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In fiscal2009, this segment represented approximately 18% of total sales.

Wedesign, market and distribute a wide range of household convenience items,personalized gifts and photo storage products, as well as coffee and tea, withinthis segment.

Effective March 31, 2009, we combined the Two Sisters Gourmet brand into our Party Lite business and will continue to offerthese products as part of the Party Lite party concept.

In October2008, we acquired our interest in Vi Salus, a distributor-basedbusiness that sells nutritional supplements, energy drinks and weightmanagement products.

Indicateby check mark whether the registrant is a large accelerated filer, anaccelerated filer, a non-accelerated filer, or a smaller reportingcompany.

See the definitions of “large accelerated filer,”“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

These consultants arecompensated on the basis of Party Lite product sales at parties organized by themand parties organized by consultants recruited by them.

These additionalpurchases are conditioned upon Vi Salus meeting certain operating targets incalendar year 2009, 20, subject to a one-time, one-yearextension.

Party Lite products aredesigned, packaged and priced in accordance with their premium quality,exclusivity and the distribution channel through which they are sold.

Independent distributors sell Vi Salus brand products using a one-to-one directsales model.

Party Lite’s international marketsduring fiscal 2009 were Australia, Austria, Canada, Denmark, Finland, France, Germany, Ireland, Mexico, Norway, Switzerland and the United Kingdom.

Wesupport our independent sales consultants with inventory management and control,and satisfy delivery requirements through an Internet-based order entry system,which is available to all independent sales consultants in the United States, Canada and Europe.

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These products include fragranced and non-fragrancedcandles, bath products and a broad range of related accessories.

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