Exhibit 1

% Of US Adults
Overweight Obese Severely Obese
(25 ≤ BMI < 30) (30 ≤ BMI < 40) (BMI ≥ 40)
1999 to 2000 34 25.8 4.7
1988 to 1994 33 20.1 2.9
1976 to 1980 31.6 14.4 No Data
* US Adult population was approximately 230 million in 2008

1999-2000
Men (BMI > 25) Women (BMI > 25)
Prevalence (%) Prevalence (%)
Overall 67 62
Age (Years)
20 to 34 58 51.5
35 to 44 67.6 63.6 201.4
45 to 54 71.3 64.7 60.42
55 to 64 72.5 73.1
65 to 74 77.2 70.1
75 and older 66.4 59.6

2001
Obesity
Education Level Prevalence (%)
Less than High School 27.4
High School 23.2
Some College 21
College 15.7

2001
Income Level Obesity (%)
Less than $25,000 32.5
$25,000-$40,000 31.3
$40,000-$60,000 30.3
More than $60,000 26.8
 US Adult
Population
(millions)*
209 in 2000
185 in 1990
163 in 1980
Exhibit 2

Weight Loss Price Comparison Summary

Option

Alli

OTC drugs

Weight Watchers

Jenny Craig

Gym Membership

*Alli price comparison included initial starter pack and 90 day supply of pills
OTC drug pricing based off MSRP, however deep discounts were usually available
Weight Watchers price included monthly meeting pass and access and internet tools
Jenny Craig price included membership fees and prepackaged food (replaced ~50% - 75% of the
Average gym membership price included one-time initiation fee of approximately $125
e Comparison Summary

Description Approximate Retail Price*

Non-prescription, FDA approved weight loss drug for
overweight individuals $190 for three month supply

Herbal remedy, no FDA approval $300 for three month supply

Weight control program and meetings $120 for three months

Diet and weight control program that included $1000- $1600 for three months
prepackaged, delivered meals and support of program (includes food)
$245 for three month
Access to workout facilities membership and initiation fee

rison included initial starter pack and 90 day supply of pills

based off MSRP, however deep discounts were usually available
price included monthly meeting pass and access and internet tools
included membership fees and prepackaged food (replaced ~50% - 75% of the client’s normal food purchases)
mbership price included one-time initiation fee of approximately $125
225

per day

125

105
140

1590

40
 84

1.75

122.5
Exhibit 3

Option 1 Option 2 Option 3

Retail price $75.00 $125.00 $150.00
Retail gross margin $25.00 $41.67 $50.00
Manufacturer price $50.00 $83.33 $100.00
Variable cost $25.20 $25.20 $25.20
Manufacturer gross margin $24.80 $58.13 $74.80
50% 70% 75%

units 706,146 1,614,048 2,218,800

$- $93,824,610 $165,966,240

2,118
52,950.00 - 123,119.34 - 158,426.40
158,850.00 - 615,596.70 - 792,132.00

Units in 5 years 2,118,438 2,118,438 2,118,438

Price $75 $125 $150
Revenue $158,882,850 $264,804,750 $317,765,700###

Units in 5 years 4,842,144 4,842,144 4,842,144###

Price $75 $125 $150
Revenue $363,160,800 $605,268,000 $726,321,600

Units in 5 years 4,437,593 4,437,593 4,437,593

Price $75 $125 $150
Revenue $332,819,456 $554,699,093 $665,638,911