Ladies and gentlemen, thank you for standing by, and welcome to the USANA Health Sciences first quarter earnings conference on the 28th of April 2010. Throughout today's recorded presentation, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. (Operator Instructions). I will now hand the conference over to your host, Mr. Riley Timer, Vice President of Finance, please go ahead sir.

Thank you, Danny. Good morning, everyone. We appreciate you joining us this morning to review our strong first quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at www.usanahealthsciences.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ perhaps materially from the results projected in such forward-looking statements. We caution you that these statements should be considered in conjunction with the disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC. Now, I am joined this morning by Dr. Fred Cooper, our President and Chief Operating Officer; Jeff Yates, our Chief Financial Officer; and Mark Wilson, our Executive Vice President of Sales. We will hear first from Jeff, who will discuss the details of the financial results and speak specifically to our updated guidance. And then we will hear from Fred, who will provide regional results and discuss upcoming announcements that will impact our business in the future. I will now turn the call over to Jeff.

Thank you, Riley, and good morning, everyone. I am delighted to be here with Fred and Mark to talk about our strong first quarter results and provide additional details about our plans and strategy for the balance of 2010. I will begin by reviewing the details of the income statement, then the balance sheet, followed by our guidance for 2010. Once again, it feels great to record that net sales for the quarter reached a new record at $119.1 million, which represents a 22.4% increase when compared with the $97.3 million we reported for the first quarter of 2009. Please note that the first quarter will likely be our most favorable comparable when looking at year-over-year results in 2010 as the first quarter of 2009 experienced the most dramatic impact from negative changes in currency exchange rates. Changes in FX rates during this quarter had a positive impact on our net sales by $8.6 million when comparing our results to the same period last year. That said when looking at net sales on our constant currency basis, we increased $13.2 million or 13.6% compared with Q1 last year. Our sales growth this quarter was primarily due to an overall increase in the number of active associates. This number increased by 10.9% when compared to the first quarter of 2009, which is the result of continued growth in our Asia-Pacific region. Also contributing to our sales growth this quarter was the benefit we experienced from price increases that were implemented in certain markets during 2009. We also saw an uptick in the average amount purchased per associate during Q1 which was particularly evident in North America. We are optimistic about this increase and as we believe it is a sign of improving consumer confidence in this region. Sales in North America…

Thanks Jeff, good morning, everybody. Once again I am always excited to be on a call when there is another good quarter for USANA. It’s encouraging to see our sales in the first quarter exceed our expectations. This is especially significance in considering that our ethnic Chinese associates in most of our markets are the fastest growing demographic within USANA. And Chinese New Year occurred during our first quarter. During the quarter, the slowdown in sales and associate productivity that we typically experience from the Chinese New Year was not as significant as it had been in the past years. We believe that one of the key reasons for this is that during the quarter, we offered several different product and business related promotions to entice our associates to keep working during a period of time when they usually stop working. We believe the results from this strategy allowed us to achieve a record quarter for sales. We continue to see growth in the number of associate leaders, which is also encouraging. The number of people advancing in both rank and title continues to grow as well as the number of associates who are earning a weekly commission check. Our operating results clearly show that the Asia-Pacific region continues to drive our overall growth. One of the benefits of our matching bonus program is that it provides yet another way for someone to earn income with USANA. In fact, this is one of the key drivers of our success in the Asia-Pacific region. So to sustain and drive the momentum in the region, in May, as Jeff told you, we are going to host our Asia-Pacific Convention in Hong Kong. Right now, we expect that this event will be even larger than our international convention that we hold annually in…

Thank you, sir. (Operator Instructions). Thank you. And the first question comes from Diederik Basch. Please go ahead with your question.

Couple of questions, first on East Asia. I know that market had been very strong for the past few quarters, but especially this quarter it was 60% growth in distributors. And I am wondering if you could maybe expand on that, what seems to be driving that market particularly in this quarter and I have a follow-up after that.

The primary growth in that is Hong Kong and frankly they love our compensation plan. The new matching bonus has been quite an enticement for them and this business is about momentum. So when they start generating success in their business organization, they tell others and they are more enthusiastic to tell other and voila.

All right. You have mentioned matching bonus in the past. I mean is there also any products were mentioned there, are you seeing perhaps a particular product selling well versus the U.S. and then the follow-up to that would be if I look at the guidance, it kind of assumes maybe the sequential decline in East Asia. And I am wondering if that has to do with some of the incentive changes?

So the answer to that is no, our core products worldwide tend to be our core products consistently. There hasn’t been the introduction of a new product that is accounting for a large explosion in the growth. That's not to say we are not excited about our Asia Pacific conference in which we are going to announce some new products. We hope to add that to the enticement. But it really is being driven by the enthusiasm they are feeling for the success of their business. And the second question was, the guidance, yes, the guidance is tempered by the fact that we will be introducing some international policy changes that frankly we are not sure how it will be received by the field initially. Whether the new is good news, bad news or neutral, it takes our associates sometime to understand it, see how it impacts them and then from there they continue on with building the growth. We don’t believe it’s going to have a significant impact but on the other hand, that ambiguity has caused us to give a guidance where we set it.

Okay, that’s helpful. And last question for Jeff. The gross margin in the quarter, 80.7%. If I look at my model, that's the highest gross margin you have reported in 10 years. I am kind of just wondering if there was any currency benefit there. You mentioned you had a price increase, if you could remind me how much that price increase was and do you think you had an inflection point where you can continue to keep that margin over 80%.

To answer the last part of your question first, yes, we believe that – that we are in a strong position to maintain our margins. There is a slight benefit of currency in gross margins but because of our standards that we established and we hold for some period of time that won’t have a significant effect in these results and it’s just not a big component of that per se. The efficiency with which we have been producing and shipping and including the freight benefits, we see those continuing throughout the year. And so, we feel like our margin improvements are a strong play for the rest of the year and are considered in our guidance for earnings.

Okay, and how much was the price increase?

Oh, I am sorry, I meant to answer that question. It actually varies by market. We had a price change in Mexico, in Japan. It depends on the market but generally speaking, it varies 2%, 4%, sometimes 10% in some places.

(Operator Instructions) And the next question comes from Madeline Miller from D.A. Davidson & Company. Please go ahead with your question. Madeline Miller -- D.A. Davidson & Company: Hi, thank you. I just had a question about the compensation plan changes. You have said that this is going to the biggest driver or that it has been the biggest driver of growth in Asia Pacific region. Do you expect that these changes will have any negative effect on the growth in the markets or the retention either short-term or long-term?

No. Madeline Miller -- D.A. Davidson & Company: No?

I know that's a simple question. The changes that we are looking at aren’t huge, they are just little fine tuning. So that's why there is not a lot, no. Madeline Miller -- D.A. Davidson & Company: Okay. And then similar question. You said that the – at the convention you are going to be rolling out some specific products to the region. And although there are a lot of associates who you mentioned they sell from a different into the Asian market, are those associates who are not selling into their own home market going to be able to use those new Asian Pacific specific products?

The only way you can – I hope this answers your question. The only way you can purchase a product is that product is available for sale by the associates in that region.

The next question comes from the Per Osland from Jefferies & Company. Please go ahead with your question. Per Osland – Jefferies & Company: Kind of following up to (Diederik’s) question before on the outlook, as an order of magnitude, the first quarter beat on the top line was pretty significant versus I think the investment community at large. Was it a similar beat versus your internal expectations or were we just off? I guess the reason I am – the reason I ask is the raise for the year was certainly more modest than the first quarter beat. So I am just trying to get a handle on maybe how much you are raining in that last nine months given the planned tweaks to the comp program.

As I interpret your projections out of Q4, our guess is that you were probably a little low even beat in this quarter is still our projections but we were running ahead of where you were. And that said, keep in mind that our forecast for the remainder of the year, given the distance between where we are and where the effect of these enhancements, tweaks and adjustments that Fred just described is still a little bit beyond our horizon. I am going to take a conservative stance on that projection at this point. And so, feeling when we get closer to the end of Q2, we will have a better view on what the impact of that is and so, those are the major factors driving the guidance we have given you today. Per Osland – Jefferies & Company: Okay, that’s fair. On the incentives, it sounds like it is really more kind of policy, it’s policy and FX exposure. So it’s not – it doesn’t sound like it’s being designed to throttle down a specific market or grew specific markets that might have been underperforming. Is that a fair characterization?

Perfectly fair. Per Osland – Jefferies & Company: Back to the outlook, just real quickly on the top line, Jeff has the FX benefit assumption changed from where you were in February till now?

A little bit, we got a nice bump obviously in this quarter but as I mentioned, it will be our most favorable comparative. It difficult to say, (Per) – Per Osland – Jefferies & Company: I know we are all guessing, right?

And I would love to be able to say but we feel like we are going to see a bit of an improvement and anticipate through the (remainder). Per Osland – Jefferies & Company: One last one, Jeff you referred to Asia Pacific perhaps maybe anticipating the opening of a new market. Has the opening in the Philippines and the strength of that opening done anything to accelerate that timeline and what is that timeline right now?

We are pleased with the result in the Philippines, albeit a relatively smaller market, we have evidence that our introduction or launch in that market was as good or better than any direct selling companies who arrived there. We almost reached 7 million this first year which means our expectation and anticipate that that will be a strong market for us, as such going forward. It’s evidenced that that region is important for us as is obviously our growth. We are constantly evaluating our opportunities, particularly the major opportunities and where the environment regulatory and otherwise becomes more favorable for us. We will certainly take advantage of those opportunities and are trying to position ourselves to do so.

We do not appear to have any further questions. Please continue with any points (inaudible).

Everybody thank you for joining the call today and thank you for your questions. If you have any remaining questions, please feel free to contact Patrick Richards in investor relations at 801-954-7961. Thanks.

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