Greetings, and welcome to the Mannatech Incorporated fourth quarter 2009 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator instructions) As a reminder, this conference is being recorded. Now, I would like to introduce our moderator for the call, Mr Gary Spinell, Senior Vice President of Finance & Administration. Thank you Mr. Spinell, you may begin.

Thank you and good morning everyone. This is Gary Spinell and welcome to Mannatech’s fourth quarter 2009 earnings call. Today you will hear from Mannatech’s Co-CEOs Dr Rob Sinnott and Stephen Fenstermacher. Before we begin the call, I will first read the Safe Harbor statement. During this conference call, we may make forward-looking statements, which can involve future events or future financial performance. Forward-looking statements generally can be identified by the use of phrases or terminology such as will continue, may, believe, intend, expects, potential, should, and plan or other similar words or the negative of such terminology. We caution listeners that such forward-looking statements are subject to certain events, risks, uncertainties and other factors and speak only as of today. We also refer our listeners to review our SEC submission. Thank you. Now, I will turn the call over to Dr Rob Sinnott, Co-CEO and Chief Science Officer.

Hello, and good morning everyone. This is Rob Sinnott, the Co-CEO and Chief Science Officer of Mannatech. I am joined on the call with my Co-CEO Stephen Fenstermacher; and the new President of Global Business Operations and Expansion, Randy Bancino. We appreciate your interest in our company. I will make a few opening comments and then turn the call briefly to our Co-CEO Stephen Fenstermacher. I have been pleased to take on the Co-CEO role, as I believe Mannatech is positioned right now for a great future, more so than it has been in sometime. Steve and I are working extensively together, expanding the working relationship with our associates, as well as our growing associate base globally. Further, we remain focused on bringing exceptional real food technologies to the marketplace. In my five years as Mannatech’s Chief Science Officer, our company has launched products that are second to none in the industry. These products combined with our flagship product Ambrotose are a strong foundation on which we believe we can grow our company. We believe that the key to our growth is focusing the great balance and opportunity that Mannatech provides our associates. Associates today, more than ever, can combine the power of leading-edge products, and outstanding business building system, and commissioned structure. These products and business opportunity are second to none for consumers interested in their health and finances, two key issues for most people. Before I comment further on the quarter and our future, I would like to turn the call briefly over to my Co-CEO Stephen Fenstermacher.

Thanks Rob and good morning everyone. In some ways, the recent action taken by our Board of Directors to install us as Co-CEOs of Mannatech was an unusual and bold move. However, both Rob and I have been with the company in our respective positions for years, and we are both well known to our many constituencies, our field sales associates, our product to consumers worldwide, our many business partners and vendors, our shareholders, and to the Board of Directors themselves. This change presented an opportunity to utilize our specific in company experience, which avoids the learning curve that might be required with a new addition from outside. We believe that we have hit the ground running since early December when we accepted the Co-CEO titles, and we are excited to share with you today some of our accomplishments since then. Rob will now summarize our recent results and speak to some of our global initiatives.

Thanks Steve. 2009 was a year of significant change for Mannatech. Not only did we meet a number of significant challenges, but by the end of 2009 we forged a new direction. First, early in the year, we reached the settlement with the attorney general that resulted in no penalty or fine for the company. We continued to institute new business practices in addition to a number of which had already been implemented prior to the settlement. More importantly, the efficacy of Mannatech’s products was never questioned. Mannatech has some of the best real food technologies in the industry. Second, we launched a new all All-Star Pack with a greatly reduced price of $499 in our domestic market, providing a much more affordable opportunity for associates interested in business building. Third, we opened four new countries in Europe and are looking to add additional countries over the next 12 to 18 months. This indicates our revitalization of our international expansion. To further emphasize our significant focus on international growth, Randy Bancino was promoted to President Global Business Operations and Expansion. Fifty, the validity of our patents was upheld as we won three litigation cases as plaintiff against companies attempting to illegally duplicate our products. Sixth, we launched an outstanding Omega-3 product and a family product called Phytoburst, which is based on our proven PhytoMatrix technology. And finally, we ended the year with two new Co-CEOs taking the helm, who have combined over 16 years of experience of direct selling nutritional products here at Mannatech. Our financial results indicate the impact of all of these accomplishments and initiatives. As we look forward to 2010, we ended 2009 on a positive note posting a net income of $2.1 million or $0.08 per share in the fourth quarter of 2009, this compares to…

Thanks Rob. For Q4, our total sales were down 8.4% due largely to lower finished product movement. The pack sales revenue was reduced by only 2.8%. Overall, the earnings comparison to Q4 in 2008 is complicated somewhat by a favorable adjustment last year related to litigation cost of about $5 million. Excluding this item from the 2008 prior year quarter makes our operating result essentially even for Q4. Our currency translations in 2009 were better by about $3.1 million. So the pretax number is 2009 is favorable by about $2.5 million on that adjusted basis. The most important item in the fourth quarter was our recovery to a positive cash flow or EBITDA. Our depreciation in the quarter was almost $3 million, so we posted a positive EBITDA for the first time since the end of 2008 at $2.9 million, about 4.1% of sales. This return to a positive operating cash flow is significant in that it was a reversal of a trend, which dominated our results in the first three quarters of the year. This trend showed elevated commission and cost of sales rates, which resulted from the launch of the very popular $499 All-Star Pack, and we saw a year-to-date operating loss through September of $25.3 million. Commissions reached very high rates at times approaching 55% and cost of sales also rose due to the discount carried by the All-Star Pack. We made adjustments to the economics of the All-Star Pack in late September and the fourth quarter results reflect the impact of those changes in returning our operating ratios to historical ranges where Mannatech can operate in a consistently profitable manner. The changes we made in pack commission plans were designed with two purposes in mind, motivation and financial stability. We knew we had to maintain a…

Okay, thank you Steve. Briefly, I just want to address some of the fundamental trends that we believe will drive growth for Mannatech into the future. First of all, consumer driven wellness trends strongly indicate that a rapid increasing focus on health and prevention around the world will continue. Dietary supplements and nutritional products are no longer a cottage industry, rather they are a big business. Even established large pharmaceutical companies are embracing nutrition as the next frontier. Everyone is beginning to realize that wellness is a consumer driven trend that will have beneficial impact on human health, stemming on wellness, represent a better long-term value proposition for customers than having their body break down at a relatively young age. There is increasing attention being focused by sciences on the role and potential benefits that polysaccharides, such as our product Ambrotose, play in consumers’ health and well-being. Steve and I have been strengthened by the challenges that we have successfully navigated during the last few years at Mannatech. We have built a great relationship with our associates and have a clear understanding of our unique business. Next week, we are holding our annual manifest convention here in Dallas. Steve and I are very excited to meet with many of our friends and associates from all over the world. Manifest activities will include break out training sessions, as well as the new product launch, and recognition of top associate earners worldwide. This convention will highlight the outstanding combination of balance for our associates, to expand their reach through real food technologies, and our significant business building opportunity. And now, we will take your questions.

(Operator instructions) Your first question is from the line of Peter Park – Park West Asset Management. Peter Park – Park West Asset Management: Hi. When do you expect to receive the income tax refund that you have applied for, and are there any further income tax refunds that you can apply for given the taxes you pay while the business is doing better a while ago?

Hi Peter, good morning. This is Steve. We will be filing fairly shortly for the bulk of that particular figure on the balance sheet with the US taxing authorities. Making projections about receipt from the government is probably not the best bet in the world, but based on history, we believe that we are probably looking at a 45 to 60-day time period, perhaps 90 days at the outset, but our experience with the IRS over the past several years has been relatively quick response. Peter Park – Park West Asset Management: Okay, great. What was the amount of legal expense that was accrued for as of the fourth quarter and can you remind us what that was as of the third quarter?

In 2008, we had accrued a fairly significant amount in the second quarter related to various litigation that was ongoing at the time. By the time that we released our annual numbers and the 10-K for 2008, we had total charges related to litigation of about $9.5 million on a direct basis Peter. There were some other specific operating expenses on an ongoing basis, but in terms of items specific to the class action and the AG, that total was in that range.

(Operator instructions) We have a follow-up question from the line of Peter Park. Peter Park – Park West Asset Management: Hi. My question was actually regarding the balance sheet accrual as of the fourth quarter for a legal as opposed to the third quarter.

Okay Peter, you are talking about the 2009 fourth quarter? Peter Park – Park West Asset Management: Right. So as of the third quarter in the 10-Q, it says that the amount is I think, let’s see, the accrued liability is I think $5.5 million related to the Texas Attorney General. Do you have a current number as of the fourth quarter?

Yes, that number has been reduced to about $1.5 million or so Peter. Peter Park – Park West Asset Management: And how did that happen?

A specific payment was made in November.

(Operator instructions) There are no further questions at this time.

Okay, thank you very much for being with us today. We will look forward to speaking with you at the end of the next quarter.