Herbalife Ltd. Announces Record Fourth Quarter and Full Year 2010, Record Sales Leader Retention and Raises FY'11 Guidance

-- Fourth quarter worldwide volume growth of 16.1 percent, with increases in each of its six regions compared to the prior year period.

-- Fourth quarter EPS of $1.31 increased 33.7 percent compared to the adjusted1 EPS from prior year period.

-- Raises FY'11 EPS guidance to a range of $5.15 to $5.40.

-- Annual sales leader retention increased to 48.9 percent compared to 43.0 percent in the prior year.

-- Board of directors approved $0.25 quarterly dividend.

-- Board of directors approved stock split pending shareholder approval.

LOS ANGELES--(BUSINESS WIRE)-- Herbalife Ltd. (NYSE:HLF) today reported that fourth quarter net sales increased 17 percent and local currency net sales increased 19 percent compared to the same time period in 2009. Net income for the quarter of $81.0 million, or $1.31 per diluted share compares to 2009 fourth quarter adjusted1 net income and EPS of $61.7 million and $0.98, respectively.

For the twelve months ended December 31, 2010, the company reported record net sales of $2.7 billion, an 18 percent increase on 14 percent volume growth compared to 2009. For the same period, the company's reported adjusted1 net income of $297.0 million, or $4.77 per diluted share improved 43 percent and 45 percent respectively compared to the adjusted1 2009 results of $207.1 million or $3.28 per diluted share. On a reported basis, EPS of $4.67 increased 45 percent compared to 2009.

The full year improvements in earnings were predominantly a result of strong volume growth. For the second consecutive quarter and for the year ended December 31, 2010, as compared to full year 2009, each of the company's six regions experienced volume growth. "The continued broad-based growth we are experiencing further confirms the strength of the business methods our Distributors are using," said Chairman and Chief Executive Officer Michael O. Johnson. "Our nutrition products have never been more relevant, our Distributors' engagement has never been higher and their methods are reaching more consumers every day."

For the year ended December 31, 2010, the company generated cash flow from operations of $380.4 million, an increase of 33.4 percent compared to 2009, paid dividends of $53.7 million, invested $68.1 million in capital expenditures and repurchased $150.1 million in common shares as part of its $1 billion share repurchase authorization program. The company has reduced its net debt by $111.9 million from December 2009 levels.

1See Schedule B - "Reconciliation of Non-GAAP Financial Measures" for more detail.

Fourth Quarter and Full Year 2010 Regional Key Metrics2,3

Regional Volume Point and Average Active Sales Leader Metrics


                     Volume Points (Mil)               Avg Active Sales Leaders

Region               4Q'10  Yr/Yr %  FY'10    Yr/Yr %  4Q'10    Yr/Yr %
                            Chg               Chg               Chg

North America        200.2  8.0  %   888.5    13.9 %   51,174   13.0 %

Asia Pacific         188.0  23.6 %   723.6    26.8 %   39,531   22.7 %

EMEA                 125.3  8.5  %   486.6    4.3  %   35,552   5.4  %

Mexico               154.8  26.5 %   563.0    14.1 %   41,485   15.7 %

South & Central      122.9  12.5 %   427.4    3.7  %   31,348   5.8  %
America

China                38.0   29.3 %   144.2    25.1 %   7,851    31.3 %

Worldwide Total      829.2  16.1 %   3,233.3  13.9 %   202,178  14.4 %

                     Volume Points (Mil)               Avg Active Sales Leaders

                     4Q'10  Yr/Yr %  FY'10    Yr/Yr %  4Q'10    Yr/Yr %
                            Chg               Chg               Chg

Emerging Markets     457.2  19.3 %   1,677.6  12.5 %   112,715  20.4 %

Established Markets  372.0  12.5 %   1,555.7  15.6 %   93,301   13.1 %

Worldwide Total      829.2  16.1 %   3,233.3  13.9 %   202,178  14.4 %



2 "Emerging markets" are defined herein as those countries that the World Bank categorized as having "low" or "medium" GDP per capita, while "Established markets" are defined as those countries categorized by the World Bank as having "high" GDP per capita.

3 Supplemental tables that include additional business metrics can be found at http://www.ir.herbalife.com

2010 Annual Sales Leader Requalification

By January of each year, sales leaders are required to re-qualify. In February of each year, we remove from the rank of sales leaders those individuals who did not satisfy the sales leader qualification requirements during the preceding 12-months. For the latest 12-month re-qualification period ending January 2011, 48.9 percent of the eligible sales leaders re-qualified, reflecting an improvement from 43.0 percent in 2009.

Updated 2011 Guidance

Based on current business trends and foreign currency rates, the company's first quarter and fiscal 2011 guidance is provided below.

First Quarter - The company's first quarter 2011 diluted earnings per share guidance range is $1.17 to $1.21 on volume point growth of 14.0 percent to 16.0 percent and net sales growth of 18.0 percent to 20.0 percent compared to the same period in 2010, respectively, and an effective tax rate range of 28.0 percent to 29.0 percent. The company's first quarter 2011 capital expenditures are expected to be in the range of $18.0 million to $23 million.

Fiscal 2011 - The company's fiscal 2011 diluted earnings per share guidance range is $5.15 to $5.40 on volume point growth of 8.0 percent to 10.0 percent and net sales growth of 13.0 percent to 15.0 percent compared to the same period in 2010, respectively, and an effective tax rate range of 28.0 percent to 29.0 percent. The company's fiscal 2011 capital expenditures are expected to be in the range of $80.0 million to $90.0 million.

Board of Directors Approved Stock Split

The Herbalife Board of Directors has approved a two-for-one split of Herbalife's Common Shares, subject to shareholder approval. If approved by the shareholders, the stock split would be effected by the subdivision of each outstanding Common Share of a par value of $0.002 each into two Common Shares of a par value of $0.001 each and a proportional amendment of the authorized share capital. Shareholder approval of the stock split will be sought by the company during its annual general meeting of Shareholders which will be held on April 28, 2011.

"We are pleased to announce this pending two-for-one stock split," said John DeSimone, chief financial officer at Herbalife. "This decision by the board of directors acknowledges our track record of providing our shareholders solid long-term returns and demonstrates our confidence in the company's positive outlook for future growth. We believe that the pending stock split will improve liquidity in our stock and is representative of our ongoing commitment to shareholder value." The Board of Directors established May 10, 2011, as the record date for the stock split. Each shareholder of record as of the close of business on the record date will receive one additional Common Share for every share held. The new shares will be distributed on or about May 17, 2011.

Announces Quarterly Dividend

The company reported today that its board of directors approved a $0.25 per share dividend to shareholders of record effective March 8, 2011 payable on March 22, 2011.

Fourth Quarter Earnings Conference Call

Herbalife's senior management team will host an investor conference call Wednesday, February 23, 2011 at 11 a.m. EST (8 a.m. PST) to discuss its recent financial results and provide an update on current business trends.

The dial-in number for this conference call for domestic callers is 866.903.5314 and 706.634.5671 for international callers (conference ID 82536023). Live audio of the conference call will be simultaneously webcast in the investor relations section of the company's website at http://ir.herbalife.com.

An audio replay will be available following the completion of the conference call in MP3 format or by dialing 800.642.1687 for domestic callers or 706.645.9291 for international callers (conference ID 82536023). The webcast of the teleconference will be archived and available on Herbalife's website.

About Herbalife Ltd.

Herbalife Ltd. (NYSE:HLF) is a global network marketing company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle. Herbalife products are sold in 75 countries through a network of approximately 2.1 million independent distributors. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife's website contains a significant amount of information about Herbalife, including financial and other information for investors at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.

FORWARD-LOOKING STATEMENTS

This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate" and any other similar words.

Although we believe that expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:

    --  any collateral impact resulting from the ongoing worldwide financial
        "crisis," including the availability of liquidity to us, our customers
        and our suppliers or the willingness of our customers to purchase
        products in a recessionary economic environment;
    --  our relationship with, and our ability to influence the actions of, our
        distributors;
    --  improper action by our employees or distributors in violation of
        applicable law;
    --  adverse publicity associated with our products or network marketing
        organization;
    --  changing consumer preferences and demands;
    --  our reliance upon, or the loss or departure of any member of, our senior
        management team which could negatively impact our distributor relations
        and operating results;
    --  the competitive nature of our business;
    --  regulatory matters governing our products, including potential
        governmental or regulatory actions concerning the safety or efficacy of
        our products and network marketing program, including the direct selling
        market in which we operate;
    --  third party legal challenges to our network marketing program;
    --  risks associated with operating internationally and the effect of
        economic factors, including foreign exchange, inflation, disruptions or
        conflicts with our third-party importers, pricing and currency
        devaluation risks, especially in countries such as Venezuela;
    --  uncertainties relating to the application of transfer pricing, duties,
        value added taxes, and other tax regulations, and changes thereto;
    --  uncertainties relating to interpretation and enforcement of recently
        enacted legislation in China governing direct selling;
    --  our inability to obtain the necessary licenses to expand our direct
        selling business in China;
    --  adverse changes in the Chinese economy, Chinese legal system or Chinese
        governmental policies;
    --  our dependence on increased penetration of existing markets;
    --  contractual limitations on our ability to expand our business;
    --  our reliance on our information technology infrastructure and outside
        manufacturers;
    --  the sufficiency of trademarks and other intellectual property rights;
    --  product concentration;
    --  changes in tax laws, treaties or regulations, or their interpretation;
    --  taxation relating to our distributors;
    --  product liability claims; and
    --  whether we will purchase any of our shares in the open market or
        otherwise.

We do not undertake any obligation to update or release any revisions to any forward-looking statements or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

RESULTS OF OPERATIONS:


Herbalife Ltd.

Consolidated Statements of Income

(In thousands, except per share data)

(unaudited)

                        Quarter Ended               Year Ended

                          12/31/2010    12/31/2009    12/31/2010    12/31/2009

North America           $ 140,898     $ 126,715     $ 614,126     $ 529,009

Mexico                    97,716        69,132        333,981       263,013

South and Central         121,277       113,223       390,433       366,925
America

EMEA                      140,146       130,932       527,744       504,154

Asia Pacific              189,081       151,468       683,499       509,191

China                     49,238        39,401        184,443       152,285

Worldwide net sales       738,356       630,871       2,734,226     2,324,577

Cost of Sales             148,513       136,515       558,811       493,134

Gross Profit              589,843       494,356       2,175,415     1,831,443

Royalty Overrides         244,088       204,580       900,248       761,501

SGA                       239,512       205,691       887,655       773,911

Operating Income          106,243       84,085        387,512       296,031

Interest Expense          1,944         1,836         9,664         9,613

Interest Income           818           820           2,247         4,510

Income before income      105,117       83,069        380,095       290,928
taxes

Income Taxes              24,127        27,413        89,562        87,582

Net Income                80,990        55,656        290,533       203,346

Basic Shares              59,082        60,492        59,502        61,221

Diluted Shares            62,058        63,004        62,256        63,097

Basic EPS               $ 1.37        $ 0.92        $ 4.88        $ 3.32

Diluted EPS             $ 1.31        $ 0.88        $ 4.67        $ 3.22

Dividends declared per  $ 0.25        $ 0.20        $ 0.90        $ 0.80
share




Herbalife Ltd.

Consolidated Balance Sheets

(In thousands)

(unaudited)

                                                    Dec 31,        Dec 31,

                                                      2010           2009

ASSETS

Current Assets:

Cash & cash equivalents                             $ 190,550      $ 150,801

Receivables, net                                      85,612         76,958

Inventories                                           182,467        145,962

Prepaid expenses and other current assets             93,963         101,181

Deferred income taxes                                 42,994         38,600

Total Current Assets                                  595,586        513,502

Property, plant and equipment, net                    177,427        178,009

Deferred compensation plan assets                     18,536         17,410

Deferred financing cost, net                          998            1,498

Other assets                                          25,880         21,306

Marketing related intangibles and other intangible    310,894        311,782
assets, net

Goodwill                                              102,899        102,543

Total Assets                                        $ 1,232,220    $ 1,146,050

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

Accounts payable                                    $ 43,784       $ 37,330

Royalty Overrides                                     162,141        144,689

Accrued compensation                                  69,376         65,043

Accrued expenses                                      141,867        107,943

Current portion of long term debt                     3,120          12,402

Advance sales deposits                                35,145         22,261

Income taxes payable                                  15,383         40,298

Total Current Liabilities                             470,816        429,966

Non-current liabilities

Long-term debt, net of current portion                175,046        237,931

Deferred compensation                                 20,167         16,629

Deferred income taxes                                 55,572         77,613

Other non-current liabilities                         23,407         24,600

Total Liabilities                                     745,008        786,739

Commitments and Contingencies

Shareholders' equity:

Common shares                                         118            120

Additional paid in capital                            257,375        222,882

Accumulated other comprehensive loss                  (27,285   )    (23,396   )

Retained earnings                                     257,004        159,705

Total Shareholders' Equity                            487,212        359,311

Total Liabilities and Shareholders' Equity          $ 1,232,220    $ 1,146,050




Herbalife Ltd.

Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

                                                  Year Ended

                                                    12/31/2010      12/31/2009

CASH FLOWS FROM OPERATING ACTIVITIES

Net income                                        $ 290,533       $ 203,346

Adjustments to reconcile net income to net cash
provided by operating activities:

Depreciation and amortization                       68,621          62,437

Excess tax benefits from share-based payment        (16,410    )    (3,266     )
arrangements

Share based compensation expenses                   22,969          20,907

Amortization of discount and deferred financing     500             491
costs

Deferred income taxes                               (24,631    )    (11,226    )

Unrealized foreign exchange transaction loss        (7,142     )    4,809
(gain)

Foreign exchange loss from adoption of highly       15,131          --
inflationary accounting in Venezuela

Other                                               2,527           340

Changes in operating assets and liabilities:

Receivables                                         (7,593     )    2,361

Inventories                                         (31,516    )    (1,742     )

Prepaid expenses and other current assets           10,254          (7,781     )

Other assets                                        (3,485     )    2,109

Accounts payable                                    6,650           (9,500     )

Royalty overrides                                   15,732          9,102

Accrued expenses and accrued compensation           31,092          (3,461     )

Advance sales deposits                              12,439          8,779

Income taxes payable                                (8,807     )    4,700

Deferred compensation plan liability                3,538           2,651

NET CASH PROVIDED BY OPERATING ACTIVITIES           380,402         285,056

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant and equipment          (68,125    )    (59,768    )

Proceeds from sale of property, plant and           115             102
equipment

Deferred compensation plan assets                   (1,126     )    (1,656     )

Acquisition of business                             -               (10,000    )

NET CASH USED IN INVESTING ACTIVITIES               (69,136    )    (71,322    )

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid                                      (53,740    )    (48,721    )

Borrowings from long-term debt                      427,000         211,974

Principal payments on long-term debt                (499,451   )    (313,089   )

Share repurchases                                   (160,008   )    (74,641    )

Excess tax benefits from share-based payment        16,410          3,266
arrangements

Proceeds from exercise of stock options and sale    15,309          7,884
of stock under employee stock purchase plan

NET CASH USED IN FINANCING ACTIVITIES               (254,480   )    (213,327   )

EFFECT OF EXCHANGE RATE CHANGES ON CASH             (17,037    )    (453       )

NET CHANGE IN CASH AND CASH EQUIVALENTS             39,749          (46        )

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR        150,801         150,847

CASH AND CASH EQUIVALENTS, END OF YEAR            $ 190,550       $ 150,801

CASH PAID DURING THE PERIOD

Interest paid                                     $ 9,295         $ 10,011

Income taxes paid                                 $ 111,497       $ 95,139

NON CASH ACTIVITIES

Assets acquired under capital leases and other    $ 576           $ 388
long-term debt



Regional Volume Point and Average Active Sales Leader Metrics - 4Q'10 & FY'10


             Volume Points (Mil)              Average Active Sales Leaders

                    Yr/Yr            Yr/Yr %           Yr/Yr %           Yr/Yr %
Region       4Q'10  %       FY'10    Chg      4Q'10    Chg      FY'10    Chg
                    Chg

North        200.2  8.0  %  888.5    13.9 %   51,174   13.0 %   49,305   13.9 %
America

Asia         188.0  23.6 %  723.6    26.8 %   39,531   22.7 %   35,899   25.8 %
Pacific

EMEA         125.3  8.5  %  486.6    4.3  %   35,552   5.4  %   33,531   2.9  %

Mexico       154.8  26.5 %  563.0    14.1 %   41,485   15.7 %   38,084   10.2 %

South &
Central      122.9  12.5 %  427.4    3.7  %   31,348   5.8  %   28,821   3.2  %
America

China        38.0   29.3 %  144.2    25.1 %   7,851    31.3 %   6,848    15.7 %

Worldwide    829.2  16.1 %  3,233.3  13.9 %   202,178  14.4 %   185,774  11.5 %
Total

             Volume Points (Mil)              Average Active Sales Leaders

                    Yr/Yr            Yr/Yr %           Yr/Yr %           Yr/Yr %
             4Q'10  %       FY'10    Chg      4Q'10    Chg      FY'10    Chg
                    Chg

Emerging     457.2  19.3 %  1,677.6  12.5     112,715  20.4 %   102,782  22.6 %
Markets

Established  372.0  12.5 %  1,555.7  15.6     93,301   13.1 %   88,137   31.3 %
Markets

Worldwide    829.2  16.1 %  3,233.3  13.9 %   202,178  14.4 %   185,774  11.5 %
Total



SUPPLEMENTAL INFORMATION

Schedule A: Financial Guidance

2011 Guidance

For the Three Months Ending March 31, 2011 and Twelve Months Ending December 31, 2011


                             Three Months Ending  Twelve Months Ending
                             March 31, 2011       December 31, 2011

                             Low       High       Low       High

Volume point growth vs 2010    14.0 %    16.0 %     8.0  %    10.0 %

Net sales growth vs 2010       18.0 %    20.0 %     13.0 %    15.0 %

EPS                          $ 1.17    $ 1.21     $ 5.15    $ 5.40

Cap Ex ($ millions)          $ 18.0    $ 23.0     $ 80.0    $ 90.0

Effective Tax Rate             28.0 %    29.0 %     28.0 %    29.0 %



SCHEDULE B: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(unaudited), (Dollars in Thousand, Except Per Share Data)

In addition to its reported results, the Company has included in the tables below adjusted results that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investor in analyzing period to period comparisons of the Company's results.

The following is a reconciliation of net income and diluted earnings per share, presented and reported in accordance with U.S. generally accepted accounting principles, to net income adjusted for certain items:


Herbalife Ltd.

Supplemental Schedule

Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)

                            Quarter Ended 12/31/2010

                            Reported    Adjusting   Adjusted

                            (GAAP)      Items       (Non-GAAP)

Net Sales                   $ 738,356               $ 738,356

Cost of Sales                 148,513                 148,513

Gross Profit                  589,843                 589,843

Royalty Overrides             244,088                 244,088

SGA                           239,512                 239,512

Operating Income              106,243                 106,243

Interest Expense - net        1,126                   1,126

Income before income taxes    105,117                 105,117

Income Taxes                  24,127                  24,127

Net Income                  $ 80,990    $ -         $ 80,990

Diluted EPS                 $ 1.31      $ -         $ 1.31




Herbalife Ltd.

Supplemental Schedule

Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)

                            Twelve Months Ended 12/31/2010

                            Reported      Adjusting         Adjusted

                            (GAAP)        Items             (Non-GAAP)

Net Sales                   $ 2,734,226                     $ 2,734,226

Cost of Sales                 558,811     $ (12,715 ) (1)     546,096

Gross Profit                  2,175,415     12,715            2,188,130

Royalty Overrides             900,248                         900,248

SGA                           887,655       (11,390 ) (2)     876,265

Operating Income              387,512       24,105            411,617

Interest Expense - net        7,417                           7,417

Income before income taxes    380,095       24,105            404,200

Income Taxes                  89,562        17,680    (3)     107,242

Net Income                  $ 290,533     $ 6,425           $ 296,958

Diluted EPS                 $ 4.67        $ 0.10            $ 4.77

1 Incremental U.S. dollar costs of 2009 imports in Venezuela which were
recorded at the unfavorable parallel market exchange rate and were not
devalued based on 2010 exchange rates but rather recorded at their
historical dollar costs as products were sold

2 Includes $15,131 foreign exchange loss related to remeasurement of
Venezuela's monetary assets and liabilities resulting from adoption of
highly inflationary accounting and $3,741 foreign exchange gain
resulting from receipt of U.S. dollar approved by CADIVI at the
official exchange rate relating to 2009 product importations which were
previously registered with CADIVI

3 Includes $14,452 favorable income taxes related to Venezuela becoming
highly inflationary economy and $3,228 tax benefit from an
international income tax audit settlement




Herbalife Ltd.

Supplemental Schedule

Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)

                            Quarter Ended 12/31/2009

                            Reported    Adjusting         Adjusted

                            (GAAP)      Items             (Non-GAAP)

Net Sales                   $ 630,871                     $ 630,871

Cost of Sales                 136,515     (12,544 ) (1)     123,971

Gross Profit                  494,356     12,544            506,900

Royalty Overrides             204,580                       204,580

SGA                           205,691   $ 2,368     (2)     208,059

Operating Income              84,085      10,176            94,261

Interest Expense - net        1,016                         1,016

Income before income taxes    83,069      10,176            93,245

Income Taxes                  27,413      4,099     (3)     31,512

Net Income                  $ 55,656    $ 6,077           $ 61,733

Diluted EPS                 $ 0.88      $ 0.10            $ 0.98

1 Related to incremental U.S. dollar costs of imports into Venezuela
at the unfavorable parallel market exchange rate rather than the
official currency exchange rate

2 Related to foreign exchange gain for Venezuela resulting from
receipt of U.S. dollars approved by CADIVI at the official exchange
rate

3Includes $3,562 tax benefit of Venezuela items and tax benefit of
$537 from an international income tax audit settlement




Herbalife Ltd.

Supplemental Schedule

Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)

                            Twelve Months Ended 12/31/2009

                            Reported     Adjusting         Adjusted

                            (GAAP)       Items             (Non-GAAP)

Net Sales                   $ 2,324,577                    $ 2,324,577

Cost of Sales                 493,134      (12,544 ) (1)     480,590

Gross Profit                  1,831,443    12,544            1,843,987

Royalty Overrides             761,501                        761,501

SGA                           773,911    $ 257       (2)     774,168

Operating Income              296,031      12,287            308,318

Interest Expense - net        5,103                          5,103

Income before income taxes    290,928      12,287            303,215

Income Taxes                  87,582       8,536     (3)     96,118

Net Income                  $ 203,346    $ 3,751           $ 207,097

Diluted EPS                 $ 3.22       $ 0.06            $ 3.28

1 Related to incremental U.S. dollar costs of imports into Venezuela
at the unfavorable parallel market exchange rate rather than the
official currency exchange rate

2 Includes $1,297 restructuring charges, $814 expense from an
international income tax audit settlement and $2,368 foreign exchange
gain for Venezuela resulting from receipt of U.S. dollars approved by
CADIVI at the official exchange rate

3 Includes $4,852 tax benefit from expiration of certain statutes of
limitation, tax charge of $277 from an international income tax audit
settlement, $399 tax benefit of restructuring charges and $3,562 tax
benefit of Venezuela items



The following is a reconciliation of total long-term debt to net debt:


                                               12/31/2010      12/31/2009

Total long-term debt (current and long-term  $ 178,166       $ 250,333
portion)

Less: Cash and cash equivalents                190,550         150,801

Net debt                                     $ (12,384    )  $ 99,532




    Source: Herbalife Ltd.