Exhibit 1

% Of US Adults
Overweight
Obese
(25 BMI < 30)
(30 BMI < 40)
1999 to 2000
34
25.8
1988 to 1994
33
20.1
1976 to 1980
31.6
14.4
* US Adult population was approximately 230 million in 2008

Overall
Age (Years)
20 to 34
35 to 44
45 to 54
55 to 64
65 to 74
75 and older

Education Level
Less than High School
High School
Some College
College

Income Level
Less than $25,000
$25,000-$40,000
$40,000-$60,000
More than $60,000

1999-2000
Men (BMI > 25)
Women (BMI > 25)
Prevalence (%)
Prevalence (%)
67
62
58
67.6
71.3
72.5
77.2
66.4
2001
Obesity
Prevalence (%)
27.4
23.2
21
15.7
2001
Obesity (%)
32.5
31.3
30.3
26.8

51.5
63.6
64.7
73.1
70.1
59.6

Severely Obese
(BMI 40)
4.7
2.9
No Data

US Adult
Population
(millions)*
209 in 2000
185 in 1990
163 in 1980

Exhibit 2
Weight Loss Price Comparison Summary
Option
Alli
OTC drugs
Weight Watchers
Jenny Craig
Gym Membership
*Alli price comparison included initial starter pack and 90 day supply of pills
OTC drug pricing based off MSRP, however deep discounts were usually available
Weight Watchers price included monthly meeting pass and access and internet tools
Jenny Craig price included membership fees and prepackaged food (replaced ~50% - 75% of the
Average gym membership price included one-time initiation fee of approximately $125

Comparison Summary
Description

Approximate Retail Price*

Non-prescription, FDA approved weight loss drug for

overweight individuals

$190 for three month supply

Herbal remedy, no FDA approval

$300 for three month supply

Weight control program and meetings

$120 for three months

Diet and weight control program that included

prepackaged, delivered meals and support

$1000- $1600 for three months

of program (includes food)

Access to workout facilities

$245 for three month

membership and initiation fee

rison included initial starter pack and 90 day supply of pills

based off MSRP, however deep discounts were usually available
price included monthly meeting pass and access and internet tools
included membership fees and prepackaged food (replaced ~50% - 75% of the clients normal food purchases)
mbership price included one-time initiation fee of approximately $125

225

per day

125

105
140
1590
40

84

1.75

122.5

Exhibit 3
Option 1

Option 2

Option 3

Retail price
Retail gross margin

$
$

75.00
25.00

$
$

125.00
41.67

$
$

150.00
50.00

Manufacturer price

50.00

83.33

100.00

25.20

25.20

25.20

24.80
50%

58.13
70%

74.80
75%

Variable cost
Manufacturer gross margin