TEA www.hain-celestial.com 5 Rudolph the Red-Nosed Reindeer © and ® The Rudolph Co., L.P. “Rudolph the Red-Nosed Reindeer” animated program © 1964, renewed 1992 Classic Media, Inc. All rights reserved. Under license to GT Merchandising and Licensing LLC. “Santa Claus is Comin' to Town” animated program © 1970, renewed 1998 Classic Media, Inc. Character names, images and other indicia are trademarks of Classic Media, Inc. Celestial Seasonings is committed to strengthening our market leadership and building our brand equity with innovative new products and compelling consumer support. Celestial Seasonings continues to extend our brand beyond tea bags with innovative and consumer-validated products. We are expanding and refining our  TeaHouse Latte and  Chai lines of powdered tea-based products, and this year we began a market test of  Zingerade . This year, Celestial Seasonings addressed the needs of the fastest growing consumer segment in the United States by  launching four tea flavors specifically developed for and marketed to the Hispanic consumer:  Linden Mint ,  Apple Banana Chamomile , Cinnamon Apple  and  Honey Lemon Diet teas. These products also mark the introduction of a new package format: the 10-count box, which has the potential for expansion to other consumer segments both domestically and internationally. A major factor at retail in terms of size and growth, chai— a traditional spiced black tea from East India—is expected to be one of the most important segments in Specialty Tea over the next few years. Celestial Seasonings has already made an impact with original and decaffeinated chais and now new items,  Chocolate Caramel Enchantment ™ Chai and  Honey Vanilla White Tea Chai , should strengthen our position.  Rooibos (red tea)—a caffeine-free, antioxidant-rich herb from South Africa—continues to drive substantial growth in the Specialty Tea category. Celestial Seasonings is poised to capture a substantial part of this segment with two unique and flavorful new items:  Moroccan Pomegranate Red and  Red Safari Spice ™ . The Holiday Tea program continues to generate significant growth, and remains an area in which Celestial Seasonings truly differentiates itself from the competition. A fourth holiday tea, Candy Cane Lane ™  Decaf Green , was launched, offering consumers another delicious and healthy way to celebrate. In addition, we introduced  Rudolph’s ® Rockin’ Raspberry ™ and Santa’s Candy Apple ™ , holiday teas for children—a previously untapped market for the brand.  White tea has received significant media attention and with good reason—recent studies show that white tea contains the  highest level of antioxidants of any tea. To deliver these healthful benefits to consumers, we followed up last year’s successful White Tea launch with new items:  Decaf China Pearl ™ and  Imperial White Peach ™ .  Our strong commitment to innovation continues with the expansion of leading-edge red, white, dessert and chai products as well as new offerings in the core herb, green, black and wellness lines. These successful product introductions capitalized on the convergence of two major trends: growing consumer awareness of the health benefits of tea and increasing interest in new and unique varieties and flavors.  Celestial Seasonings core Green Tea and Herb Tea segments received a big boost with two delicious and uniquely-flavored new items,  Blueberry Breeze ™ Green Tea and  Tropic of Strawberry ™ Herb Tea . Our well-received  Black Teas of the World line added Marrakesh Express Vanilla Spice and  Persian Mint Spice Decaf — two exotic and antioxidant-rich flavors that are unique in the category.  Bagged Teas New Beverages