Greater China.  The following table sets forth revenue for the Greater China region and its principal markets: 2003 2004 Change (U.S. dollars in millions) China $ 38 . 5 $  105 . 6 174% Taiwan 73 . 1 82 . 8 13% Hong Kong 23 . 9 41 . 4 73% Greater China total $  135 . 5 $  229 . 8 70% Revenue growth in Greater China was a result of the continued expansion of operations in China, as well as strong  growth in Hong Kong and Taiwan. Currencies in China and Hong Kong are generally pegged to the U.S. dollar, minimizing  the impact of foreign currency fluctuations on this region.  China revenue grew by  174 % compared to  2003 . We continued to successfully grow our business in China as a result of: • expansion of our sales representatives, based in part upon the attractiveness of the opportunity for employment  with us in the market; • successful product launches and promotions; and • a robust economy, with a focus on international brands and opportunities.  Following a period of rapid sequential growth in China in  2003  and the first half of  2004 , however, revenue declined  slightly in the third quarter of  2004  compared to the second quarter, and then stabilized sequentially in the fourth  quarter. Also, the number of sales representatives remained essentially level during the second half of the year. This  softening in the second half of the year is attributed to a softening of the recruiting environment for new customers and  sales representatives after an initial  18  months of rapid sequential growth. This softening was also largely the result of  our taking actions against sales representatives who had violated company policies. Due to increased media and govern- ment scrutiny of activities related to direct selling and direct selling companies operating in China in advance of new  direct selling regulations, we focused more on training our sales representatives and enforcing our sales policies that  prohibit improper promotion of our business, and less on implementing aggressive growth initiatives. This emphasis re- sulted in disciplinary actions against, or termination of employment of, sales representatives who had violated these  policies, and contributed to the lack of growth in our revenue, our customers and our sales representative numbers during  the second half of  2004 . We believe, however, that our long-term growth prospects were enhanced due to these actions.  Results in China were also negatively impacted by uncertainties and delays with respect to the new direct selling regu- lations and related negative and confusing media coverage. We currently anticipate that new regulations will be adopted in the next several months and are optimistic that the  new regulations will positively impact our business in China. After publication of the new regulations, we anticipate that  companies interested in operating direct selling businesses in China will need to secure a direct selling license, which will  likely take several months. In the meantime, we are implementing initiatives to keep the opportunity vibrant for our sales  leaders, including the launch of three key Pharmanex products in January  2005  and the introduction of the BioPhotonic  Scanner in our retail stores in China. We also are taking steps to be prepared to apply for a direct selling license under the  anticipated regulations. We currently have retail stores in nearly every province in China, but the new regulations are  expected to require a certain minimum number of retail stores in a particular province in order to receive approval to conduct  direct selling in such province. Therefore, it is widely anticipated that a company will need a minimum of  300  to  400  retail  stores in China to conduct direct selling in all provinces and municipalities throughout the country. We currently have  120 stores in China and plan to add  80  to  100  stores in  2005  and additional stores in  2006 . While the regulations are still not  final, and we have not yet been approved to conduct direct selling, we anticipate that we will be able to conduct direct  selling in four or five leading provinces and municipalities by the end of  2005 , and in additional provinces and munici- palities in  2006 . As our business model in China is centered on our sales representatives and their productivity, we do not  believe that store openings will directly lead to new revenue in the market. Rather, revenue growth is primarily dependent  upon sales force productivity and the recruitment of new sales representatives. We expect to continue to experience government and media scrutiny in China due to our status as a leading, global  direct selling company and the increased focus on the direct selling industry as new regulations are implemented. Until  such time as the regulations are final, we obtain a direct selling license, and make any changes to our business model, we  will continue to focus on training our sales employees and enforcing our employee policies to maximize the likelihood of  obtaining a direct selling license in a timely manner. Hong Kong and Taiwan each generated strong growth in revenue and in the number of executive and active distributors  in  2004 . Modifications we made to our compensation plan in early  2004  in these markets to promote the development of  executive distributors, as well as continued growth in monthly product subscription orders, contributed to the growth in  revenue in these markets. The revenue increases in these markets were also due in part to continued enthusiasm for business  39