Kuala Lumpur, January 15, 2004 - As part of its growth strategy, Main Board-listed Amway (Malaysia) Holdings Berhad (Amway) plans to set up more distribution centers as well as enhance its information technology infrastructure.

The company has plans to upgrade existing as well as set up additional regional distribution centers (RDCs) and pick-up centers (PUCs) in the next few years to provide greater accessibility to Amway Distributors.

Amway currently has 9 RDCs in major towns in Malaysia and one RDC in Brunei servicing more than 158,000 Distributors.

“In the next year or so, we are targeting to open a PUC in Sibu and a RDC in Melaka. There are also plans to relocate our present RDC in Butterworth to bigger premises for the ease of Distributors,” said Low at a press conference after Amway’s ninth Annual General Meeting held in Kuala Lumpur today.

“This will enhance Amway’s distribution network and increase accessibility to Amway products through strategically located RDCs and PUCs. We are expected to invest RM5.4 million in setting up the Sibu PUC, the Melaka RDC as well as the purchase of land and the building of a new RDC to replace the existing one in Butterworth.

“Our future plans also include looking into constructing a new HQ. We are in the process of identifying a suitable location and will make the appropriate announcement when the time is right,” added Low.

The other element of infrastructure strengthening is the continued emphasis placed by the company on its information technology capabilities. The company has already committed RM5 million up to this fiscal year to upgrade the company’s main computer system, upgrade the digital link between its 10 regional distribution centres, incorporating a Business Information Warehouse hardware and software programme, improving office automation and enhancing its website called Amway2U.com.

Amway2u.com, which Distributors can access day and night for information about the latest product offerings and promotions as well as to place their orders, commanded 29% or RM120 million worth of last year’s revenue.

Explained Low: “Amway2u was designed to complement our “high touch” approach with “high tech” capabilities. We have to stay relevant to the younger generation given that currently 60% of the people who join the Amway business are below the age of 35.

“We are hoping that amway2u will also promote the migration of orders from walk-in and fax to the web. In the last four months, amway2u orders averaged 50% of national sales. We are hoping to meet our 55% target for Fiscal 04. We believe this is achievable as we had hit 60% of national orders when we ran a promotion in July last year.”

About Amway
Amway is one of the leading direct selling companies in Malaysia. The company, which began operations in 1976, offers a wide range of meaningfully differentiated quality products under its five core business lines namely Nutrition and Wellness (NUTRILITE vitamins and dietary supplements), Skin Care & Cosmetics (ARTISTRY skin care and cosmetic products), Personal Care (including oral care, toiletries and hair care products) Home Care (including laundry and car care products
and household cleaners); and Home Tech (including water treatment system and cookware). In addition, the company’s PERSONAL SHOPPERS Catalogue offers locally-sourced and manufactured consumer products, from food and beverage to watches, garments, personal accessories and household appliances. For more information, log on to www.amway2u.com.

For Amway’s last financial year ended August 31, 2003, it recorded a pre-tax profit of RM73.9 million on the back of a RM422.3 million revenue.