PROVO, Utah - April 26, 2000 - Nu Skin Enterprises, Inc. (NYSE: NUS) today reported financial results for the first quarter ended Mar. 31, 2000.
The company's Southeast Asian markets experienced a slight decline in revenue during the quarter. "A major key to renewed growth in our Southeast Asia region is the development of our business in China, where we began operations in December 1999 by opening a retail branch outlet in Shanghai," Mr. Lund said. "We are moving forward with our plans to increase our investment in China and establish a foundation for the eventual introduction of our direct selling operations. This past quarter we opened 12 additional retail branch outlets throughout the country."
PROVO, Utah - Dec. 13, 1999 - Nu Skin Enterprises, Inc. (NYSE: NUS) today
announced developments in its efforts to commence operations in China. The company
plans to open a retail branch outlet in Shanghai by year end and will begin by selling its
Sción® line of personal care products through an employed sales force.
Because direct sales activities that use non-employee salespeople are currently
restricted in China, Nu Skin's retail store will employ full-time salespeople who will earn
a salary as well as commissions on their sales of Sción products. Sción is a line of
skin and hair care products priced lower than Nu Skin's premium brands. The company
plans to leverage its distributor force throughout the world to sell additional Nu Skin®
and Pharmanex® branded products in China when appropriate. The Chinese
government has previously announced it will lift restrictions on direct selling by January
2003.
"By establishing a retail presence in China, we will begin to gain the confidence of local
regulatory bodies and will show our commitment to the China market, which will benefit
our distributors in the long run," said Steven J. Lund, president and chief executive
officer. "We are making an initial $10 million investment in developing China. While
preliminary sales levels are expected to be small, establishing this retail branch outlet
is a vital step in our development plans."
Mr. Lund added, "We believe China has the potential of becoming a significant market
within the next five years. Adjustments to our business model are necessary to begin to
develop and penetrate this market. We are encouraged by recent trade progress and
are optimistic that China will lift its current restrictions on direct sales after the country
is admitted to the World Trade Organization."
As part of its investment, Nu Skin is constructing a small manufacturing facility in
Shanghai -enabling the company to expand its product offering in China. Over the next
several years, the company plans to open additional retail branch outlets in Shanghai
and other cities in China.
