CEODerek Hall

2011 in ReviewIndustry UpdateThe Future

The Year is 1911One Hundred

Years Ago

The average life expectancy for men was 47 years.

95 percent of all births took place at home

1911

Two out of every 10 adults couldn't read or write

Only 6 percent of Americans graduated from high school

1911

The average U.S. wage in 1911 was 22 cents per hour, and the average U.S. worker made between $200 and $400 per year

1911

The six leading causes of death were:

1.Pneumonia

2.Influenza

3.Tuberculosis

4.Diarrhea

5.Heart disease

6.Stroke

1911

Marijuana, heroin, and morphine were all available over-the-

counter at the corner drugstore

1911

Back then it was believed that heroin cleared the

complexion, gave buoyancy to the mind, regulated the stomach and bowels, and

was, in fact, a perfect guardian of health!

1911

THE WAY WE ADVERTISED JUST 60 YEARS AGO

LOOKED A BIT DIFFERENT

2011 in Review

41% growth in IBOs in 2011Last month’s sales increased 25% vs. LYMexico began its growth spurtVietnam was opened for initial businessWe began shipping product to GermanyWe invested $millions in infrastructure & peopleWe remained in positive territory financiallyWe received 3 prestigious business awards

2011

A Winning Track

46 City Meetings in 33 Cities

Rank Advancements

97 New Platinums

52 Vietnam

41 USA

3 Canada

1 México

2011

Rank Advancements

19 New Diamonds

13 Vietnam

6 USA

2011

Alicia Sacramone

Nadia ComaneciBart Conner Daniel Igali

Dan Jansen

Bonnie Blair

Mike Eruzione

Olympic Gold Medalists

Jackie Joyner-Kersee

Vicki Movsessian

GOLD SUMMITDaniel’s Summit, UT

January 2011

Gold Summit - January 2011

ANNUAL CONVENTIONOrlando, FLFebruary 2011

Convention – February 2011

Platinum Trip – BahamasJune 2011

DIAMOND RETREAT – KAUAI, HIAugust 2011

Diamond Retreat

Kauai - 2011

Habitat for Humanity 2011

Qivana Founders participated in 7 events and IBOs participated in dozens more around the

United States

March 2011

June 2011

Orlando, FLJune 2011

Citrus County, FLJune 2011

October 2011

Oklahoma City, OK

Prestigious Industry Awards

3rd Fastest Growing Top 20 #15

INDUSTRY UPDATE

Food & Drug Administration

New Dietary Ingredient (NDI) proposed rule making

In a letter addressed to FDA Commissioner Margaret Hamburg, MD, in late December 2011, Senators Orrin Hatch (R-UT) and Tom Harkin (D-IA) asked FDA to withdraw the agency’s new dietary ingredient (NDI) draft guidance, which FDA published in July. The letter also asks FDA to meet with the senators in early sooner than later to discuss their concerns.

Food & Drug Administration

It was October 1994 when DSHEA was enacted. Within that legislation was an FDA directive to establish Good Manufacturing Practices (GMPs) for the supplement industry.

This GMP directive was instituted in 2010…16 years later!

Natural Products Foundation The NPF remains vigilant in its initiative to establish

Truth in Advertising

During the past year the NPF has sent out 109 warning letters of which 68% responded positively. The non-responders were turned over to the FDA/FTC for further action

2012 will be my last year as Chair of the NPF but Qivana will continue to be a strong voice in NPF

Strategic Planning

International Expansion

Product Development

Industry Influence

Cultural Growth

Regulatory Compliance

Financial Management

Qivana Strategic

Advisory Board

Introducing:

Five membersSkill sets include:

Publicity & Trade RelationsLegalRegulatoryProduct FormulationFinancial International

2 & 3 year terms of service

Act as a sounding board as we begin to scale

Provide experienced direction on key issues

Add expertise in a cross section of skill sets

Board Purpose

A Principal at Huntsman Gay Global Capital,

a $1.1 billion private equity fund Responsible for the sourcing, evaluation,

and management of the acquisition “due diligence” process

Prior consultant with Bain & Company in Dallas, Texas, and Johannesburg, South Africa

Former Analyst and Associate with Bain Capital in Boston Earned his MBA degree from M.I.T. Sloan School of

Management

Ryan Stratton

Suzanne Shelton CEO of The Shelton Group based in

Chicago, IL Provides public relations services to the

dietary supplement and natural products companies Former executive committee member of the Natural Products

Foundation Communications Committee Chair of the American Herbal

Products Association Natural products crusader for almost 25 years

Jack Martin Founding member of Walker, Martin &

Hatch, a partnership of political and

policy experts based in Washington, DC

Former Senior Staff Member for Utah Senator Orrin Hatch

Former Special Assistant to the Commissioner for Policy at the FDA under George H. Bush

Former Associate Commissioner for Public Affairs at the FDA

Scott Forsberg Founder and president of Peregrine

Research, a natural products formulation

company A microbiologist specializing in the

immunology and biotechnology field Former member of the Board of Directors of the American

Herbal Products Association Formulated the original Nature’s Way vitamin line Formulates products for Dr. Julian Whitaker’s newsletter

John Barlow Attorney and Partner at the firm

Mitchell & Barlow, P.C.

Specializes in mergers and acquisitions

and early stage companies

Bilingual in English and Russian languages

Earned his law degree at the University of Texas at Austin School of Law with honors

Member, Texas International Law Journal

Future CommitmentOur vision for 2020 is very clear and realistic

Culture will remain our corporate core

Science will remain our product core

Qivana will continue to be fiscally prudent in its spending and will remain profitable

THANK YOU!