Financial Report

Fourth Quarter Results

Avon

Avon Products Inc. (AVP-NYSE) reported that fourth-quarter 2006 total revenue rose 9 percent year over year (6 percent in local currency) to $2.6 billion. Active representatives grew 5 percent, and units increased 2 percent vs. the prior-year quarter.

Growth in sales of Beauty products in the quarter outpaced overall sales growth, at 11 percent in dollars and 7 percent in local currency. These results reflect growth in all categories, with the largest increases in the fragrance and color categories.

Fourth-quarter operating profit of $282 million was 5 percent, or $15 million, lower than the 2005 level. Operating margin was 10.8 percent, vs. 12.4 percent in the prior-year quarter.

Andrea Jung, Chairman and CEO, said, "With 9 percent revenue growth in the fourth quarter, we continue to feel good about the progress we are making against our turnaround plan. Boosted by this strong quarterly performance, full-year revenue finished ahead of our expectations. The investments we are making in our business are clearly starting to deliver results."

Full-Year Results

For full-year 2006, Avon reported total revenue grew 8 percent (6 percent in local currency), to a record $8.8 billion, vs. $8.1 billion in 2005, and sales of Beauty products increased in line with overall revenue growth. Active representatives grew 5 percent and units were 2 percent higher. Both years included significant costs to implement restructuring, with those costs totaling $229 million in 2006 and $56 million in 2005.

"We began an aggressive attack on Avon's cost structure in 2006, with the goal of achieving in excess of $300 million in savings by 2009," Jung said. "Our early actions delivered more than $100 million in benefits for the year, all of which was invested to fuel the topline. As we move into 2007, we are still in the early years of our multiyear turnaround, we are confident that our plan is the right one, and we remain committed to restoring Avon to sustainable growth."

Avon, the company for women, is a leading global beauty company, with more than $8 billion in annual revenue. As the world's largest direct seller, Avon markets to women in well over 100 countries through over 5 million independent Avon sales representatives.

Relìv

Relìv International Inc. (RELV-Nasdaq), a developer, manufacturer and marketer of proprietary nutritional supplements, reported record net sales and earnings for 2006. Net income increased 5 percent from $7.5 million to $7.9 million, and diluted earnings per share rose 2 percent, from $0.46 to $0.47 for the year.

Net sales were $117.5 million, a 3.4 percent increase over 2005 net sales. Sales in the United States rose 3.2 percent and international sales increased 6.1 percent in 2006 compared to 2005.

For the fourth quarter, net sales were $28.6 million, compared to $27.5 million in the fourth quarter of 2005, an increase of 4.2 percent. Fourth-quarter net income rose 11.7 percent to $2.0 million from $1.8 million; on a diluted per share basis, earnings rose to $0.12 from $0.11 compared to the fourth quarter of 2005.

"Our proprietary nutritional supplements, outstanding business opportunity and a disciplined system to help distributors expand their businesses led us to improved performance in 2006, and we believe that they'll lead to further growth in 2007," said Robert L. Montgomery, Chairman, Chief Executive Officer and President of Relìv.

"I'm pleased with the growth in 2006, but our goal is to return to double-digit growth in both net sales and earnings. A promising development in the fourth quarter was the increase in new distributor signups."

Relìv International Inc. develops, manufactures and markets a proprietary line of nutritional supplements addressing basic nutrition, specific wellness needs, weight management and sports nutrition. Relìv sells its products through an international network marketing system of approximately 65,000 independent distributors.

Medifast

Medifast Inc. (MED-NYSE) recently announced unaudited full year-end revenue for the period ended Dec. 31, 2006, of $73.5 million, an 83 percent increase from $40.1 million in 2005.

"We are extremely pleased with our 2006 year-end revenue, which exceeded our previously reported financial revenue guidance expectations of $70 to $72 million," said Michael S. McDevitt, President and CFO. "2006 was a fantastic year for our company as was recognized by Forbes magazine listing Medifast 28th of the top 200 small companies in the United States. Our business was driven by our innovative business model, which offers consumers options when choosing our clinically proven products, support services and business opportunities. In 2006, we concentrated our efforts on expanding these models and building internal infrastructure to support future growth.

"We believe that our dynamic infrastructure model, which does not rely on a single distribution method, will allow Medifast to benefit long term in the over $40 billion weight loss category," said Bradley T. MacDonald, Chairman and CEO. "I am looking forward to working with the executive team led by Michael McDevitt as the company implements the succession plan that was originally formulated by the board of directors in the first quarter of 2006. As we continue into 2007, I appreciate the continued support of our shareholders, customers, trusted business partners and employees."

The company expects to report 2006 audited year-end results on March 16, 2007.

Medifast is a leading easy-to-use, clinically proven portion-controlled weight loss program and its products and programs are sold via three unique distribution channels: the Web and national call centers; its national network of physicians and clinics; and its Take Shape For Life program.

CPAC Inc.

CPAC Inc. (CPAK-Nasdaq) reported net sales for the third quarter ended Dec. 31, 2006, increased 25.4 percent to $24.8 million, compared to $19.8 million for the same quarter last year. Net income for the quarter was $39,800 or 1 cent per diluted share vs. a net loss of $260,000 or 5 cents per diluted share for the quarter ended Dec. 31, 2005.

For the nine months ended Dec. 31, 2006, net sales were $74.6 million vs. $63.6 million for the same period last year, an increase of 17.3 percent. Nine-month net income was $2.0 million or 40 cents per diluted share, compared to a net loss of $612,000 or 12 cents per diluted share for the same period ended Dec. 30, 2005.

Thomas N. Hendrickson, President and CEO, said, "We were pleased that both segments of the business reported higher sales in the third quarter and for the nine-month period vs. prior year. Profits were reduced by approximately 5 cents per share due to the impact of nonrecurring expenses in the third quarter related to execution of the merger agreement with Buckingham Capital Partners II L.P."

Fuller Brands Segment

Third-quarter net sales in the Fuller Brands segment rose 12.9 percent to $12.2 million from $10.8 million in last year's comparable period. The segment incurred an operating loss of $159,000 compared to an operating loss of $353,000 in last year's third quarter.

For the nine-month period ended Dec. 31, 2006, segment net sales were up by 7.2 percent to $40.7 million compared to $38.0 million in the corresponding period last year. Operating income was $1.4 million vs. a loss of $28,000 in the previous year's nine-month period.

Established in 1969, CPAC Inc. manages holdings in two industries. The Fuller Brands segment manufactures commercial, industrial and household cleaning products, as well as custom brushes and personal care lines. The CPAC Imaging segment develops and markets innovative imaging chemicals, equipment and supplies at seven operations worldwide.

Pre-Paid Legal

Pre-Paid Legal Services Inc. (PPD-NYSE) announced results for the fourth quarter and year ended Dec. 31, 2006. Net income for the fourth quarter of 2006 increased 16 percent to $13.2 million from $11.4 million for the prior year's fourth quarter. Diluted earnings per share increased 29 percent to 94 cents per share from 73 cents per share for the prior year's comparable quarter, due to an increase in net income of 16 percent and a 10 percent decrease in the weighted average outstanding shares. Membership revenue in the fourth quarter of 2006 increased 3 percent to $103.8 million from $100.6 million for the same period last year.

Net income for the full year of 2006 increased 45 percent to $51.8 million from $35.8 million for 2005. Diluted earnings per share for 2006 increased 53 percent to $3.51 per share from $2.29 per share for the prior year, due to increased net income of 45 percent and a 6 percent decrease in the weighted average number of outstanding shares. Membership revenue for 2006 was up 6 percent to $412.2 million from $389.3 million for the prior year, marking the 14th consecutive year of increased membership revenue.

Pre-Paid Legal Services provides legal services to more than 1.5 million families across the United States and Canada. Plan benefits are delivered through a network of independent provider law firms.

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