FDI: China Government Issues Official Interrogation Notice on Usana Health Sciences Inc. Associate for Alleged Multi Level Marketing Activities in Nanning, the Capital City of the Guangxi Province in Mainland China

FDI also releases several new Web sites that demonstrate that Usana Health Sciences Inc. (NASDAQ: USNA) is recruiting Chinese nationals for multi level marketing in down lines that are literally from Malaysia to Mexico.

For Immediate Release
SAN DIEGO/EWORLDWIRE/Jan. 4, 2008 — The Fraud Discovery Institute (FDI) has just released an official, signature page sealed notice of interrogation from the Nanning Business Administration Department, “Shuan Sheng” Branch Economic Inspection which seeks to investigate the alleged multi level marketing activities of Usana Health Sciences Inc. (NASDAQ: USNA) through an alleged associate(s) in that region.

“It would appear that the interrogation notice is interested in both the individual and the company as a whole,” said Barry Minkow of FDI.

FDI has today posted information about multiple new, current and never before yet seen Web sites of Usana associates – from Malaysia to Mexico – still boldly and actively recruiting Chinese nationals into their various down lines. “This evidence was secured despite a published media report from 2005 when Usana suffered negative publicity for alleged ‘trafficking’ in China,” added Minkow. “Instead of more oversight and stronger efforts to stop this behavior, we were able to find these sites without much effort long after our initial report was issued – over two months ago.”

“We will continue to educate Chinese law enforcement on these abuses by providing simple point-and-click evidence,” said Minkow.

FDI believes that Usana’s apathy towards these frequent and numerous abuses are perhaps best seen in the example of Victor Yap, the associate whose Web site and efforts to recruit Chinese nationals for his Usana business through Hong Kong were exposed by FDI. In that report, FDI corroborated its findings by releasing both e-mails and the actual Web site utilized by Yap’s company, Bay Inspire Enterprises, to recruit. The reaction to this abuse of Usana policy by Yap was initially not much at all, as evidenced by him receiving a commissions’ direct deposit from Usana $506.52 (Malayan Bank savings account) on November 2, 2007, and another on October 12, 2007 for $415.08 (Malayan Bank savings account); in fact, Mr. Yap was not even officially terminated until November 27, 2007 – almost a month and a half after the evidence from the October report was first submitted.

The instances of Yap, the multiple new web sites that demonstrate a strong presence in China and the recent, official interest of Chinese law enforcement are in direct contradiction with previous, on the record statements of Usana senior management as evidenced by the following comments:

• In the third quarter of 2005, Brad Richardson said in the earnings’ call: “Additionally a lot of companies that have been targeting – a lot of the smaller companies who have been entering China through Hong Kong – are touting that, and USANA has chosen not to do that, choosing to enter into the Chinese market the more traditional manner.”
• Usana President Dave Wentz stated in Q3 of 2007: “For us, China is a wait and see, with the laws the way they are, and currently they are throwing more laws and getting stricter. We see that as a very difficult environment to be successful [in].”
• Gil Fuller’s famous statement in the second quarter of 2006 which proclaimed, “We don’t have any associates in China.”

“It would appear that the Business Administration Department Branch of Economic Inspection of China thinks otherwise,” Minkow concluded.See http://www.cheatinginchina.com for supporting documents. To learn more about the Fraud Discovery Institute, visit http://www.frauddiscovery.net.