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Exhibit 1 % Of US Adults US Adult Overweight Obese Severely Obese Population (25 40) (millions)* 1999 to 2000 34 25.8 4.7 209 in 2000
Exhibit 1 % Of US Adults US Adult Overweight Obese Severely Obese Population (25 40) (millions)* 1999 to 2000 34 25.8 4.7 209 in 2000 1988 to 1994 33 20.1 2.9 185 in 1990 1976 to 1980 31.6 14.4 No Data 163 in 1980 * US Adult population was approximately 230 million in 2008 1999-2000 Men (BMI > 25) Women (BMI > 25) Prevalence (%) Prevalence (%) Overall 67 62 Age (Years) 20 to 34 58 51.5 35 to 44 67.6 63.6 45 to 54 71.3 64.7 55 to 64 72.5 73.1 65 to 74 77.2 70.1 75 and older 66.4 59.6 2001 Obesity Education Level Prevalence (%) Less than High School 27.4 High School 23.2 Some College 21 College 15.7 2001 Income Level Obesity (%) Less than $25,000 32.5 $25,000-$40,000 31.3 $40,000-$60,000 30.3 More than $60,000 26.8Exhibit 2 Weight Loss Price Comparison Summary Option Description Approximate Retail Price* Non-prescription, FDA approved weight loss drug for Alli overweight individuals $190 for three month supply OTC drugs Herbal remedy, no FDA approval $300 for three month supply Weight Watchers Weight control program and meetings $120 for three months Diet and weight control program that included $1000- $1600 for three months Jenny Craig prepackaged, delivered meals and support of program (includes food) $245 for three month Gym Membership Access to workout facilities membership and initiation fee *Alli price comparison included initial starter pack and 90 day supply of pills OTC drug pricing based off MSRP, however deep discounts were usually available Weight Watchers price included monthly meeting pass and access and internet tools Jenny Craig price included membership fees and prepackaged food (replaced ~50% - 75% of the client's normal food purchases) Average gym membership price included one-time initiation fee of approximately $125Exhibit 3 Option 1 Option 2 Option 3 Retail price 75.00 $ 125.00 150.00 Retail gross margin 25.00 41.67 $ 50.00 Manufacturer price $ 50.00 83.33 $ 100.00 Variable cost 25.20 $ 25.20 25.20 Manufacturer gross margin 24.80 $ 58.13 EA 74.80 50% 70% 75%
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