Herbalife Ltd. Completes $110 Million Claw Back; Announces 4th Quarter

    Business Editors

    LOS ANGELES--(BUSINESS WIRE)--Feb. 7, 2005--Herbalife Ltd. (NYSE:HLF) announced the completion of its call option to redeem $110 million, or 40%, of the outstanding principal amount of its 9 1/2% Notes due April 1, 2011. This transaction was completed on February 4, 2005, and was a component of the Company's recapitalization associated with its initial public offering which closed on December 21, 2004. Pursuant to the terms of the 9 1/2% Notes due 2011, the call option was exercised on February 4, 2005, after providing the required notice to bondholders. The redemption premium of $10.5 million and the remaining unamortized deferred financing costs of $3.8 million as of February 4, 2005, are anticipated to be non-deductible expenses and will be reported in the Company's first quarter 2005 results.
    After completing this transaction, the Company will have a debt structure that includes the remaining $165 million of 9 1/2% Notes due 2011 and a $225 million Credit Facility, including a $200 million term loan and a $25 million revolving credit facility.

    Fourth Quarter Earnings Call

    The Company also announced that its fourth quarter 2004 earnings conference call will be conducted on February 23, 2005. at 9 A.M. PST. The conference call number is 800-640-1217, and the pass-code is 643447. Additionally, this information can be obtained on the Investor Relations section of the Company's web site at www.Herbalife.com.

    Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

    Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in Herbalife Ltd.'s Disclosure Regarding Forward-Looking Statements included in its recent filings, including its Form S-1, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and Herbalife Ltd. undertakes no obligation to update these forward-looking statements.

    About Herbalife Ltd.

    Herbalife is a global network marketing company offering a range of science-based weight management products, nutritional supplements and personal care products intended to support weight loss and a healthy lifestyle.

    (HLFE)

--30--TM/la*

CONTACT: Herbalife Ltd. Press Contact: Barbara Henderson, 310-410-9600 ext. 32637 or Investor Relations Contact: Frank Lamberti, 310-410-9600 ext. 32280

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: SPORTS MEDICAL CONFERENCE CALLS SOURCE: Herbalife Ltd.

Copyright Business Wire 2005