Mr. Badovinus: Mannatech was founded in 1994 as a result of scientific research that was done on aloe vera saccharides in the 1980s, and the discovery of the application to the structure and function elements in the human body. Specifically, we're talking about plant-sourced polysaccharides, also known as glyconutrients. These compounds are demonstrating powerful effects on human well-being, particularly immune, digestive and cognitive functions. Mannatech was among the first dietary supplement companies to recognize and capitalize on glyconutrient technologies. Today we provide products that offer solutions for health, weight and fitness, and skin care. The business has always been based on the fundamental issue of science framed within the broader market of wellness. Mannatech employs a multi-level marketing strategy of distribution to the wellness industry, which many are predicting will become a trillion-dollar business in the near future. So we've got a strong history in science, a strong marketplace to work in, and we are gaining traction and excited about where we are.
TWST: Would you explain the make-up of your customer base and who your direct competition is today?
Mr. Badovinus: Let me address our customer base first. Our customer base is primarily comprised of people who are interested in products that are natural, enhance their sense of wellness and support the ability of the normal functions of the body to take place. What I mean by that is our products assist the normal processes of the body through good nutrition and are all science-based. The result is that people typically use these products for their own wellness-related purposes first. They are so pleased with the results that they become independent sales associates and begin building a business based on the sale of our products. So our associates are a combination of product-users and product-users who have evolved into business-builders. And today we have more than 500,000 associates and consumers worldwide. Now in a general sense, the competitive environment is very broad. As you are aware, there are health food stores in virtually every mall, and drug stores and discount stores have a wide range of products for sale. However, we feel our product differentiates itself from the competition in terms of what we call Real Food TechnologySM solutions, meaning our products are derived from real food sources. Ingredients and food sources are chosen from those scientifically proven to have the most beneficial outcome to the human body. So it's a broad marketplace in terms of the competitive set. But it's also a broad marketplace in terms of its potential.
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