2006 1st Quarter Update by CEO Ray Faltinsky

CEO Update - 1st Quarter 2006

What a Start to the New Year!

Dear Friends,

As I write this, a spectacular sight is developing outside my office window. As the sun begins to set, the sky has become a beautiful bright reddish/orange color. It is absolutely stunning. Then it occurs to me, that what is even more stunning is the impact YOU are having on people's lives all around the world. I sit here in awe at what is happening right before our very eyes.

As you know, 2005 was our biggest year on record by a wide, wide margin. And 2006 has gotten off to an even faster start than 2005 did! Not only was January 2006 our largest month in our Company’s history, but sales of Himalayan Goji Juice were a breath-taking three times higher than just 12 months ago in January 2005 (which at that time was a record-shattering three times higher than the previous January 2004!). What we are all doing right now is literally shocking the entire Direct Selling and nutritional industries. Everyone is watching us and we are absolutely the talk and envy of both those industries. We are breaking new ground and setting a new standard for what a Direct Selling company can be and stand for.

For that, I want to begin by thanking you for your commitment and dedication to serving others with Himalayan Goji Juice and with our incomparable home-based business opportunity. We are just beginning our mission and want you all to know how much we value you, believe in you, and want to share this incredible journey with you.

I also want you to know that 2006 is going to be a year that we are all going to remember for the rest of our lives. It's going to be a benchmark in our Company's history. I believe when we look back at 2006 a year from now, we're all going to say, "That was one of the most incredible years of my life and I'm so grateful that I was there and took part in it."

A $10-BILLION COMPANY?

I made a statement to our Leaders at our Royal Ambassador Leadership Summit in Phoenix in January that I want to share with you. I stated that becoming a $1-Billion Company is a forgone conclusion as far as we are concerned. So we have set a new, more ambitious goal. In the next 10-12 years, I believe we will become the most successful Direct Selling company in history with over $10 billion in worldwide sales! Let me repeat: the most successful Direct Selling company in history with over $10 billion in worldwide sales!

You may wonder how I can make such a bold statement and frankly, I don't blame you for wondering a little bit. It's a pretty Big, Hairy, Audacious Goal.

It's the kind of goal that just makes your jaw drop and say, "Huh? What's he talking about?" After all, the world's largest Direct Selling company Avon took over 100 years to reach $8 billion in sales. And I'm saying we can top that figure in a fraction of that time. For me, it's the kind of goal that gives me goose bumps because Kevin and I know we can do it. We know we can break all the records. We know we can help more people improve their lives than any company in history and we believe we are a company of destiny.

As an attorney trained for three years in logical reasoning and thinking, let me lay out for you why I believe so strongly that this will happen. Let me make the case for you so you will see as clearly as I do. Let me explain our method, our story, our mission, our product, our values, our team, our vision, our destiny. I believe when I am done, you will agree with me that not only is our goal achievable, but in fact, it is inevitable.

USE YOUR IMAGINATION

"Everything you can imagine is real."

- Pablo Picasso

Let me begin by asking you to imagine a little bit. Let's get your juices flowing. Let me set the stage.

Imagine discovering a delicious-tasting nutritional product that millions of people need and want.

Imagine this product being the most prized secret of the world’s first natural healers who date back to the beginning of time.

Imagine this product having 67 published scientific studies behind it proving its effectiveness and being endorsed by the world’s leading authority on wellness.

Imagine that this product was proprietary and that no other company could duplicate it.

Now, imagine having the opportunity to build a very lucrative international business with this product from the comfort of your own home by simply recommending it to people and teaching others to do the same.

What you are imagining is real.

The company—FreeLife International.

The product—Himalayan Goji Juice.

THE DISTRIBUTION CHANNEL

Most people don't know this, but I didn't come from a lot of money. In fact, my parents are immigrants from Europe who came here on a boat in 1955 with two children, no money, and not knowing a word of English.

We struggled quite a bit growing up. My dad worked two part-time jobs in addition to his full-time job and my mom worked at the local bakery and at the five-and-dime store while also raising four children.

Hard work was not the issue. The problem was my parents did not have a vehicle to create financial security. When I went to Yale Law School in 1989, I was committed to find a way that the average person, someone like my parents who may not have a lot of experience or money, could start a business of their own and achieve some form of financial independence.

In my second semester, I found the answer. Direct Selling offered individuals from all walks of life an opportunity to own a home based business and take control of their financial future. It did not take a lot of money to get started. It did not require a lot of experience. It seemed like the ideal vehicle for the average person!

Direct Selling offers the average person the ability to participate in one of the most proven and powerful concepts in wealth creation—it's called residual income. Residual income means getting paid time and time again for work done in the past.

Musicians earn residual income when they get royalties every time their song is purchased. Authors earn royalties for books they write. They put the effort in one time to write it but then earn a lifetime of residual income as the book is purchased.

The challenge is that most people don’t have the talent to produce a best-selling song or book. So for 99.9 percent of the population, the only way they will ever be able to earn residual income is through Direct Selling. It’s one person telling another about the benefits of a product and getting paid for it, and then getting paid for teaching others to do the same thing.

It is so simple yet so effective.

I spent two years at Yale intensely studying this industry, learning everything I could about it. I ended up writing my graduate thesis on it. One thing I learned was that 95 percent of all the companies that started in Direct Selling were out of business within five years. That was an incredibly low success rate.

And each time those companies went out of business, the dreams of all those who joined those companies were shattered. Kevin and I vowed that we would find a better way to share the tremendous opportunities of Direct Selling, learn from the mistakes of the companies that went before us, and create the ultimate Direct Selling company.

A company that was built to last.

Thus, FreeLife was born.

THE MISSION

"Destiny is no matter of chance. It is a matter of choice. It is not a thing to be waited for, it is a thing to be achieved."

- William Jennings Bryan (1860 - 1925)

I believe that we are all specially and individually blessed and that God presents us with unique opportunities and challenges that bring out our full potential. Often, these opportunities come disguised and come to us at unexpected times and in unexpected ways. However, once recognized, we must be prepared to take action if we are to make a difference in the world and truly fulfill our life’s destiny. Many such incidents have happened to me throughout my life, but none more significant than what happened to me 25 years ago.

When I was 15 years old, my mother developed a crippling case of osteoporosis. I saw her fight the horrible pain each and every day. Finally, two medical doctors told her she would be in a wheel chair within the next five years.

This news devastated our family. My mother in a wheelchair? We could hardly imagine it. A feeling of sadness washed over our home. The doctors had spoken. Traditional medicine had rendered its verdict. The Faltinsky household would never be the same. And for us, the center of that household was Mom.

Then Ron, my older brother, entered the picture. Ron has always loved nutrition. He suggested to Mom that she try a formulation of important nutrients that he had put together based on some research he had done. Mom agreed to try, for there was no hope offered through traditional medicine.

Slowly, a change began to take place. The pain lessened. Mother began to sleep more comfortably. Her health was coming back. She was more mobile, more energetic, more like the mom I used to know. When she returned to the doctor for follow-up X-rays, they were amazed at what the pictures had shown.

There was no evidence of osteoporosis. Her bones were healthy. She was well again. I was absolutely amazed and very grateful. I stood in wonder at the transforming power that comes when we give the body the nutrients it desperately needs. Nutrition brought my mother back to me.

I believe that everything in life happens for a reason. My mom’s miraculous recovery from osteoporosis through nutrition instilled in me a passion to spread the good news of natural healing with as many people as I possibly could.

This became my life's DESTINY!

THE MEETING

When Kevin and I made a decision to start FreeLife together to spread the good news of nutrition, we knew we needed to team up with someone who was a true product formulator—someone who really could bring added value to the market place.

We spent a great deal of time meeting with experts and doctors in the field of nutrition, but we couldn’t find any one thing we believed was worthy of bringing to market.

We were pretty frustrated, so I decided to take a break and visit my brother in Los Angeles. It was during this visit while I was getting a haircut that I happened to meet the business manager of Dr. Earl Mindell, the world’s leading nutritional expert.

So I’m sitting there 3,000 miles from home in this random hair salon and my jaw drops. I know all about Dr. Earl Mindell, I’ve read all his books. He’s the world’s foremost authority on natural healing. His Vitamin Bible alone has sold over 10 million copies, has been translated into 34 different languages, and is available in over 50 different countries! He's on over 300 TV and radio programs each year, including all the major programs like "Oprah," "Letterman," and "Regis."

He is literally the "Michael Jordan" of nutrition.

It’s too strange to be a mere coincidence. I really believe that when you want to do good—when you want to serve—people come into your life at just the right moment to be a part of that vision. No one in the world so perfectly fit into our vision of providing millions of people throughout the world with unparalleled levels of health.

That chance meeting with Dr. Mindell’s business manager led to a meeting with Dr. Mindell. Over the next 12 months, we had a series of meetings with him. Each time we shared with him our vision for making the world a healthier place. Finally, he agreed to a long-term exclusive contract.

It’s amazing how things work out sometimes. If I had not been 3,000 miles away from home in that random hair salon at the same time as Dr. Mindell’s business manager, we might never have met Dr. Earl Mindell. That’s another reason why we call FreeLife a company of destiny. It’s also why we believe we will reach our goals faster than any company in Direct Selling ever has.

THE PRODUCT

Dr. Mindell was first introduced to the goji berry in 1995 by a soft spoken, but highly regarded Chinese Herbalist. This gifted man shared with him the extraordinary story of the goji berry, its use in traditional Himalayan medicine for thousands of years, and its seemingly unlimited health benefits.

At that meeting, Dr. Mindell recognized that this virtually unknown plant could be the most important health discovery that he had seen in over 40 years. He vowed to his Chinese friend that he would study this miraculous berry to attempt to unlock its secrets.

Kevin and I had never seen Dr. Mindell so excited after a meeting! Remember, here is the number one nutritionist in the world who has seen essentially every nutritional breakthrough over the last 40 years. And he’s researched and written on virtually every single one of them. Yet, he was more excited about the potential of the goji berry than anything else he had ever seen.

What a compelling history the goji berry had, going back to our most ancient healers from the Himalaya Mountains, thousands of years ago. Poems dating back to the 700s have been written about its health-promoting powers. Ancient medical texts have declared it to be superior for fortifying and maintaining the health of the entire body.

Many of the world’s longest-lived people consume regular daily helpings of this tiny red fruit. It has been called by researchers one of the most nutritionally-dense foods ever discovered. In fact, the people of Central Asia cherish this little berry so much that every single year they have a festival in its honor.

THE SCIENCE

From our standpoint, historic folklore and anecdotal evidence is just one component of considering bringing a product to market. We needed to know if there was any solid scientific evidence proving that the goji berry really did what the Himalayan and Chinese Healers claimed it did.

And that’s exactly where Dr. Mindell began his research. He almost could not believe his eyes when he started scanning the medical databases for the Latin name of the goji berry, lycium barbarum! Not only was there an enormous amount written about goji in the ancient Himalayan and Asian medical texts, but it turned out that modern science had VALIDATED exactly what the Himalayan Healers had said about goji!

The published library of scientific research on the goji berry was truly extraordinary! Under the microscope, the goji berry revealed itself to be one of the most nutritionally-dense foods on earth, helping to support virtually every aspect of human health.

Dr. Mindell found studies on the goji berry published in dozens of journals like the British Journal of Nutrition, Chinese Oncology Magazine, Journal of Ethnopharmacology, and the Journal of Chinese Herbal Medicine.

In fact, the research on the goji berry continues to this day. In the last two years, there have been 17 new studies published on goji. And the research on the goji berry is so compelling that in July 2005, it made the front page of Health section of the Los Angeles Times.

At this point, Dr. Mindell became obsessed with the mystery of the goji. He realized that the last 40 years of his life had been a testing ground to see if he was ready for the ultimate nutritional discovery—the one that would make a bigger impact on the health of the world than all others. He was prepared to honor his vow to his Chinese friend that he would share this gift from the Himalayas with people all over the world.

However, we faced a daunting challenge in creating a truly effective goji product. First, Dr. Mindell quickly discovered that not all goji berries are equal. In fact, there are 41 varieties of the goji berry in Tibet alone. So how do you determine which are very best for the human body? Second, once you determine that, how do you get the best nutrients out of the goji berry without harming its unique chemistry?

Because these challenges were so significant, Kevin and I did not hear much about the goji berry project for several years as Dr. Mindell quietly and methodically conducted his research. His research was extensive and exhausting. He traveled throughout the world and worked with scientists on three different continents as he came closer and closer to discovering the mystery of the goji berry.

Dr. Mindell analyzed dozens of varieties to find the descendants of the one true goji—the one that had been discovered by the early Himalayan Healers, and which from ancient times, had been praised in legend.

His big breakthrough came when he began to analyze goji at its molecular level. In the same way that human fingerprints can be used to distinguish one person from all others on the planet, a spectrometer can detect even subtle differences between plants at the molecular level. This technique results in the generation of a graph, a unique fingerprint for whatever is being tested—a Spectral Signature.

Finally, after eight years of research, Dr. Mindell discovered the fingerprint of the goji that originated in the Himalayas and its very own unique identifying Spectral Signature. This important find enabled us to harvest only those berries that contained this unique Spectral Signature.

Goji of Himalayan quality exhibits a perfectly balanced and potent polysaccharide profile. These are called the Master Molecules. Synergized together, the four Master Molecules command and control many of the body’s most important biochemical defense systems, and are of great importance to the smooth functioning of virtually EVERY cell in the human body.

I had heard from one of Dr. Mindell’s fellow researchers that there was a breakthrough on the goji, so I called Dr. Mindell directly. "Dr. Mindell, what’s this about the goji berry? Do we have a breakthrough?"

He paused, and then in a very serious tone said, "I think we’ve done it, Ray. I think we’ve finally put all the pieces of the goji puzzle together."

That was music to our ears. All the pieces of the goji puzzle fit together!

We realized this had the potential to become the most powerful force for good in the history of our Company and perhaps the entire nutritional industry. And we knew we had to move on it... quickly.

Destiny had not only arrived, but was pounding on our door!

Dr. Mindell discovered that the most effective way to bring the power of the goji berry to the public was in a 100 percent juice product.

LIKE NO OTHER

We patterned it after the ancient recipes and practices of the Himalayan people—the traditional health practitioners who discovered its powerful benefits thousands of years ago. It had to be made only with berries that exhibited the ideal Himalayan Spectral Signature. This unique fingerprint is your assurance of potency, purity, and authenticity in every bottle.

It is carefully standardized to deliver a consistently high level of perfectly balanced and fully active polysaccharides, which are the Master Molecules that your body needs on a daily basis for optimal health and longevity. These Master Molecules are unique to goji—they are not found in any other plant on earth!

We want people to know that there is no other product like Himalayan Goji Juice available anywhere, so we put our trademarked Spectral Signature on every bottle. This is your guarantee that all four Master Molecules are in the correct balance and have the exact nutrient profile of the legendary goji from the Himalayas.

There simply is no other product on the market like it.

I have never heard of a product in my life that has had such a great impact on the lives and health of so many people.

Dr. Mindell has stated that he believes Himalayan Goji Juice will have a greater benefit on the health and well-being of mankind than any product ever introduced in the natural health arena.

What makes Himalayan Goji Juice even more compelling as a product is that it tastes delicious! And because people love the taste and get great results with it, everyone looks forward to drinking a few ounces each day. And they reorder it month after month after month. That’s residual income based on people using a product that is making a positive impact on their health.

This is the first product that we have ever seen that actually has a great history, phenomenal scientific research proving its benefits, tastes absolutely delicious, and offers incredible results for virtually every aspect of human health. To have all four of those elements in one product is why we believe Himalayan Goji Juice will become a $1-Billion Brand in the next few years, and that FreeLife will become a $10-Billion Company in the next 10-12 years.

THE COMPENSATION PLAN

Without question, the driving force of our success has been our phenomenal field leadership. And we are absolutely committed to treating our Leaders better than any other company in the Direct Selling industry. Period.

We believe our Leaders should be rewarded financially for partnering together with us and making Himalayan Goji Juice a billion-dollar worldwide brand.

And our Compensation Plan offers a level of rewards never before offered in Direct Selling. For example, our Fast Start Bonus provides immediate income for people looking to earn several hundred dollars per month to several thousand dollars within their first few months. We also have what’s called a Matching Bonus which enables you to earn a 20 to 60 percent bonus on the residual earnings of every person you personally introduce to FreeLife. We also have a 2 percent Worldwide Himalayan Goji Bonus Pool where we enable our Leaders to share in 2 percent of the sales of Himalayan Goji Juice throughout the world.

Add in the other bonuses and you have a plan that can provide you with significant upfront income PLUS the potential for a substantial residual income that can last for generations to come.

Kevin and I believe we are all partners in success and we want to share the abundance with those who are truly living out our mission of serving others. We believe that with this abundance mentality, we can all succeed together and truly make the world a better place.

THE FREELIFE LIFESTYLE

Not only do we set ourselves apart with an extraordinary financial opportunity for our Leaders, but we also excel in the area of rewards and recognition. We create an environment where Leaders can win incentive trips to exotic locations around the world and experience a lifestyle that very few people ever experience.

I like to call it the "FreeLife Lifestyle."

We have traveled with our Leaders all over the world, including Munich, the Gondolas of Venice, the tiny streets of Salzburg, and the Acropolis in Athens. We’ve shopped together in New York’s ritziest stores. We’ve been to some of the most beautiful beaches in the world in the Caribbean, Mexico, and Hawaii.

In December, we took over 300 Leaders to the Atlantis Resort in the Bahamas. And in June, we will be taking 600 Leaders to the Ritz in Maui! We offer once-in-a-lifetime trips to our Leaders that they will never forget.

We also offer exciting events like March Madness. March Madness in Dallas is just a few weeks away and it's a "can't miss" event. I wish I could get into great detail on what will be happening at March Madness, but let me just say that it will set the tone for the rest of year. We will have many exciting announcements and specials for attendees that will only be available to those who are at the event.

We will be introducing two new videos that tell the FreeLife story better than any tool we have ever introduced. We will also be unveiling a new 100-page, full-color magazine that features FreeLife on the cover and throughout its 100 pages. This magazine will have nationwide distribution on newsstands around the country and attendees will be the first to be able to see and purchase the magazine at significant discounts. We will have tons of recognition, fun, learning, and excitement.

We will end the event with a HUGE Dance Party for everyone on Saturday night that is sure to get you laughing, socializing, and dancing the night away like never before! It will also be filled with a few surprises! It will be a true Himalayan Goji Juice Celebration.

At March Madness, we will provide you with a clear picture of what the next 6-12 months has in store for everyone. If you have a dream of where you want to take your FreeLife business, you simply cannot afford to miss it.

The "FreeLife Lifestyle" also includes the dozens of Corporate Events we have each month around the world. Dr. Mindell is out circling the globe on his Himalayan Health Secret Tour, spreading the good news of Himalayan Goji Juice. Senior Vice President of Training Mike Zundel is getting RAVE reviews on his incomparable Built to Last seminars. No other company in the Direct Selling industry has what we have with Dr. Mindell and Mike. It’s another reason we are a truly different and special company. And Kevin and I also enjoy going on the road meeting many of you when we can get a day or two away from our daily home office responsibilities.

We believe the "FreeLife Lifestyle" is an integral component of both treating our Leaders like "Royalty" and furthering our vision of creating the largest Direct Selling company in history.

THE CAUSE

FreeLife really is a Company of Service. In fact, the first four words of our mission statement are "TO SERVE EACH OTHER"!

We are dedicated to helping others improve their lives in so many ways. One way that we stand out is in supporting our most precious asset around the world, our children, through our charitable giving program—GojiKids.

Going back to ancient times, the story is that the goji berry's only known side effect is making people smile too much. We wanted to put a smile on children’s faces everywhere and so we take a portion of the sale of each bottle of Himalayan Goji Juice and give that to a worthwhile children’s charity.

To date, we have given hundreds of thousands of dollars to over 50 different children’s charities worldwide. In January, we made another donation on your behalf, this time to the Big Brothers, Big Sisters Organization in Phoenix, Arizona. And in February, we are making donations to the Family Life Center in Maui, Hawaii and the Ronald McDonald House in Honolulu, Hawaii.

We’ve received accolades from many different organizations and people, including prominent state and federal government officials like Governor Jodi Rell of Connecticut and United States Senator Joseph Lieberman. However, the greatest accolades and smiles have come from the children themselves, and those dedicated to helping them have a better life.

We are truly making a significant difference for children around the world and Kevin and I thank you so much for making GojiKids possible.

THE TEAM

Kevin and I know that in order to reach our goals, we need to build an All-Star Team in our offices. To that end, we are pleased to announce that this summer we will be opening up an additional office to our Connecticut office called "FreeLife West." FreeLife West will be our second office in the United States to support our worldwide growth and will be located in sunny Phoenix, Arizona. Having an office located on the West Coast gives us many advantages too numerous to mention. More details on the grand opening of FreeLife West will follow in future updates.

Kevin and I have been spending an enormous amount of our time recruiting and hiring an All-Star team for FreeLife to take us to $1 billion and beyond. We have developed a rock-solid management team with past executive experience at industry giants like Avon, House of Lloyds, Melaleuca, Nu Skin, and Tahitian Noni International.

We are pleased to announce an exciting new addition to our All-Star Team. Our International growth has become so significant that we have asked Kevin Raulston, our COO for the past 10 months, to focus his duties exclusively on international growth and expansion and thus become our COO of International. Our new COO is now Mr. Peter Reilly. Bringing Peter on board is a big step for FreeLife. Not only is Peter an attorney (you know they always have a place in my heart!), but he worked his way up from General Counsel of a very successful Direct Selling company (over $25 million a month in sales), all the way up to President in three short years. He also has fantastic experience in the liquid nutritional business, having started his own manufacturing facility producing liquid products. He is multi-talented, energetic, and extremely hard working. We are proud to have Peter join the Team and I believe you will see his incredible impact very quickly. You will get the opportunity to meet Peter at March Madness.

I can promise you that we will continue to hire the very best and brightest talent that we can find to support all your dreams and our significant goals.

THE VISION

The most exciting part for me about FreeLife is our future. We have not yet even scratched the surface of reaching our full potential! We are a small fraction of the size we will be in a few short years.

If you take a look at the facts behind FreeLife, it becomes an extremely compelling business to consider:

We are an Inc. 500 Company, 10 years old, financially strong, completely debt free, and just beginning to enter momentum. We have a product that the world’s leading nutritionist calls "the most important product for health, wellness, and anti-aging that I have seen in 40 years!" We have a proprietary formula. It can’t be copied! FreeLife, and FreeLife alone, is the exclusive owner and distributor of Himalayan Goji Juice. We’re in an industry growing from $200 billion to $1 trillion in the next several years. The product was just released in the marketplace two years ago. It’s delicious tasting—even kids love it. Backed by over 60 solid scientific studies. We have an extremely lucrative, seamless, residual-income-based compensation plan that is the envy of the industry. We are a Company that lavishly rewards and recognizes its Leaders, and treats them not like employees, but the volunteers they truly are. We are just beginning rapid international expansion. We have a significant charitable-giving program making an impact around the world for our most precious asset, our children.

Not only do I know that in the next few years Himalayan Goji Juice will be a billion-dollar brand, touching the lives of millions of people around the world, but I also believe that we will one day be one of the largest and most successful Direct Selling companies in the entire world.

Himalayan Goji Juice is so unique, so beneficial, so delicious, that it has become more than a product—it has, in essence, become a movement.

A movement that is spreading rapidly around the world.

A movement where people are getting more profound health benefits than they have ever had before with any other product.

We believe we can help more people improve their health with Himalayan Goji Juice than any product ever offered in the wellness industry. And we want to share it with the world.

We feel truly blessed to have the opportunity to help so many people improve their lives.

This is our chance to serve. This is our mission.

And THIS is our DESTINY.

With much love and appreciation,

 Order our Himalayan Goji Juice online here or
call us TODAY at 888-895-9668!