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UNITED STATES

| (Mark      One)                                      |
|------------------------------------------------------|
|                                                 |
| x                                                    | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|                                                 |   |
| For      the quarterly period ended October 31, 2008 |
|                                                 |
| or                                                   |
|                                                 |
| o                                                    | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

| DELAWARE | 36-2984916 |
|----------|------------|

| (State      or other jurisdiction of incorporation or organization) | (IRS      Employer Identification No.) |
|---------------------------------------------------------------------|----------------------------------------|

| One      East Weaver Street, Greenwich, Connecticut 06831 |
|-----------------------------------------------------------|
| (Address      of principal executive offices)             | (Zip      Code) |

| Large      accelerated filer  o |   | Accelerated      filer  x |   | Non-Accelerated      filer  o |
|--------------------------------------|--------|--------------------------------|--------|------------------------------------|

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|                                                |                                                                                       | Page        |   |
|-----------------------------------------------------|--------------------------------------------------------------------------------------------|-------------|--------|
|                                                |                                                                                       |        |   |
| Part      I.   Financial Information |                                                                                       |        |
|                                                |                                                                                       |        |   |
| Item      1.                                        | Financial      Statements (Unaudited):                                                     |        |   |
|                                                |                                                                                       |        |   |
|                                                | Condensed Consolidated Balance Sheets                                                      | 3           |   |
|                                                |                                                                                       |        |   |
|                                                | Condensed Consolidated Statements of      Operations                                       | 4-5         |   |
|                                                |                                                                                       |        |   |
|                                                | Condensed Consolidated Statements of Stockholders'      Equity                             | 6           |   |
|                                                |                                                                                       |        |   |
|                                                | Condensed Consolidated Statements of Cash      Flows                                       | 7           |   |
|                                                |                                                                                       |        |   |
|                                                | Notes to Condensed Consolidated Financial      Statements                                  | 8-21        |   |
|                                                |                                                                                       |        |   |
| Item      2.                                        | Management's Discussion and Analysis of Financial Condition      and Results of Operations |  22-29 |   |
|                                                |                                                                                       |        |   |
| Item      3.                                        | Quantitative and Qualitative Disclosures About Market      Risk                            | 30-31       |   |
|                                                |                                                                                       |        |   |
| Item      4.                                        | Controls and Procedures                                                                    | 32          |   |
|                                                |                                                                                       |        |   |
| Part      II.   Other Information    |                                                                                       |        |
|                                                |                                                                                       |        |   |
| Item      1.                                        | Legal Proceedings                                                                          | 33          |   |
|                                                |                                                                                       |        |   |
| Item      1A.                                       | Risk Factors                                                                               | 33-34       |   |
|                                                |                                                                                       |        |   |
| Item      2.                                        | Unregistered Sales of Equity Securities and Use of      Proceeds                           | 35          |   |
|                                                |                                                                                       |        |   |
| Item      3.                                        | Defaults upon Senior Securities                                                            | 35          |   |
|                                                |                                                                                       |        |   |
| Item      4.                                        | Submission of Matters to a Vote of Security      Holders                                   | 35          |   |
|                                                |                                                                                       |        |   |
| Item      5.                                        | Other Information                                                                          | 36          |   |
|                                                |                                                                                       |        |   |
| Item      6.                                        | Exhibits                                                                                   | 36          |   |
|                                                |                                                                                       |        |   |
|                                                |                                                                                       |        |   |
| Signatures                                          |                                                                                       | 37          |   |
|                                                |                                                                                       |        |   |

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| Part      I.   FINANCIAL  INFORMATION                                           |   |             |     |   |             |   |
|----------------------------------------------------------------------------------------------------------|--------|------------------|----------|--------|------------------|--------|
| Item      I.   FINANCIAL STATEMENTS                                                       |   |             |     |   |             |   |
| BLYTH, INC. AND SUBSIDIARIES                                                                             |   |
| CONDENSED      CONSOLIDATED BALANCE SHEETS                                                               |   |
|                                                                                                     |   |             |     |   |             |   |
|                                                                                                     |   | October      31, |     |   | January      31, |   |
|                                                                                                     |   | 2008             |     |   | 2008             |   |
| (In      thousands, except share and per share data)                                                     |   | (Unaudited)      |     |   |             |   |
| ASSETS                                                                                                   |   |             |     |   |             |   |
| Current      assets:                                                                                     |   |             |     |   |             |   |
| Cash      and cash equivalents                                                                           |   | $                | 62,409   |   |             | $      | 163,021 |   |
| Short-term      investments                                                                              |   |             | 9,650    |   |             |   | 30,375 |   |
| Accounts      receivable, less allowance for doubtful receivables of $2,554 and $2,006      respectively |   |             | 65,699   |   |             |   | 35,054 |   |
| Inventories                                                                                              |   |             | 172,180  |   |             |   | 132,585 |   |
| Prepaid      expenses                                                                                    |   |             | 18,749   |   |             |   | 20,134 |   |
| Other      current assets                                                                                |   |             | 30,414   |   |             |   | 11,834 |   |
| Deferred      income taxes                                                                               |   |             | 39,505   |   |             |   | 36,841 |   |
|        Total      current assets                                      |   |             | 398,606  |   |             |   | 429,844 |   |
| Property,      plant and equipment, at cost:                                                             |   |             |     |   |             |   |   |   |
|    Less      accumulated depreciation of $213,440 and $214,874,      respectively         |   |             | 124,754  |   |             |   | 140,021 |   |
| Other      assets:                                                                                       |   |             |     |   |             |   |   |   |
| Investments                                                                                              |   |             | 15,426   |   |             |   | 22,315 |   |
| Goodwill                                                                                                 |   |             | 15,678   |   |             |   | 31,854 |   |
| Other      intangible assets, net of accumulated amortization of $10,434 and $9,250,      respectively   |   |             | 20,503   |   |             |   | 31,500 |   |
| Deposits      and other assets                                                                           |   |             | 11,019   |   |             |   | 11,888 |   |
|        Total      other assets                                        |   |             | 62,626   |   |             |   | 97,557 |   |
|        Total      assets                                              |   | $                | 585,986  |   |             | $      | 667,422 |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                |   |             |     |   |             |   |   |   |
| Current      liabilities:                                                                                |   |             |     |   |             |   |   |   |
| Current      maturities of long-term debt                                                                |   | $                | 39,421   |   |             | $      | 928 |   |
| Accounts      payable                                                                                    |   |             | 45,814   |   |             |   | 55,167 |   |
| Accrued      expenses                                                                                    |   |             | 76,649   |   |             |   | 78,045 |   |
| Dividends      payable                                                                                   |   |             | 9,604    |   |             |   | - |   |
| Income      taxes payable                                                                                |   |             | 11,525   |   |             |   | 10,926 |   |
|        Total      current liabilities                                 |   |             | 183,013  |   |             |   | 145,066 |   |
| Deferred      income taxes                                                                               |   |             | 23,197   |   |             |   | 29,563 |   |
| Long-term      debt, less current maturities                                                             |   |             | 107,906  |   |             |   | 157,887 |   |
| Other      liabilities                                                                                   |   |             | 35,989   |   |             |   | 35,838 |   |
| Commitments      and contingencies                                                                       |   |             | -        |   |             |   | - |   |
| Stockholders'      equity:                                                                               |   |             |     |   |             |   |   |   |
| Preferred      stock - authorized 10,000,000 shares of $0.01 par value; no shares      issued            |   |             | -        |   |             |   | - |   |
| Common      stock - authorized 100,000,000 shares of $0.02 par value;                                    |   |             |     |   |             |   |   |   |
| issued      50,932,836 shares and 50,922,460 shares, respectively                                        |   |             | 1,019    |   |             |   | 1,018 |   |
| Additional      contributed capital                                                                      |   |             | 140,079  |   |             |   | 138,163 |   |
| Retained      earnings                                                                                   |   |             | 473,892  |   |             |   | 522,328 |   |
| Accumulated      other comprehensive income                                                              |   |             | 19,869   |   |             |   | 25,444 |   |
| Treasury      stock, at cost, 15,368,896 shares and 14,557,351 shares,      respectively                 |   |             | (398,978 | )      |             |   | (387,885 | ) |
|        Total      stockholders' equity                                |   |             | 235,881  |   |             |   | 299,068 |   |
|        Total      liabilities and stockholders' equity                |   | $                | 585,986  |   |             | $      | 667,422 |   |
| The      accompanying notes are an integral part of these financial      statements.                     |   |

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| BLYTH, INC. AND SUBSIDIARIES                                                                      |   |
|---------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS                                              |   |
| (Unaudited)                                                                                       |   |
| Nine      months ended October 31 (In thousands, except per share    data)                        |   | 2008 |   |   | 2007 |   |
| Net      sales                                                                                    |   | $ | 737,439 |   |   | $ | 791,107 |   |
| Cost      of goods sold                                                                           |   |   | 337,751 |   |   |   | 383,868 |   |
|     Gross      profit                                                         |   |   | 399,688 |   |   |   | 407,239 |   |
| Selling                                                                                           |   |   | 282,203 |   |   |   | 273,122 |   |
| Administrative      and other                                                                     |   |   | 93,019 |   |   |   | 99,351 |   |
| Goodwill      and other intangibles impairment                                                    |   |   | 45,851 |   |   |   | - |   |
|     Total      operating expense                                              |   |   | 421,073 |   |   |   | 372,473 |   |
|     Operating (loss)      profit                                         |   |   | (21,385 | ) |   |   | 34,766 |   |
| Other      expense (income):                                                                      |   |   |   |   |   |   |   |   |
|      Interest      expense                                               |   |   | 7,419 |   |   |   | 10,933 |   |
|      Interest      income                                                |   |   | (3,252 | ) |   |   | (6,003 | ) |
|      Foreign      exchange and other                                     |   |   | 6,007 |   |   |   | 334 |   |
|      Total      other expense                                            |   |   | 10,174 |   |   |   | 5,264 |   |
|      (Loss)      earnings before income taxes and minority interest |   |   | (31,559 | ) |   |   | 29,502 |   |
| Income      tax (benefit) expense                                                            |   |   | (2,900 | ) |   |   | 7,940 |   |
|      (Loss)      earnings before minority interest                       |   |   | (28,659 | ) |   |   | 21,562 |   |
| Minority      interest                                                                            |   |   | 88 |   |   |   | 81 |   |
| Net      (loss) earnings                                                                          |   | $ | (28,747 | ) |   | $ | 21,481 |   |
| Basic:                                                                                            |   |   |   |   |   |   |   |   |
| Net      (loss) earnings per common share                                                         |   | $ | (0.80 | ) |   | $ | 0.55 |   |
| Weighted      average number of shares outstanding                                                |   |   | 35,937 |   |   |   | 39,183 |   |
| Diluted:                                                                                          |   |   |   |   |   |   |   |   |
| Net      (loss) earnings per common share                                                         |   | $ | (0.80 | ) |   | $ | 0.54 |   |
| Weighted      average number of shares outstanding                                                |   |   | 35,937 |   |   |   | 39,525 |   |
| The      accompanying notes are an integral part of these financial      statements.              |   |

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| BLYTH, INC. AND SUBSIDIARIES                                                                      |   |
|---------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS                                              |   |
| (Unaudited)                                                                                       |   |
| Three      months ended October 31 (In thousands, except per share    data)                       |   | 2008 |   |   | 2007 |   |
| Net      sales                                                                                    |   | $ | 250,805 |   |   | $ | 285,869 |   |
| Cost      of goods sold                                                                           |   |   | 118,555 |   |   |   | 141,704 |   |
|     Gross      profit                                                         |   |   | 132,250 |   |   |   | 144,165 |   |
| Selling                                                                                           |   |   | 95,838 |   |   |   | 100,477 |   |
| Administrative      and other                                                                     |   |   | 29,971 |   |   |   | 33,247 |   |
| Goodwill      and other intangibles impairment                                                    |   |   | 45,851 |   |   |   | - |   |
|     Total      operating expense                                              |   |   | 171,660 |   |   |   | 133,724 |   |
|     Operating (loss)      profit                                         |   |   | (39,410 | ) |   |   | 10,441 |   |
| Other      expense (income):                                                                      |   |   |   |   |   |   |   |   |
|      Interest      expense                                               |   |   | 2,547 |   |   |   | 3,587 |   |
|      Interest      income                                                |   |   | (897 | ) |   |   | (1,953 | ) |
|      Foreign      exchange and other                                     |   |   | 1,770 |   |   |   | 485 |   |
|      Total      other expense                                            |   |   | 3,420 |   |   |   | 2,119 |   |
|      (Loss)      earnings before income taxes and minority interest |   |   | (42,830 | ) |   |   | 8,322 |   |
| Income      tax (benefit) expense                                                                 |   |   | (9,948 | ) |   |   | 1,717 |   |
|      (Loss)      earnings before minority interest                       |   |   | (32,882 | ) |   |   | 6,605 |   |
| Minority      interest                                                                            |   |   | 30 |   |   |   | 28 |   |
| Net      (loss) earnings                                                                          |   | $ | (32,912 | ) |   | $ | 6,577 |   |
| Basic:                                                                                            |   |   |   |   |   |   |   |   |
| Net      (loss) earnings per common share                                                         |   | $ | (0.93 | ) |   | $ | 0.17 |   |
| Weighted      average number of shares outstanding                                                |   |   | 35,564 |   |   |   | 38,748 |   |
| Diluted:                                                                                          |   |   |   |   |   |   |   |   |
| Net      (loss) earnings per common share                                                         |   | $ | (0.93 | ) |   | $ | 0.17 |   |
| Weighted      average number of shares outstanding                                                |   |   | 35,564 |   |   |   | 39,067 |   |
| The      accompanying notes are an integral part of these financial      statements.              |   |

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| BLYTH, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                        |   |
| (Unaudited)                                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   | Additional |   |   |   |   |   |   |   |   | Other |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   | Common |   |   | Contributed |   |   | Retained |   |   | Treasury |   |   | Comprehensive |   |   |   |   |
| (In thousands)                                                                                                                                                                                                                                                                                                                                                                   |   | Stock |   |   | Capital |   |   | Earnings |   |   | Stock |   |   | Income      (Loss) |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| For      the Nine months ended October 31, 2007:                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      February 1, 2007                                                                                                                                                                                                                                                                                                                                                        |   | $ | 1,013 |   |   | $ | 129,367 |   |   | $ | 534,897 |   |   | $ | (323,714 | ) |   | $ | 22,130 |   |   | $ | 363,693 |   |
| FIN      48 adoption adjustment                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   | (2,769 | ) |   |   |   |   |   |   |   |   |   |   | (2,769 | ) |
| Adjusted      balance, February 1, 2007                                                                                                                                                                                                                                                                                                                                               |   |   | 1,013 |   |   |   | 129,367 |   |   |   | 532,128 |   |   |   | (323,714 | ) |   |   | 22,130 |   |   |   | 360,924 |   |
| Net      earnings for the period                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   | 21,481 |   |   |   |   |   |   |   |   |   |   |   | 21,481 |   |
| Foreign      currency translation  adjustments                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,294 |   |   |   | 7,294 |   |
| Net      unrealized gain on certain investments                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (net      of tax $208)                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 340 |   |   |   | 340 |   |
| Net      loss on cash flow hedging instruments                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (net      of tax of $859)                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,595 | ) |   |   | (1,595 | ) |
|       Comprehensive      income                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 27,520 |   |
| Common      stock issued in connection with                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      long-term      incentive plan                                                                                                                                                                                                                                                                                                                           |   |   | 6 |   |   |   | 7,073 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,079 |   |
| Common      stock cancelled in connection with                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      long-term      incentive plan                                                                                                                                                                                                                                                                                                                           |   |   | (1 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1 | ) |
| Tax      benefit from stock options                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   | 303 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 303 |   |
| Amortization      of unearned compensation                                                                                                                                                                                                                                                                                                                                            |   |   |   | 947 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 947 |   |
| Dividends                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   | (20,865 | ) |   |   |   |   |   |   |   |   |   |   | (20,865 | ) |
| Treasury      stock purchases                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (35,185 | ) |   |   |   |   |   |   | (35,185 | ) |
| Balance,      October 31, 2007                                                                                                                                                                                                                                                                                                                                                        |   | $ | 1,018 |   |   | $ | 137,690 |   |   | $ | 532,744 |   |   | $ | (358,899 | ) |   | $ | 28,169 |   |   | $ | 340,722 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| For      the Nine months ended October 31, 2008:                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      February 1, 2008                                                                                                                                                                                                                                                                                                                                                        |   | $ | 1,018 |   |   | $ | 138,163 |   |   | $ | 522,328 |   |   | $ | (387,885 | ) |   | $ | 25,444 |   |   | $ | 299,068 |   |
| Net      loss for the period                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   | (28,747 | ) |   |   |   |   |   |   |   |   |   |   | (28,747 | ) |
| Foreign      currency translation adjustments                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,064 | ) |   |   | (6,064 | ) |
| Net      unrealized loss on certain investments                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (net      of tax benefit of  $442)                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (968 | ) |   |   | (968 | ) |
| Net      gain on cash flow hedging instruments                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (net      of tax liability of $893)                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,457 |   |   |   | 1,457 |   |
|       Comprehensive      loss                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (34,322 | ) |
| Common      stock issued in connection with                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      long-term      incentive plan                                                                                                                                                                                                                                                                                                                           |   |   | 1 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
| Amortization      of unearned compensation                                                                                                                                                                                                                                                                                                                                            |   |   |   | 1,916 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,916 |   |
| Dividends                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   | (19,393 | ) |   |   |   |   |   |   |   |   |   |   | (19,393 | ) |
| Treasury      stock purchases                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (11,093 | ) |   |   |   |   |   |   | (11,093 | ) |
|  Accretion      of redeemable noncontrolling interest                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   | (296 | ) |   |   |   |   |   |   |   |   |   |   | (296  | ) |
| Balance,      October 31, 2008                                                                                                                                                                                                                                                                                                                                                        |   | $ | 1,019 |   |   | $ | 140,079 |   |   | $ | 473,892 |   |   | $ | (398,978 | ) |   | $ | 19,869 |   |   | $ | 235,881 |   |
|                                                       The accompanying notes are an integral part of these financial      statements. |   |   |   |   |   |

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| BLYTH, INC. AND SUBSIDIARIES                                                                                                                                                |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                        |   |
| (Unaudited)                                                                                                                                                                 |   |
| Nine      months ended October 31 (In thousands)                                                                                                                            |   | 2008 |   |   | 2007 |   |
| Cash      flows from operating activities:                                                                                                                                  |   |   |   |   |   |   |
| Net      (loss) earnings                                                                                                                                                    |   | $ | (28,747 | ) |   | $ | 21,481 |   |
| Adjustments      to reconcile net (loss) earnings to net cash used in operating      activities:                                                                  |   |   |   |   |   |   |   |   |
|              Depreciation      and amortization                                                            |   |   | 14,856 |   |   |   | 22,341 |   |
|              Write      down of investments                                                                |   |   | 6,126 |   |   |   | - |   |
|              Loss      on disposition of fixed assets                                                      |   |   | 11 |   |   |   | 149 |   |
|              Gain      on sale of assets                                                                   |   |   | - |   |   |   | (594 | ) |
|              Unrealized      gain on trading investments                                                   |   |   | (41 | ) |   |   | (62 | ) |
|              Stock-based      compensation expense                                                         |   |   | 1,439 |   |   |   | 1,631 |   |
|              Deferred      income taxes                                                                    |   |   | (9,225 | ) |   |   | 8,197 |   |
|              Equity      in (loss) earnings of investee                                                    |   |   | (116 | ) |   |   | 685 |   |
|              Minority      interest                                                                        |   |   | 24 |   |   |   | 23 |   |
|              Goodwill      and other intangibles impairment                                                |   |   | 45,851 |   |   |   | - |   |
|              Changes in operating assets and liabilities, net of effect of business      acquisitions and divestitures:                  |   |   |   |   |   |   |   |   |
|              Accounts      receivable                                                                      |   |   | (30,914 | ) |   |   | (61,919 | ) |
|              Inventories                                                                                   |   |   | (40,691 | ) |   |   | (2,223 | ) |
|              Prepaid      and other                                                                        |   |   | (6,181 | ) |   |   | (12,853 | ) |
|              Other      long-term assets                                                                   |   |   | 370 |   |   |   | 2,515 |   |
|              Accounts      payable                                                                         |   |   | (9,979 | ) |   |   | (7,754 | ) |
|              Accrued      expenses                                                                         |   |   | (4,478 | ) |   |   | 10,195 |   |
|              Other      liabilities                                                                        |   |   | 1,600 |   |   |   | 1,185 |   |
|              Income      taxes                                                                             |   |   | 684 |   |   |   | (1,598 | ) |
|                    Net      cash used in operating activities                |   |   | (59,411 | ) |   |   | (18,601 | ) |
| Cash      flows from investing activities:                                                                                                                                  |   |   |   |   |   |   |   |   |
|     Purchases      of property, plant and equipment, net of disposals                                                                                   |   |   | (6,332 | ) |   |   | (7,000 | ) |
|     Purchases      of short-term investments                                                                                                            |   |   | (60,322 | ) |   |   | (1,528,700 | ) |
|     Proceeds      from sales of short-term investments                                                                                                  |   |   | 75,190 |   |   |   | 1,573,875 |   |
|     Note      receivable issued under revolving credit facility                                                                                         |   |   | (4,416 | ) |   |   | - |   |
|     Proceeds      from the repayment of note receivable                                                                                                 |   |   | 4,416 |   |   |   | - |   |
|     Proceeds      from the sales of businesses, net of cash disposed                                                                                    |   |   | - |   |   |   | 514 |   |
|     Proceeds      from sale of assets                                                                                                                   |   |   | - |   |   |   | 25,423 |   |
|     Proceeds      from sale of long-term investments                                                                                                    |   |   | 7,204 |   |   |   | - |   |
|     Purchase      of businesses, net of cash acquired                                                                                                   |   |   | (15,813 | ) |   |   | - |   |
|                    Net      cash (used in) provided by investing activities  |   |   | (73 | ) |   |   | 64,112 |   |
| Cash      flows from financing activities:                                                                                                                                  |   |   |   |   |   |   |   |   |
|     Proceeds      from issuance of common stock                                                                                                         |   |   | - |   |   |   | 7,079 |   |
|     Tax      benefit from stock options                                                                                                                 |   |   | - |   |   |   | 303 |   |
|     Purchases      of treasury stock                                                                                                                    |   |   | (11,093 | ) |   |   | (35,185 | ) |
|     Borrowings      from bank line of credit                                                                                                            |   |   | 560,800 |   |   |   | - |   |
|     Repayments      on bank line of credit                                                                                                              |   |   | (560,800 | ) |   |   | - |   |
|     Repayments      of long-term debt                                                                                                                   |   |   | (11,174 | ) |   |   | (4,094 | ) |
|     Payments      on capital lease obligations                                                                                                          |   |   | (375 | ) |   |   | (330 | ) |
|     Dividends      paid                                                                                                                                 |   |   | (9,802 | ) |   |   | (10,631 | ) |
|                    Net      cash used in financing activities                |   |   | (32,444 | ) |   |   | (42,858 | ) |
| Effect      of exchange rate changes on cash                                                                                                                                |   |   | (8,684 | ) |   |   | 3,652 |   |
|                    Net      (decrease) increase in cash and cash equivalents |   |   | (100,612 | ) |   |   | 6,305 |   |
| Cash      and cash equivalents at beginning of period                                                                                                                       |   |   | 163,021 |   |   |   | 103,808 |   |
| Cash      and cash equivalents at end of period                                                                                                                             |   | $ | 62,409 |   |   | $ | 110,113 |   |
| The      accompanying notes are an integral part of these financial      statements.                                                                                        |   |

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|   |                                       |   | WholesaleSegment     |   |   | Direct      SellingSegment |   |   |                 |   |
|--------|--------------------------------------------|--------|----------------------|--------|--------|----------------------------|--------|--------|----------------------|--------|
|   | (In      thousands)                        |   | Severance      Costs |   |   | Lease      Obligation      |   |   | Severance      Costs |   |   | Total |   |
|   | Balance      at January 31, 2008           |   | $                    | 138    |   |                       | $      | 1,151  |                 |   | $ | 100 |   |   | $ | 1,389 |   |
|   | Change      in estimate during fiscal 2009 |   | $                    | -      |   |                       | $      | 1,034  |                 |   | $ | - |   |   | $ | 1,034 |   |
|   | Payments      made in fiscal 2009          |   |                 | (138   | )      |                       |   | (657   | )                    |   |   | (100 | ) |   |   | (895 | ) |
|   | Balance      at October 31, 2008           |   | $                    | -      |   |                       | $      | 1,528  |                 |   | $ | - |   |   | $ | 1,528 |   |

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|   | (In thousands)                                       |   | October      31, 2008 |   |   | January      31, 2008 |   |
|--------|------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
|   | Debt      securities                                 |   | $                     | 4,549  |   |                  | $      | 15,000 |   |
|   | Equity      securities                               |   |                  | 9,777  |   |                  |   | 15,186 |   |
|   |   Total      available-for-sale securities |   |                  | 14,326 |   |                  |   | 30,186 |   |
|   | Preferred      stock                                 |   |                  | 9,600  |   |                  |   | 10,184 |   |
|   | Other                                                |   |                  | 50     |   |                  |   | 5 |   |
|   |   Total      trading securities            |   |                  | 9,650  |   |                  |   | 10,189 |   |
|   | Limited      partnership                             |   |                  | -      |   |                  |   | 10,000 |   |
|   | Investment      in LLC                               |   |                  | 1,100  |   |                  |   | - |   |
|   | Joint      venture                                   |   |                  | -      |   |                  |   | 2,315 |   |
|   |    Total  investments       |   | $                     | 25,076 |   |                  | $      | 52,690 |   |

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|   | (In thousands)       |   | October      31, 2008 |    |   | January      31, 2008 |   |
|--------|----------------------|--------|-----------------------|---------|--------|-----------------------|--------|
|   | Raw      materials   |   | $                     | 10,207  |   |                  | $      | 6,490 |   |
|   | Work      in process |   |                  | 784     |   |                  |   | - |   |
|   | Finished      goods  |   |                  | 161,189 |   |                  |   | 126,095 |   |
|   | Total                |   | $                     | 172,180 |   |                  | $      | 132,585 |   |

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|   |                              |   |                |   |   | Catalog      & |   |    |   |   |
|--------|-----------------------------------|--------|---------------------|--------|--------|--------------------|--------|---------|--------|--------|
|   | (In      thousands)               |   | Direct      Selling |   |   | Internet           |   |    | Total  |   |
|   | Goodwill      at January 31, 2008 |   | $                   | 2,298  |   |               | $      | 29,556  |   |   | $ | 31,854 |   |
|   | ViSalus      acquisition          |   |                | 13,380 |   |               |   |    |   |   |   | 13,380 |   |
|   | As      We Change acquisition     |   |                | -      |   |               |   | 1,295   |   |   |   | 1,295 |   |
|   | Impairment      charges           |   |                | -      |   |               |   | (30,851 | )      |   |   | (30,851 | ) |
|   | Goodwill      at October 31, 2008 |   | $                   | 15,678 |   |               | $      | -       |   |   | $ | 15,678 |   |

|   | (In      thousands)                        |   | Indefinite-lived      trade names and trademarks |    |   | Customer      relationships |   |   | Total  |   |
|--------|--------------------------------------------|--------|--------------------------------------------------|---------|--------|-----------------------------|--------|--------|--------|--------|
|   | Other      Intangibles at January 31, 2008 |   | $                                                | 25,750  |   |                        | $      | 5,750  |   |   | $ | 31,500 |   |
|   | Additions                                  |   |                                             | 4,200   |   |                        |   | 987    |   |   |   | 5,187 |   |
|   | Amortization                               |   |                                             | -       |   |                        |   | (1,184 | )      |   |   | (1,184 | ) |
|   | Impairments                                |   |                                             | (15,000 | )      |                        |   | -      |   |   |   | (15,000 | ) |
|   | Other      Intangibles at October 31, 2008 |   | $                                                | 14,950  |   |                        | $      | 5,553  |   |   | $ | 20,503 |   |

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|   | Level-1      – Observable inputs – quoted prices in active markets for identical assets      and liabilities;                                                                                                                                                                                                                                           |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level-2      – Observable inputs other than the quoted prices in active markets for      identical assets and liabilities – such as quoted prices for similar      instruments, quoted prices for identical or similar instruments in      inactive markets, or other inputs that are observable or can be      corroborated by observable market data; |
|   | Level-3      – Unobservable inputs – includes amounts derived from valuation models      where one or more significant inputs are unobservable and require us to      develop relevant assumptions.                                                                                                                                                     |

|   |        (In      thousands)                                                                                |   | Balance      as of October      31, 2008 |   |   | Quoted      prices in active markets for identical assets (Level 1) |   |   | Significant      other observable inputs (Level 2) |   |   | Significant      unobservable inputs (Level 3) |   |
|--------|----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|
|   | Financial      assets                                                                                          |   |                                          |   |   |                                                                |   |   |                                               |   |   |                                           |   |
|   |   Equity      securities                                                                             |   | $                                             | 19,377 |   |                                                                | $      | -      |                                               |   | $      | 9,600                                          |   |   | $ | 9,777 |   |
|   |   Debt      securities                                                                               |   |                                          | 4,549  |   |                                                                |   | -      |                                               |   |   | -                                              |   |   |   | 4,549 |   |
|   |   Deferred      compensation plan assets 1                                                           |   |                                          | 3,034  |   |                                                                |   | 3,034  |                                               |   |   | -                                              |   |   |   | - |   |
|   |   Foreign      exchange forward contracts                                                            |   |                                          | 6,539  |   |                                                                |   | -      |                                               |   |   | 6,539                                          |   |   |   | - |   |
|   |   Other                                                                                              |   |                                          | 50     |   |                                                                |   | -      |                                               |   |   | 50                                             |   |   |   | - |   |
|   |     Total                                                                                  |   | $                                             | 33,549 |   |                                                                | $      | 3,034  |                                               |   | $      | 16,189                                         |   |   | $ | 14,326 |   |
|   |  1      There is an offsetting liability for the obligation to its employees on      the Company's books. |   |                                          |   |   |                                                                |   |   |                                               |   |   |                                           |   |   |

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|   | (In      thousands)                                                                                                                              |   | Significant      unobservable inputs (Level 3) |    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|   |                                                                                                                                             |   |                                           |    |
|   | Fair      value February 1, 2008                                                                                                                 |   | $                                              | 25,000  |   |
|   | Settlements                                                                                                                                      |   |                                           | (10,000 | ) |
|   | Unrealized      loss, net 1                                                                                                                      |   |                                           | (674    | ) |
|   | Fair      value October 31, 2008                                                                                                                 |   | $                                              | 14,326  |   |
|   |                                                                                                                                             |   |                                           |    |   |
|   | (In      thousands)                                                                                                                              |   | Significant      unobservable inputs (Level 3) |    |
|   |                                                                                                                                             |   |                                           |    |   |
|   | Fair      value August 1, 2008                                                                                                                   |   | $                                              | 19,353  |   |
|   | Settlements                                                                                                                                      |   |                                           | (4,900  | ) |
|   | Unrealized      loss, net 1                                                                                                                      |   |                                           | (127    | )  |
|   | Fair      value October 31, 2008                                                                                                                 |   | $                                              | 14,326  |   |
|   | 1. All      unrealized losses on available for sale investments are recorded as a      component of accumulated other comprehensive income. |   |

|   |                                                                                            |   |  Three      months ended October 31, |    |   | Nine      months ended October 31, |   |
|--------|-------------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|--------|------------------------------------|--------|
|   | (In      thousands)                                                                             |   | 2008                                      |    |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|   | Net      (loss) earnings                                                                        |   | $                                         | (32,912 | )      |                               | $      | 6,577 |   |   | $ | (28,747 | ) |   | $ | 21,481 |   |
|   | Weighted      average number of common                                                          |   |                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|   |    shares      outstanding:                                                      |   |                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|   |          Basic                                     |   |                                      | 35,564  |   |                               |   | 38,748 |   |   |   | 35,937 |   |   |   | 39,183 |   |
|   |          Dilutive      effect of restricted shares |   |                                      | -       |   |                               |   | 319 |   |   |   | - |   |   |   | 342 |   |
|   | Weighted      average number of common                                                          |   |                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|   |    shares      outstanding:                                                      |   |                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|   |          Diluted                                   |   |                                      | 35,564  |   |                               |   | 39,067 |   |   |   | 35,937 |   |   |   | 39,525 |   |

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|   | Treasury Stock                                                |   |   |       |   |   |   |
|--------|--------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|   | Changes      in Treasury Stock were (In thousands, except shares): |   | Shares |       |   | Amount |   |
|   | Balance      at February 1, 2007                                   |   |   | 11,335,798 |   |   | $      | (323,714 | ) |
|   | Treasury      stock purchases                                      |   |   | 1,712,226  |   |   |   | (35,185 | ) |
|   | Balance      at October 31, 2007                                   |   |   | 13,048,024 |   |   | $      | (358,899 | ) |
|   |                                                               |   |   |       |   |   |   |   |   |
|   | Balance      at February 1, 2008                                   |   |   | 14,557,351 |   |   | $      | (387,885 | ) |
|   | Treasury      stock purchases                                      |   |   | 811,545    |   |   |   | (11,093 | ) |
|   | Balance      at October 31, 2008                                   |   |   | 15,368,896 |   |   | $      | (398,978 | ) |

|   | Common Stock                                                            |   |   |       |   |   |   |
|--------|------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|   | Changes      in Common Stock were (In thousands, except shares):             |   | Shares |       |   | Amount |   |
|   | Balance      at February 1, 2007                                             |   |   | 50,637,060 |   |   | $      | 1,013 |   |
|   | Common      stock issued in connection with long-term incentive    plan |   |   | 283,400    |   |   |   | 6 |   |
|   | Common      stock cancelled in connection with long-term incentiveplan       |   |   | (4,000     | )      |   |   | (1 | ) |
|   | Balance      at October 31, 2007                                             |   |   | 50,916,460 |   |   | $      | 1,018 |   |
|   |                                                                         |   |   |       |   |   |   |   |   |
|   | Balance      at February 1, 2008                                             |   |   | 50,922,460 |   |   | $      | 1,018 |   |
|   | Common      stock issued in connection with long-term incentive    plan |   |   | 10,376     |   |   |   | 1 |   |
|   | Balance      at October 31, 2008                                             |   |   | 50,932,836 |   |   | $      | 1,019 |   |

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|   |                                                         |   | Shares |    |   | Weighted      Average Grant Date Fair Value |   |   | Aggregate Intrinsic Value      (In      thousands) |   |
|--------|--------------------------------------------------------------|--------|--------|---------|--------|---------------------------------------------|--------|--------|----------------------------------------------------|--------|
|   | Nonvested      restricted stock and RSUs at January 31, 2008 |   |   | 279,370 |   |                                        | $      | 24.30  |                                               |   |   |   |
|   |     Granted                              |   |   | 121,885 |   |                                        |   | 19.91  |                                               |   |   |   |
|   |     Vested                               |   |   | (36,108 | )      |                                        |   | 27.09  |                                               |   |   |   |
|   |     Forfeited                            |   |   | (46,661 | )      |                                        |   | 23.12  |                                               |   |   |   |
|   | Nonvested      restricted stock and RSUs at October 31, 2008 |   |   | 318,486 |   |                                        | $      | 22.48  |                                               |   | $ | 2,739 |   |
|   | Total      restricted stock and RSUs at October 31, 2008     |   |   | 367,309 |   |                                        | $      | 23.11  |                                               |   | $ | 3,159 |   |

|   |                                                 |   |        Option      Shares |    |   | Weighted      Average Exercise Price |   |   | Weighted      Average Remaining Contractual Life |   |   | Aggregate      Intrinsic Value |   |   |
|--------|------------------------------------------------------|--------|--------------------------------|---------|--------|--------------------------------------|--------|--------|--------------------------------------------------|--------|--------|--------------------------------|--------|--------|
|   | Outstanding      at January 31, 2008                 |   |                           | 447,400 |   |                                 | $      | 27.01  |                                             |   |   | 3.97                           |   |   |   |   |   |
|   |     Options      granted         |   |                           | -       |   |                                 |   | -      |                                             |   |   |                           |   |   |   |   |   |
|   |     Options      exercised       |   |                           | -       |   |                                 |   | -      |                                             |   |   |                           |   |   |   |   |   |
|   |     Options      forfeited       |   |                           | (5,000  | )      |                                 |   | 19.24  |                                             |   |   |                           |   |   |   |   |   |
|   |     Options      expired         |   |                           | (62,300 | )      |                                 |   | 28.56  |                                             |   |   |                           |   |   |   |   |   |
|   | Outstanding      and exercisable at October 31, 2008 |   |                           | 380,100 |   |                                 | $      | 26.86  |                                             |   |   | 3.41                           |   |   | $ | - |   |

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|   |                                                                   |                                          |   | Three      months ended October 31, |    |   | Nine      months ended October 31, |                        |
|--------|------------------------------------------------------------------------|-----------------------------------------------|--------|-------------------------------------|---------|--------|------------------------------------|-----------------------------|
|   | (In      thousands)                                                    |                                          | 2008   |                                |    | 2007   |                               |                        | 2008 |   |   | 2007 |   |
|   | Net      Sales                                                         |                                          |   |                                |    |   |                               |                        |   |   |   |   |   |
|   | Direct      Selling                                                    |                                          | $      | 139,190                             |    |   | $                                  | 147,515                     |   |   | $ | 449,271 |   |   | $ | 437,978 |   |
|   | Multi-channel      Group:                                              |                                          |   |                                |    |   |                               |                        |   |   |   |   |   |   |   |   |   |
|   |    Catalog      & Internet                          |                                          |   | 49,730                              |    |   |                               | 52,624                      |   |   |   | 125,718 |   |   |   | 132,696 |   |
|   |    Wholesale                                            |                                          |   | 61,885                              |    |   |                               | 85,730                      |   |   |   | 162,450 |   |   |   | 220,433 |   |
|   | Subtotal      Multi-channel Group                                      |                                          |   | 111,615                             |    |   |                               | 138,354                     |   |   |   | 288,168 |   |   |   | 353,129 |   |
|   |         Total                  |                                          | $      | 250,805                             |    |   | $                                  | 285,869                     |   |   | $ | 737,439 |   |   | $ | 791,107 |   |
|   | Operating      profit (loss)                                           |                                          |   |                                |    |   |                               |                        |   |   |   |   |   |   |   |   |   |
|   | Direct      Selling                                                    |                                          | $      | 4,813                               |    |   | $                                  | 8,091                       |   |   | $ | 37,076 |   |   | $ | 50,398 |   |
|   | Multi-channel      Group:                                              |                                          |   |                                |    |   |                               |                        |   |   |   |   |   |   |   |   |   |
|   |    Catalog      & Internet                          |                                          |   | (47,740                             | )       |   |                               | (225                        | ) |   |   | (55,969 | ) |   |   | (5,281 | ) |
|   |    Wholesale                                            |                                          |   | 3,517                               |    |   |                               | 2,575                       |   |   |   | (2,492 | ) |   |   | (10,351 | ) |
|   | Subtotal      Multi-channel Group                                      |                                          |   | (44,223                             | )       |   |                               | 2,350                       |   |   |   | (58,461 | ) |   |   | (15,632 | ) |
|   |                                                                   |                                          |   |                                | (39,410 | )      |                               |                        | 10,441 |   |   |   | (21,385 | ) |   |   | 34,766 |   |
|   |        Other      expense           |                                          |   | (3,420                              | )       |   |                               | (2,119                      | ) |   |   | (10,174 | ) |   |   | (5,264 | ) |
|   | (Loss)      earnings from continuing operations                        |                                          |   |                                |    |   |                               |                        |   |   |   |   |   |   |   |   |   |
|   |     before      income taxes and minority interest |                                          | $      | (42,830                             | )       |   | $                                  | 8,322                       |   |   | $ | (31,559 | ) |   | $ | 29,502 |   |
|   |                                                                   |                                          |   |                                |    |   |                               |                        |   |   |   |   |   |   |   |   |   |   |
|   |                                                                   |                                          |   |                                |    |   |                               | October      31, 2008  |   |   | January      31, 2008 |   |   |   |   |   |
|   |                                                                   | Identifiable      Assets                      |   |                                |    |   |                               |                        |   |   |   |   |   |   |   |   |   |   |
|   |                                                                   |  Direct      Selling                     |   |                                |    |   |                               |  $                     | 291,173 |   |   | $ | 306,484 |   |   |   |   |   |
|   |                                                                   |  Multi-channel      Group:               |   |                                |    |   |                               |                        |   |   |   |   |   |   |   |   |   |   |
|   |                                                                   |    Catalog      & Internet |   |                                |    |   |                               |                        | 80,515  |   |   |   | 103,677 |   |   |   |   |   |
|   |                                                                   |    Wholesale                   |   |                                |    |   |                               |                        | 148,655  |   |   |   | 146,612 |   |   |   |   |   |
|   |                                                                   | Subtotal      Multi-channel Group             |   |                                |    |   |                               |                        | 229,170  |   |   |   | 250,289 |   |   |   |   |   |
|   |                                                                   |  Unallocated      Corporate              |   |                                |    |   |                               |                        | 65,643  |   |   |   | 110,649 |   |   |   |   |   |
|   |                                                                   |  Total                                   |   |                                |    |   |                               |  $                     | 585,986  |   |   | $ | 667,422 |   |   |   |   |   |

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MANA

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 QUANTITATIVE 

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|   | (In      thousands, except average contract rate) |   | U.S.      Dollar Notional Amount |   |   | Average      Contract Rate |   |   | Unrealized      Gain (Loss) |   |
|--------|---------------------------------------------------|--------|----------------------------------|--------|--------|----------------------------|--------|--------|-----------------------------|--------|
|   | Canadian      Dollar                              |   | $                                | 4,700  |   |                       |   | 0.97   |                        |   | $ | 676 |   |
|   | Euro                                              |   |                             | 54,360 |   |                       |   | 1.48   |                        |   |   | 6,838 |   |
|   |                                              |   | $                                | 59,060 |   |                       |   |   |                        |   | $ | 7,514 |   |

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. CONTROLS 

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Item 1.    Legal 

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|   | • |   | United      States and foreign government trade restrictions, including those which      may impose restrictions on imports to or from the United      States; |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | Foreign      government taxes and regulations, including foreign taxes that we may not      be able to offset against taxes imposed upon us in the United States, and      foreign tax and other laws limiting our ability to repatriate funds to the      United States; |
|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | Foreign      labor laws, regulations andrestrictions; |
|--------|---------|--------|-------------------------------------------------------|

|   | • |   | Difficulty      in staffing and managing foreignoperations; |
|--------|---------|--------|-------------------------------------------------------------|

|   | • |   | Adverse      fluctuations in foreign currency exchange rates and interest rates,      including risks related to any interest rate swap or other hedging      activities we undertake; |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | Political      instability, natural disasters, health crises, war or events of terrorism;      and |
|--------|---------|--------|----------------------------------------------------------------------------------------------------|

|   | • |   | The      strength of internationaleconomies. |
|--------|---------|--------|----------------------------------------------|

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Item 2.   Unregistered 

|   | Period                                                 |   | (a)      Total Number of Shares Purchased |   |   | (b)      Average Price Paid per Share |   |   | (c)      Total Number of Shares Purchased as Part of Publicly Announced Plans or      Programs |   |   | (d)      Maximum of Shares that May Yet Be Purchased Under the Plans or      Programs |   |
|--------|--------------------------------------------------------|--------|-------------------------------------------|--------|--------|---------------------------------------|--------|--------|------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|
|   | August      1, 2008 – August      31, 2008       |   |                                      | -      |   |                                  |   | -      |                                                                                           |   |   | -                                                                                     |   |   |   | 7,537,720 |   |
|   | September      1, 2008 – September      30, 2008 |   |                                      | -      |   |                                  |   | -      |                                                                                           |   |   | -                                                                                     |   |   |   | 7,537,720 |   |
|   | October      1, 2008 – October      31, 2008     |   |                                      | -      |   |                                  |   | -      |                                                                                           |   |   | -                                                                                     |   |   |   | 7,537,720 |   |
|   | Total                                                  |   |                                      | -      |   |                                  |   | -      |                                                                                           |   |   | -                                                                                     |   |   |   | 7,537,720 |   |

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Item 5.   Other

|   | 31.1 | Certification      of Chairman and Chief Executive Officer pursuant to Rule 13a-14(a) under      the Securities Exchange Act of1934. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification      of Vice President and Chief Financial Officer pursuant to Rule 13a-14(a)      under the Securities Exchange Act of1934. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification      of Chairman and Chief Executive Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification      of Vice President and Chief Financial Officer pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

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SIGNATURES

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