Financial Report

USANA Posts Record
Fourth-Quarter Results

Consolidated net sales in the fourth quarter ended Dec. 30, 2006, increased by 16.5 percent to $99.8 million, compared with $85.6 million in the fourth quarter of the prior year. Excluding the positive impact of currency fluctuations, this sales increase would have been 15 percent. Net sales growth for the fourth quarter of 2006 resulted primarily from a 15 percent increase in the number of active associates, compared with the fourth quarter of the prior year.

Earnings from operations in the fourth quarter of 2006 grew by 8.3 percent to $16.7 million, or 16.8 percent of net sales, compared with $15.4 million, or 18 percent of net sales, in the fourth quarter of the previous year. Earnings per share in the fourth quarter of 2006 increased by 13 percent to $0.61 per share, compared with $0.54 per share in the fourth quarter of the prior year.

"The fourth quarter marked the 18th consecutive quarter of record sales, driven by strong sales growth of 16.6 percent in North America and 19.9 percent in the Asia Pacific region," said Dave Wentz, President of USANA. "Our results demonstrate our ability to grow in both our mature markets and in our newer markets. The promotions that we offered during the fourth quarter, including those relating to Success from Home magazine, were key elements of our strong performance in the quarter. We are optimistic that, as we continue to offer contests and promotions, we will consistently generate new associate prospects throughout 2007."

For the full year ended Dec. 30, 2006, consolidated net sales increased by 15.8 percent to $374.2 million, compared with $323.1 million in the prior year. Earnings from operations for the full year 2006 increased by 6.8 percent to $62.3 million, compared with $58.4 million for the prior year.

Commenting on USANA's future expectations, Gilbert A. Fuller, the company's Executive Vice President and Chief Financial Officer, said, "We expect net sales in the first quarter of 2007 to be in the range of $103 million to $105 million, compared with $88.2 million in the first quarter of last year, a growth rate of between 17 percent and 19 percent. This sales guidance includes revenue from Malaysia, which opened for business on Jan. 8, 2007. We believe that earnings per share in the first quarter of 2007 will be between $0.61 and $0.63, compared with $0.50 in the first quarter of last year, a growth rate of between 22 percent and 26 percent.

"As to our guidance for the full year 2007, we continue to expect net sales to grow by 15 percent to 17 percent over 2006. Based on our current expectations, however, we are raising our full-year 2007 earnings per share guidance and now believe that earnings per share will grow by 17 percent to 20 percent over 2006," Fuller concluded.

USANA develops and manufactures high-quality nutritional, personal care and weight-management products that are sold directly to preferred customers and associates throughout the United States, Canada, Australia, New Zealand, Hong Kong, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Netherlands and the United Kingdom.

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