Nu Skin Enterprises Announces Flagship Store in Beijing
Nu Skin Enterprises Announces Flagship Store in Beijing
Company Provides Update on Operations as it Prepares for Direct Selling
Regulations in China
PROVO, Utah — May 31, 2005 — Nu Skin Enterprises (NYSE: NUS) today announced the opening of its new flagship store in Beijing, a location that will serve as one of the company's premiere showcases for Nu Skin® personal care products and Pharmanex® nutritional supplements in China.
“With its excellent location and impressive design, the new Beijing store will be a showpiece for the company in China,” said President and CEO Truman Hunt. “This is our first location in Beijing and our most important store opening since January 2003. Our Beijing location further establishes the infrastructure for ongoing operations in China as we prepare for the new direct selling regulations.”
Nu Skin Enterprises will also open prominent retail outlets in three provincial capitals in June, meeting its goal of establishing a retail presence in each of the provinces it had targeted for business operations in 2005. In compliance with forthcoming direct selling regulations, the company will continue to press forward with its previously stated plans to open additional smaller retail outlets in China throughout the remainder of the year.
In anticipation of the new direct selling regulations, the company will conduct a 16-city tour in June to train its full-time retail employees on a new remuneration plan scheduled to roll out July 1 and other issues related to the anticipated transition to direct selling during the
Nu Skin Enterprises
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May 31, 2005
second half of 2005 and into 2006. These changes to the remuneration plan lay the groundwork to allow the company to begin the process of moving toward a direct selling model in China.
“In just two years, we have established a solid business that has performed extremely well despite regulations that have kept us from our traditional direct selling model in China,” said Corey Lindley, executive vice president and president, Greater China. “Our revenue in China totaled $106 million for 2004, nearly tripling performance over the first year of operations in that market. We look forward to continued success as we are able to add direct selling to our sales strategy in China.”
The Company
Nu Skin Enterprises, Inc. is a global direct selling company operating in 40 markets throughout Asia, the Americas and Europe. The company markets premium quality personal care products under the Nu Skin® brand, science-based nutritional supplements under the Pharmanex® brand, and technology based products and services under the Big Planet® brand. Nu Skin Enterprises is traded on the New York Stock Exchange under the symbol “NUS”.
Please note: This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the company's current expectations and beliefs, including, among other things, the company's operational plans in China in connection with anticipated direct selling regulations. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to (a) continued regulatory scrutiny in China; (b) any inability of the company to effectively manage rapid growth in China; and (c) risks that the Chinese government fails to adopt or further delays the adoption of favorable direct selling regulations, or adopts regulations that negatively impact the company's current business model there, or that the company is unable to obtain a direct selling license under these regulations. The forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K filed on March 15, 2005. The forward-looking statements set forth the company's beliefs as of the date of this release, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change.
PROVO, Utah — May 31, 2005 — Nu Skin Enterprises (NYSE: NUS) today announced the opening of its new flagship store in Beijing, a location that will serve as one of the company's premiere showcases for Nu Skin® personal care products and Pharmanex® nutritional supplements in China.
“With its excellent location and impressive design, the new Beijing store will be a showpiece for the company in China,” said President and CEO Truman Hunt. “This is our first location in Beijing and our most important store opening since January 2003. Our Beijing location further establishes the infrastructure for ongoing operations in China as we prepare for the new direct selling regulations.”
Nu Skin Enterprises will also open prominent retail outlets in three provincial capitals in June, meeting its goal of establishing a retail presence in each of the provinces it had targeted for business operations in 2005. In compliance with forthcoming direct selling regulations, the company will continue to press forward with its previously stated plans to open additional smaller retail outlets in China throughout the remainder of the year.
In anticipation of the new direct selling regulations, the company will conduct a 16-city tour in June to train its full-time retail employees on a new remuneration plan scheduled to roll out July 1 and other issues related to the anticipated transition to direct selling during the
Nu Skin Enterprises
Page 2
May 31, 2005
second half of 2005 and into 2006. These changes to the remuneration plan lay the groundwork to allow the company to begin the process of moving toward a direct selling model in China.
“In just two years, we have established a solid business that has performed extremely well despite regulations that have kept us from our traditional direct selling model in China,” said Corey Lindley, executive vice president and president, Greater China. “Our revenue in China totaled $106 million for 2004, nearly tripling performance over the first year of operations in that market. We look forward to continued success as we are able to add direct selling to our sales strategy in China.”
The Company
Nu Skin Enterprises, Inc. is a global direct selling company operating in 40 markets throughout Asia, the Americas and Europe. The company markets premium quality personal care products under the Nu Skin® brand, science-based nutritional supplements under the Pharmanex® brand, and technology based products and services under the Big Planet® brand. Nu Skin Enterprises is traded on the New York Stock Exchange under the symbol “NUS”.
Please note: This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the company's current expectations and beliefs, including, among other things, the company's operational plans in China in connection with anticipated direct selling regulations. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to (a) continued regulatory scrutiny in China; (b) any inability of the company to effectively manage rapid growth in China; and (c) risks that the Chinese government fails to adopt or further delays the adoption of favorable direct selling regulations, or adopts regulations that negatively impact the company's current business model there, or that the company is unable to obtain a direct selling license under these regulations. The forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K filed on March 15, 2005. The forward-looking statements set forth the company's beliefs as of the date of this release, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change.