMart, distributor, GNC, etc. interviews; store & gym visits; C-Store News, Beverage Digest, etc. Direct: NBJ survey and database of company sales in MLM, practitioner, DRTV, internet, mail order, etc.; DSA, Jordan Whitney, etc. Consumer: Various usage and attitude surveys modeled into aggregate purchase model to reconcile with manufacturer & retail data Supply: NBJ’s annual survey of raw material & ingredient supply companies and interviews for NBJ SPECIAL FOR 2007 NBJ Global issue: NBJ/IADSA survey of global supplement manufacturers; poll of IADSA member associations; interviews with companies, experts and secondary data providers (Euromonitor, Nicholas Hall, Zenith, government research) Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

NBJ USA Forecast Products 2006 ($mil) 2006 Growth 07-10 Growth Forecast Supplements 22,460 5.4% 4-6% Natural & Organic Food 23,602 13.3% 10-13% Functional Foods 31,400 10.2% 5-9% Natural & Organic Personal Care, Household Goods 7,490 14.2% 11-13% Nutrition Industry 84,952 10.0% 7-9% Source: Nutrition Business Journal. Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Nutrition Industry: $85 Bil in 2006 Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Nutrition Industry Sales, 1997-2006 ($85 Bil in 2006) Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Nutrition Industry Supply Chain Consumer Sales ($mil) Retail Direct Wholesale Raw Materials/ Ingredients Supplements Total 22,460 14,390 8,070 13,350 2,510 Natural/Organic Food 23,600 23,530 70 13,210 3,170 Functional Food* 31,400 30,950 450 21,640 660 NPC 7,490 4,730 2,760 4,010 580 Total Nutrition Ind. 84,950 73,600 11,360 52,200 6,920 Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

Today’s U.S. Nutrition Industry Issues & Opportunities Specialty Supplement Categories Obesity & Weight Loss Natural Retail Mass Market Import & Safety Issues Practitioner Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Specialty Supplement Sales Growth, 1995-2006 Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Fish Oil Sales, 1997-2006 ($489 Mil in 2006) Figure: in $Mil Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Probiotic Sales, 1997-2006 ($299 Mil in 2006) Figure: in $Mil Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Sports & Energy Drink Sales Growth, 1998-2006 Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Natural & Organic Food Sales Growth, 1995-2006 Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007

U.S. Natural & Organic Personal Care & Household Item Sales Growth, 1995-2006 Nutrition Business Journal, www.nutritionbusiness.com

Supplement Sales: Retail vs. Direct Channel Growth Nutrition Business Journal, www.nutritionbusiness.com

What do you feel is the consumer trend with the most promising market potential for dietary supplement manufacturers and suppliers? 29% 39% 18% 14% Source: NBJ/Newport Summit 2007

Based upon increased concerns about the quality of Chinese materials, have you changed your buying practices or behaviors? 42% 36% 22% Source: NBJ/Newport Summit 2007

How will your planned marketing expenditures in 2007 compare with 2006? Source: NBJ/Newport Summit 2007

What will drive the shift from a disease/treatment paradigm to a wellness/prevention system? Source: NBJ/Newport Summit 2007

To capture health care dollars, who will be the nutrition industry's greatest business partner? Source: NBJ/Newport Summit 2007

Patrick Rea, Editorial Director & Publisher, NBJ Thank you. September 26, 2007 Patrick Rea, Editorial Director & Publisher, NBJ Nutrition Business Journal, www.nutritionbusiness.com Expo East 2007