A New Year Message from Dr. Chen

2008 has been a year of great change and many challenges for the world. Currently, we are facing a severe economic crisis. After many years, though, I have learned that great challenges often bestow great blessings and opportunities. For example, in 1997 when the China government suddenly banned MLMs, I thought this was the end of Sunrider in China. I thought this was the worst thing that could ever happen to our business. It was a huge challenge, but we changed to a new franchise-like business with retail stores. Looking back, I see that what I thought was the worst thing was now the best thing for our business. Changing to the store system stabilized and legitimized our business in China.

I know that being complacent or doing nothing will cause our business to fail with the current economy. However, I also see the economic crisis as an incredible opportunity. More than ever, people need our business and the income it provides. To maximize this new opportunity and ensure the longevity of our business, my wife and I have decided to make changes to our IBO marketing plan. And in some countries, we will implement a new ABO store marketing plan, similar to our successful plan in China. We made these changes after months of meetings and discussions with Business Leaders and other IBOs. We listened to your feedback and incorporated many of your suggestions.

I know it will take adjustment; I know some of you may not like it. However, I believe this is the best plan for our business and essential to our continued success. Our new ABO and IBO plan does the following:

• Helps ABOs open stores for brand awareness, legitimacy, and growth. Gives IBOs the choice to open stores or do direct selling.
• Rewards the people who are working and increasing sales volume. Since we pay out from the company sales volume, the people who are working also help increase your income.
• Clearly separates business builders from customers.
• Helps you earn more retail profits from product sales.
• Gives incentive to long-time Business Leaders to increase their sales volume.
• Encourages people to find new customers and trainers rather than relying on roll-up.
  

Sunrider is a business, not a free handout or retirement plan. As a business, we have to keep working, growing, and improving. These changes are for your success. None of these changes mean that more money is going into my pocket, instead of yours. My wife and I feel the immense responsibility to help you succeed and work day and night to fulfill that responsibility.

Price Announcement
Normally, due to increased business costs, we announce a small price increase at the beginning of the calendar year. In 2008, we have experienced soaring costs in raw herbs and materials. However, given the economic pressures that you are all facing, we have decided not to increase prices in January 2009. We will absorb the cost increases and postpone the price increase until summer 2009. We hope that instead of worrying about prices, you will promote the business and products.

Thank you for your loyalty and hard work this year. We wish you a happy, prosperous holiday and new year!

Dr. Tei-Fu Chen