HBRM - One to consider

Debt:

• In comparison to 2011, for the first nine months of 2012 Herborium has decreased its long term debt by 23% ($360K), as reported. Additional debt reduction was achieved in fourth quarter of 2012 and will be reported in details in an Annual Report.

Sales and Margins:

• Herborium sales of AcnEase®, a proprietary Botanical Therapeutic® for Acne with up to 96% of success rate, increased over 23% for nine months of 2012, as reported. Considering 42% increase in sales on Black Friday and Cyber Monday 2012 in comparison to the same date for 2011, the end of the year sales results is expected to be even higher.

• Gross Profit Margin for AcnEase for nine months of 2012 increased by 16.5% in comparison to 2011 (from 54.5% to 63.5%), as reported. Further increase in Profit Margin is expected in the fourth quarter of 2012.