Media Contact:
  Investor Contact:
 
   
Barbara Henderson
SVP, Worldwide Corp. Comm.
(310) 410-9600 ext. 32736
  Erin Gehan
Sr. Director Investor Relations
(310) 410-9600 ext. 32862

HERBALIFE LTD. ANNOUNCES THIRD-QUARTER NET SALES
OF $529.5 MILLION AND RECORD NET INCOME OF $48.3 MILLION

LOS ANGELES, November 6, 2007 — Herbalife Ltd. (NYSE: HLF) today reported third quarter net sales of $529.5 million, an increase of 11.1 percent compared to the same period of 2006. This record performance was largely attributable to double-digit growth in several of the company’s top countries, including the U.S. up 20.4 percent, Taiwan up 23.6 percent and China up 89.3 percent, versus the third quarter of 2006. The company’s Chairman and Chief Executive Officer Michael O. Johnson, said, “We are pleased to report our 15th consecutive quarter of double-digit growth and another record quarter for net income. Our strong performance reflects the strength of our independent distributor organization, their confidence in the company, and the foundation we’ve built with our products, business opportunity, brand and image.”

During the third quarter 2007, total supervisors increased 16.6 percent to 418,735 and new supervisors of 52,982 increased 4.7 percent versus the third quarter of 2006. The company’s President’s Team membership increased 11.3 percent to 1,066 members.

Financial Performance

For the quarter ended September 30, 2007, the company reported net income of $48.3 million, or $0.67 per diluted share, compared to $26.5 million, or $0.36 per diluted share in the third quarter of 2006. Excluding the impact of refinancing charges and other items1 in third quarter of 2006, adjusted diluted net income per share was $0.51, resulting in a $0.16 improvement in third quarter 2007. The increase in net income was primarily attributable to double-digit net sales growth, expansion in operating profit margins, and a reduction in interest expense during the period1.

During the third quarter, the company invested $9.2 million in capital expenditures, primarily related to enhancements to its management information systems and additional infrastructure investments to improve distributor service levels.

On August 23, 2007, the company’s Board of Directors approved an increase of $150 million to its previously authorized share repurchase program of $300 million raising the total value of company common shares authorized to be repurchased to $450 million. During the third quarter, the company repurchased
1See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for more detail

1.7 million shares of its common stock through open market transactions at an average price of $39.23 for an aggregate cost of $65.1 million. The company used excess cash along with debt to fund the repurchase. Since this share repurchase program was authorized in April 2007, the company has repurchased 5.2 million shares at an aggregate cost of $203.9 million.

For year to date September 30, 2007, the company reported net sales of $1,567.7 million an increase of 12.1 percent compared to $1,398.2 million in the comparable period in 2006. For the year to date September 30, 2007, the company reported net income of $ 137.6 million, or $1.87 per diluted share, compared to $101.5 million, or $1.37 per diluted share in the comparable period for 2006. Excluding the impact of favorable tax settlements in international markets in 2006 and 2007, recapitalization expenses and tax benefits on refinancing transactions in 2006, as well as 2007 expenses related to the company’s realignment for growth initiative1, year to date September 30, 2007 net income increased 29.4 percent to $141.6 million, or $1.92 per diluted share, compared to $1.47 per diluted share in the comparable period in 2006.

Third Quarter 2007 Business Highlights

The company experienced record-breaking attendance at its distributor extravaganza events around the world. Over 10,000 distributors attended the North America regional event in Dallas, Texas. Over 17,000 distributors attended the EMEA regional event in Cologne, Germany. Over 15,000 distributors attended the South East Asia and North Asia regions combined Asia Pacific Extravaganza in Singapore. Over 17,000 distributors attended our Mexico and Central America regional event in Mexico City. These events are important to allow distributors a venue to train and network, and for the company to introduce new products and recognize distributor success.

The company continued its support of distributor business methods by sharing best practices globally. “We continue to encourage sharing of distributor best practices as we focus our company resources on supporting the distributors’ daily methods of operations,” said Greg Probert, the company’s president and chief operating officer.

Regional Performance

Europe, Middle East and Africa region, the company’s largest region, reported net sales of $133.8 million in the third quarter, an increase of 5.0 percent versus the same period of 2006. However, excluding the benefit of currency fluctuations, net sales decreased 2.4 percent. The EMEA region realized net sales growth in several of its top markets, including Spain which was up 35.4 percent; France, up 27.2 percent; Russia up 17.7 percent; and Italy up 15.8 percent, in each case compared to the third quarter of 2006. These net sales gains were partially offset by declines in other core markets including Germany down 13.3 percent, and the Netherlands down 18.9 percent versus the comparable period of 2006. Total supervisors in the region, as of September 30, 2007, decreased 6.0 percent versus the same period in 2006. Formula 1 single-serve sachets were introduced at the EMEA July extravaganza to support distributor sampling efforts.

The North America region reported net sales of $110.8 million in the third quarter, up 20.3 percent versus the same period of 2006, driven by U.S. sales up 20.4 percent versus third quarter 2006. Excluding currency fluctuations, net sales increased 19.9 percent. Total supervisors in the region, as of September 30, 2007, increased 18.8 percent versus the same period in 2006.

The Mexico and Central America region reported net sales of $92.9 million in the third quarter, down 9.8 percent versus the same period of 2006, led by Mexico, which was down 12.8 percent. Excluding currency fluctuations, net sales for the region decreased 9.8 percent. Total supervisors in the region, as of September 30, 2007, increased 26.6 percent as compared to the same period in 2006.

The South America/Southeast Asia region reported net sales of $76.2 million in the third quarter, up 47.7 percent versus the same period of 2006. Excluding currency fluctuations, net sales increased 41.6 percent. The growth in the region was primarily attributable to double and triple digit growth in the region’s top markets – Venezuela up 379.4 percent; Singapore up 45.7 percent; Bolivia up 44.1 percent; Colombia up 42.7 percent; and Argentina up 21.3 percent, coupled with growth in Peru, which opened in December 2006. Total supervisors in the region, as of September 30, 2007, increased 43.4 percent versus the same period in 2006.

The Greater China region reported net sales of $51.7 million in the third quarter, up 42.8 percent versus the same period of 2006. Excluding currency fluctuations, net sales increased 40.3 percent. The increase is attributable to sales growth in China, up 89.3 percent, and Taiwan, up 23.6 percent, as sales in Hong Kong were essentially flat. Total supervisors in the region, as of September 30, 2007, increased 50.7 percent versus the same period in 2006. Herbalife currently operates 90 stores/service centers in 28 provinces in China.

The North Asia region reported net sales of $34.5 million in the third quarter, up 3.6 percent versus the same period of 2006. Excluding currency fluctuations, net sales increased 3.2 percent. The increase came from both South Korea and Japan, up 6.6 percent and 1.6 percent, respectively. Total supervisors in the region, as of September 30, 2007, increased 1.3 percent versus the same period in 2006.

The Brazil region reported net sales of $29.6 million in the third quarter, a decline of 9.8 percent versus the same period of 2006. Excluding currency fluctuations, net sales decreased 20.3 percent. Total supervisors, as of September 30, 2007, decreased 4.8 percent versus the same period in 2006.

Fourth Quarter 2007 and Full Year 2008 Guidance

Fourth Quarter 2007

Based on its current business trends, the company is raising its full year 2007 diluted earnings per share guidance to be in a range of $2.62 to $2.64. The company is providing guidance for the fourth quarter of 2007 in the range of $0.72 to $0.74 for diluted earnings per share. Additionally, fourth quarter investment in capital expenditures are expected in the range of $16 million – $18 million.

Full Year 2008

Based upon current business trends coupled with the anticipated impact from investment initiatives, the company anticipates revenue growth to be in the range of 7 percent to 10 percent and earnings per share guidance to be in a range of $3.17 to $3.23. Additionally, the company anticipates that its capital spending will be in the range of $85 million — $95 million as the company implements Oracle ERP worldwide during 2008.

Third Quarter Earnings Conference Call

Herbalife’s third quarter earnings conference call will be conducted on Wednesday, November 7, 2007 at 8 a.m. PT (11 a.m. ET).  The dial-in number for this conference call for domestic callers is (866) 219-5268. Live audio of the conference call will be simultaneously webcast in 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 1109438. The webcast of the teleconference will be archived and available on Herbalife’s Web site.

About Herbalife Ltd.

Herbalife Ltd. (www.herbalife.com) 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 65 countries through a network of more than 1.7 million independent distributors. The company supports the Herbalife Family Foundation <http://www.herbalifefamily.org/> and its Casa Herbalife program to bring good nutrition to children. Please visit Herbalife Investor Relations at http://ir.herbalife.com for additional financial information.

Disclosure Regarding Forward-Looking Statements

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;
• uncertainties relating to interpretation and enforcement of recently enacted legislation in China governing direct selling;
• risk of 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;
• risk of improper action by our employees or international distributors in violation of applicable law;
• changing consumer preferences and demands;
• 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;
• 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,
product liability claims; and
• there can be no assurance that we will purchase any of our shares in the open market or otherwise.

1

RESULTS OF OPERATIONS:

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

                                                                 
 
                                                               
    Quarter Ended           Nine Months Ended        
                         
 
    9/30/2006               9/30/2007               9/30/2006               9/30/2007          
 
                                                               
 
                                                               
North America
  $ 92,252             $ 110,807             $ 266,662             $ 329,263          
Mexico & Cen Am
    102,959               92,933               280,982               286,667          
Brazil
    32,843               29,635               99,447               95,193          
SAMSEA
    51,541               76,218               142,495               190,993          
EMEA
    127,428               133,788               414,075               423,024          
Greater China
    36,172               51,705               92,489               139,447          
North Asia
    33,179               34,457               101,999               103,155          
 
                                                               
Worldwide net sales
    476,374               529,543               1,398,149               1,567,742          
Cost of Sales
    97,159               105,886               281,165               324,531          
 
                                                               
Gross Profit
    379,215               423,657               1,116,984               1,243,211          
Royalty Overrides
    168,658               186,497               501,307               555,266          
SGA
    146,070               158,864               421,995               460,449          
 
                                                               
Operating Income
    64,487               78,296               193,682               227,496          
Interest Expense – net
    25,869               2,740               36,839               7,218          
 
                                                               
Income before income taxes
    38,618               75,556               156,843               220,278          
Income Taxes
    12,151               27,226               55,354               82,660          
Net Income
  $ 26,467             $ 48,330             $ 101,489             $ 137,618          
 
                                                               
 
                                                               
Basic Shares
    71,179               68,513               70,593               70,282          
Diluted Shares
    74,257               71,657               74,173               73,543          
 
                                                               
Basic EPS
  $ 0.37             $ 0.71             $ 1.44             $ 1.96          
 
                                                               
Diluted EPS
  $ 0.36             $ 0.67             $ 1.37             $ 1.87          
 
                                                               
 
                                                               

2

Herbalife Ltd.
Consolidated Balance Sheets
(Unaudited)
(In thousands)

                 
    December 31,   September 30,
    2006   2007
ASSETS
               
Current Assets:
               
Cash & cash equivalents
  $ 154,323     $ 160,845  
Inventory, net
    146,036       126,547  
Other current assets
    155,348       187,866  
 
               
Total Current Assets
    455,707       475,258  
 
               
Property and equipment, net
    105,266       114,078  
Other Assets
    30,931       33,999  
Goodwill
    113,221       111,392  
Intangible assets, net
    311,808       310,060  
 
               
Total Assets
  $ 1,016,933     $ 1,044,787  
 
               
 
               
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current Liabilities:
               
Accounts payable
  $ 39,990     $ 32,267  
Royalty Overrides
    116,896       122,882  
Accrued expenses
    149,575       187,575  
Current portion of long term debt
    5,599       3,831  
Other current liabilities
    11,432       9,086  
 
               
Total Current Liabilities
    323,492       355,641  
 
               
Long-term debt, net of current portion
    179,839       229,543  
Other long-term liabilities
    159,712       164,402  
 
               
Total Liabilities
    663,043       749,586  
 
               
 
               
Shareholders’ equity:
               
Common shares
    143       136  
Additional paid in capital
    132,755       157,725  
Accumulated other comprehensive loss
    (782 )     (367 )
Retained earnings
    221,774       137,707  
 
               
Total Shareholders’ Equity
    353,890       295,201  
 
               
Total Liabilities and Shareholders’ Equity
  $ 1,016,933     $ 1,044,787  
 
               

3

Herbalife Ltd
Total Supervisors by Region
(Unaudited)

                         
Region
    9/30/2006       9/30/2007     $chg
 
                       
EMEA
    87,762       82,506       -6 %
North America
    66,640       79,150       19 %
Mexico and Central America
    66,097       83,711       27 %
SAM/SEA
    50,723       72,726       43 %
Brazil
    38,857       37,003       -5 %
Greater China
    28,176       42,463       51 %
North Asia
    20,913       21,176       1 %
 
                       
Worldwide
    359,168       418,735       17 %
 
                       

Herbalife Ltd
Volume Points by Region
(Unaudited)

                                                 
    Three Months Ended   Nine Months Ended
Region
    9/30/2006       9/30/2007     % chg     9/30/2006       9/30/2007     % chg
 
                                               
EMEA
    129,730       125,237       -3 %     426,704       402,133       -6 %
North America
    145,843       173,197       19 %     409,731       510,684       25 %
Mexico and Central America
    170,224       149,048       -12 %     467,454       458,867       -2 %
SAM/SEA
    73,934       99,075       34 %     191,527       257,655       35 %
Brazil
    40,959       33,456       -18 %     126,264       111,099       -12 %
Greater China
    40,329       56,317       40 %     105,859       154,924       46 %
North Asia
    29,576       30,678       4 %     89,468       93,366       4 %
 
                                               
Worldwide
    630,596       667,008       6 %     1,817,008       1,988,728       9 %
 
                                               

4

SUPPLEMENTAL INFORMATION

SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

3Q 2006 vs. 3Q 2007

                                 
The following is a reconciliation of net income, presented and reported in accordance with U.S.
               
generally accepted accounting principles, to net income adjusted for certain items:
               
 
               
        Three Months Ending
             
 
        9/30/2006               9/30/2007  
 
                               
 
                           
Net income, as reported
  $ 26,467             $ 48,330  
Tax benefits on refinancing transactions
    (2,680 )                
Recapitalization expenses associated with July 2006 debt restructuring
    14,274                  
 
                               
Net income, as adjusted
  $ 38,061             $ 48,330  
 
                       
 
                           
The following is a reconciliation of diluted earnings per share, presented and reported in
               
accordance with U.S. generally accepted accounting principles, to diluted earnings per share adjusted for certain items:
 
                               
        Three Months Ending
             
 
        9/30/2006               9/30/2007  
 
                               
 
                           
Diluted earnings per share, as reported
  $ 0.36             $ 0.67  
Tax benefits on refinancing transactions
    (0.04 )                
Recapitalization expenses associated with July 2006 debt restructuring
    0.19                  
 
                               
Diluted earnings per share, as adjusted
  $ 0.51             $ 0.67  
 
                       
Note: Amounts may not total due to rounding.
                               

5

SUPPLEMENTAL INFORMATION

SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

YTD 2006 vs. YTD 2007

                                 
The following is a reconciliation of net income, presented and reported in accordance with U.S.
               
generally accepted accounting principles, to net income adjusted for certain items:
               
 
               
        YTD
             
 
        9/30/2006               9/30/2007  
 
                               
 
                           
Net income, as reported
  $ 101,489             $ 137,618  
Tax benefit resulting from an international income tax audit settlement
    (3,693 )             (609 )
Tax benefits on refinancing transactions
    (2,680 )                
Recapitalization expenses associated with July 2006 debt restructuring
    14,274                  
Expenses associated with the Realignment for Growth initiative
                    989  
Increase in tax reserves
                            3,565  
 
                               
Net income, as adjusted
  $ 109,390             $ 141,563  
 
                       
 
                           
The following is a reconciliation of diluted earnings per share, presented and reported in
               
accordance with U.S. generally accepted accounting principles, to diluted earnings per share adjusted for certain items:
 
                               
        YTD
             
 
        9/30/2006               9/30/2007  
 
                               
 
                           
Diluted earnings per share, as reported
  $ 1.37             $ 1.87  
Tax benefit resulting from an international income tax audit settlement
    (0.05 )             (0.01 )
Tax benefits on refinancing transactions
    (0.04 )                
Recapitalization expenses associated with July 2006 debt restructuring
    0.19                  
Expenses associated with the Realignment for Growth initiative
                    0.01  
Increase in tax reserves
                            0.05  
 
                               
Diluted earnings per share, as adjusted
  $ 1.47             $ 1.92  
 
                       
Note: Amounts may not total due to rounding.
                               

6

SCHEDULE B: FINANCIAL GUIDANCE

                                 
2007 Guidance                                
For the Three Months ending December 31, 2007 and Twelve Months Ending December 31, 2007
    Three Months Ending   Twelve Months Ending
    December 31, 2007   December 31, 2007
    Low   High   Low   High
Net sales growth vs. 2006
    9.0 %     11.0 %     9.0 %     11.0 %
Effective tax rate (1)
    39.5 %     40.0 %     37.0 %     37.5 %
EPS (1) (2)
  $ 0.72     $ 0.74     $ 2.62     $ 2.64  
Cap Ex ($ mm’s)
  $ 16.0     $ 18.0     $ 43.0     $ 45.0  
(1) Excludes the increase in tax reserves which was reported in the first quarter 2007 financial results and
tax benefit resulting from an international income tax audit settlements in 2007 and excludes the impact of
expenses expected to be incurred in 2007 relating to the company’s realignment for growth initiative.
(2) Additionally, includes any potential accretion/dilution related to the company’s $450MM share repurchase
program
 
 
 
 
                 
2008 Guidance                
For the Twelve Months Ending December 31, 2008
    Twelve Months Ending
    December 31, 2008
    Low   High
Net sales growth vs. 2007
    7.0 %     10.0 %
EPS(3)
  $ 3.17     $ 3.23  
Cap Ex ($ mm’s)
  $ 85.0     $ 95.0  
(3) Excludes expenses expected to be incurred in 2008
relating to the company’s realignment initiative. Also
includes any potential accretion/dilution related to
the company’s $450MM share repurchase program

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