Zrii Independent Executives and Associates

Here is another Zrii update from the Corporate center. By the way, I just wanted to remind you guys that the Kick-off event starts this Friday and Navy Pier in Chicago. It’s going to be a lot of fun!

To All Zrii Independent Executives and Associates

We are off to a record breaking start! You have exceeded all our expectations with numbers of Independent Executives enrolled and sales volumes as of October 1, 2007. We are the talk of the industry. We are hearing it from vendors, network marketing associations, and other network marketing companies. We are being watched all over the world. We are exceedingly grateful for the position you have built for us with your outstanding efforts. You are truly the finest organization of network marketing leaders ever assembled together at the beginning of a new network marketing company.

As we have completed our first couple weeks of pre-launch, several exciting milestones have been reached.  Principal among them is our historic first commission run last Friday.  We paid an eye-popping total for a first commission run, and the excitement is palpable!  Checks have been mailed and our IE leaders are beginning to reap much of their hard work from our development phase.  Congratulations!

Here are a few important updates on operational aspects of our business:

Credit cards began charging the first week as shipping orders began batching. This was done to meet the Fast Start payments you have worked hard to earn. We made the decision to pay commissions on authorized cards even though funds had not completely transferred into our banks. We have had the programmers constantly at our call to correct data input to meet last week’s beginning payments. There are issues we are addressing with declined credits cards for expired cards, bank-set transaction limits, and nonsufficient credit limits. Those card holders received automatically triggered emails asking them to call us for clarification. Our Executive Services Dept and Commissions Group are actively attempting to reach out to those card holders for updated information. When funds are collected we will pay all earned Fast Start in the subsequent pay periods. Some have expressed frustration with the typical waiting period for automatic bank drafts and automatic deposits. The banking institutions are requiring several pay periods before those processes can begin. We anticipate paying out in excess of $1.5 million in commissions this month.

We have shipped thousands of orders to date. They have been primarily 4 Packs and Fridge Packs. We have shipped Business Builder Kits in bulk to Canada to provide expedited shipments and reduced tariffs and duty. We are adding additional fulfillment centers for efficiencies and enhanced delivery.

We have had some “hiccups” in production. We regret any inconveniences this may have caused you, but we want to reaffirm our commitment to world class Zrii business operations.  As part of our business operations focus, we have spent the last 2 weeks aligning parallel manufacturing of bottles, product production and labeling, and fulfillment operations. All business processes continue under constant review, and currently we have engaged consultants and industry analysts for improvement and increased performance.  We are adding several operations positions in the coming weeks. We know how important it is for us to get the right people positioned at corporate headquarters.

We have decided to suspend shipment of large bottles for approximately 10 to 14 days to gain levels of quality and volume to support your business needs. We are confident we have raised the standards Zrii requires with the selection of several new vendors. We will begin shipping all marketing materials included in Business Builder Kits beginning this Thursday with corresponding Zrii product for those kits in the following 2-3 weeks. Mini bottles have experienced some bottling concerns which have been identified and are now controlled with tighter standard operating procedures and quality controls. They are ramping up production again this week in order to ship product this week and replace the identified mini bottle batch. This will provide you the means to sample and promote the best nutritional beverage in the industry.

Our back office will remain basic in function and presentation as we add additional senior level IT oversight to our internal management team and technology team members. We continue to look at all options to improve our technology solutions. We promised to deliver world class web tools and that commitment will be fulfilled during prelaunch. We expect significant and continued improvements to back office functions over the next 60 days.

Our marketing tools will begin to be unveiled this week at our Chicago event. They are exceptional in look and impact. They will make you proud to be associated with Zrii. We will always listen to the field and modify tools and business kits to meet your needs. You are the driving force, you will be heard!

We thank you for your dedication, your focus, your integrity, and your loyalty.

We are excited to be with you in Chicago for a very special occasion in the history of Zrii!

Zriiyaa,

The Zrii Corporate Team

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