Pershing Square Responds to Statement by Herbalife About Postponed Meeting

Releases All Correspondence Between Pershing Square and Herbalife

NEW YORK--()--Responding to Herbalife’s statement issued after the close on Tuesday, January 7, 2015, Bill Ackman stated: “Rather than speaking to its deteriorating business fundamentals, Herbalife appears to be attempting to distract investors from the facts by claiming – falsely – that we cancelled a meeting.”

To set the record straight, Pershing Square Capital Management is releasing all correspondence between Pamela Jones Harbour, Herbalife’s Chief of Global Member Compliance and Policy, and David Klafter, Senior Counsel at Pershing Square. On November 6th, Mr. Klafter sent a 19-page letter to Ms. Harbour outlining serious compliance issues at Herbalife and proposing an in-person meeting to discuss these issues. Ms. Harbour responded by letter inviting Mr. Klafter to Herbalife’s LA headquarters.

Mr. Klafter and Ms. Harbour had subsequent conversations and email correspondence that resulted in a meeting being scheduled among Ms. Harbour, Mr. Klafter and others at Herbalife’s headquarters on December 17th. On December 10th, Mr. Klafter emailed Ms. Harbour to explain that he would have to postpone the meeting because of other pressing year-end priorities (which included the release of a recently obtained Herbalife video). Mr. Klafter wrote: “I’m sorry about having to postpone our meeting. We’re not passing up the chance to meet you.” Mr. Klafter remains interested in meeting with Ms. Harbour as soon as possible.

On December 17th, the originally scheduled date of the meeting with Ms. Harbour, Pershing Square released a video of a meeting of senior distributors and corporate Herbalife executives including: current Senior Vice Presidents Rob Levy and Bruce Peters, Vice President Mike McKee, and Leslie Stanford, a Chairman’s Club member and former member of Herbalife’s board of directors. At the meeting, Chairman’s Club member Stephan Gratziani explains the fraud and deception in Herbalife’s business model. We encourage interested parties to watch the eight-minute summary video and the three-hour complete recording.

Herbalife’s stock price declined 12% on Monday and 8% yesterday on no news. Herbalife did not comment as to the reasons behind the stock price decline. Today, after Mr. Ackman appeared in a CNBC segment, Herbalife’s stock price rose 4%. In its statement today, Herbalife stated: “[W]ith [Mr. Ackman’s] Herbalife put options expiring next week, he is off on yet another tirade of misrepresentations, the sole purpose of which is drive down our share price.”

Mr. Ackman stated: “Yesterday, on CNBC, I said that Herbalife will miss earnings for the fourth quarter of 2014 and will lower its earnings guidance for 2015. If these assertions are incorrect, as Herbalife states, then the company should correct the record by reaffirming both Q4 and 2015 earnings guidance.”

To set the record straight, 97% of the Herbalife put options owned by Pershing Square have been extended and have expiration dates up until 2016. The January put options held by Pershing Square have a strike price of $65 share. Pershing Square may choose to extend, sell or exercise the January put options depending upon market conditions and other factors.

About Pershing Square Capital Management, L.P.

Pershing Square Capital Management, L.P. ("Pershing Square"), based in New York City, is a SEC-registered investment advisor to private investment funds. Pershing Square manages funds that are in the business of trading — buying and selling — securities and other financial instruments. Funds managed by Pershing Square are short the stock of Herbalife Ltd and own put options on the Company. Pershing Square may increase, decrease, dispose of, or change the form of its investment in Herbalife for any or no reason, at any time. Pershing Square may change its views about or its investment positions in Herbalife at any time, for any reason or no reason. Pershing Square may buy, sell, cover or otherwise change the form or substance of its Herbalife investment. Pershing Square disclaims any obligation to notify the market of any such changes. Please see the full Disclaimer appearing on website www.factsaboutherbalife.com and www.herbalifepyramidscheme.com.

Contacts

Rubenstein
Farrell Sklerov, 212-843-8289
fsklerov@rubenstein.com

Contacts

Rubenstein
Farrell Sklerov, 212-843-8289
fsklerov@rubenstein.com