Good day ladies and gentlemen and welcome to the fourth quarter 2008 Nu Skin earnings conference call. My name is [Jeri] and I’ll be your operator for today. (Operator Instructions) I would now like to turn the call over to Mr. Scott Pond, Director of Investor Relations. You may proceed sir.

Thank you Jeri. We appreciate all of you joining us today. With us are Truman Hunt, President and Chief Executive Officer; Ritch Wood, Chief Financial Officer; and Joe Chang, Chief Scientific Officer. During this call comments may be made that include some forward-looking statements. These statements involve risks and uncertainties and actual results may differ materially from those discussed or anticipated. We encourage you to refer to today’s earnings release and our SEC filings for a complete discussion of these risks. In addition, during this call certain financial numbers may be discussed that differ from comparable numbers contained in our financial statement. We believe that these non-GAAP financial numbers assist management and investors in evaluating and comparing period-to-period results in a more meaningful and consistent manner. Please refer to our investor portion at nuskinenterprises.com for a reconciliation of these non-GAAP numbers. With that I’ll turn the time now over to Truman.

Thanks Scott and good morning everyone. We appreciate you joining us on the call today. As our release this morning indicates we had a strong fourth quarter which helped us post record revenue for 2008. During the fourth quarter we generated revenue of $318 million, a 4% improvement over the prior year period with earnings per share of $0.23 compared to $0.09 in 2007. Now as the release indicates our fourth quarter earnings include unusual charges in both 2007 and 2008. In 2007 we had a fourth quarter restructuring charge of $0.17 while fourth quarter earnings for 2008 were negatively impacted by $0.12 of foreign currency translation losses. So on an apples-to-apples basis, our earnings per share would have increased 35% during the quarter improving it from $0.26 to $0.35 per share. We are very pleased with this progress which reflects three years of work to get our operating margin above 10%, and which represents a 230 basis point improvement year-over-year. We’re really pleased as well with our top line for the quarter and again delighted with the progress we’re making on profitability. Our success can largely be attributed to the positive momentum in our skin care business as well as ongoing business transformation initiatives which are translating to good distributor energy around the world. Nu Skin personal care sales increased 27% year-over-year in the quarter with the Galvanic Spa continuing to be the star of our skin care line up. Two years ago in the fourth quarter of 2006 Galvanic sales were about $5 million globally. And in the fourth quarter we just finished Galvanic sales rose to over $50 million. So we really have hit a home run here with this product. One of the reasons for the success of the Galvanic is that it’s a perfect direct…

Thank you Truman. Good morning everyone. I’ll quickly give the local currency revenue figures for some of our major markets. In North Asia, fourth quarter revenue in Japan was 11.5 billion yen compared to 13.4 billion yen in the same quarter of 2007. Quarterly revenue in South Korea was 42.3 billion won versus 35.6 billion won in the prior year. In the Americas, the U.S. posted $50.5 million in revenue. That’s compared against $42.5 million in the prior year. Canada reported 5.3 million Canadian dollars in the quarter compared to 3.1 million in the prior year. And Latin America revenue was $4 million compared to $2.3 million in the prior year quarter. And then in greater China, mainland China revenue was 117.7 million renminbi during the quarter versus 119 million renminbi in the prior year. And quarterly revenue from Hong Kong was 100.6 million Hong Kong dollars compared to 93.8 million in the same quarter last year. Taiwan revenue was 749 million NT$ compared against 775 million NT$ in 2007. Our gross margin for the quarter was 81.7% and our gross margin remained even sequentially and approximately 30 basis points lower than the prior year. Selling expenses for the quarter were 41.6% compared to 42.9% in the fourth quarter of 2007. This improvement can be attributed to recent distributor compensation plan enhancement in many markets that more closely aligned with distributor and corporate growth objectives. General and administrative expenses for the quarter were $88.3 million or 27.8% of sales compared to 29.2% of sales in the prior year period. The 140 basis point improvement is primarily a result of management’s transformation efforts to increase efficiency and drive improved profitability in the company. The company’s operating margin was 12.2% for the quarter, a 240 basis point improvement over the prior year.…

(Operator Instructions) Your first question comes from Olivia Tong - Bank of America/Merrill Lynch. Olivia Tong - Bank of America/Merrill Lynch: Margins were a lot better than I’d expected and I understand the selling expense portion. Can you provide a little bit more color on what you’re doing to drive G&A lower?

Sure Olivia. Yes, I think the margin was something that we worked on for a long time so it’s really – we’re pleased with the direction that we’re moving. In terms of selling expenses, we really kicked off an effort about three years ago to analyze all the various aspects of our incentive payout. And during 2008 a number of initiatives coming out of the study were implemented in markets all over the world. Really the focus is to maximize the payout and to maximize the benefit that we receive on the payout. And just work very effectively. Truman mentioned the Wealth Maximizer which was one of those examples. Another objective is to focus, especially in this economic time, getting money to an early executive so they can be benefited and our retention rates go up. So that works very well. In terms of actual G&A expenses we’ve reduced our headcount by 25% over the last two-and-a-half years globally. So those benefits are really starting to pay off. We’re continuing to look for ways to refine our operating model and improve efficiency. We’ll end up – the restructuring in Japan will adjust about 40% of our headcount down and again hopefully make us quite a bit more efficient there and focused on those things which are driving the business. Olivia Tong - Bank of America/Merrill Lynch: On the G&A it looks like, you know, you’ve been doing this for like you said about two years now but you had been sort of at this 29 to 30% steady rate for G&A as a percentage of sales. But then in Q4 you’re now sub 28%. So is there anything specific that hit Q4 more drastically than in previous quarters?

Not necessarily. You know our revenue was up a little bit. We only had a convention in the U.S. which was approximately $2 million but no large convention related expenses. And I think just a steady, steady improvement over time has kind of gotten us to that level in the fourth quarter. Olivia Tong - Bank of America/Merrill Lynch: And then on retention, you mentioned the Wealth Maximizer initiative. Can you talk about retention numbers now versus say pre – before you started making some of these changes?

Yes. I mean I think the Wealth Maximizer has now been in place since April and June in the U.S. and in Europe. So it’s a little hard to – you know we probably don’t have enough history to declare victory. But I think our focus during these times specifically and Truman has really pointed our market managers to focus very carefully on retention of both our distributors as well as our customers in a time where the consumer is under a lot of pressure. So we’re analyzing a number of ways to continue to try and improve retention. I would say on a year-over-year basis we’re about even today with where we were a year ago. So neither dramatic improvement nor declines in retention as compared to a year ago.

Your next question comes from Timothy Ramey - D. A. Davidson & Co. Timothy Ramey - D. A. Davidson & Co.: Would you remind me what countries Galvanic Spas is in now or where is it not? Is it –

Galvanic Spa is virtually everywhere in the world now with the exception of Taiwan, where local regulations prevent its sale. But with introduction to consumers in China in the month of January, Galvanic Spa is virtually everywhere else in the world. Timothy Ramey - D. A. Davidson & Co.: So that should be part of the revenue growth in 2009 versus 2008, I would guess.

Yes, we expect Galvanic to continue to definitely add to revenue growth in 2009. Timothy Ramey - D. A. Davidson & Co.: And if you’re characterizing the growth in – I mean there’s impressive growth in the Americas and impressive growth in Europe. Was that primarily Galvanic Spa? Was it – how was nutrition doing there? Can you give us some more granularity there?

Yes, the growth is definitely coming on the skin care side of the equation. Nu Skin sales up 27% year-over-year in 2008. Pharmanex sales globally were down about 5 to 6% in 2008. So it’s really not surprising to us that with the spotlight being so brightly shined on the Galvanic Spa right now we would suffer a little bit of a decline in Pharmanex. But overall we’re happy with the trends. We do focus some CRM mechanisms on retaining Pharmanex sales volume. And as you know when we introduce new products from time-to-time that the spotlight does shift from one product category to the other. That spotlight will shift back in 2010 and 2011 to the Pharmanex side of the equation when we infuse AgeLoc technology into some nutrition products. But overall the shift from Pharamanex to Nu Skin has been a good one. Timothy Ramey - D. A. Davidson & Co.: That was actually my next question, your comment on bringing some of the AgeLoc technology to the nutrition. Can you be specific at all about what that might entail?

Yes. The AgeLoc technology that’s being infused into skin care products in 2009 has to do with the inhibition of an enzyme called arNOX and our scientists are hard at work preparing nutritional ingredients that generate the same result and inhibit arNOX production.

Your next question comes from Douglas Lane - Jefferies & Co. Douglas Lane - Jefferies & Co.: I want to talk about two your bigger markets as far as driving the growth plus and minus. Japan continues to be a drag and it looks like its getting worse. Can you give us an update on the local market conditions in Japan and how you think ’09 is going to shape up vies a vie ’08? And then conversely Russia – I mean Europe in general continues to be a huge driver of growth and now is approaching 10% of sales so it’s really starting to move the needle. I’m getting mixed messages coming out of Europe so I wonder why Nu Skin is doing so well in those markets.

Well, let’s talk about Japan first and yes, Q4 was an accelerated decline over Q3. But I hope that people won’t read more than they really should into that because as you’ll recall we decided to start really changing the way we promote in Japan during 2009. And the accelerated decline in Q4 is really just a reflection of the fact that we didn’t engage in the same level of promotion, frankly the same types of promotion in Q4 of ’08 as we did in Q4 of ’07. So overall we have guided to a 7 to 10% down in Japan for 2009. And we continue to believe that that’s safe guidance. So we think that things will improve there sequentially in Q1 and then going forward throughout 2009. In Europe, you’re absolutely right. It’s just become a phenomenal market for us and it doesn’t show signs of slowing. The growth we’re seeing in Eastern Europe especially is tremendous. Russia has now caught the bug and is growing at a very rapid rate, despite the economic turbulence there. And I would say it’s just a combination of focused field leadership, really good enthusiasm among field leaders, and momentum that’s just kind of spilling from one market – one country into the next. And so you’re right, Europe has become material and will continue to become more material in 2009. Douglas Lane - Jefferies & Co.: And is there a particular bias towards skin care or nutrition in those markets in Europe? And which of the key countries other than Russia that are driving the growth there?

Yes, it’s been kind of a split bias in Europe with Eastern Europe over the last couple of years being somewhat Pharmanex centric and Western Europe over the past couple of years being somewhat Nu Skin centric. But now that bias is really kind of following the global trend and we’re seeing more and more of our sales leaders focus on skin care and Galvanic in particular. It’s Galvanic that really has started Russia on a steep growth trajectory. And so we’ve seen growth on both sides of the fence, with recent attention really skewing the Nu Skin direction.

Doug, just real quick I’d just comment we have about a third of our business today coming from Northern Europe, a third coming from Central Europe and a third from Eastern Europe. The largest markets would be Germany and Hungary in terms of volumes. Douglas Lane - Jefferies & Co.: Larger than Russia?

Yes. Certainly. Russia we’ve been in now what, two years I think so a little bit less history. Growing it’s probably our fastest growing market today is Russia, or one of the faster growing markets. But still not to the same size as some of these more established markets.

Your next question comes from Amy Greene - Avondale Partners LLC.

I know there’s been a fair number of questions about whether your distributors would be able to sell a $250 appliance to consumers as the economic macros continue to slow down. Are you hearing from them any resistance or increased difficulties selling the product? Or is it continuing to sell kind of across the board as strongly as it did before?

I actually spent some time last night and this morning talking to U.S. sales leaders in particular, asking that very question because as economic news just continues to worsen it’s frankly hard for me to believe that we can plow our way through this economic turbulence without really seeing some impact on the contraction consumer spending. I’ll just tell you, Amy, that the enthusiasm of our sales leaders has never been higher. And so far the fact that we’re providing a very vibrant business opportunity that enables people to supplement or replace income is outweighing the impact of contraction in consumer spending. But we recognize very acutely that a significant part of our business is consumer business. And it’s probably unrealistic for us or anyone else to think that our consumers won’t also be impacted by the economic crunch. But we just have the natural hedge and frankly the increasingly important hedge of also providing people an income opportunity. And so far that’s offsetting consumer pressure.

This concludes the Question-and-Answer portion of your conference. I would now like to turn the call over to Mr. Scott Pond for closing remarks. You may proceed sir.

Well, this is Truman. I’ll just close by saying again and reiterating how pleased we are with the direction of our business. We continue to innovate in every area of our business and in particular in our product platform as well as our distributor compensation. We’ll work continually to reinvent ourselves. We’re seeing great progress in our business transformation efforts. And again in this uncertain economic environment when more and more people are looking for some stability, it’s a great time to be a direct seller with Nu Skin Enterprises. And as we celebrate our 25th anniversary this year we see great things ahead. Thanks for joining us.

Thank you for your participation in today’s conference. This concludes your presentation. You may now disconnect. Good day.