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## FINANCIAL REVIEW 

Selected Consolidated Financial Data 34 

Management’s Discussion and Analysis 36 

Consolidated Balance Sheets 47 

Consolidated Statements of Income 48 

Consolidated Statements of Stockholders’ Equity 49 

Consolidated Statements of Cash Flows 50 

Notes to Consolidated Financial Statements 51 

Report of Independent Accountants 62 

Additional Information 63 

## SELECTED CONSOLIDATED FINANCIAL DATA 

The following selected consolidated financial data as of December 31, 1997, 1998, 1999 and 2000 and for the years ended December 31, 1996, 1997, 1998, 1999 and 2000 have been derived from the audited consolidated financial statements. The financial data as of December 31, 1996 is unaudited but, in management’s opinion, includes all necessary information to present fairly the information included therein. The Company’s consolidated financial statements for all periods presented before December 31, 1998 have been combined and restated for the acquisition of Nu Skin International, Inc. (“NSI”) and certain other related affiliates in March 1998 (the “NSI Acquisition”). 

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(1) Minority interest represents the ownership interests in NSI held by individuals prior to the NSI Acquisition in 1998 who are not immediate family members of the majority-interest holders. The Company purchased the minority interest as part of the NSI Acquisition. 

(2) 1999 results include transactions during the year which are discussed in detail in Management’s Discussion and Analysis of Financial Condition and Results of Operations. 

