LETTER

Thank you for your interest in Celsius, Inc. We are dedicated to bringing healthier products through science and innovation. We make innovative products people can trust. We win because we are first in the mind of the consumer when they want a great tasting product to meet their needs, that works, that is backed by science, and delivered by a company with solid values and integrity.

Consumers are increasingly aware of nutrition and its connection to their personal health but face a daily dilemma as they search for refreshment. They not only want, but are beginning to expect more from their beverages than just empty calories as evidenced by the rate of new products fortified with vitamins, fiber, minerals, etc. The obesity epidemic points to the need for lower calorie alternatives. There is increased importance on people’s personal fitness. With 63% of Americans now exercising, the demand to get the most from the time and effort invested in exercise has grown. Celsius with it’s unique MetaPlus® formula, meets all these needs, in a great tasting product.

What makes Celsius so special? Studies show Celsius may have the ability to positively impact body composition when consumed 15 minutes prior to moderate exercise by reducing body fat while building lean muscle. * Lean muscle is more metabolically active which means that your body may burn calories more efficiently throughout the day. This is a powerful combination of benefits!
Celsius has gained praise for the balanced blend of specific ingredients in its formulation and also for what is NOT included. Today's consumer is demonstrating that they no longer want to be loaded with sugar, artificial preservatives, flavors, or colors, high fructose corn syrup, and sodium. Filled with good ingredients such as Green Tea with EGCG, Ginger, Calcium, Chromium, and enriched with vitamins including B Vitamins, and Vitamin C, Celsius has been rapidly embraced by consumers, distributors, and retailers.

When I reflect back on our experience developing Celsius, it is with great pride that I consider our achievements. From original product formulation and testing, trademark development, manufacturability verification - and ultimately the independent confirmation of the thermogenic effect of Celsius by multiple clinical studies from the Ohio Research Group and University of Oklahoma - through to the many awards, accolades and broad recognition that Celsius has garnered, I cannot help but think about how far we have come. Our recognition as Beverage Industry Magazine's "Best New Product - 2005", CSP Retailer Choice "Finalist 2006", and respected industry analysts DataMonitor's "Number One Food and Beverage Trend for 2007", and three awards in 2009 for Celsius and the new On-the-Go Powder Sticks for Best New Functional Product and the exciting “Winner of Retailers Choice Award”, top off more than 1000 TV Newscasts and a feature on the "Today" show on NBC with Matt Lauer, the Food Network Unwrapped, and Extra, clearly speak for themselves.

As we continue the launch of Celsius, our company, Celsius, Inc. is laying the foundation for the future. We will continue the fun of building an exciting company but not take our commitments lightly as we work towards our vision of healthier products through science and innovation.

Stephen C. Haley, CEO
Celsius, Inc.