EX-99.1

HERBALIFE LTD. ANNOUNCES RECORD FOURTH-QUARTER NET SALES OF $487.4 MILLION
Full Year 2006 Net Sales Increase 20.3 Percent to $1.9 Billion

LOS ANGELES, February 26, 2007 — Herbalife Ltd. (NYSE: HLF) today reported fourth-quarter net sales of $487.4 million, an increase of 19.2 percent compared to the same period of 2005. This record performance was largely attributable to continued growth in several of the company’s largest markets, including Mexico and the U.S., which reported net sales growth of 35.1 percent and 25.0 percent, respectively, versus the fourth quarter of 2005. The company’s chief executive officer, Michael O. Johnson, said, “2006 marked another tremendous year for our independent distributors and our company. We believe our commitment to supporting successful distributor methods of operations, and providing innovative business tools, high-quality products and training events will enable us to sustain momentum in many of our key markets.”

During 2006, a record 197,000 distributors qualified as new supervisors, an increase of 25.3 versus the full year of 2005. Total supervisors, as of December 31, 2006, increased 22.1 percent versus 2005 and the company’s President’s Team increased 15.0 percent year-over-year to 988 members. During the fourth quarter, the company also welcomed its fourth Chairman’s Club member from Mexico, bringing the worldwide total of this exclusive group to 30 distributorships. Additionally, based on its January 2007 re-qualification results, the company retained 42.5 percent of its distributor supervisors, up from 41.5 percent in 2006.

For the quarter ended December 31, 2006, the company reported net income of $41.7 million, or $0.56 per diluted share, compared to $30.0 million, or $0.41 per diluted share in the fourth quarter of 2005. The increase in net income was primarily attributable to strong net sales growth and a lower effective tax rate during the period, partially offset by $4.9 million in after-tax, employee-related costs incurred during the quarter relating to the company’s realignment for growth initiative. Excluding the impact of these realignment costs and other items¹, fourth quarter 2006 net income increased 47.9 percent to $44.3 million, or $0.59 per diluted share, compared to $0.41 per diluted share in the fourth quarter of 2005.

For the twelve months ended December 31, 2006, the company reported net income of $143.1 million, or $1.92 per diluted share, compared to $93.1 million, or $1.28 per diluted share for full year 2005. Excluding the impact of certain items¹, year-to-date net income increased 39.0 percent to $153.7 million, or $2.06 per diluted share, compared to $1.52 per diluted share in the same period of 2005.

The company invested $17.8 million in capital expenditures during the fourth quarter, primarily related to the relocation of the company’s regional headquarters in Los Angeles, enhancements to its management information systems and additional infrastructure investments in China.

Consistent with its distributor strategy, the company continued to support the development and training of its distributors during the fourth quarter, by hosting over 50,000 distributors at more than 40 local and regional events. Highlights include three World Team School/Leadership Development events in the U.S., South Korea, and Portugal, a regional Extravaganza in Brazil and an eight-city Wellness Tour in Mexico. Additionally, the company opened Peru as its 63^rd country in December, and attracted over 3,500 attendees to the grand opening celebration.

¹See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for more detail.

The company also continued to support distributor business methods by enhancing product packaging, such as the development of sample packs for its NouriFusion^TM personal care line, launching innovative, compelling products such as Best Defense, an effervescent immunity defense beverage, and increasing investment in promotional tools and literature. “Over the past year, we have become increasingly focused on the importance of aligning our strategic initiatives with distributor daily methods of operations and how to make prudent investments that we believe will accelerate the globalization of these methods,” said Greg Probert, the company’s president and chief operating officer.

During the quarter, the company commenced the second phase of its realignment for growth initiative, which is geared towards refining the company’s core processes, internal organizational structure and operating model to further streamline decision making in order to improve responsiveness to its distributors. As previously communicated, the company expects to incur a total of approximately $8.0 to $10.0 million in pre-tax costs to facilitate this initiative, of which approximately $7.5 million was incurred during the fourth quarter of 2006.

EMEA reported net sales of $134.1 million in the fourth quarter, up 5.0 percent versus the same period of 2005. However, excluding currency fluctuations, net sales decreased 1.0 percent. The performance was primarily attributable to growth in several of the region’s top markets, including Portugal, up 57.5 percent, Spain, up 23.4 percent, France, up 18.8 percent, and Italy, up 10.8 percent, in each case compared to the fourth quarter of 2005. These gains were partially offset by declines in other core markets including Germany and the Netherlands, which were down 17.9 percent and 11.7 percent, respectively, versus the comparable period of 2005. Total supervisors in the region, as of December 31, 2006, decreased 0.5 percent versus the same period in 2005. For the twelve months ended December 31, 2006, net sales in the region increased 0.5 percent to $548.2 million, as compared to the same period in 2005. However, excluding currency fluctuations, full year 2006 net sales in the region increased 0.6 percent, versus 2005.

Mexico and Central America reported net sales of $95.7 million in the fourth quarter, up 36.4 percent versus the same period of 2005. Excluding currency fluctuations, net sales increased 38.6 percent. “Mexico posted another remarkable year in 2006 and has been a strong contributor to our top-line growth over the past two years,” said Probert. “Although we revised our outlook for 2007, resulting primarily from infrastructure, distributor training and compliance challenges, we remain optimistic about our prospects in this large and important market. We continue working with our local management team and distributor leadership and have implemented more comprehensive training programs and policies to increase compliance with our rules and help stimulate growth in the marketplace. We have also commenced the first phase of our infrastructure strategy, which we believe will enable us to increase penetration in key cities outside of Mexico City and Guadalajara.” Total supervisors in the region, as of December 31, 2006, increased 82.2 percent as compared to the same period in 2005. For the twelve months ended December 31, 2006, net sales in Mexico and Central America increased 71.4 percent to $376.7 million, as compared to the full year of 2005. Excluding currency fluctuations, full year 2006 net sales in the region increased 72.0 percent, versus 2005.

North America reported net sales of $91.1 million in the fourth quarter, up 23.5 percent versus the same period of 2005. Excluding currency fluctuations, net sales increased 23.4 percent. “The U.S. continues to exceed our expectations and we are encouraged that our distributors are not only fostering the expansion of nutrition clubs, but are also blending the clubs with other distributor best practices such as product sampling and the wellness evaluation,” said Probert. “This philosophy creates opportunities for our distributors by helping to enhance their retailing, recruiting and retention efforts,” he continued. Total supervisors in the region, as of December 31, 2006, increased 14.6 percent versus the same period in 2005. For the twelve months ended December 31, 2006, net sales in North America increased 17.8 percent to $357.8 million, as compared to the full year of 2005. Excluding currency fluctuations, full year 2006 net sales in the region increased 17.4 percent, versus 2005.

SAM/SEA reported net sales of $56.6 million in the fourth quarter, up 53.5 percent versus the same period of 2005. Excluding currency fluctuations, net sales increased 49.4 percent. The growth in the region was primarily attributable to an 82.6 percent increase in the company’s South American markets and incremental revenue in Malaysia, which opened in the first quarter of 2006. Total supervisors in the region, as of December 31, 2006, increased 41.3 percent versus the same period in 2005. For the twelve months ended December 31, 2006, net sales in the region increased 51.8 percent to $199.1 million, as compared to the same period in 2005. Excluding currency fluctuations, full year 2006 net sales in the region increased 49.8 percent, versus 2005.

Brazil reported net sales of $38.8 million in the fourth quarter, up 11.3 percent versus the same period of 2005. Excluding currency fluctuations, net sales increased 6.5 percent. Total supervisors, as of December 31, 2006, increased 15.0 percent versus the same period in 2005. For the twelve months ended December 31, 2006, net sales in Brazil increased 23.9 percent to $138.3 million, as compared to the same period in 2005. Excluding currency fluctuations, full year 2006 net sales in the region increased 11.1 percent, versus 2005.

Greater China reported net sales of $38.2 million in the fourth quarter, up 28.9 percent versus the same period of 2005. Excluding currency fluctuations, net sales increased 26.4 percent. The increase was primarily attributable to incremental sales in China, and 13.9 percent growth in Taiwan. Total supervisors in the region, as of December 31, 2006, increased 18.5 percent versus the same period in 2005. For the twelve months ended December 31, 2006, net sales in Greater China increased 16.5 percent to $130.6 million, as compared to the same period in 2005. There was no impact from currency on the full year 2006 net sales results.

North Asia reported net sales of $32.9 million in the fourth quarter, down 8.8 percent versus the same period of 2005. Excluding currency fluctuations, net sales decreased 12.3 percent. The performance reflects a 19.0 percent decline in Japan, partially offset by a 10.3 percent increase in South Korea. Total supervisors in the region, as of December 31, 2006, increased 8.6 percent versus the same period in 2005. For the twelve months ended December 31, 2006, net sales in North Asia decreased 5.6 percent to $134.9 million, as compared to the same period in 2005. Excluding currency fluctuations, full year 2006 net sales in the region decreased 5.0 percent, versus 2005.

Based on its current business trends, the company is raising its first quarter 2007 diluted earnings per share guidance to the range of $0.52 to $0.57. Additionally, for the full year 2007, the company is raising its diluted earnings per share estimates to the range of $2.43 to $2.50. The company’s first quarter and full year 2007 diluted earnings per share estimates exclude expenses expected to be incurred relating to its realignment for growth initiative and any potential impact from the adoption of FIN 48, which the company does not expect to be material.

The company announced that its Board of Directors has scheduled the Annual Meeting of Shareholders on April 26, 2007. The Board has established March 9, 2007 as the date of record.

Herbalife’s fourth quarter and full year 2006 earnings conference call will be conducted on Tuesday, February 27, 2007 at 8 a.m. PST (11 a.m. EST). The conference call numbers are (866) 793-1306 for domestic calls and (703) 639-1308 for calls made from outside the United States. Additionally, the conference call will be webcasted. The link to the webcast is on the Investor Relations section of the company’s Web site at http://ir.herbalife.com/. An audio replay will be available following the completion of the conference call in MP3 format or by dialing (866) 837-8032 (domestic callers) and (703) 925-2474 (international callers) and entering access code 1031298. The webcast of the teleconference will be archived and available on Herbalife’s Web site.

Herbalife (http://www.herbalife.com) is a global network marketing company that sells weight-management, nutritional supplements and personal care products intended to support a healthy lifestyle. Herbalife products are sold in 64 countries through a network of more than 1.5 million independent distributors. The company supports the Herbalife Family Foundation (http://www.herbalifefamilyfoundation.org) and its Casa Herbalife program to bring good nutrition to children. Please visit Investor Relations (http://ir.herbalife.com) for additional financial information.

Except for historical information contained herein, the matters set forth in this press release are “forward-looking statements.” 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 the 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:

• our relationship with, and our ability to influence the actions of, our distributors;
• adverse publicity associated with our products or network marketing organization;
• relating to interpretation and enforcement of recently enacted legislation in China governing direct selling;
• risk of our inability to obtain the necessary licenses to conduct a direct selling business in China;
• adverse changes in the Chinese economy, Chinese legal system or Chinese governmental policies;
• risk of improper action by our employees or international distributors in violation of applicable law;
• changing consumer preferences and demands;
• 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;
• risks associated with operating internationally, including foreign exchange risks;
• 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;
• our reliance on our management team;
• uncertainties relating to the application of transfer pricing, duties and similar tax regulations;
• taxation relating to our distributors; and
• product liability claims.

Herbalife Ltd.
Consolidated Statements of Operations
(In thousands, except per share data)


	Three Months Ended				Twelve Months Ended

		12/31/2005		12/31/2006		12/31/2005		12/31/2006


EMEA	$	127,676	$	134,055	$	545,279	$	548,178
Mexico and Central America		70,160		95,704		219,800		376,686
North America		73,762		91,114		303,823		357,776
SAM/SEA		36,896		56,637		131,209		199,132
Brazil		34,898		38,850		111,651		138,296
Greater China		29,608		38,168		112,112		130,610
North Asia		36,026		32,857		142,876		134,856

Worldwide net sales		409,026		487,385		1,566,750		1,885,534
Cost of sales		83,154		99,173		315,746		380,338

Gross profit		325,872		388,212		1,251,004		1,505,196
Royalty overrides		144,790		173,938		555,665		675,245
SGA		126,838		151,010		476,268		573,005

Operating income		54,244		63,264		219,071		256,946
Interest expense, net		6,326		2,702		43,924		39,541

Income before income taxes		47,918		60,562		175,147		217,405
Income taxes		17,965		18,912		82,007		74,266
Net income		29,953		41,650		93,140		143,139


Basic shares		69,487		71,463		68,972		70,814
Diluted shares		73,444		74,997		72,491		74,509

Basic EPS	$	0.43	$	0.58	$	1.35	$	2.02

Diluted EPS	$	0.41	$	0.56	$	1.28	$	1.92


ASSETS
Current assets:
Cash & cash equivalents	$	88,248	$	154,323
Inventories		109,785		146,036
Other current assets		101,518		155,348

Total current assets		299,551		455,707

Property and equipment, net		64,946		105,266
Other assets		24,190		30,931
Goodwill		134,206		113,221
Intangible assets, net		314,908		311,808

Total assets	$	837,801	$	1,016,933



LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		39,156		39,990
Royalty overrides		87,401		116,896
Accrued expenses		126,167		149,575
Current portion of long-term debt		9,816		5,599
Other current liabilities		22,917		11,432

Total current liabilities		285,457		323,492

Long-term debt, net of current portion		253,276		179,839
Other long-term liabilities		130,180		159,712

Total liabilities		668,913		663,043


Shareholders’ equity:
Common shares		140		143
Additional paid-in capital		89,508		132,755
Accumulated other comprehensive income (loss)		605		(782	)
Retained earnings		78,635		221,774

Total shareholders’ equity		168,888		353,890

Total liabilities and shareholders’ equity	$	837,801	$	1,016,933


	Three Months Ended						Twelve Months Ended

Region		12/31/05	12/31/06	% Chg				12/31/05	12/31/06	% Chg


Mexico and Central America		116.2	148.5		28	%		363.5	616.0		69	%
North America		114.1	141.9		24	%		471.0	551.7		17	%
EMEA		140.2	132.2		-6	%		572.9	558.9		-2	%
SAM/SEA		52.4	72.3		38	%		185.4	263.8		42	%
Brazil		45.9	47.4		3	%		161.3	173.7		8	%
Greater China		36.3	45.6		26	%		141.0	151.5		7	%
North Asia		32.6	29.4		-10	%		124.9	118.9		-5	%
Worldwide		537.7	617.3		15	%		2,020.0	2,434.4		21	%


	Three Months Ended					Twelve Months Ended

		12/31/05		12/31/06			12/31/05			12/31/06


Net income, as reported	$	29,953	$	41,650		$	93,140		$	143,139
Change in allowance for uncollectible
royalty overrides receivables		—		—			(2,344	)		—
Tax charge associated with
China subsidiary restructuring		—		—			5,479			—
Tax benefit resulting from an international
income tax audit settlement		—		—			—			(3,693	)
Recapitalization expenses associated
with the clawback of 9 1/2% Notes		-		-			14,229			-
Additional tax benefits on refinancing
transactions		—		—			—			(2,680	)
Recapitalization expenses associated
with July 2006 debt restructuring		-		-			-			14,274
Adjustment to income tax accrual		-		(2,200	)		-			(2,200	)
Expenses associated with the realignment
for growth initiative		—		4,869			—			4,869

Net income, as adjusted	$	29,953	$	44,319		$	110,504		$	153,709


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


	Three Months Ended					Twelve Months Ended

		12/31/05		12/31/06			12/31/05			12/31/06


Diluted earnings per share, as reported	$	0.41	$	0.56		$	1.28		$	1.92
Change in allowance for uncollectible
royalty overrides receivables		—		—			(0.03	)		—
Tax charge associated with
China subsidiary restructuring		—		—			0.08			—
Tax benefit resulting from an international
income tax audit settlement		—		—			—			(0.05	)
Recapitalization expenses associated
with the clawback of 9 1/2% Notes		-		-			0.20			-
Additional tax benefits on refinancing
transactions		—		—			—			(0.04	)
Recapitalization expense associated with
July 2006 debt restructuring		—		—			—			0.19
Adjustment to income tax accrual		-		(0.03	)		-			(0.03	)
Expenses associated with the realignment
for growth initiative		—		0.06			—			0.06

Diluted earnings per share, as adjusted	$	0.41	$	0.59		$	1.52		$	2.06

For the Three Months ended March 31, 2007 and Twelve Months Ended December 31, 2007


	Three Months Ended						Twelve Months Ended
	March 31, 2007						December 31, 2007
	Low			High			Low			High
Net sales growth vs. 2006		6.0	%		10.0	%		6.0	%		10.0	%

Effective tax rate ⁽¹⁾		35.0	%		36.0	%		35.0	%		36.0	%

EPS ⁽²⁾	$	0.52		$	0.57		$	2.43		$	2.50

Cap Ex ($ mm’s)	$	10.0		$	15.0		$	50.0		$	55.0

⁽¹⁾ Excludes potential FIN 48 adjustments.

⁽²⁾ Excludes the impact of expenses expected to be

incurred in 2007 relating to the company’s

realignment for growth initiative and potential

FIN 48 adjustments.


Media Contact:		Investor Contact:

Barbara Henderson SVP, Worldwide Corp. Comm. (310) 410-9600 ext. 32736		Anthony Runnels Sr. Manager, Investor Relations (310) 410-9600 ext. 32205