Independent Business Owners have pocketed $2.2 billion out of Quixtar's $6.8 billion in sales in the form of bonuses and incentives since 1999. IBOs earn income based on business volume resulting from their efforts, using Quixtar's proven Independent Business Owner Compensation Plan. Quixtar does not generate site traffic through advertising, instead rewarding IBOs who provide the “high-touch” element complementing Quixtar's “high-tech” infrastructure.

IBO STATISTICS

• IBOs earned $370.1 million in bonuses and incentives in fiscal 2006, bringing their seven-year total to more than $1.72 billion.
• More than 370,000 Independent Business Owners received a bonus in FY 05.
• The average bonus and cash payments earned by a Diamond IBO in 2005 were $146,995.*
• The average bonus and cash payments earned by an Emerald in 2005 were $72,241.*
• The average bonus and cash payments earned by a Q12 Platinum, an IBO who qualifies at the Platinum level all 12 months of the year, were $47,472.*
• The largest annual bonus earned by a Diamond IBO in 2005 was $1,083,421.
• The largest annual bonus earned by an Emerald IBO in 2005 was $688,869.

The Average Monthly Gross Income for “Active” IBOs was $115.

Approximately 66% of all IBOs of record were found to be “active”**

*The following are approximate percentages of Direct Fulfillment IBOs of record in North America who achieved the illustrated levels of success in the calendar year ending August 31, 2005: Diamond .0120%; Emerald .0320%; Q-12 Platinum .1683%.

**Based on an independent survey during 2001. “Active” means an IBO attempted to make a retail sale, or presented the Independent Business Ownership Plan, or received bonus money, or attended a company or IBO meeting in the year 2000.

“Gross Income” means the amount received from retail sales, minus the cost of goods sold, plus the amount of Performance Bonus retained. There may be significant business expenses, mostly discretionary, that may be greater in relation to income in the first year of operation.