[ANALYST PRESENTATION POSTED ON WWW.NUMICO.COM STATING THE FOLLOWING]
[SLIDE 1]
[NUMICO LOGO]
[REXALL SUNDOWN LOGO]
[SLIDE 2]
PRESENTATION OUTLINE
NUMICO - 1ST QUARTER RESULTS
OUTLINE OF THE TRANSACTION
RATIONALE FOR THE TRANSACTION
FINANCIAL IMPACT OF THE TRANSACTION
2
[SLIDE 3]
NUMICO - 1ST QUARTER 2000 RESULTS
IN [EURO] MM, EXCEPT PER SHARE DATA 2000 1999 % CHANGE
SALES 883 409 116
EBITDA 149 65 129
EBITA 124 55 127
EBIT 106 55 94
NET PROFIT BEFORE AMORTISATION 73 38 93
NET PROFIT 55 38 46
CEPS [EURO]0.51 [EURO]0.29 76
EPS [EURO]0.38 [EURO]0.29 31
MARGIN AS % OF SALES 58.8 63.3
EBITA AS % OF SALES 14.1 13.4
3
[SLIDE 4]
SALES RECONCILIATION Q1 2000 VS. Q1 1999
NET SALES 1ST QUARTER 1999 [EURO]409 MM
ACQUISITIONS 434 105.9%
GNC 393
ENRICH 18
MOCOCA, BRAZIL 19
NUTRICIA INDIA 3
WUXI AND QIHE, CHINA 1
RECLASSIFICATIONS 3 0.7%
CURRENCY INFLUENCES 14 3.4%
VOLUME AND PRICE EFFECTS 23 5.6%
NET SALES 1ST QUARTER 2000 [EURO]883 MM 115.6%
4
[SLIDE 5]
GNC - 1ST QUARTER 2000 RESULTS
IN [EURO] MM Q1 Q1 2000 C/W
2000 1999 1999
NET SALES 393 314 25%(1)
EBITDA 73 52 40%
EBITA 59 40 48%
EBITA AS % OF 15.0% 12.7%
NET SALES
(1) Excluding divestments (Nature's Fresh) and like-for-like $/[EURO], sales
growth is 15%
5
[SLIDE 6]
PRESENTATION OUTLINE
NUMICO - 1ST QUARTER RESULTS
OUTLINE OF THE TRANSACTION
RATIONALE FOR THE TRANSACTION
FINANCIAL IMPACT OF THE TRANSACTION
6
[SLIDE 7]
TRANSACTION SUMMARY
- - NUMICO HAS AGREED TO ACQUIRE REXALL SUNDOWN, THE LEADING PROVIDER OF
BRANDED HEALTH AND WELLNESS PRODUCTS TO THE U.S. MASS MARKET CHANNEL
- $24 per share
- Total consideration: $1,815 MM including $114 MM of assumed debt
- 25% premium to closing price on 28 April 2000 (39% to 7-day
average)
- - REXALL SUNDOWN PROVIDES
- The leading VMS position in the U.S. mass market channel
- Significant operating synergies and cost savings
- Improved growth prospects
- - TRANSACTION IS EXPECTED TO BE ACCRETIVE TO EPS IN 2000
- - TRANSACTION WILL BE FUNDED BY BANK DEBT, SUBORDINATED CONVERTIBLE DEBT
AND AN EQUITY OFFERING
7
[SLIDE 8]
TRANSACTION TIMETABLE
- - MAY 1 ANNOUNCEMENT
- - EARLY MAY LAUNCH TENDER OFFER
- - EARLY JUNE CLOSE TENDER OFFER
- - JUNE EQUITY AND CONVERTIBLE OFFERINGS
- - EARLY JULY CLOSE TRANSACTION
8
[SLIDE 9]
PRESENTATION OUTLINE
NUMICO - 1ST QUARTER RESULTS
OUTLINE OF THE TRANSACTION
RATIONALE FOR THE TRANSACTION
- STRATEGIC RATIONALE
- SUPPLEMENTS MARKET OVERVIEW
- OVERVIEW OF REXALL SUNDOWN
FINANCIAL IMPACT OF THE TRANSACTION
9
[SLIDE 10]
NUMICO STRATEGY
PREVENTIVE AND THERAPEUTIC NUTRITION
|
\ /
-------------------------------
| |
-------------------------------
/ \ / \
| |
FOOD PHARMA
SCIENTIFIC PROOF FOR PRODUCTS
- BASED ON BIO-ACTIVE COMPONENTS
- PREVENTING DISORDERS
- RESULTING IN A LONGER / HEALTHIER LIFE
10
[SLIDE 11]
NUMICO INTERNET STRATEGY
- - NUMICO HAS RECOGNISED THE OPPORTUNITIES MADE AVAILABLE BY THE INTERNET
- - CURRENT INTERNET PRESENCE THROUGH drugstore.com, ENRICH AND OTHER
ACTIVITIES WHICH COVER THE U.S., EUROPEAN AND JAPANESE MARKETS
- Distribution infrastructure is already in place
- - NUMICO ALSO HAS INTERNET INITIATIVES UNDERWAY FOR ITS INFANT AND
HEALTHCARE NUTRITION BUSINESSES THROUGH TWO PLATFORMS
- Information to medical professionals
- Information to consumers
11
[SLIDE 12]
SALES BY PRODUCT GROUP - 2000
NUMICO SALES BY PRODUCT PROFORMA SALES BY PRODUCT
[PIE CHART REPRESENTING THE [PIE CHART REPRESENTING THE
FOLLOWING INFORMATION] FOLLOWING INFORMATION]
NUTRITIONAL SUPPLEMENTS 51% NUTRITIONAL SUPPLEMENTS 60%
INFANT NUTRITION 24% INFANT NUTRITION 20%
ENTERAL AND CLINICAL NUTRITION 11% - -> ENTERAL AND CLINICAL NUTRITION 9%
DAIRY & DRINKS, OTHERS 14% DAIRY & DRINKS, OTHERS 11%
TOTAL SALES = [EURO] 3.7 BILLION (1) TOTAL SALES = [EURO] 4.5 BILLION (2)
(1) Proforma to include a full year of Enrich
(2) Numico sales proforma for Enrich and Rexall Sundown sales proforma for
MET-Rx and Worldwide
12
[SLIDE 13]
U.S. SUPPLEMENTS MARKET
- ----------- --------- ----------- --------- ---------- ----------- -------------
PROPRIETARY MANU- MULTI-LEVEL SPECIALTY MASS MARKET MASS
RESEARCH --> FACTURING --> MARKETING --> RETAIL --> E-COMMERCE --> BRANDS --> PRIVATE LABEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
% of VMS Market 10% 35% 1% 33% 19%
Margin Potential High High Moderate Moderate Low
Sales Potential Low High Low Very High Very High
MARKET STATISTICS
- --------------------------------------------------------------------------------
- - $10.3 billion in 1999 (total VMS sales) projected to grow to $16.6
billion by 2003 - 12.7% CAGR
- - 48% of all U.S. adults take dietary supplements - up from 38% in 1995
- - Doctors are the #1 source of consumer information
13
[SLIDE 14]
WORLD LEADER IN NUTRITION RESEARCH
- ----------- --------- ----------- --------- ---------- ----------- -------------
PROPRIETARY MANU- MULTI-LEVEL SPECIALTY MASS MARKET MASS
RESEARCH --> FACTURING --> MARKETING --> RETAIL --> E-COMMERCE --> BRANDS --> PRIVATE LABEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
- - Four research facilities worldwide employing approx. 300 people (over
half with Ph.D. degree) - world leader in human nutrition research with
clinical trials under way in Europe, the United States and Australia
- - Focusing research on areas where science intersects with consumer needs -
pain management, muscle building, heart health, bone health, etc.
- - Steady flow of new products based on proprietary research - 28 within the
first year
14
[SLIDE 15]
LEADING MANUFACTURING CAPABILITIES
- ----------- --------- ----------- --------- ---------- ----------- -------------
PROPRIETARY MANU- MULTI-LEVEL SPECIALTY MASS MARKET MASS
RESEARCH --> FACTURING --> MARKETING --> RETAIL --> E-COMMERCE --> BRANDS --> PRIVATE LABEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
- - World's leading manufacturer of dietary supplements - 6 facilities with
over one million square feet of production space
- - Ability to produce tablets, two-piece capsules, soft gelatin capsules and
powders plus packaging in all formats
- - Manufacturing standards are significantly above government requirements -
absolute quality
15
[SLIDE 16]
STRONG DIRECT SELLING PLATFORM
- ----------- --------- ----------- --------- ---------- ----------- -------------
PROPRIETARY MANU- MULTI-LEVEL SPECIALTY MASS MARKET MASS
RESEARCH --> FACTURING --> MARKETING --> RETAIL --> E-COMMERCE --> BRANDS --> PRIVATE LABEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
% of VMS Market 10% 35% 1% 33% 19%
Margin Potential High High Moderate Moderate Low
Sales Potential Low High Low Very High Very High
NUMICO / RXSD SHARE 15%
- - Over 200,000 active distributors in 14 countries
- - One-to-one selling format perfect for technically advanced products with
specific benefits
- - Excellent vehicle to enter international markets
- - Multi-level marketing business capitalising on internet opportunities
16
[SLIDE 17]
LEADING POSITION IN SPECIALTY CHANNEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
PROPRIETARY MANU- MULTI-LEVEL SPECIALTY MASS MARKET MASS
RESEARCH --> FACTURING --> MARKETING --> RETAIL --> E-COMMERCE --> BRANDS --> PRIVATE LABEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
% of VMS Market 10% 35% 1% 33% 19%
Margin Potential High High Moderate Moderate Low
Sales Potential Low High Low Very High Very High
NUMICO / RXSD SHARE 15% 42%
- - The GNC brand is the most recognized brand of dietary supplements in the
U.S. - sold through a network of 5,000 stores
- - Average store growth of approximately 500 units per year - 7,000 stores
by 2003
- - Same store sales growing significantly versus last year - 10% first
quarter 2000
- - Opportunity to leverage strong brands distributed via GNC retail network
and other specialty channels (MET-Rx, Worldwide Sports and Efamol)
17
[SLIDE 18]
PROFITABLE IN E-COMMERCE CHANNEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
PROPRIETARY MANU- MULTI-LEVEL SPECIALTY MASS MARKET MASS
RESEARCH --> FACTURING --> MARKETING --> RETAIL --> E-COMMERCE --> BRANDS --> PRIVATE LABEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
% of VMS Market 10% 35% 1% 33% 19%
Margin Potential High High Moderate Moderate Low
Sales Potential Low High Low Very High Very High
NUMICO / RXSD SHARE 15% 42% 10%
- - Six percent equity stake in drugstore.com - exclusive internet site for
GNC brand
- - GNC is profitably distributing via the internet
18
[SLIDE 19]
LEADING MASS MARKET POSITION
- ----------- --------- ----------- --------- ---------- ----------- -------------
PROPRIETARY MANU- MULTI-LEVEL SPECIALTY MASS MARKET MASS
RESEARCH --> FACTURING --> MARKETING --> RETAIL --> E-COMMERCE --> BRANDS --> PRIVATE LABEL
- ----------- --------- ----------- --------- ---------- ----------- -------------
% of VMS Market 10% 35% 1% 33% 19%
Margin Potential High High Moderate Moderate Low
Sales Potential Low High Low Very High Very High
NUMICO / RXSD SHARE 15% 42% 10% 13%
- - #1 position in the food, drug and mass channels
- - "Category manager" for the largest retailer in the U.S.
- - Unique price positioning - between private label and other brands
19
[SLIDE 20]
REXALL SUNDOWN OVERVIEW
- - LEADING MARKET SHARE IN THE MASS MARKET CHANNEL - 12.8%
- - PORTFOLIO OF LEADING BRANDS AND PRODUCTS
- #1 or #2 selling brands in categories in which Rexall competes
- - STRATEGICALLY POSITIONED IN DIVERSIFIED CHANNELS OF DISTRIBUTION
- - KEY STRATEGIC RETAIL RELATIONSHIPS IN MASS MARKET CHANNEL
- Products sold through more than 80,000 doors
- - FOCUS ON NEW AND INNOVATIVE, SCIENCE BASED PRODUCTS
- - LOW COST PRODUCER OF HIGH QUALITY PRODUCTS
- - STRONG FINANCIAL PERFORMANCE
20
[SLIDE 21]
COMMITTED MANAGEMENT TEAM
- - TOP MANAGEMENT WILL BE RETAINED AND IS FULLY COMMITTED TO THE TRANSACTION
REXALL SUNDOWN MANAGEMENT
---------------------------------------------------
DAMON DESANTIS PRESIDENT & CEO
RICK WERBER GENERAL COUNSEL
GEARY COTTON CHIEF FINANCIAL OFFICER
RICH GOUDIS CHIEF OPERATING OFFICER
NICK PALIN SR. EVP
STEVE FRABITORE PRESIDENT, RETAIL BUSINESS
DAVE SCHOFIELD PRESIDENT, CONSUMER DIRECT
GERRY HOLLY SR. EVP
21
[SLIDE 22]
LEADING MARKET SHARE - REXALL SUNDOWN
BRANDED MARKET LEADER IN VMS INDUSTRY - FOOD, DRUG & MASS
[GRAPHIC REPRESENTING DOLLAR SHARE VS YOY GROWTH]
SHARE GROWTH
RXSD 12.8% 14.5%
AHP 10.3% 21.9%
PHARMAVITE 8.8% 2.8%
BAYER 4.8% 19.8%
NATURE'S BOUNTY 2.4% (4.1)%
LEINER 2.1% (17.2)%
PHARMATON 2.1% (24.7)%
SMITHKLINE 2.0% 4.9%
SCHIFF/WEIDER 1.9% 24.7%
MISSION INC. 1.5% 21.3%
NATROL INC. 1.4% 10.2%
22
[SLIDE 23]
LEADING BRANDS AND PRODUCTS
RECOGNIZED INNOVATOR WITH STRONG BRAND PORTFOLIO
Date Products Market/Channel
[SUNDOWN] 1976 - 241 HIGH-QUALITY VITAMINS, MINERALS, - MASS MERCHANDISERS, CLUBS, DRUG
HERBALS AND NUTRITIONAL SUPPLEMENTS STORES AND SUPERMARKETS
INCLUDING OSTEO-BI-FLEX
[REXALL] 1985 - OVER 127 VITAMINS AND NUTRITIONAL - DOLLAR STORES, AS WELL AS FOOD AND
SUPPLEMENTS DRUG WHOLESALERS
[REXALL 1990 - INNOVATIVE HEALTH AND WELLNESS - DIRECT TO CONSUMER VIA NETWORK OF
SHOWCASE PRODUCTS, INCLUDING NUTRITIONAL INDEPENDENT DISTRIBUTORS
INTERNATIONAL FORMULATIONS AND NATURAL HEALTH
[LOGO] REMEDIES
[MET 1998 - 70 DIET AND WEIGHT MANAGEMENT - FD&M, HEALTH FOOD STORES, CLUBS
ENGINEERED PRODUCTS, INCLUDING NATIONAL BRANDS AND TV SHOPPING CHANNELS
NUTRITION LOGO] METAB-O-LITE AND ULTRA CHROMASLIM
[WORLDWIDE 2000 - METAMYOSYN BASED PROTEIN DRINK - HEALTH FOOD STORES, FD&M AND
SPORT NUTRITION MIXES, FOOD BARS, SUPPLEMENTS AND CLUBS
LOGO] NEW AGE BEVERAGES
2000 - PURE PROTEIN BARS, PROTEIN COOKIES - HEALTH FOOD STORES, GYMS, FD&M
AND BEVERAGES, ENERGY AND
ENDURANCE SUPPLEMENTS AND NEW
AGE BEVERAGES
23
[SLIDE 24]
STRONG POSITIONS IN KEY CATEGORIES
JOINT & BONE CARE
KEY BRANDS
OSTEO-BI-FLEX
ARTHRI-SOLUTION
- - #1 JOINT CARE BRAND
- - #2 BRAND OVERALL
- - EFFECTIVE, SCIENCE-BASED PRODUCT LINE]
[PIE CHART REPRESENTING THE FOLLOWING INFORMATION]
OSTEO-BI-FLEX 36.4%
SCHIFF 13.0%
ARTHX 10.3%
PRIVATE LABEL 12.7% \ (8% BY RXSD)
ALL OTHER 27.6%
DIET & WEIGHT MANAGEMENT
KEY BRANDS
METAB-O-LITE CHROMASLIM
DENISE AUSTIN
- - METAB-O-LITE IS #1-SELLING DIET ITEM
- - BROAD RANGE OF SAFE, EFFICACIOUS AND CONVENIENT PRODUCTS
[PIE CHART REPRESENTING THE FOLLOWING INFORMATION]
PRIVATE LABEL 9%
DEXITRIM 16%
ACUTRIM 3%
CHROMA SLIM & OTHER REXALL BRANDS 9%
METAB-O-LITE 26%
ALL OTHER 38%
ACTIVE NUTRITION
KEY BRANDS
MET-RX
WORLDWIDE SPORTS
- - MET-RX IS A TOP-SELLING NUTRITION BRAND
- - WORLDWIDE IS TOP-SELLING PURE PROTEIN BAR
- - WELL-RECOGNIZED IN FD&M & SPECIALTY MARKETS AS CONSUMER CHOICE FOR
EFFICACY, INNOVATION AND QUALITY
[PIE CHART REPRESENTING THE FOLLOWING INFORMATION]
MET-RX 15%
BALANCE BAR 23%
POWER BAR 30%
TWINLAB 7%
ALL OTHER 16%
Source for all three charts: IRI Infoscan, Total FD&M 52 weeks ending 26 March
2000
24
[SLIDE 25]
REXALL SHOWCASE INTERNATIONAL
INDEPENDENT DISTRIBUTOR NETWORK
- - OVER 120,000 ACTIVE DISTRIBUTORS GLOBALLY
- - PRESENCE IN US, JAPAN, KOREA, TAIWAN, HONG KONG AND MEXICO
- COUNTRIES REPRESENT 70% OF $80BN GLOBAL MARKET
- ENTERED JAPAN IN 1999 ($30BN MARKET)
- EXPANSION INTO CANADA IN FALL 2000
- - MATURE AND STABLE DISTRIBUTOR BASE
- 75% UNIVERSITY GRADUATES
- 33% MEDICAL PROFESSIONALS
- AVERAGE AGE - 48 YEARS
- - UNPARALLELED DISTRIBUTOR SERVICES AND SUPPORT
- INTERNET
- GLOBAL COMPUTER SYSTEM
- - INNOVATIVE HEALTH AND WELLNESS PRODUCTS
- #1 PATENTED CHOLESTEROL-REDUCING PRODUCT (BIOS LIFE)
- - STRATEGIC INITIATIVES INCLUDE rexall.com AND THE INTRODUCTION OF NEW
SCIENCE-BASED PRODUCTS
[BAR GRAPH REPRESENTING THE FOLLOWING INFORMATION]
1996 1997 1998 1999 2000
ACTIVE DISTRIBUTOR FORCE 55,000 75,000 100,000 115,000 120,000
25
[SLIDE 26]
REXALL SUNDOWN - SALES GROWTH
REVENUE UP 22% FOR FIRST HALF OF FISCAL 2000 (15% EXCLUDING IMPACT FROM
ACQUISITIONS)
[BAR GRAPH REPRESENTING THE FOLLOWING INFORMATION]
FISCAL YEARS ENDED 31 AUGUST
CAGR 37%
($MM)
1995 166.2
1996 211.2
1997 286.9
1998 522.3
1999 584.7
[CHART]
SIX MONTHS ENDED 29 FEBRUARY
Increase 22%
($MM)
1999 261.1
2000 318.4
% Growth 27% 36% 82% 12%
26
[SLIDE 27]
REXALL SUNDOWN - OPERATING PROFIT
OPERATING PROFIT INCREASED 10% FOR THE FIRST SIX MONTHS OF FISCAL 2000
[BAR GRAPH REPRESENTING THE FOLLOWING INFORMATION]
FISCAL YEARS ENDED 31 AUGUST
CAGR 48%
($MM)
1995 19.7
1996 36.0
1997 54.0
1998 105.9
1999 93.3
[CHART]
SIX MONTHS ENDED 29 FEBRUARY
Increase 10%
($MM)
1999 42.5
2000 46.9
% Growth 83% 50% 96% (12%)
27
[SLIDE 28]
UNIQUE VALUE PRICING STRATEGY
[GRAPH REPRESENTING THE FOLLOWING INFORMATION]
AVERAGE
AVG. RETAIL RETAIL PRICE
PRICE 12/97 12/99
----------- ------------
Sundown $ 5.51 $ 6.22
Your Life 7.66 7.16
Nature Made 7.04 7.68
Nature's Bounty 7.07 7.42
Private Label 4.82 5.37
Source: IRI Infoscan. Total FDM Y/E 26/12/99 (excludes Osteo
Bi-Flex-Registered Trademark- and Cellasene-TM- for Sundown and joint care
for Private Label)
28
[SLIDE 29]
VMS MARKET GROWTH
PROJECTED US VMS MARKET BREAKDOWN
CAGR: 14.2%
[BAR GRAPH REPRESENTING THE FOLLOWING INFORMATION]
1996 1997 1998 1999P 2000P 2001P 2002P 2003P
Supplements and minerals 3 4 5 6 7 8 9 10
Vitamins 3.5 3.8 3.9 4.3 4.6 5.2 5.7 6.6
Source: Packaged Facts, 1998
CHANNEL GROWTH RATES
TWO YEAR GROWTH
[BAR GRAPH REPRESENTING THE FOLLOWING INFORMATION]
Health Food 37%
Mail Order -4%
Direct Sales 7%
Drug Stores 31%
Food Stores 40%
Mass Merch. 92%
Source: Packaged Facts, 1998
29
[SLIDE 30]
PRESENTATION OUTLINE
NUMICO - 1ST QUARTER RESULTS
OUTLINE OF THE TRANSACTION
RATIONALE FOR THE TRANSACTION
FINANCIAL IMPACT OF THE TRANSACTION
30
[SLIDE 31]
TRANSACTION SUMMARY
CONSIDERATION
Purchase price (at $24.00) $1,535 MM
Options(1) 91 MM
Net debt assumed(2) 114 MM
Transaction costs 75 MM
------------
Total transaction value $1,815 MM
============
MARKET PREMIUMS(3)
1 day 25%
1 week 39%
1 month 47%
(1) Consideration for options is net of tax benefits
(2) Net debt position as of 26 April 2000
(3) Premium based on average prices; 1 day price based on RXSD price on 28 April
2000 of US$19.25
31
[SLIDE 32]
FINANCING THE ACQUISITION
PROPOSED FINANCING STRUCTURE
([EURO] or $ MM)
EQUITY [EURO]450
CONVERTIBLE [EURO]600
RXSD DEBT $ 114
ACQUISITION DEBT $ 725
TOTAL $ 1,185
32
[SLIDE 33]
FINANCIAL IMPACT ON NUMICO
ACCOUNTING
- - CAPITALISATION OF SELECT REXALL BRANDS, NO AMORTISATION
- - CAPITALISATION OF GOODWILL (AMORTISATION 20 YEARS)
FINANCING AND TAX
- - ADDITIONAL INTEREST EXPENSE OF APPROX. [EURO]95 MM P.A.
- - TAX RATE REMAINS AROUND 25%-26% ON EBTA
SYNERGIES
- - REALISATION OF SCALE ECONOMIES AND PURCHASING POWER
- - INCREMENTAL SALES FROM OPERATIONAL LEVERAGE
33
[SLIDE 34]
ACCOUNTING POLICY
INTANGIBLES
Purchase price $ 1,700 MM BRAND CAPITALISATION
|
Less net asset value $ 250 MM |-- > $ 700 MM
------------- |
|
Intangibles $ 1,450 MM --------
| GOODWILL (20 YEARS)
|
|
| Value approx. $ 750 MM
|-- >
Amortisation $ 38 MM p.a.
34
[SLIDE 35]
SIGNIFICANT OPERATING SYNERGIES
2001
COST SYNERGIES
Purchasing $ 15.0 MM
Manufacturing $ 7.5 MM
Administration $ 2.5 MM
---------
Total cost synergies $ 25.0 MM
SALES SYNERGIES
EBIT on incremental sales $ 10.0 MM
INCREMENTAL EBIT $ 35.0 MM
35
[SLIDE 36]
TENDER OFFER OUTSTANDING SHARES REXALL SUNDOWN
The tender offer described in this presentation for the outstanding shares of
Rexall Sundown, Inc. has not yet commenced, and this is neither an offer to
purchase nor a solicitation of an offer to sell securities. The tender offer
will be made only through the Offer to Purchase and the related Letter of
Transmittal. Shareholders of Rexall Sundown, Inc. are strongly advised to
read both the tender offer statement and the solicitation/recommendation
statement regarding the tender offer and the merger, when they become
available, because they will contain important information. The tender offer
statement will be filed by Royal Numico with the Securities and Exchange
Commission (SEC), and the solicitation/recommendation statement will be filed
by Rexall Sundown with the SEC when the tender offer commences. Shareholders
may obtain a free copy of these statements and other documents filed by Royal
Numico and Rexall Sundown at the SEC's web site at www.sec.gov. These
statements also may be obtained for free from the Information Agent,
Innisfree M&A Incorporated (Rexall Sundown shareholders please call
1-888-750-5834).
36