BK's Mangosteen Patent Response

Scottsdale, Arizona — May 19, 2005

Hello Team,

Some of you may have been forwarded an email from XanGo's Chairman, Gary Hollister dated May 18, 2005. The only thing his email does is reconfirm XanGo filed its lawsuit not for legal reasons, but because it wants to divert at all costs attention away from the quality of our competing products. Despite Mr. Hollister's desire, after all the smoke clears, we urge all of you to focus on the issue of quality wellness products. Nevertheless, hopefully for the last time, I will correct a few of Mr. Hollister's misinformed comments. For anyone who takes the time to review the record relating to XanGo's patent, the New Vision and Morinda litigation will easily identify XanGo's and its Chairman's misstatements. To put you at ease, though, I will respond to a few of their more ridiculous assertions.

XanGo's Patent Reexamination
XanGo is simpleminded in trying to convince its distributors that an appeal board will overturn the final findings of a United States Patent Office committee of three senior patent examiners that all 81 of the claimed inventions in XanGo's patent are invalid. Eighty one claimed inventions down the drain — that is almost unheard of. Not a single claimed invention survived, even after XanGo had two of its high-priced patent lawyers confer with the Examiner on two separate occasions to convince him that there was an invention somewhere in the XanGo patent. They gave their best argument and completely failed. As our patent attorney commented to me after he read the Patent Office final decision, "this patent is on life support."

XanGo in its simplemindedness still claims they were the creator of the mangosteen beverage category. The independent committee of United States Government expert patent examiners didn't think so after they poured over XanGo's filings, and several times listened to XanGo's patent attorneys' arguments and evidence. 

One of the reasons this patent was even granted was because all of the 'prior art' was not disclosed or discovered during the application process. Since the reexamination, the USPTO has been provided with sufficient documentation that proves XanGo didn't 'invent' mixing mangosteen pericarp and fruit juices together. In fact, we discovered a company in Japan was doing it back in 1997.

Rather than rely upon my or XanGo's interpretation of what has transpired, I would again urge you to go to the official independent office government Patent Application Information Retrieval System at http://portal.uspto.gov/external/portal/pauir. After this site comes up, enter application No 90/007,178 and click on the Image File Wrapper tab, which will reveal an index of the document history. Afterwards, click on the Reexam Final Rejection – 4/21/2005. By no means was I using my own 'spin' as I've been accused. I gave everyone the link to read the words of the USPTO themselves.

New Vision's "Mangosteen" Drink
Our label is in compliance with strict FDA guidelines. Mr. Hollister doesn't want us to compare our product with his, because there isn't any comparison. We beat XanGo in every category except for apple and grape juice content. When it comes to ORAC Value, Xanthone Content and Vitamin Content they're not even close.

XanGo's Chairman selectively quotes from some of our legal pleadings to conclude that we do not have pericarp in the product. He fails to note that we specifically stated in the same legal pleadings that we use a pericarp extract. Now why would he leave that out? This is one of the main reasons that the independent lab test indicates that we have a superior mangosteen product. As for him implying that our product doesn't contain mangosteen, aloe vera or pericarp extract, nothing is further from the truth. In fact, if our product didn't contain the above items, why in the world would XanGo spend a couple of million to sue New Vision?

I did notice Mr. Hollister didn't approach my comment about our product's xanthone content equaling 14 bottles of XanGo, nor is XanGo saying that New Vision or Vemma will no longer be able to sell a mangosteen product.

New Vision's Business
This one surprised me. Unlike Mr. Hollister, I was in the courtroom three weeks ago with my legal team. XanGo's Chairman wrote that New Vision's attorney stated in open court that "Mr. Boreyko had to funnel $3 million of his own money into the business last year." This is just a blatant falsehood. Our attorneys never stated this. In response to false assertions by XanGo's attorneys that I had drained monies out of New Vision, my counsel did confirm I have invested substantial monies over the past ten years into the holding company, international expansion and the manufacturing company. This is what owners do when they believe in their businesses. Maybe when XanGo steps up and opens its own manufacturing plant, they'll have to invest in their business as well.

XanGo's Chairman also stated that the most recent Dunn & Bradstreet reported that New Vision lost 90 percent of its sales. This is another blatant falsehood. Dunn & Bradstreet has never, ever reported on our sales. I just double checked and I invite anyone else to do so. Mr. Hollister needs to check his sources before spreading such libelous falsehoods and rumors.

New Vision's Commentary on the Morinda Litigation
This isn't my fight, nor would I want to be XanGo facing down Morinda based on what I've learned about this case. XanGo seems content to keep the pleadings in that case sealed so the general public and most importantly, their distributors cannot see for themselves what is occurring. Time will tell and the clock is ticking. Like I said, this will be interesting to watch.

Nothing in my May 16, 2005 press release or this email has been a lie or 'spin' as I've been accused. Just do a little due diligence and you'll discover the truth. And, think about the answer to this question: based on the number of blatant falsehoods in Mr. Hollister's recent statement to his distributors, what other issues has he been less than truthful about when addressing XanGo distributors? In fact, I read in a XanGo distributor's email that I was supposed to have approached Wild Flavor to reformulate my product; nothing could be farther from the truth. Where in the world do they get this stuff from? Here's the bottom line…our companies just need to compete fairly and HONESTLY, based on product, compensation plans and team support. I've been doing that for ten years now. That's the American way and that's what makes this industry so great. I am not trying to tear any company down. Remember, I never asked for a lawsuit. XanGo brought this fight to me and those who know me know I'll stand up for what I believe is right and when necessary, I will fight.

With the United States Patent Office's recent ruling, my focus is set on helping my Members build New Vision and Vemma, two of the most respected wellness companies in the industry. That all starts with providing the finest product and that attracts the best leaders. Instead of engaging in a verbal sparring match with XanGo or any of its ranting leaders, we are going to continue to focus our efforts on marketing our superior mangosteen products.

New Vision has a ten year track record of success, honesty and top quality products backed by independent lab results. Given the Morinda litigation, its bungled patent strategy and risky business practices, we will see if XanGo lasts another year, let alone ten years like New Vision. In this business, stranger things have happened. Less than one percent of the companies in this industry make it past ten years. I do not intend to continue to counter or participate in XanGo's smoke and mirror diversions. I recommend that you, and any competitors, focus on the quality of competing products. That is what we have and will continue to do.

Successfully,


BK Boreyko
President & CEO
New Vision & Vemma