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From our founding in November 1993, Samuel L. Caster, one of our founders, was instrumental in helping to develop the business of Mannatech. He's considered a leading authority in the development of our current global compensation plan.

In a recent interview, Mr. Caster stated: "From our founding in 1993, we believed that our success depended on designing an education component into our marketing strategy. Logically, we believe the most efficient and effective way to reach, teach and retain Associates was through a worldwide network-marketing system of independent Associates. We also believe direct, person-to-person marketing is ideal for Mannatech and our proprietary products as this method makes it easier to explain the science behind our products and the potential benefits of using them, as well as building a customer and marketing-network system.

We believe we developed a business plan for our Associates that is designed to give them maximum opportunity for financial rewards with minimal financial risk. Our entire staff of over 300 employees are dedicated to supporting our Associates and their network-marketing efforts with research into nutritional science and development of new proprietary products, state-of-the-art distribution, administrative services and creation of print, video and audio marketing and sales communications materials and a full compliment of Internet marketing tools.

In 2000, the world population exceeded 6 billion and has steadily increased its desire for optimizing health and wellness through alternative medicine and self-help. Through this ever-increasing demand for optimal health and wellness evolved the nutritional supplements industry. Mannatech believes this industry has developed into two sub-industries, sickness and wellness care. The science of sickness may be defined as the universe of the traditional nutritional supplements industry, which is largely committed to treating symptoms and curing diseases, disorders and trauma. The science of wellness is maintaining optimal health and achieving harmony of the mind and body through proper nutrition and exercise. Wellness is also living life to its fullest and realizing the maximum potential in human condition. Wellness is enhanced through a daily balanced regimen of long-term nutritional supplements and activity such as exercise.

Finally, as generations age and enjoy greater earnings, they are increasingly interested in products, services and activities that they associate with achieving optimal health and wellness. In particular the "baby-boomers" generation, born between 1946 and 1964 comprises some 30% of the United States economy and consumes some 50% of its Gross National Product. Mannatech believes it is ideally positioned to meet these wellness needs because of our unique technology of our products and the advantages provided by network marketing.

We believe it is the uniqueness and benefits of our products that provide a competitive edge in the market, and it is our Associates who will connect us to the world. That is why out of all the assets Mannatech has accumulated in its arsenal, it is our Associates who are the most valued of all."