Tru-Vantage International, L.L.C

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF TRU-VANTAGE INTERNATIONAL, L.L.C.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATIONS OF SEC. 7 OF THE CLAYTON ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-4034; File No. 0023210 Complaint, February 5, 2002--Decision, February 5, 2002 This consent order addresses advertising and promotional practices used by Respondent Tru-Vantage International, L.L.C., an infomercial producer, in connection with the sale of Snorenz, a dietary supplement consisting of oils and vitamins that is sprayed on the back of the throat of persons who snore. The order, among other things, requires the respondent to possess competent and reliable scientific evidence to substantiate representations that Snorenz – or any other food, drug, or dietary supplement – reduces or eliminates snoring or the sound of snoring, or eliminates, reduces or mitigates the symptoms of sleep apnea. The order also requires the respondent – whenever it represents that certain products are effective in reducing or eliminating snoring or the sounds of snoring – to affirmatively disclose a warning statement about sleep apnea and the need for physician consultation. In addition, the order requires the respondent to possess and rely upon adequate substantiation to support any representation about the benefits, performance, efficacy, or safety of Snorenz or any other product, service or program. The order also prohibits the respondent from making false claims about scientific support for any product, service, or program. In addition, the order requires the respondent – if it uses any consumer endorsement or testimonial to promote a product, service or program – either to possess competent and reliable scientific evidence that the testimonial represents the typical or ordinary experience of users, or to affirmatively disclose that the testimonial is not typical. The order also requires the respondent to affirmatively disclose any material connection between itself and any endorser, or between an endorser and the marketer. Participants For the Commission: Lemuel W. Dowdy, Walter C. Gross, James Reilly Dolan, Elaine D. Kolish, and Randi M. Boorstein.. For the Respondent: David J. Bradford and Theresa A. Chmara, Jenner & Block, and Craig B. Sherman, Sherman Law Offices.

VOLUME 133 Complaint COMPLAINT The Federal Trade Commission, having reason to believe that Tru-Vantage International, L.L.C., a limited liability company ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1. Respondent is an Illinois limited liability company, with its principal office or place of business at 7300 North Lehigh Avenue, Niles, Illinois 60714.

2. Respondent advertised, offered for sale, sold, and distributed products to the public, including but not limited to, SNORenz, a topical spray that purports to reduce or eliminate snoring or the sounds associated with snoring by lubricating the vibrating tissues in the throat with a combination of oils, vitamins, and trace ingredients. SNORenz is a "food," and/or “drug” within the meaning of Sections 12 and 15 of the Federal Trade Commission Act.

3. Respondent’s advertisements include, but are not limited to, program-length television commercials (“infomercials”) which run for 30 minutes or less and fit within normal television broadcasting time slots. Respondent’s television commercials were and are broadcast on network, independent and cable television stations throughout the United States. 4. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act. 5. Respondent has disseminated or has caused to be disseminated advertisements for SNORenz, including but not necessarily limited to television infomercials that were aired on various broadcast and cable channels. These advertisements contain the following statements:

VOLUME 133 Complaint INFOMERCIAL: TRU SNORENZ 1 - KT [Exhibit A] A. KEVIN TRUDEAU: And this is a patented product. It has been clinically tested in double-blind studies – JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: Tell us about that. JOHN ZIGLAR: What we did is we had two double-blind studies done in two separate locations. Basically, we had where the doctors did not know which was the placebo product nor did the patient know. And in each of the cases, the people that took the product that had the SNORenz product in it in 97 percent of the cases they quit snoring immediately.

B. KEVIN TRUDEAU: If you use this product one time, for the first time in years, you will get the best night's sleep you've ever had. You'll actually go and get deep sleep for the very first time. And you'll wake up the next morning probably with more energy than you've ever imagined having. Because, folks, if you snore, I can tell you right now you are not getting deep sleep and you are not full of the energy that you can be by just getting a full night's rest. You'll also be more pleasant, you won't be as irritable, your body could even function better, your immune system and all of your systems can work better when you've had a fullnight's rest.

C. KEVIN TRUDEAU: -- just make sure you spray it at the back of your throat, we'll show you exactly how to do that, and make sure 30 minutes before you use the product, don't drink or eat anything, primarily alcohol, that way it will stay on the throat, then go to sleep and guaranteed to work or your money back. Double-blind studies -- two of them -proved -- clinical research -- that 97 percent of the times this VOLUME 133 Complaint was effective in eliminating the snoring noise all night long. It’s all natural, it’s patented and you can’t beat the value. D. KEVIN TRUDEAU: This is exclusive, it's a breakthrough, we're announcing it for the very first time, this is a revolutionary product that's patented, guaranteed to work, you get a three-month's supply -- this is your refill -- and this is the little squirter. You just put this by the bed stand and then all you do -- you can see how it sprays out here -you just put three squirts in your mouth, on the back of your throat, just squirt it in right before you go to sleep, it tastes great, it's all natural, it's a patented product. In double-blind studies, clinical testing, guaranteed to work 97 percent of the time. And, you know, we have never seen it fail. And I think the reason it says 97 percent, if they put 100 percent people would think, oh, it sounds too good to be true. And it does sound too good to be true, but the double-blind studies, the people that use it, and you can find out for yourself – E. KEVIN TRUDEAU: If you are a snorer or know somebody that is, it will eliminate the snoring just like that, guaranteed or your money back. It's a patented process, double-blind studies, clinical research. If it doesn't work, send it back for a full refund, no questions asked. But the statistics show, 97 percent effective in eliminating the noise of snoring the very first application. Folks, your life can be changed when you get a good night's rest.

INFOMERCIAL: VP SNORenz 2- JD [Exhibit B] ON SCREEN: Dr. Bob Courier, Physician Surgeon F. DR. BOB COURIER: Another side effect, a cute story, my brother's also a snorer, I think this is just something that runs in families, as well. Anyway, he has since tried the product, as I have, and I use it, and I think it's fantastic, because it does stop the snoring. . . . VOLUME 133 Complaint G. JOHN ZIGLAR: Jon, what we've done is we have taken all natural oils, and we have taken and put them together in a liposome formulation, and we have taken it and so that you can actually spray this product into the back of your throat, and the process is really quite simple. Have you ever seen a car go down the road that didn't have enough oil in it, and you hear the clatter and the clanking? ON SCREEN: John Ziglar, Master Strategies Researcher JOHN ZIGLAR: Well, what happens is we took that same philosophy, that same technology, and we said, Hey, if we can oil the parts and we can take and make a topical solution that will stay in a place for an extended period of time, we can eliminate the noise of snoring. You're still going to have the same amount of air that's going to pass through the passage, but all we're going to do is we're going to lubricate the parts so that there is no noise associated so that you don't then wake up or wake up your neighbor. H. DR. BOB COURIER: Well, to take this just a little bit further, a dentist has studied this and has actually sprayed this in models, and he actually used a dye at the time so he could see where it was applied. In the soft tissues, in the back of the throat, the ones that we see that flap and flutter and that need the lubrication, what -- it is applied there, but where the technology goes even further and better through this liposome technology is to apply it evenly, and the very neat thing about this is it stays. It stays there all night. That's where others have failed. And that's also where a lot of the appliances, that's where also a lot of the applications of surgeries, pills, other things that have been attempted and tried have failed. This product here stays there. It's easy application.

VOLUME 133 Complaint I. JON DENNY: If -- if you have a snoring problem, if you have problems sleeping next to a snorer, then SNORenz may be the answer you've been waiting for. Remember, snoring is a medical condition. Studies have shown that snoring can seriously reduce your energy levels, your concentration and can seriously affect your work habits, as well, and you can be sure your snoring is seriously bothering someone other than you. SNORenz is the first all-natural spray that has been proven to give you a healthy, natural, good night's sleep. It has no side effects. It's as easy as a few sprays before bed, and it lasts all night, and if you want more information on SNORenz, if you want to stop the snoring, if it's a snorer next to you or if you be the snorer, you may want to call the 800 number on your screen. J. JON DENNY: We have I believe a caller on the line from Arizona, and I believe it's Tina Hines (phonetic). Tina, are you on the air with us? . . .

TINA HINES: I'm listening to your show, and I have to tell you that snoring, you know, is a lot more dangerous that people think. My husband was a chronic snorer, he's a firefighter/paramedic, so I wasn't the only one affected by this. I mean, we didn't sleep together for years. JON DENNY: Now, you've been married for how long, Tina? TINA HINES: Sixteen years.

JON DENNY: Sixteen years, and this was a problem that occurred right from the start of your marriage? TINA HINES: Oh, yeah.

JON DENNY: You found you were married to a snorer? VOLUME 133 Complaint TINA HINES: Oh, absolutely, and the poor guy, it would be all night, John, turn over, turn over. It did not matter, he could be sleeping on his head, and he would still snore. Well, it got so bad that even at the fire department, he was being hassled at the fire department, because these guys sleep at different shifts, they don't all sleep at the same time, and when John was sleeping, he would be waking everybody else up, so they would be pounding on the walls and he'd come home all aggravated, he'd come home and want to sleep. They even built a partition around my husband's bunk bed to try to keep out the noise. Well, it got so bad he finally went to the doctor, and in order for the insurance company to pay for this surgery, they put him in the hospital, in the sleep center, and found out that he also had sleep apnea, which is very dangerous, because when you're snoring, you stop breathing, then you forget to sleep. So, they did the surgery, and needless to say, it lasted for a while, and then after that he started up again, and he would not even believe when I would tell him, John, you're snoring again. You don't want to go through surgery and find out that you're snoring again.

JON DENNY: So, this was after a surgery, he had -- the problem re-emerged.

TINA HINES: Right, they did surgery on all his sinuses, they went through his nose and removed all his polyps, thinking that was the problem. So, now he's in for the second surgery, and they decided they are going to remove part of his uvula, and the roof of his mouth, his tonsils and his adenoids, and this way it will give his tongue more room, I guess is what they said, so he wouldn't snore. Well, he went through this, and it was a horrible surgery. I really felt very, very bad for him. He was out of work for six weeks, and he had high hopes that this was going to work and our life was going to change, we could sleep in the same room together, go on vacation, the guys wouldn't be hassling him. Well, that did work for quite a while, and then it VOLUME 133 Complaint started up again, and I'll tell you what, I was even afraid to tell him, because I couldn't believe it myself. It's aggravating, it's annoying, I don't get a good night's sleep, he doesn't get a good night's sleep. I hated to say it, but I was happier when he was at the fire department because I got a good night's sleep.

. . .

TINA HINES: And I was aggravated. You're talking two surgeries, what's it going to take? He tried those stupid nose strip things, they didn't work. So, one day I'm sitting here watching TV and I see a commercial out here in Phoenix and a couple is talking about the same thing, and I'm thinking, Well, what have I got to lose? Well, my husband tells me I'm nuts, because if two surgeries didn't work, the spray was not going to work. I figure, Well, I'm going to try it. So, I sent for it, put it on the nightstand, the first night he was home, I woke him up, I said, John, spray your throat. He said, Yeah, yeah, yeah, yeah. I said, John, please, spray your throat. So, we sprayed his throat, and I'm like waiting -- I'm laying there, I'm laying there, I'm like, Oh, wow, he was sleeping, there was no noise coming out of him. And I was -- I was pretty well hooked. And he still was not a believer. He said it was just a fluke. So, it took a few times of using the SNORenz. Now, I'll tell you what, he's taken it up to the fire department. I have the wives calling from the fire department asking me the 800 number. I've given away more bottles, I can't tell you, because I belong to the SNORenz Bottle of the Month Club, and I just gave one to my daughter last week, she came over, and she was like, Mom, I'm going crazy, Kenny's snoring. I said, Here, take my last bottle, take it home.

INFOMERCIAL: VP SNORENZ 3 - KT [Exhibit C] K. KEVIN TRUDEAU: Now . . . was this a patented process that this Korean gentleman invented? VOLUME 133 Complaint JOHN ZIGLAR: No, it wasn't, Kevin. At the time, what he had was a combination of oils that he had in a little formula that he sprayed in the back of his throat and then Paul went to his laboratories and he developed a liposome formulation of the allnatural oils. He put some vitamins, minerals in it and put a whole lot better taste. He put a spearmint taste into the product so that it would taste good and then still solve the problem.

KEVIN TRUDEAU: So, now this is a patented formula? JOHN ZIGLAR: Yes, it is.

KEVIN TRUDEAU: Okay. Patented process. L. KEVIN TRUDEAU: So, this -- this -- this is an all-natural product; this is clinically tested; no after effects; natural ingredients; vitamin enhanced; fresh breath -- 97 percent effective. . . .

M.KEVIN TRUDEAU: Tell me how this eliminates the snoise of noring (sic). What exactly happens when I spray this in my mouth before I go to sleep? JOHN ZIGLAR: Because of the technology -- what we have been able to do with the oils in this product, is we have been able through a liposome technology, put it so that when it lands on the back of your throat it will actually stay there. It will stay topical for up to eight hours. N. KEVIN TRUDEAU: It’s a patented product. It’s not available in any stores. It’s only available directly from the company. Call the number on your screen to get more information on SNORenz. It's very inexpensive, it tastes great, it's all-natural, it's clinically proven to eliminate the noise of snoring in 97 percent of the cases, and in our personal experience is virtually 100 percent. VOLUME 133 Complaint O. KEVIN TRUDEAU: The person who snores, Dr. Leonard, if they are snoring and it "doesn't bother them." DR. LEONARD: Um-hmm.

KEVIN TRUDEAU: They don't get woken up. Is it, in fact, having an adverse effect on the person's sleep patterns, thus making them more potentially irritable and fatigued during the day? DR. LEONARD: Certainly. Potential irritability and fatigue throughout the day has got to be commonplace. KEVIN TRUDEAU: Now, why is that? I mean, if I snore and I don't wake up during the night and I don't -- I don't even know I snore – DR. LEONARD: Um-hmm.

KEVIN TRUDEAU: -- how is it having that effect on me? DR. LEONARD: If you're sleeping and snoring, obviously, like you're talking about exchanging air and still breathing and your air passage is restricted, once things are restricted to a point, you automatically or for the most part most people will wake up, catch a deep breath, roll over, whathave-you. So, yeah, your sleep pattern is disturbed by that. KEVIN TRUDEAU: So, a person may not even realize that he's constantly waking up and going back to bed during the night? DR. LEONARD: That's right.

P. KEVIN TRUDEAU: Folks, if you're watching right now and you are a snorer or if you know someone that is, get on the telephone and call to get SNORenz. It's a very simple, all natural product, it's just natural oils with some vitamins VOLUME 133 Complaint and minerals. You simply just spray it in your mouth three times before you go to bed. It tastes great, it's a patented product, it has been proven to be 97 percent effective in eliminating the snoise -- the noise of snoring. . . . It’s all natural, it’s patented, and it’s not available in any store. So, pick up the phone right now for more information on SNORenz. And it's pennies, it's very cheap and it'll eliminate your snoring.

. . .

(Music playing.) ON SCREEN: For more information or to order Snorenz call:

Tru-Vantage International, 7300 N. Lehigh Ave, Niles, IL 60714 (847)647-0300.

If snoring is accompanied by any signs of Sleep Apnea, you should consult a physician before using any product.

The preceding has been a paid commercial for SNORENZ brought to you by Kevin Trudeau's Tru- Vantage International, America's premier direct response marketing company.

INFOMERCIAL: VP SNORENZ 4 - JD [Exhibit D] Q. JON DENNY: If you have a snoring problem, if you have problems sleeping next to a snorer, then SNORenz may be the answer you've been waiting for. Snoring can seriously reduce your energy levels, your concentration, and can seriously affect your work habits, as well. And you can be sure your snoring is seriously bothering someone other than you. SNORenz is the first all-natural spray that has been proven to give you a healthy, natural, good night's sleep. It has no side effects, it's as easy as a few sprays before bed, and it lasts all night. VOLUME 133 Complaint R. JON DENNY: If you're sleeping and snoring, obviously, like you're talking about exchanging air and still breathing and your air passage is restricted, once things are restricted to a point, you automatically or for the most part most people will wake up, catch a deep breath, roll over, whathave-you. So, yeah, your sleep pattern is disturbed by that.. Do it for him, do it for yourself, do it for your family. It is worth the phone call, and it is pennies per day to end the snoring problem. This is a product, as I mentioned, that has been proven effective in studies. And you actually conducted the studies out of your offices in Michigan. Tell us about how SNORenz worked.

DR. BOB CURRIER: Interestingly enough, it's not only the results of the studies we got, but the comments we received. Many people, again, they're aware of snoring, but they aren't aware of the problems that come with it. And actually it's like until it's resolved, the snoring itself, oh, my word, what a problem it was. And you can see the changes it's made. That was probably the most interesting part of doing that whole study – JON DENNY: Um-hmm.

DR. BOB CURRIER: -- was the comments that we got back, the little stories that people had through the week – JON DENNY: Yes.

DR. BOB CURRIER: -- you know, of using this product. And that was the beauty of this. I loved doing the study, it was highly effective.

INFOMERCIAL: VP SNORenz 8 JD/JPK [Exhibit E] S. JON DENNY: For millions of Americans, this is the most annoying and unwelcome sound in the world. That’s right, more than 90 million Americans have a snoring problem, VOLUME 133 Complaint and it could cause sleeplessness, headaches and a lack of energy, and that goes for the snorer as well as the person trying to sleep next to the snorer. What can be done about it? On Vantage Point today, hear about a new discovery that could eliminate the sound of snoring. ON SCREEN: Vantage Point with Jon Denny T. JON DENNY: Hi, I'm Jon Denny, and welcome to Vantage Point. We are going to talk about snoring today and we're going to do it with Paul Kravitz, who has brought to the market an exciting break-through product called SNORenz, which has been proven from snorers around the country to reduce or eliminate their snoring problem. Paul, welcome to the show.

PAUL Kravitz: Thank you, Jon.

JON DENNY: Tell me, is this a break-through medical discovery; is this a revolutionary new direction to help people stop this snoring problem? ON SCREEN: Paul Kravitz/SNORenz/TVI PAUL Kravitz: Well, Jon, I don't know if you'd call it a medical breakthrough or a new discovery. To me it was a major breakthrough. In fact, it saved my marriage. I had been a heavy snorer for years and at one point in my life my -- my ribs hurt so much in the morning from my wife poking me to wake up to stop snoring, it was just a terrible thing. And over the course of many years I was thinking about surgery -- there were a lot of potential cures that I -- that I thought I would find to help the situation out. And I met somebody about six or seven years ago, a Korean gentleman who lived in Brazil, actually, and who was working with an EMT specialist who lived next door, and they came up with a -- with a product and I had met him, they were looking for somebody to invest in a company, and VOLUME 133 Complaint things just went -- went the way of the world -- and finally I asked him if I could try the product, and I did. And it worked. It was – at the it was in its infancy, it was terrible tasting, and – but it worked, and I used it for five days straight and I made a small investment, which became a larger investment, and even a larger investment. Until, finally, I bought the formula from the Korean and we went to work on it. It took a year and a half to develop, and, Jon, we've tested it, we've proven it, it works. And it works and it's a very simple way it does work. U. JON DENNY: How does SNORenz work to correct or address the problem you're talking about? PAUL Kravitz: Well, very simply put, it oils the vibrating parts of your -- of your throat. And when you put oil on a -on a rusty part, it silences it. And that's exactly how it does work. The secret of the product, and what we've spent millions of dollars to find out, is how to get it to attach itself -- the product itself -- the spray -- to stay in the back of the throat so that the noise stays -- I mean, that the noise stays away for six to eight hours.

V. JON DENNY: Now, why is snoring a problem? On one hand we know it's a problem for the person sleeping next to us, the snorer, they're not getting enough sleep because of that sound coming right next to them, but in what other ways is snoring a real problem for both the snorer as well as the person trying to sleep next to them? PAUL KRAVITZ: Well, from the snorer's point of view, Jon, it's a major problem. First of all, you don't know it, but if you were a snorer, you wake up maybe a thousand times a night, because the snoring does wake you up. You go right back to sleep again, and then you wake up again. Even if your wife doesn't wake you up or your girlfriend doesn't wake you up, you are really not sleeping soundly. VOLUME 133 Complaint W. JON DENNY: Interestingly. We have Dr. Mike Leonard on the line from Kalamazoo, Michigan. Dr. Leonard, are you with us? DR. LEONARD: Yes, I am.

JON DENNY: Dr. Leonard, I believe, conducted some tests on the efficacy of this product out of his offices in Michigan. Dr. Leonard, let me ask a question. As a dentist, is this something that you have recommended to your patients who have sleep problems, most particularly snoring problems? ON SCREEN: caller: Dr. Michael Leonard/Kalamazoo, MI/TVI DR. LEONARD: Yes. Initially, as a dentist, we -- in the -historically we fabricate occlusal appliances or guards that go in your mouth that, oh, essentially keep your mouth open wider or really position your lower jaw forward so you can keep the airway open like you were talking about earlier and don't have those tissues vibrating and rolling around. The problem is a lot of people can't tolerate those appliances. They are large, they are cumbersome and throughout the night if you've got it in your mouth you may end up with it on your pillow in the morning because you just subconsciously take it out.

JON DENNY: These are clamps that dentists have in the past put into people's mouths to create more air space? DR. LEONARD: Exactly. Very -- of varying different sizes and shapes, et cetera, but they're custom-made appliances and for some people that can't tolerate them, it's - - it's an expense to go through if you're not going to be able to utilize it.

So, I had -- through the grapevine -- heard about a spray to use and got the name of the company, called them up and VOLUME 133 Complaint ordered a case of SNORenz and had it sent to my office to start dispensing to patients and having them try it out and see what they thought, because, quite simply, it's easily reversible. If you are not tolerating it, if it was not working, you just stop using it. You're not really out anything. And that -- the feedback that I got was very, very positive. People were getting good results and the people that were coming in with the problems were not the snorers themselves, it was the mate -- the partner -- that was sleeping next to them that was kept up all night or irritated all night that they're having to roll their spouse over to get them to quiet down a little bit so they could get a more restful sleep.

X. JON DENNY: Now, there have been not only clamps but also pills that have been tried and also strips across one's nose, and very expensive and painful surgeries as well. DR. LEONARD: That's right.

JON DENNY: So, Doctor, would you consider SNORenz to be a logical common-sense approach to a typical snoring problem? DR. LEONARD: It's an extremely logical, common-sense, first-line approach to dealing with it. Use it and if you use it properly and if you use it consistently, I find that it works. It works for me and it works for a number of the patients that I'm having use it in the practice. Y. JON DENNY: If you want more information about SNORenz, the patented process, all-natural spray that could help reduce or eliminate the sound of snoring, if you are a snorer or you sleep next to a snorer, this may be the product for you. Money-back guarantee, it costs pennies to address this very serious problem, and hopefully you shall all get a full, restful, silent night's sleep. I'm Jon Denny on Vantage Point. I think I'm going to knock off a few sprays, because VOLUME 133 Complaint I've been told I'm a snorer. We'll see you next time on Vantage Point. Take care.

ON SCREEN: For more information or to order Snorenz call:

Tru-Vantage International 7300 N. Lehigh Ave.

Niles, IL 60714 (847)647-0300 If snoring is accompanied by any signs of Sleep Apnea, you should consult a physician before using any product.

The preceding has been a paid commercial program for SNORENZ.

6. Through the means described in Paragraph 5, respondent has represented, expressly or by implication, that: A. SNORenz significantly reduces or eliminates snoring or the sound of snoring in users of the product. B. A single application of SNORenz significantly reduces or eliminates snoring or the sound of snoring for six to eight hours.

C. SNORenz can eliminate, reduce or mitigate the symptoms of sleep apnea including daytime tiredness and frequent interruptions of deep restorative sleep. D. Testimonials from consumers appearing in the advertisements for SNORenz reflect the typical or ordinary experience of members of the public who use the product.

VOLUME 133 Complaint 7. Through the means described in Paragraph 5, respondent has represented, expressly or by implication, that it possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 6, at the time the representations were made.

8. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 6, at the time the representations were made. Among other reasons, the single study that respondent relied upon that purported to use a double blind, controlled design contained basic flaws in design (such as failure to apply an appropriate measurement to assess sound reduction, failure to include a statistical analysis of the results, insufficient duration of the testing period, and failure to develop a baseline against which any improvement could be measured). Therefore, the representation set forth in Paragraph 7 was, and is, false or misleading. 9. Through the means described in Paragraph 5, respondent has represented, expressly or by implication, that clinical research proves that SNORenz significantly reduces or eliminates snoring or the sound of snoring.

10. In truth and in fact, clinical research does not prove that SNORenz significantly reduces or eliminates snoring or the sound of snoring. Therefore, the representations set forth in Paragraph 9 were, and are, false or misleading. 11. In its advertising and sale of SNORenz, respondent has represented, expressly or by implication, that the product reduces or eliminates snoring or the sound of snoring. Respondent has failed to disclose or to disclose adequately that SNORenz is not intended to treat sleep apnea for which snoring is a primary symptom, that sleep apnea is a potential life-threatening condition, and that persons who have symptoms of sleep apnea should consult a physician. These facts would be material to consumers in their purchase or use of the product. The failure to disclose VOLUME 133 Complaint adequately these facts, in light of the representation made, was, and is, a deceptive practice.

12. In its advertising and sale of SNORenz, respondent has represented, expressly or by implication, that a physician, Robert (or “Bob”) Currier (or “Courier”), M.D., endorses SNORenz. Respondent should have known but failed to inquire as to whether Dr. Currier had a material connection with SNORenz’s marketer and manufacturer, Med-Gen, Inc. Therefore, respondent failed to disclose that Dr. Currier has a material connection with Med Gen, Inc., in that he is an investor in the company and may have a financial interest in promoting the sale of SNORenz. This fact would be material to consumers in their purchase decision regarding SNORenz. The failure to disclose this fact, in light of the representations made, was and is a deceptive practice. 13. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices, and the making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act.

THEREFORE, the Federal Trade Commission, this fifth day of February, 2002, has issued this complaint against respondent. By the Commission.

MED GEN INC.

Matter Number 0023211 VIDEO TRU SNORENZE 1- KT $49.95 TRS1 - HARD October 13, 1999 {1} {2} OFFICIAL TRANSCRIPT PROCEEDING {3} 14) FEDERAL TRADE COMMISSION (5) (6) MATTERNO. 0023211 7) (8) TITLE MED GEN INC.

9} [10] DATE RECORDED: OCTOBER 13, 1999 (14] TRANSCRIBED: MAY 12, 2000 [12] (13] PAGES 1 THROUGH 34 (14] [15] [16] TRU SNORENZ 1 - KT $49.95 TRS1 - HARD (17] VIDEOTAPE (18) [19] {20] (21) (22] [23] (24) (25) Page 1 [1] FEDERAL TRADE COMMISSION (2) INDEX {3} {4} VIDEOTAPE PRESENTATION: PAGE:

5] TRU SNORENZ 1 - KT $49.95 TRS1-HARD 3 (6} {7} (8] {9} [10] {11] {12} [13] (14) (1) {16} (17] (18) [19] (20) (21) (22} [23] (24) - (25] Page 2 (1) FEDERAL TRADE COMMISSION (2} {3} In the Matter of: ) (4) Med Gen, Inc., ) Matter No. 0023211 15) (6) October 13, 1999 17] [8) 19} [10] [11] [12] The following transcript was produced from a [13] videotape provided to For The Record, Inc. on May 8, [14] 2000. , (15) (16] [17] [18] [19] {20} (24) {22} [23] (24) [25] Page 3 1} PROCEEDINGS [2] (3) ON SCREEN:

4) Client: Trudeau Marketing/TVI (5) Project: VP SNORENZ 1 js} Price Point: $49.95 (7) Edit Date: 9/29/98 (e) Editor: SR 9) Audio: Mixed 1109) Notes: 800-385-6663 (11) The following is a paid commercial for SNORENZ (12) brought to you by Kevin Trudeau's Tru-Vantage (13] International, America’s premier direct response (14) marketing company.

[15] TRU-VISION 6} UNIDENTIFIED MALE: The following is a paid {17} commercial brought to you by Kevin Trudeau’s Tru-Vantage (18] International.

[19] (Music playing.) {20} ON SCREEN:

(21) John Ziglar Kevin Trudeau (22) KEVIN TRUDEAU: Hi, I’m Kevin Trudeau, you're (23) watching Tru-Vision. If you’re a snorer or know someone (24) that is, stay with us for this half-hour. I have my good (25) friend, John Ziglar, with me. We're going to be talking For The Record, Inc. (301)870-8025 Min-U-Script® Exhibit A TRU SNORENZE 1- KT $49.95 TRS1 - HARD VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 4 Page 6 f {2 [3) [4 5] [6 7] (8 (9 [10] {11} [12] [13] {14] (15} {16} (17) (18) {19} {20} (21} (22] (23) (24) (25) about a — almost a medical breakthrough. It’s not quite a medical breakthrough, but it’s certainly a revolutionary breakthrough — JOHN ZIGLAR: Yes, it is.

KEVIN TRUDEAU: — for getting rid of the noise ofsnoring.And if youare a snorer or you know somebody that is a snorer, we have a product being introduced on Tru-Vision for the very first time. It’s called Snorenz. It’s an all-natural product that you simply just spray into your mouth and it gets rid of the noise of snoring in 97 percent of the cases.

John, tell us a little bit about the problems people have with snoring, what people have tried in the past and why this works.

JOHN ZIGLAR: Kevin, I was introduced to the product a couple of months ago by a friend named Paul Kravitz down in Florida.

KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: And he was a snorer and he hada Korean man that came into his office one day and introduced him to this product. It was a similar product, it wasn’t this one exactly. And Paul was a snorer and, so, he took the product home, he used it, he quit snoring immediately. KEVIN TRUDEAU: Hmmm.

(1) (2 (3) 14] 15] (6) es (8 re) [10] (14) [12] (13) (14) 115} [16] 17] (18] [19] (20) (21) (22) (23) (24) [25] Page 5 JOHN ZIGLAR: The problem was it didn’t taste very good, so Paul took it to his own laboratories, put spearmint flavor into the product so that it didn’t have a bad after-taste, came up with this product, Snorenz, with a lysosome, patented product — process — and it’s been phenomenal KEVIN TRUDEAU: Now, this is a patented, allnatural product and, basically, what’s in it is just natural oils, correct? JOHN ZIGLAR: That’s correct.

KEVIN TRUDEAU: And this is a patented product. It has been clinically tested in double-blind studies — JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: Teil us about that. JOHN ZIGLAR: What we did is we had two doubleblind studies done in two separate locations. Basically, we had where the doctors did not know which was the placebo product or did the patient know. And in each of the cases, the people that took the product that had the Snorenz product in it in 97 percent of the cases they quit snoring immediately.

KEVIN TRUDEAU: Now, let’s talk about how this actually works. And by the way, if you're watching right now, and you would like to get Snorenz — it’s not available in any stores, it’s made available right now B= Cj (8 i) [19] [11] [12] 113] [14] [15] (16) [17] [18] [19] [20] (21) (22] (23) (24] 125] exclusively through Tru-Vision, you can buy it at an incredible price, look on your screen. ON SCREEN: Limited Time Only! Exciting New Product SNORENZ End Your Snoring Problem, Now! All-Natural 3 Month's Supply! Compare $99.95 Now Only $49.99 +S&H Results Guaranteed or Your Money Back! 1-800-385-6663 This is a three-month’s supply of Snorenz. It’s all natural, it’s patented, it’s available exclusively through Tru-Vision. You can call right now. This is a limited-time offer. This is a three-month’s supply and the suggested retail price for a three-month’s supply is $99 — that’s the suggested retail price. That’s only $33 per month.

But you can buy it right now, $49.95 — just $49.95, plus shipping and handling, gets you a threemonth’s supply. That’s about $15 a month, a little bit a SE [10] [14] [12] 113} [14] 118) [16] 17) (18) 119} [20} fat} (22) (23) (24) [25] Page 7 more than that, that’s it,and you can eliminate the sound of snoring virtually instantly. Now, John, let’s talk about how it works and what a person actually does. It’s all natural, it’s just natural oils in a patented process — JOHN ZIGLAR: Right.

KEVIN TRUDEAU: — it has a great spearmint taste and before I go to bed, what do I do? JOHN ZIGLAR: What you do is you simply lean your head back, you spray three squirts into the back of your throat — KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: — and then you virtually go to sleep. It’s that easy. It’s really that easy. KEVIN TRUDEAU: Now, the first thing I’ve got to let everybody know is how good this tastes. Because you said the first product — JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: — that came over from Korea was a horrible taste — JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: — and this tastes like spearmint gum. If you were here, you could smeil how wonderful the spearmint flavor is. Now, when I spray this in, what’s actually Page 4 - Page 7 (4) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO TRU SNORENZE 1- KT $49.95 TRS1 - HARD Matter Number 0023211 October 13, 1999 Page 8 Page 10 (1) happening in the mouth to get rid of the snoring, just 1) have suggested will help you to stop snoring. At this 2 like that, instantly? 2) point in time, there has not been anything that has 3) JOHN ZIGLAR: What happens, when you go to 3) Jasted long-term. 4) sleep, Kevin, is all of your muscles and your tissues {4] They even have surgical procedures where a 3) begin to relax.The same thing occurs inside of your is) surgeon will come in and they will take the uvula, which s) throat. And, so, what happens is the — the hole, the ig] is the little hangy-down part of your throat, they’! 17 air passageway, inside your throat will actually become 7) take that, Kevin, and they will surgical remove all or '@} smaller. And as it becomes smaller than the air that (gs) part of that, and then the back part of your tongue and {9} passes through passes through faster because it’s going ig] parts of your throat. (19) through a smaller hole. 10) ‘It’s a very painful process; it’s expensive and (14] And when it does, it rubs against — it causes 114] the recovery time is about six months. 12) the uvula and the soft tissues inside your throat to 12) KEVIN TRUDEAU: Folks, if you've watching right i13) flutter. And what they do is they hit against each 113] now, get on the telephone, this is a three-month’s (14) other, they begin to stick and that is the noise that we (14) supply, unconditionally guaranteed, you will know whether (18) call snoring. (15) it works the very first night you use it, and if it tie} | What this product does is lubricates the parts. tie) doesn’t work for you, send it back for a full refund, no (17] KEVIN TRUDEAU: Un-huh. [17] questions asked. (13) JOHN ZIGLAR: And what the patented process a) ~+‘This is a revolutionary — it should be called 119} does is we have found a way to keep this product inside (19) a medical breakthrough — what can you call it? (20) your throat for eight hours, and that’s why you don’t 20} JOHN ZIGLAR: I call it miracle in a bottle. (21) have the noise of snoring. (21) PU just tell you. 22} KEVIN TRUDEAU: So, you just spray it in your [22] (Laughter.) 23] mouth, just like that, it tastes great. 1 mean — 233 | KEVIN TRUDEAU: And if you're a snorer, you 4) JOHN ZIGLAR: Yeah. 24) know how powerful this can be. Now, we're going to talk 25) KEVIN TRUDEAU: — it really tastes incredible. 125} about some of the health benefits of getting a full- Page 9 Page 11 1) 1 was concerned about it was going to give me a crummy 1] night’s sleep in a just a moment. 2) feeling or anything, but it just tastes wonderful. It 2} But get on the telephone right now. This is a 3} smells great, and you just go to sleep and it basically 3] limited-time offer.This is normally going to sell — 4) eliminates that noise. 14) Manufacturer’s suggested retail price — $99 for a threei] JOHN ZIGLAR: That's exactly right. That was 5} month’s supply. That’s $33 a month. But if you call 6) my biggest concern too. I thought, you know, if it ie) right now, get on the telephone, call right now, while i doesn’t taste good, people won't take it on a consistent 7 the supply lasts, this is the only place you can buy this (a) basis. 8] product today, on sale, a three-month’s supply, $49.95. i) KEVIN TRUDEAU: Right. 13) That’s an incredible value — this is a limited-time (199 JOHN ZIGLAR: This one is easy. 19 offer — it is an all-natural product, it’s patented, 14) KEVIN TRUDEAU: Now, what other techniques or (4) it’s guaranteed to work or your money back, (12) methods or drugs is available out there right now for 12) unconditionally guarantee. 113) somebody who’s watching that’s a snorer? 113] + There’s been a double-blind study, clinical 114) JOHN ZIGLAR: You've seen a lot of different 114] testing, 97+ percent effective, will guarantee to wipe 1] things that people have introduced as snoring fixes. (1s) out all the noise of snoring, all night long, just three (16) You've seen the little strips that go across the bridge (16) squirts, this is really — as John said — a miracle ina 17) of your noise. 17) bottle.

(1) In the dental industry what you have is you 18} I want to go to the phone lines. We have Tina 119) have a mechanical piece that goes inside your mouth and —_|j1g) from Phoenix on the line. Tina, are you there? 20) it will actually pull your jaw forward and it’s very eo) TINA: I’m here. 24) uncomfortable and they have a very hard time getting 211 KEVIN TRUDEAU: How you doing? 22) people to wear it because it’s hard to sleep with this in 2} TINA: I have a little cold, so bear with me. [23] your mouth. 3) KEVIN TRUDEAU: Oh, that’s fine. That’s fine. 24, KEVIN TRUDEAU: Right. 124, Now, tell us about your experience with your husband’s 2s) JOHN ZIGLAR: There have been pills that people 28) snoring, what — what you’ve done — and howthis product For The Record, Inc. (301)870-8025 Min-U-Script® (5) Page 8 - Page 11 TRU SNORENZE 1- KT $49.95 TRS1 - HARD VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 12 Page 14 (} has worked. tt} stops.

(2} (3 (4) 5] 6] In (8] (9} (10) [11] [12} 113] 114] [15] (16) 17] {18} [18] (20) 21] [22] (23) [24] (25) TINA: Well, everything you’ve spoken about, actually, my husband’s had done. He’s had two surgeries, he’s a fire fighter/paramedic, so I’m not the only one who was affected by his snoring.

I mean, we do not sleep in the same room — well, we do not, thank God, because of Snorenz, but at the station where he works the guys even built a partition around his bunk bed because they couldn’t stand the snoring any longer.

He went in for one surgery, they removed all the polyps in his nose, they thought it was his sinuses KEVIN TRUDEAU: Un-huh.

TINA: — that didn’t work.Then, they put him in the Sleep Center for sleep apnea, then they okayed — because you have to get an okay because it’s a very expensive operation, as — you know — you said, they removed part of his uvula, part of the roof of his mouth — his tonsils, his adenoids — and this poor man, this was a very, very, very painful operation. And it did work for a while. We were thinking, thank, God, we can go on vacation, we can sleep in the same room together, and then the one night when he started snoring again, I woke him up, he thought I was it] (2 3] ia) fe) (8) n (8) (9) [10] 11) 112) [13] (14) i) [16] [17] (18] [19] {20) (21) (22] (23) {24] (25) Page 13 nuts, he was telling me there is no way, he’s had two surgeries, that it’s in my imagination, he’s just breathing hard.

Well, that wasn’t the case. So, back to the couch again and arguing about the snoring and I sawa commercial out here in Phoenix on my news station and this couple was talking about this Snorenz. So, I figured what have I got to lose? I called up and I ordered it.And my husband thinks, okay, you're a real nut. If two surgeries didn’t work, some spray stuff is not going to work. Well, I've got to tell you, it’s now been — it has to be at least six months that we're using this product. I belong to the Snorenz Bottle of the Month Club, my husband brought it up to the station because there was fire fighter up there that was driving him crazy now snoring — KEVIN TRUDEAU: (Laughter.

TINA: — wives are calling me for the number. My daughter was here last Sunday and she says why didn't I tell her about this product. So, I gave her my last bottle, so I have to go call another order in, because I will not be without it. I keep it on my nightstand and I'm telling you, my husband, the minute he starts snoring, he turns around, sprays his throat, and it KEVIN TRUDEAU: Now, when you said — when they start snoring — when your husband starts, you have to spray his throat. Is that because he forgot to spray before he went to sleep? TINA: He doesn’t — he doesn’t even think about it. He'll wake up maybe — it doesn’t happen even all the time. If he had a hard night, if he was working all night on a shift or whatever, and I start hearing (19) that it’s coming on — I'ma light sleeper — I just say, 11) John, he turns over, reaches for the bottle, sprays his throat, and that’s it.

KEVIN TRUDEAU: And it’s — and for the whole night — TINA: The whole night.

KEVIN TRUDEAU: — there’s no more sound? TINA: That’s it. We’re good to go. KEVIN TRUDEAU: That’s — TINA: It’s amazing, it really is. And to think he went through all of these surgeries and what he — I'll tell you, he was out of work for at least, I would say six weeks with this. He was black and blue, he couldn’t eat, he had food coming out of his nose when he'd try to eat — KEVIN TRUDEAU: Hmmm.

BR [4 SS Ss 112] (13} [14] {15] [16] (17] (18) 19] [20] l21] 122] (23) [24] (25) Page 15 TINA: — because they removed part of the upper part of his — the roof of his mouth — KEVIN TRUDEAU: Ummmm.

TINA: I mean, he went through hell and high water and now here’s something that is great and — it’s terrible being with a snorer because you cannot go on vacations, you can’t get a good night’s sleep yourself — neither one of you do — so I — I have to say try this product, I’m a believer.

KEVIN TRUDEAU: Now, Tina, the people that you've given the product to — TINA: Un-huh.

KEVIN TRUDEAU: — you said some friends and so forth — TINA: Correct.

KEVIN TRUDEAU: Is it working for them too? TINA: Absolutely.

KEVIN TRUDEAU: Is there anyone that you've given it to that it hasn’t worked for? TINA: No.

KEVIN TRUDEAU: It works for everybody? TINA: Everybody — nobody’s called me up and said any otherwise and my husband’s a happy camper at work because his partner doesn’t snore anymore. KEVIN TRUDEAU: (Laughter.) (1) {2 13] (4] (5) (6) 8] a [10] [11] 112] {13} (14) {15] [16] [17] [18] {19] (20) (21} (22) [23] (24) [25} Page 12 - Page 15 (6) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO TRU SNORENZE 1- KT $49.95 TRS1 - HARD Matter Number 0023211 October 13, 1999 Page 16 Page 18 {} (2] {3] (4) (5) {6} 7] (8) 19} [10] {11} (12] (13] (14] (15) [18] 17] [18] {19} {20} [24] {22} [23] [24] (25) TINA: So, everybody’s happy.

KEVIN TRUDEAU: That’s terrific. Tina, thanks very much for calling. 1 hope you get better with that cold.

TINA: Thank you.

KEVIN TRUDEAU: All right, have a great day. TINA: Okay. Bye-bye.

KEVIN TRUDEAU: Now, John, we hear stories like that all the time — JOHN ZIGLAR: I know.

KEVIN TRUDEAU: — about this product. Really, I wish we could call ita medical breakthrough. I mean, it’s really a revolutionary breakthrough, certainly for snorers, a miracle in a bottle.

Well, let’s talk about what really is the problem with not only the snorer but the person that they’re snoring, you know, with.

Why is it bad for a person to snore? What's the problem with snoring? I mean, if I snore and don’t know I snore — JOHN ZIGLAR: Right.

KEVIN TRUDEAU: — why would I want to get this? JOHN ZIGLAR: Right.

KEVIN TRUDEAU: Hey, I’m not affecting {1 {2 {3 {4 [5 (6] 7] (8 19} {10] [11] [12] {13] [14] [1] {16} [17] [18] {19} (20) (24) (22) {23} (24) [25] Page 17 everybody. Nobody’s complaining — JOHN ZIGLAR: Exactly.

KEVIN TRUDEAU: — what’s the problem? JOHN ZIGLAR: Kevin, when I was introduced to the product, and I started using the product myself in my own home, I didn’t realize I was a snorer. Now, I'm been married for 25 years and Linda had never really complained.

But when I told her that we had this new product, she suggested that I bring it home. And I obviously suggested that I didn’t think she snored that bad.

KEVIN TRUDEAU: (Laughter.) JOHN ZIGLAR: She told me it wasn’t — it wasn't her that had the problem.

KEVIN TRUDEAU: (Laughter.) JOHN ZIGLAR: So — but here’s the point:The point is is when you do snore what happens to you is you wake yourself up multiple times ina nighttime. And, so, what I did is I found myself waking up 10, 15, 20 times a night and turning over.And what I did is I never got deep sieep.

KEVIN TRUDEAU: Hmmmm.

JOHN ZIGLAR: I got a letter from a lady a couple of weeks ago and she had said that for the first [1 [2] [4 5] (6) 7} B (9 {10} (11) [12] [13] [14} [15] (16) {17} (18) {19} (20} {21} (22) (23) (24) [25] time in his life she is now beginning to remember dreams. KEVIN TRUDEAU: Hmmmm.

JOHN ZIGLAR: She got to deep sleep, where she was able now to recognize dreams patterns that she had had, And she wasn’t getting that before when she was in the bed with a husband that snored. KEVIN TRUDEAU: If you’re watching right now, we are offering a three-month’s supply of Snorenz — this is the refill bottle, this is the pump spray — you just spray three squirts in your mouth before you go to sleep, guaranteed to instantly stop the snoring noise all night long.

And what John’s saying is, if you are a snorer and maybe you think, oh, it doesn’t affect me, it doesn’t wake me up, it doesn’t affect my partner. It is. JOHN ZIGLAR: Yeah.

KEVIN TRUDEAU: If you use this product one time, for the first time in years, you will get the best night’s sleep you've ever had. You'll actually go and get deep sleep for the very first time. And you'll wake upthe next morning probably with more energy than you've ever imagined having. Because, folks, if you snore, I can tell you right now you are not getting deep sleep and you are not full of the energy of that you can be by just getting a full night’s rest.

cs} [10] {11} (12] [13] (14) {15} (16] (17) {18} (19} (20) (24] (22} (23) (24) {25 Page 19 You'll also be more pleasant, you won't be as irritable, your body could even function better, your immune system and all of your systems can work better when you've had a full-night’s rest. Get on the phone right now. This normally sells — manufacturer's suggested retail price fora three-month’s supply is $99 — that’s only $33 a month — this is a patented process, it’s exclusive, you cannot buy this in any stores, but for a first time, as our introductory special on Tru-Vision, you can get this product, while the supplies last, just $49.95. Call the number on your screen for Snorenz, unconditionally guaranteed.

Now, let’s talk about — in addition to the sleep patterns — how about kids or younger people that may actually snore and does it affect their school work or job performance.

JOHN ZIGLAR: There’s actually a study, Kevin, that’s been done over in West Germany with medical students. And what they did is they divided the class into snorers and nonsnorers. And what they did is they took and they did a profile on these students and they measured their performance over the entire process of their medical career — KEVIN TRUDEAU: Um-hmm.

For The Record, Inc.

(301)870-8025 Min-U-Script® (7) Page 16 - Page 19 TRU SNORENZE 1- KT $49.95 TRS1 - HARD VIDEO MED GEN INC.

October 13, 1999 Matter Number 0023211 Page 20 Page 22 {t) [2 (3), (4) (5 (6 7] 8] ¢) {10] {11] [12] {13} [14] [15} (18] (17) (18) {19} {20} (21) {22} (23) (24) [25] JOHN ZIGLAR: — and they found that snorers actually tested six percent lower than the nonsnorers did.

KEVIN TRUDEAU: Hmmmm.

JOHN ZIGLAR: And in our own office, we have people who have children who snore.I know myself with four children that when they don’t get enough sleep,then the next day their performance is hampered.They simply are not as pleasant — KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: — with themselves, with each other, with the work that they do — whatever it is. Sleep depravation is a big problem in our country.

KEVIN TRUDEAU: Now, of all the medical discoveries out there, there’s nothing that we know of right now that gets rid of snoring. I mean, you’ve got surgery, there’s no drugs, there’s these little things you put on your nose — they don’t work.There’s — there’s really not a lot of things out there.A person doesn’t have a lot of choices or options — JOHN ZIGLAR: No, they don’t.

KEVIN TRUDEAU: — it’s just basically roll over, turn around — you’re basically stuck with the problem.

0) [2] [3) (4) [§ {6 17] (8) {9} [10] (11) (12) 113} (14] 115] [16] 17) 118) [19] [20] [21] {22 (23) (24) 125] Page 21 JOHN ZIGLAR: Or go to the next room. KEVIN TRUDEAU: Or go to the next room. JOHN ZIGLAR: Yeah.

KEVIN TRUDEAU: This product, folks, guaranteed — get on the telephone right now — guaranteed — JOHN ZIGLAR: Um-hmm.

KEVIN TRUDEAU: — the first time you open this bottle, you open up your mouth, go to sleep — three squirts — and it tastes good.

JOHN ZIGLAR: I know it does.

KEVIN TRUDEAU: I mean, it tastes good. It’s got that smearmint — spearmint — taste, tastes great — all night long, no snoring.

Now, let’s talk about why it wouldn’t work. JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: Because there are a couple situations where you just need to know about this. There’s just kind of — kind of a couple directions to make sure that you — that it does work for you. JOHN ZIGLAR: Absolutely. What you have is — you have to use the product correctly, okay? We had a dentist that did a research project for us to find out exactly where this product lands when you squirt it in your throat. You've got to get it on the back of your throat — 1] 13) 14] (61 m [8 19) [10] [11] [12] [19] [14] [15] [16] [17] [18] [19] (20) (21) (22) (23) [24] (25) KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: — or else it will not work. KEVIN TRUDEAU: Right.

JOHN ZIGLAR: Next thing is, we — you cannot — you've got to have a clean palate. In other words, what I’m saying, before you go to bed, drink a glass of water or else don’t drink anything or eat anything at least 30 minutes before you go to bed. And particularly alcohol. If you drink any alcohol, then what it will do is it will naturally cut the oils in the product, it'll flow down your throat and it simply will not be there. So, it cannot work. KEVIN TRUDEAU: So, that’s really the only thing — JOHN ZIGLAR: That’s the only thing. KEVIN TRUDEAU: — just make sure you spray it at the back of your throat, we’ll show you exactly how to do that, and make sure 30 minutes before you use the product, don’t drink or eat anything, primarily alcohol, that way it will stay on the throat, then go to sleep and guaranteed to work or your money back; double-blind studies — two of them proved, clinical research, that 97 percent of the times this was effective in eliminating the snoring noise all night long. It’s all natural, it’s patented, and you can’t beat the value. (1) (2) 13) 14) (5) [6 es (8 (9) [10] 14] [12] (13) [14] [15] [16] [17] [19] 119] {20] (21) [22] (23] [24] {25} Page 23 You can’t beat this value, folks. If this thing works, and it does, guaranteed, how much would you pay? As a matter of fact, you don’t even know how much it’s worth, because you haven’t gotten a good night’s rest in years. You have no idea of how much energy you can have the next day when you get a good night’s rest. We're going to go to the phone lines again. I believe we have Kevin and Cindy from Sandwich, Illinois, on the phone.

Kevin and Cindy, are you there? CINDY: Yes, we are.

KEVIN: Yeah.

KEVIN TRUDEAU: How you doing? CINDY: Good.

KEVIN: Terrific, how about yourself? KEVIN TRUDEAU: I’m well. It’s a little rainy out here today, but okay. Wish I was on the golf course. KEVIN: I heard that.

CINDY: (Laughter.) KEVIN TRUDEAU: So, tell me about your experience. 1 sent you a bottle of this stuff and tell me what happened.

KEVIN: Well, actually, first of all, 1 was king of skeptical about it. I’m like, yeah, what — I didn’t know who sent it at first — Page 20 - Page 23 (8) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO TRU SNORENZE 1- KT $49.95 TRS1 - HARD Matter Number 0023211 October 13, 1999 Page 24 Page 26 ] (2} 3] (4] (5 [6 (7 (8 [9 [10] (14) [12] [13] (14] {15] [16] {i7] {18] {19] [20] (24) {22] {23} (24) (25) KEVIN TRUDEAU: (Laughter.) KEVIN: And I thought, yeah, what am I going to do with this? I thought it was a joke. But then Cindy kind of conned me into trying it, and I tried it and it’s really weird because we've only been married like three years, and so we — some say you're still in the honeymoon stage, but I used to wake up in bed by myself because I didn’t realize that I was snoring so bad my wife would get up and go sleep on the couch. KEVIN TRUDEAU: Wow.

KEVIN: I couldn’t understand why. But I started taking it and I started waking up with my wife every morning and things have been a whole lot better since.

CINDY: His snoring was so bad that he would be in the room and I would be in the living room and the door would be closed and I still could hear him. KEVIN TRUDEAU: Now, Cindy, you knew that his snoring was bad and, obviously, it affected your sleep so you had to leave the room, correct? CINDY: Oh, it was awful, yes.

KEVIN TRUDEAU: Kevin, did you — you never realized how bad your snoring was, right? KEVIN: I didn’t realize I snored that bad, otherthan inthe mornings! waked up — woke upand, you (1 [2 [3] (4) (5] (6) (7) [8 19} (10) (11] [12] [13] (14) [15] 116] 117) [18] {19} [20] (24) (22) [23] [24] (25) Page 25 know, had that nasty taste in my mouth and just couldn’t get enough water down — like dry mouth almost every morning. , KEVIN TRUDEAU: Right.

KEVIN: That’s the only way I knew, you know, I wasn’t breathing well.

KEVIN TRUDEAU: Have you noticed when you — because this product really tastes good — KEVIN: Right.

KEVIN TRUDEAU: Now, I just tried it for the first time today, so I know how good it tastes. Have you noticed any difference in that dry mouth or that morning breath in the mornings since you've been using the product or when you use it? KEVIN: Oh, absolutely. I mean, it’s — it’s night and day difference. I wake up in the morning, I don’t have that taste, I don’t need to get a drink first thing in the morning. Plus, I honestly, myself, feel that I'm getting a better night’s sleep, absolutely. I mean, wake up in the morning with more energy and ready to face the day instead of dragging my butt out of bed and whining and pissing and moaning about going to work. KEVIN TRUDEAU: Yeah. Does — does it — so you feel that a good night’s rest is maybe even affecting your personality or pleasantness? 110] [14] (12) [13] (14) (15) [16] 17] [18} [19] (20) [21] (22) (23) [24] (25) KEVIN: Absolutely, I feel.

CINDY: Yes, he’s much better.

(CLaughter.) KEVIN TRUDEAU: Well, wait a minute. Wait a minute, Cindy. If you’re getting a good night’s rest now, too — CINDY: Oh, exactly.

KEVIN TRUDEAU: — it’s probably affecting your — your maybe personality or happiness level or emotional level also, right? CINDY: Exactly. Yeah, because, J mean, I would never get a good night’s sleep because I kept thinking, oh, he'll stop, I'll turn him over this way or I'll turn him over the other way, and it — it doesn’t work.

KEVIN: Hey, another added benefit is 'm getting a lot less bruises in my sleep. Caughter.) KEVIN TRUDEAU: Hey, would you recommend this — and, obviously, you’ve seen the results — and would you recommend this to other people that snore, do you think they can get the same benefits? KEVIN: Absolutely.

CINDY: Highly recommend it.

KEVIN TRUDEAU: It’s easy to use, right, Kevin? {2} (3 [4 (5 (6) (8 {9 [10] [11] (12] 113) (14) [15] (16) 17) [18] [19] (20) (21) (22) (23) (24) (25) Page 27 KEVIN: Oh, it’s simple. 1 mean, at first I — you know — I was teal apprehensive. I thought it was going to taste nasty, like you said-earlier. I mean, the taste is just — it’s very pleasant. I thought it was going to be like a medicine. I'm almost ready to pinch my nose, but the taste is like, Wow! But it’s simple. You just need a couple of squirts in your mouth and you're done. KEVIN TRUDEAU: That’s great. And did it seem to work all night long? KEVIN: Yeah, absolutely, for me.I mean, I — I don’t know, I didn’t realize I was waking up, but it’s very evident with my wife.

KEVIN TRUDEAU: Right. Well, that’s great. Well, listen, thanks very much for calling in.I appreciate it.

CINDY: Okay.

KEVIN TRUDEAU: You guys have a great day. KEVIN: You, too, take care.

CINDY: Thank you.

KEVIN TRUDEAU: Bye-bye.

CINDY: Bye.

KEVIN TRUDEAU: You know, it’s funny, because he said he’s — oh, I feel better, I’m not, you know, pissing — For The Record, Inc.

(301)870-8025 Min-U-Script® (9) Page 24 - Page 27 TRU SNORENZE 1- KT $49.95 TRS1 - HARD VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 28 Page 30 (1) 2] 13) 14] 15] (6) m1 (8) 9] (10) 11] (12) 113] [14] 115] (16) 17] [18] 119] (20) (21) (22) (23) [24] [25] JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: — and moaning when I wake up. And so forth and so on.And this is interesting because people who snore really don’t realize that they are waking up throughout the night. I mean, every little while they're waking up and then going back tosleep;and then waking up and then going back to sleep; waking up — and they don’t realize that that’s never allowing them to get into that deep sleep.

JOHN ZIGLAR: That’s right.

KEVIN TRUDEAU: But when they wake up they don’t realize that they haven’t gotten a good night’s rest.

JOHN ZIGLAR: Right. I didn’t personally realize it until ] came up to the apartment in Chicago and I was sleeping in the bed by myself and I realized that I was not having to make the bed up all the time where I had pulled the covers out of the foot of the bed because I didn’t turn over so many times — KEVIN TRUDEAU: Oh, that’s interesting. JOHN ZIGLAR: — as a result of using the Snorenz. It’s the only single other difference. KEVIN TRUDEAU: Folks, if you're watching right now. Get on the phone and get Snorenz. This is exclusive, it’s a breakthrough, we’re announcing it for tt (2] 13} (5) (6} M4 re) (9 {10} (14] [12] [13] [14] (15] [16] {17] [18] {19} [20] (24) {22] [23] (24) (25} Page 29 the very first time, this is a revolutionary product that’s patented, guaranteed to work, you get a threemonth’s supply — this is your refill — and this is the little squirter. You just put this by the bed stand and then all you do — you can see how it sprays out here — you just put three squirts in your mouth, on the back of your throat, just squirt it in right before you go to sleep, it tastes great, it’s all natural, it’s a patented product. In double-blind studies, clinical testing, guaranteed to work 97 percent of the time. And, you know, we have never seen it fail. And I think the reason it says 97 percent, if they put 100 percent people would think, oh, it sounds too good to be true.

And it does sound too good to be true, but the double-blind studies, the people that use it, and you can find out for yourself — JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: — it’s guaranteed to work or your money back. You'll know the very first time you try it.

It normally sells for the three-month’s supply, $99. You can buy it here today on Tru-Vision — look at the price on your screen — just $49.95.That’s less than $15 a month for a great night’s sleep. That’s $.50 nb 2 a day fora restful, peaceful, wonderful sleep. You’re not going to wake up your partner. If you are a snorer or you know somebody that is a snorer, get on the phone right now. This will be the best gift you could ever give yourself or you could ever give anyone else.

They will get a good night’s sleep, and I'll tell you something, when — and you found this out — JOHN ZIGLAR: Yeah.

KEVIN TRUDEAU: — when people are getting a good night’s sleep for the very first time, they wake up — and from people who order this — they don’t realize for maybe five, 10, 20, 30 years, they haven't gotten a good night’s rest.

JOHN ZIGLAR: Right.

KEVIN TRUDEAU: And I can guarantee you something. When a person gets a good night’s rest and wakes up the next morning, they’re going to have — probably have more energy than they’ve had in years. They're going to feel better about themselves, they're going to have a better relationship with their spouse and family and friends — JOHN ZIGLAR: Exactly.

KEVIN TRUDEAU: — they’re going to do better on the job, better in school, they're going to S&S [10] {14} [12] [13] (14) [18] {16] (17) [18] {19} (20] [21] (22) [23] (24) [25] Page 31 potentially think clearer, they're going to be less irritable, they're going to be happier. You know, we hear all these people are depressed today — JOHN ZIGLAR: I know.

KEVIN TRUDEAU: — taking Prozac and everything else, and a lot of it may have to do with just getting a good night’s rest.

JOHN ZIGLAR: Sleep is a — sleep depravation is huge. It’s a huge, huge problem. KEVIN TRUDEAU: You know, when a person gets a good night’s rest — you mentioned this too — JOHN ZIGLAR: Um-hmm.

KEVIN TRUDEAU: — people can actually start dreaming better — JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: — thinking clearer. And, again, that relationship with your spouse can get much, much better.

It’s a big problem, folks, snoring. If you know a snorer, if you are one, get on the phone right now and get Snorenz. This is a limited-time offer, this is the first time we’ve made it available on Tru-Vision. We don’t know how long this will be made available at this price, it is a limited inventory. We're not sure how Page 28 - Page 31 (10) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO TRU SNORENZE 1- KT $49.95 TRS1 - HARD Matter Number 0023211 October 13, 1999 Page 32 Page 34 tt) long we'll be making it available at this price. 2 CERTIFICATION O F TYPIST 2] You get a three-month’s supply, it’s all 3) MATTER NUMBER: 0023211 natural, it’s easy to use. If you are a snorer or know 14 CASETITLE: MED GEN INC. somebody that is, it will eliminate the snoring just like 5} TAPING DATE: OCTOBER 13, 1999 that, guaranteed or your money back. It’s a patented 3) TRANSCRIPTION DATE: MAY 12, 2000 {3 {4 {5 {6} Process, double-blind studies, clinical research. If it i | HEREBY CERTIFY that the transcript contained 7 doesn’t work, send it back for a full refund, no 9) herein is a full and accurate transcript of the tapes (8) questions asked. (io) transcribed by me on the above cause before the FEDERAL 18) But the statistics show, 97 percent effective 11) TRADECOMMISSION tothe best of my knowledge and belief. Sees . . {12] (io) in eliminating the noise of snoring the very first 37 DATED: MAY 12, 2000 114] application. Folks, your life can be changed when you 114) {12} get a good night’s rest. 15] [13] Get on the telephone right now and get Snorenz. (16) DIANE QUADE This is Kevin Trudeau with John Ziglar. You're (171 ay is 18 udeau with John Ziglar. Youre (18) CERTIFICATIONOFPROOFREADER (16) watching Tru-Vision. It’s a limited supply, one-time (19) 116) only price, get on the phone and get a good night's rest (0) I HEREBY CERTIFY that I proofread the transcript for 17) for the first time in years. 21) accuracy in spelling, hyphenation, punctuation and 18} Kevin Trudeau, Tru-Vision, with John Ziglar. (22) format. (19) John, thanks very much for being here. i zt) KEVIN TRUDEAU: We'll see you next time — [22] order now.

(233 JOHN ZIGLAR: Bye-bye.

(24) (Music playing.) 5) ON SCREEN: The preceding has been a paid Page 33 commercial for SNORENZ brought to you by Kevin Trudeau's Tru-Vantage International, America’s premier direct 3] response marketing company.

4] (End of video.) (5) [6] 7] [8] 19] [10] (11] [12] a (2 [13] [14] [15] {16] (17) {18] {19} [20] (21) {22} {23} [24] [25] For The Record, Inc. (301)870-8025 Min-U-Script® (11) Page 32 - Page 34 Lawyer’s Notes MED GEN INC.

Matter Number 0023211 VIDEO VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT October 13; 1999 Page 1 (1] FEDERAL TRADE COMMISSION (2] INDEX [3] {4} {5} VIDEOTAPE: Page (6] VP Snorenz 2- JD (3 mos. Free) (7) VPS2 Soft 3 (8) tS) [10} [11] {12} [13] {14} [15] {16] (17) [18] (19] [20] [21] (22) [23] [24] [25] Page 2 1] FEDERAL TRADE COMMISSION {2} {3} in the Matter of: ) [4] Med Gen, Inc. )Matter No. 0023211 (5} (6) 7) October 13, 1999 (8) [9] [10] [14] [12] {13] The following transcript was produced from a [14] live tape provided to For The Record, Inc. On May 8, [15] 2000.

{16} {17} [18] (19] [20] [21] (22] [23] [24] [25] Page 3 (1) PROCEEDINGS 2] 3] ON SCREEN: Client:Trudeau Marketing/TVI 14] Project: VP Snorenz 2 JD) 5} Price Point: Soft Offer 1s] Edit Date: 10-6-98 (7 Editor: SR (3) Audio: Mixed 191 Notes: 800-392-4006 (109 MALE ANNOUNCER: The following is a paid (11) commercial brought to you by Kevin Trudeau’s Tru [12] Vantage International.

13] ON SCREEN: The following is a paid commercial 114} for Snorenz brought to you by Kevin Trudeau's 18} Tru-Vantage International, America’s premier direct [16] response marketing company.

117) JON DENNY: For millions of Americans, this is {18} the most annoying and unwelcome signed imaginable. (19) That’s right, more than 90 million Americans have a (20) snoring problem, and it can cause sleeplessness, j2t) headaches, a lack of energy throughout the day, and (22) that goes for the snorer as well as the person trying (233 to sleep nearby.

(24] Join us and find out how to instantly solve (25) your snoring problem in this special edition of Vantage Page 4 (1) Point.

7 ON SCREEN: Vantage Point with Kevin Trudeau 3] Jon Denny 4) JON DENNY: I'm Jon Denny, and this is a {5} Special edition of Vantage Point. We’re going to talk (6) about snoring today, and if you’re a snorer or just 7) happen to sleep next to one, then you know snoring is no laughing matter. Snoring can and does seriously (3] diminish the quality of your sleep, your life and it (19) could drive two people apart, meaning the snorer and {tt} the person next to the snorer. [12] My guests today are Dr. Bob Courier, physician, (13] surgeon and associate clinical professor at Michigan (14) State University, and John Ziglar, who represents a (15) Company that manufactures a product called Snorenz, (16) which is designed to end your snoring problem. (17) Gentlemen, thank you for joining me. (18) Guys, got to ask you this first question, (193 because for some people it’s a light matter, and for (20) others it seriously impacts their life, certainly [21] impacts their sleep. What causes snoring? What is the [22] reason behind that all-too-familiar rambling sound that 123] keeps half of America, it seems, up every night? (24 ON SCREEN: DR. BOB COURIER, Physician Surgeon (25) DR. BOB COURIER: Well, what snoring really is, (8 For The Record, Inc. (301)870-8025 Min-U-Script® Exhibit B VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 5 Page 7 (1) Jon, is simply a relaxation of the tissues in the back of your throat. It’s when we fall asleep, much of our (3] muscles in our body as well as our throat relax. (4) That’s the time we sleep. We're supposed to get our [5] rest.

(6) What happens with that, though, unfortunately m is as the tissues relax, they occlude oractually [8] Narrow, and they cause a funnel effect for the air as (9) it goes through, flapping the tissue.This is in the 19) back of the throat, hence creating the noise. It’s (11] very positional, it’s very — also very dependent on (12) habits that we have, such as smoking, our dietary (13) habits, and then also it affects really how much we (14) sleep and how much rest we actually get throughout a [2 (15) night.

16) JON DENNY: Now, you were both snorers 17] presumably.

ta} DR.BOB COURIER: Absolutely.

v3] JOHN ZIGLAR: Sure.

29) JON DENNY: Tell me, how did you get involved (21) in Snorenz? How did this all come about? 223 JOHN ZIGLAR: This all came about, Jon,I meta (231 friend down in Fort Lauderdale, Florida named Paul (24) Cravitz. Paul Cravitz was in the banking industry, and (25) he had a Korean man that came into his office with a Page 6 (1] product in a little bottle and it didn’t have any 12) labels on it or anything, but he says, This will make 3] you quit snoring. And Paul looked at it, and he put it 4] over on the side of his desk and didn’t think too much (5) about it, but he did make the mistake of telling his {6} wife that somebody had come in with this product, and (71 she asked him would he go ahead and bring it home and (3) try it.

9} ON SCREEN: John Ziglar, Master Strategies (10) Researcher 11) JOHN ZIGLAR: The bottom line is, he did use (12) the product, it did make him quit snoring, but it {13] tasted terrible, and so Paul says, Whoa, you know, what [14] a price to pay. So, he took that product, he developed (18) it, he took it to the laboratories, and they did some (16) liposome technology with the product, and they put a (17) flavor to the product to make it so that it tasted (18) good, and we now call the product Snorenz, and it’s {19] just phenomenal.

299 JON DENNY: And in your first exposure to it, [21] you were a rumbler. We heard Harley Davidson sounds (223 coming from you at night is the word on the street. 123} Tell me your first experience with the product. 24) JOHN ZIGLAR: My first experience really, when (25) I — I had been married for 25 years, my wife, Linda, I {1 (2 (3 [4 [5 {6 it) (9 [10] 14) 112] 113] (14) (15) [16] 17) [18] 119} (20) (21) (221 (23) [24] (25) came home after talking with Paul, and I told my wife about this new product that we were looking at, and she said — and she says, Well, when are you going to bring it home? And I said, Well, honey, I said really, you know, you don’t snore that bad. And she said it really wasn't for her.And up until that point, I really didn’t realize that I snored.

JON DENNY: Un-hum.

JOHN ZIGLAR: But I did turn over in the bed an awful lot at night, and I knew that, and so I used the product, and John, what I found is for me personally, I quit turning over so many times at night, and I began to get a more peaceful, restful sleep. So, that’s what personally happened in my life.

JON DENNY: Well, that raises an interesting point, because for some people snoring — ina litany _ of problems that we face on an everyday basis, snoring is not at the top of the list. But in fact, if you speak to people who sleep next to a snorer, as well as the snorer themselves, there are some real health issues, there are some real serious concerns that a snorer has or should have. How does and why does a snoret — why should a snorer worry about this? Why is it a problem? DR. BOB COURIER: Well, it is a problem, but (1 [2 [4 (5 [6] (7) [8] [9 [10] (14] [12] [13] (14) {15} [16] (17] {18} {19} [20] (21) (22) [23} (24) (25) Page 8 the real problem is an awareness.A lot of people aren’t aware, as you were, that you didn’t snore. You don’t snore. It’s — and people don’t want to offend someone else that they may sleep with or someone in their family by telling them they snore, and they have put up with it for years. ) The problem with that is all the things that go with it, even on a personal level. Me personally, I snore and have snored, and I've used the product, as well, and it’s worked great for me. Why do I know this? Because of my energy level, I feel better, I get better sleep.The problems that happen, I think people go to sleep, they assume they’re automatically going to wake up rested. They don’t.And then they wake up with a headache, less energy, they hurt, they’re sore, they're irritable.

The health problems are really insidious. We can go into hypertension, problems with your heart, your cardiovascular system that can go into this, but let’s no even go that deep. Let’s just talk about the things that happen to us on an everyday basis, the energy level that we have. We're not rested. That’s the problem.

JON DENNY: So, you're saying snorers get less rest — get a less restful sleep? Page 5 - Page 8 (4) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT Matter Number 0023211 October 13, 1999 Page 9 Page 11 DR. BOB COURIER: Absolutely, they do not sleep.

JOHN ZIGLAR: See, what happened to me — what was going on in my night is I would literally turn over 20 or 30 times a night, and the reason I would is because I would go to sleep, my tissues would relax, I would snore — I would literally wake myself up, and then I would turn over, and J would turn — I didn’t wake up and get up out of the bed to turn over. I would just wake up and turn over, and what that does is it keeps me, John, from getting the deep, restful sleep.

We get letters, we've got a letter froma lady out in Phoenix, also, who told us that for the first time in her life she started taking this product, and she can remember her dreams. Well, you see, dreaming is an important thing, and we all dream if we get peaceful, restful sleep.

JON DENNY: But isn’t — isn’t dreaming or the dream state indicative of a deep, restful, REM sleep | think they call it? JOHN ZIGLAR: Yes, it is.

JON DENNY: So, if you’re a snorer, you won't dream as much, meaning you're not getting as deep a sleep. Is that the point? {1} {2} (3 [4 (5 (6 {8 [9 {10) [11] [12] {13} {14] (1} [16] {17} (18) 19] {20] (21) (22] [23] {24] (25) (10) (11] (12) 13] [14] (15) 16} [18] [19] (20) (21) (22) (23) (24) (25) Page 10 DR. BOB COURIER: That is correct. You almost, because of the snoring, and sometimes we're not aware of it, we keep waking ourselves up. We snore, then we wake up, then we try to reposition ourselves. We're just not comfortable. We can’t get our air, we can't get the oxygen we need, hence the headache, the irritability when we wake up. We're not rested, that’s the problem.

ON SCREEN: Dr. Bob Courier, Physician Surgeon DR. BOB COURIER: Another side effect, a cute story, my brother's also a snorer, I think this is just something that runs in families, as well. Anyway, he has since tried the product, as I have, and I use it, and I think it’s fantastic, because it does stop the snoring. My brother has also — he doesn’t have the aches and pains he used to wake up with. You were also talking about the tossing and turning. We're also forgetting his wife used to jab him in the middle of the night. So, he does not wake up bruised. So, this also helps, a little sidelight there.

JON DENNY: How does Snorenz work? Is there 23) have been other products available over the course of 24} the last, you know, 10 to 20 years that have been in pill form, surgeries, people have gone through painful, (1] (2 [3.

(4 {5 7} (8 [9 {10} (11) (12} {13} {14] (15) {16} [17} [18] [19] [20] [21] [22] (25} expensive surgeries. In fact, we're going to — I think we're going to talk to a caller later who has a story to share with us about this product and the journey she went through with her husband to essentially reduce this problem or eliminate this problem. How does this product work? JOHN ZIGLAR: John, what we've done is we have taken all natural oils, and we have taken and put them together in a liposome formulation, and we have taken it so that you can actually spray this product into the back of your throat, and the process is really quite simple. Have you ever seen a car go down the road that didn’t have enough oil in it, and you hear the clatter and the clanking? ON SCREEN: John Ziglar, Master Strategies Researcher 17] JOHN ZIGLAR: Well, what happens is we took that same philosophy, that same technology, and we said, Hey, if we can oil the parts and we can take and make a topical solution that will stay in a place for an extended period of time, we can eliminate the noise of snoring. You're still going to have the same amount of air that’s going to pass through the passage, but all we're going to do is we're going to lubricate the parts so that there is no noise associated so that you = ie) {10} [14] 12] 13} [14] [15] (16) 17) 118) (19) (20) l21) (22) [23] [24] (25) Page 12 don’t then wake up or wake up your neighbor. JON DENNY: So, it’s essentially lubricating what part of the throat and which part of the throat is causing that sound? DR. BOB COURIER: Well, to take this just a little bit further, a dentist has studied this and has actually sprayed this in models, and he actually used a dye at the time so he could see where it was applied. In the soft tissues, in the back of the throat, the ones that we see that flap and flutter and that need the lubrication, what — it is applied there, but where the technology goes even further and better through this liposome technology is to apply it evenly, and the very neat thing about this is it stays. It stays there all night. That’s where others have failed. And that’s also where a lot of the appliances, that’s where also a lot of the applications of surgeries, pills, other things that have been attempted and tried have failed. This product here stays there. It’s easy application.

As a physician, one of the problems that I have with patients is compliance, trying to get them to use and continually use something. If we're going to get restful sleep, we need it on an every-night basis. This is accrued, we have a clock and a bank and it’s For The Record, Inc. (301)870-8025 Min-U-Script® (5) Page 9 - Page 12 VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT VIDEO MED GEN INC.

October 13, 1999 Matter Number 0023211 Page 13 Page 15 1] (2) [3 14) (§ [6 ta) 18) 19) (10) [11] 112} {13] {14] {15} [16] [17] (18) [19] {20 (21] (22) [23] (24) [25] for sleeping purposes.

So, this isn’t something just one night good sleep will help. This is something that’s accrued over time. When you get good sleep, that helps a lot. We need compliance. With the ease of application, what he is talking about, where the effectiveness of it staying there, it’s a winner, and that’s how it works. JON DENNY: So, it’s basically, correct me if I’m wrong, it’s two or three sprays in the back of your mouth. I have a friend who underwent a session with a dentist who fitted him with a clamp of some sort, which pushed his jaw out and tried to create more breathing space essentially, and that lasted for about three or four months. This works, and it stays working for people? .

DR. BOB COURIER: Yes, and what you're trying to do with the appliance is just simply trying to open up the airway more so you don’t get the fluttering of the tissues, and that’s what we do when we snore. When we snore, we essentially wake ourselves up in a snore and then reposition ourselves, trying to, again, open up our airway to get more air so we get more oxygen. What happens with this product, this lubricates, stays there, again through the technology, and then you don’t have the snore; hence, you don’t {i 2] 13] [4 {5 {6 m1 (8) (9) [10] 11] 112] _ (13) (14) (15] 16} (17] {18} {19} (20} (21) (22) (23) (24) (25) Page 14 wake up; hence, you get a more restful sleep, JOHN ZIGLAR: And the problem, John, with the appliance is it’s very uncomfortable, and there have been a lot of people — and dentists will tell you that they have got patients who have paid for the procedure, paid to get the appliance, could not sleep with it hooked up, and so it did not work for them, because they were so uncomfortable.

JON DENNY: Right.

JOHN ZIGLAR: Okay? So, when I saw this first — this product the first time, I looked at this thing and I thought, Oh, my goodness, you know, I’m going to spray oil in the back of my throat, I’m thinking WD-40 or something like that and an oil slick, and I'm going, Oh, but it’s the consistency of water, and the nice thing about it is that it doesn’t — there’s no feeling associated with the spray in the back of your throat. All you get is a nice, clean, peppermint taste, which made it wonderful, so compliance — people will do it. JON DENNY: Well, the after taste — JOHN ZIGLAR: Yes.

JON DENNY: — in the morning when you wake up is much better.

JOHN ZIGLAR: Exactly.

JON DENNY: You don’t feel like you have an oil [10] [11] (12) (13) [14] 115) (16) 117) (18) (19) [20] 21} [22] (23) (24) (25) sludge at all. It’s a minty taste. ON SCREEN: 800-392-4006 MR. DENNY: If you have a snoring problem, if you have problems sleeping next to a snorer, then Snorenz may be the answer you've been waiting for. Remember, snoring is a medical condition. Studies have shown that shoring can seriously reduce your energy levels, your concentration and can seriously affect your work habits, as well, and you can be sure your snoring is seriously bothering someone other than you. Snorenz is the first all-natural spray that has been proven to give you a healthy, natural, good night’s sleep. It has no side effects. It’s as easy as a few sprays before bed, and it lasts all night, and if you want more information on Snorenz, if you want to stop the snoring, if it’s a snorer next to you or if you be the snorer, you may want to call the 800 number on your screen.

We have I believe a caller on the line from Arizona, and I believe it’s Tina Hines (phonetic). Tina, are you on the air with us? TINA HINES: I’m here.

JON DENNY: Great. How are you feeling today? TINA HINES: I've got a sore throat, but other than that, good. I’m listening to your show, and I (] (2 (5] [6] eA] (e 2] [10] (11) 112} [13] [14] [15] 116] 17) 118] [19] [20] (24) (22) Page 16 have to tell you that snoring, you know, is a lot more dangerous that people think. My husband was a chronic snorer, he’s a firefighter/paramedic, so I wasn’t the only one affected by this. 1 mean, we didn’t sleep together for years.

JON DENNY: Now, you've been married for how long, Tina? TINA HINES: Sixteen years.

JON DENNY: Sixteen years, and this was a problem that occurred right from the start of your marriage? TINA HINES: Oh, yeah.

JON DENNY: You found you were married toa snorer? TINA HINES: Oh, absolutely, and the poor guy, it would be all night, John, turn over, turn over. It did not matter, he could be sleeping on his head, and he would still snore.

Well, it got so bad that even at the fire department, he was being hassled at the fire department, because these guys sleep at different shifts, they don’t all sleep at the same time, and when 23} John was sleeping, he would be waking everybody else {24] (2) up, so they would be pounding on the walls and he’d come home all aggravated, he’d come home and want to Page 13 - Page 16 (6) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT Matter Number 0023211 October 13, 1999 Page 17 Page 19 {1 (2) (3 [4 {5 {6 [7 (8 [9 [10] {14] {12] [13] [14] [15} {16} {17} {18] {19} {20} (21) (22) [23] [24] (25] sleep.

They even built a partition around my husband’s bunk bed to try to keep out the noise. Well, it got so bad he finally went to the doctor, and in order for the insurance company to pay for this surgery, they put him in the hospital, in the sleep center, and found out that he also had sleep apnea, which is very dangerous, because when you're snoring, you stop breathing, then you forget to sleep.

So, they did the surgery, and needless to say, it lasted for a while, and then after that he started up again, and he would not even believe when I would tell him, John, you’re snoring again. You don’t want to go through surgery and find out that you're snoring again.

JON DENNY: So, this was after a surgery, he had — the problem re-emerged.

TINA HINES: Right, they did surgery on all his sinuses, they went through his nose and removed all his polyps, thinking that was the problem. So, now he’s in for the second surgery, and they decided they are going to remove part of his uvula, and the roof of his mouth, his tonsils and his adenoids, and this way it will give his tongue more room, I guess is what they said, so he wouldn't snore.

(1] (2 {3} (4) {5 {é it) {8} (9 {40} {11] [12] (13) (14) (15) [16] 117] [18] (19) (20) 24) [221 (23) [24] (25) Page 18 Well, he went through this, and it was a horrible surgery. I really felt very, very bad for him. He was out of work for six weeks, and he had high hopes that this was going to work and our life was going to change, we could sleep in the same room together, go on vacation, the guys wouldn't be hassling him.

Well, that did work for quite a while, and then it started up again, and I'll tell you what, I was even afraid to tell him, because I couldn't believe it myself, It’s aggravating, it’s annoying, I don’t get a good night's sleep, he doesn’t get a good night’s sleep. I hated to say it, but I was happier when he was at the fire department because I got a good night's sleep.

JON DENNY: Tina, I want to interrupt you fora second, because this isa — you know, a real relatable story to some. Perhaps not all have gone through surgeries and so forth, but for the millions of people who sleep next to a snorer, their lives are affected, as well. How did you find your life or your sleep quality affected by sleeping next to a snorer? TINA HINES: Well, I didn’t, I chased him out. Actually, I had insomnia and I don’t get a good — I mean, I could hear the dog turn over. So, he would [18] have to go out in the other room, but I could still hear him through the vents, but I’d get up in the morning, and I would be a grouch at work, because I was — I was tired.

JON DENNY: Yes.

TINA HINES: And I was aggravated. You're talking two surgeries, what’s it going to take? He tried those stupid nose strip things, they didn’t work. So, one day I'm sitting here watching TV and I see a commercial out here in Phoenix and a couple is talking about the same thing, and I’m thinking, Well, what have I got to lose? Well, my husband tells me I’m nuts, because if two surgeries didn’t work, the spray was not going to work. I figure, Well, I'm going to try it. So, I sent for it, put it on the nightstand, the first night he was home, I woke him up, I said, John, spray your throat. He said, Yeah, yeah, yeah, yeah. I said, (197 John, please, spray your throat. So, we sprayed his [20} {21} (22) [23] [24] (25] throat, and I’m like waiting — I’m laying there, I’m laying there, I'm like, Oh, wow, he was sleeping, there was no noise coming out of him. And I was — I was pretty well hooked. And he still was not a believer. He said it was just a fluke. So, it took a few times of using the Snorenz.

s 19] [10] 11] (12) [13] (14) [15] [16] (17) {18} {19} [20] (21) (22) (23) {24} (25) Page 20 Now, I’li tell you what, he’s taken it up to the fire department. I have the wives calling from the fire department asking me the 800 number. I've given away more bottles, I can’t tell you, because I belong to the Snorenz Bottle of the Month Club, and I just gave one to my daughter last week, she came over, and she was like, Mom, I’m going crazy, Kenny’s snoring. I said, Here, take my last bottle, take it home. JON DENNY: And how long now has your family or your husband in particular been using Snorenz? TINA HINES: Oh, for — oh, months.

JON DENNY: For months.

TINA HINES: Months, absolutely.

JON DENNY: And it works for him pretty much every night.

TINA HINES: Well, he takes it in his little duffle bag when he goes to the fire department, because being a medic, also, he might be called to another station, he doesn’t want to go to another station with, you know, guys he doesn’t know and start snoring. So, he carries it in his little bag, and everyplace he goes, the Snorenz goes with him.

JON DENNY: Right. Well, Tina, thank you for calling from Arizona.

TINA HINES: Hey, thanks for the Snorenz, Pll For The Record, Inc.

(301)870-8025 Min-U-Script® (7) Page 17 - Page 20 ‘ VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 21 Page 23 (1) tell you.

2] JON DENNY: Well, we appreciate you calling and {3] Continue to get a full silent night’s sleep. 4) TINA HINES: Absolutely.

3} JON DENNY: Okay, Tina, thank you. 3) #TINA HINES: Thank you.

7 JON DENNY: Bob, tell us about some of your [8] patients who have been turned on to Snorenz. i] DR.BOB COURIER: Well, I'll give you a good example. I have Mike. Now, we always think of a snorer as someone that’s older, okay, that’s a little bit more passed middle age, always a male, and it’s always grandpa, the chainsaw, somebody like that. Interestingly enough, I had a 25-year-old patient of mine named Mike who is an optician. Now, Mike was trying to qualify, okay, for the certifying exam to become a certified optician. He was losing energy. He just couldn’t — he couldn’t understand it. He couldn’t understand why he didn’t have the get-up and go to do his job, plus go home to study. He’s single. He lives by himself.

So, he’s wondering why. I said, Well, you know, maybe you're not sleeping well. And he said, Well, you know, I just can’t sleep. So, what happens to him is I give him some Snorenz. I said, Well just [10] 11] (12) (13) 114) 115] [16] 17] [18] [19] 120) [21 (22) (23) (24) (25) Page 22 {1} try this, it’s just an outside shot, I said you have [2] got to try this, let me know how it works. B) He comes back, now, I don’t see him in a week (4) Or two on another appointment basis, he comes back, and {8} my word, he just — he’s just aglow. He passed the (6) certifying exam, he feels like he is more awake, more 7 energetic, he feels like he can do anything, he can {8} conquer the world. He’s 25 years old. 9] What has happened is he relayed this story: What happened to him is he would fall asleep, he couldn't get to sleep at night, okay, so he’d sit up and watch late night TV and he becomes an insomniac. What he would do is fall asleep, but he would awake with a snore. This way, with using Snorenz, he could get his clock back in order, he could go to sleep, and he could go to sleep snoring free, wake up refreshed in the morning. He figured it all out real simply, and it took us years to figure all this out, and he did it in a very short time. [20} Now, he doesn’t have a bed partner, and so what i211 happens is he did this for himself, for his own energy 122] level, and so, you know, it has worked successfully for (23} him. It isn’t always a bedmate telling someone that (24) they have it. He did it for himself. JON DENNY: You think of snorers as older {10} (11) [12] {13] [14] (1) [16] (17] (18) [19] (25) (1) people, your grandfather, your father. I remember 2] growing up my father — listening to my father across 3] the hallway snoring, it sounded like the start of the Indianapolis 500 every night. But, in fact, younger {5} people snore, too, do they not? In fact, there’s a (6) study out about students who were snorers who were 7 proven to have lower test scores.Tell me about that. JOHN ZIGLAR: I was reading the newspaper here in Chicago one day and the Sun Times has an article, and the top of the article says, “Test scores affected by snoring.” So, I’m looking at it, I'm thinking, Wow, you know, there’s actually been a study done, and what had happened is a research program was done over in West Germany with medical students, and what they did is they tracked an entire medical school class from the day they started until the day they finished, and they put them in two categories.

One category was the snorers and over here was the category of the nonsnorers, and after everything was said and done, are from start to finish, the nonsnorers scored six percent higher on their test than the snorers did, all other things being equal. JON DENNY: And you just happened to run across this. So, it’s now becoming an awareness. People are becoming aware now, and it’s — see, it’s all too [4 [8 (9 {10} [11] (12) (13) 114) {15} (16) 17) (18) [19] (20) (21) (22) (23) (24) (25) Page 24 ] Obvious now when you read something like this why that would happen, because we're all aware, and my patients (3] are aware of this.

(4) Interestingly enough, I store this on the — 15) well, on shelves and such in the office. When we do (8) Our inventory at the end of the day, I find that some 7 has been taken. 1 don’t want to say stolen, because (a) these are my patients, and we have created a relationship, but actually, it’s missing. ON SCREEN: This is a paid commercial for Snorenz DR. BOB COURIER: So, what happens is it just plain gets taken. People want this. People are now aware, and I think this is what’s happening here, and we know why people don’t score well. They don’t sleep (16 well. They snore.

7 ON SCREEN: 800-392-4006 (18) JON DENNY: Ninety million Americans snore. That doesn’t include the countless millions who sleep next to a snorer, and if you want more information about this revolutionary, breakthrough product, which has been proven effective in 97 percent of cases to eliminate or reduce the sound of snoring, cali the (24) toll-free 800 number on your screen, get more (25) information about Snorenz, do it for him, do it for ts) [10} [14] [12] [13] 114] [15] [19} [20] (21) (22) [23] Page 21 - Page 24 (8) Min-U-Script@ For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT Matter Number 0023211 October 13, 1999 Page 25 Page 27 ty yourself, do it for your family. It is worth the phone ts] It will last from six to eight hours. 2) call, and it is pennies per day to end the snoring 2 JON DENNY: And in what cases doesn’t this 13] problem forever. [3] work? 4) ‘This is a product, as I mentioned, that has 4) | JOHN ZIGLAR: You know, when I first got this 5) been proven effective in double-blind studies, and you 5] product, we did test — and I have given it to 6) actually conducted the studies out of your auspices in () everybody that I know that snores so that I could find 7) Michigan. Tell us about a double-blind study, what it 7) out, you know, because I always wanted to know exactly 8} is and how Snorenz worked. 13) how did it work on everybody else. So, we had one () DR. BOB COURIER: Really, just to define what a i) friend we gave it to, and quite honestly, they had been (19) double-blind study is in general is nobody knows what 110) married for three years, they’re already sleeping in (11) product anybody is getting. The doctor isn’t aware of 114) different bedrooms because he snores so loudly, and he (12) it, okay, and nor are the patients. For example, we’re 112} would go to bed — they would go to bed together, wake (13] giving a block or a bunch of bottles, for example, in 113} up in different rooms. 114) this case, Snorenz, and we are to distribute this out 14] And so Kevin was taking the product, and the 15] to our patients in a test pattern, they are going to (15) first night it worked perfectly, the second night it 116) use it for a week, but I am blind to the fact of what 11¢) worked perfectly, third night it worked perfectly, 117) product am I giving them, the placebo or dummy product ji) fourth night, didn’t work, fifth night, didn’t work. (18) versus the actual product itself. I’m not aware, so I 118) He called me up and he says, Look, you know, it works {19} Cannot influence the study results. {i} temporarily, but after that, it doesn’t — it doesn’t 20) | I accumulate the study results, I gather the 20) work. And I said, Wait a minute, you know, there’s got 2) patients and have them get compliant with it for use 121) to be a reason. There’s something wrong here, the only 122] over a week’s time, but I don’t — I can’t affect it. 22) guy it doesn’t work on in the world. 23) The patients can’t affect it.So, lam blind to it, [23] And he says, Well — so, I started to ask him (24) and so are the patients. 24] Some questions, and here’s the point. What I found out (25) Interestingly enough, it’s not only the results 128) was the night that it did not work, he had a beer just Page 26 Page 28 (1) of the studies we got but the comments we received. i) before he went to bed, and what we had here was a 7 Many people, again, they're aware of snoring, but they 2) situation where the alcohol in the beer literally cut 3] aren't aware of the problems that come with it, and 3] through the oils in our product, and it went down his 4) actually it’s like — until it’s resolved, the snoring 4) throat, so it was not there. Since it was not there, 81 itself, oh, my word, what a problem it was, and you can 5) it could not work, and it proved that he still was a see the changes it’s made.That was probably the most 6) snorer, he just needed the product to stay where it was 7 interesting part of doing that whole study, was the 17 so that he would live without the noise. ig) comments that we got back, the little stories that 3} JON DENNY: So, you suggested that he sort of i] people have through the week, you know, of using this is} cut down his drinking right before going to bed. (10) product, and that was the beauty of this. 10) JOHN ZIGLAR: Exactly, don’t eat or drink 117 Lloved doing this study. It was highly (11] anything 30 minutes before you go to bed, or if you do, 12) effective. tq) then take a couple of swallows of water just to clear 13) JON DENNY: And John, this is an all-natural {13} your pallet so that your throat is clean so that when (14) product? (14) you put the product in on the back of your tongue, then 15) JOHN ZIGLAR: It’s all-natural oils, and we (15] it will stay there. (16) also have some vitamins that we have also put into the 6 JON DENNY: Right. Your wives are happy, 17} product. (17) gentlemen, that you — (1a) JON DENNY: Tell us about snorer’s breath. I'm 4) DR. BOB COURIER: Happier, happier. 119) going to test this here. hope I don’t get it in my 19) JON DENNY: We won't get into that, but they're 20) eye. It would eliminate my — some problem in my eye, 20) happy that your snoring problems have been reduced or (21) perhaps, but I — it’s minty, actually it tastes a lot 21) eliminated. 22} like mouthwash, I mean, it’s — in a good way. Three 22} DR.BOB COURIER: Yes, very much so. 23) sprays of this before bed, and how long will this last, 3) | JOHN ZIGLAR: And now, you know, I roll over 24) through the night? (24) and Linda gives me a kiss before we go to bed, and I zs) JOHN ZIGLAR: It will last through the night. 28) think that’s just real sweet. She’s checking to see if For The Record, Inc. (301)870-8025 Min-U-Script® (9) Page 25 - Page 28 VP SNORENZ 2 - JD 3 MOS. FREE VPS2 SOFT VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 29 Page 31 } I've taken the Snorenz, okay? 2 JON DENNY: If you want more information about this revolutionary, all-natural, vitamin-based spray, no pills, no surgery, no clamps, no strips across your is] nose, Snorenz will end your snoring problem and do it (6) naturally. It is pennies in comparison to the value 7 and the almost priceless value of a full, restful, silent night’s sleep for all, and that goes for the snorer as well as the person sleeping next to the snorerailroad.

For more information, call the 800 number on the screen.

Dr. Bob Courier, thank you for joining us on Vantage Point.

DR. BOB COURIER: Thank you for having me. JON DENNY: And, John Ziglar, thank you. JOHN ZIGLAR: Enjoyed it.

JON DENNY: I may knock off a few sprays tonight and try to get my snoring down. This is Jon Denny saying good-bye from Vantage Point, and we will see you next time.

ON SCREEN: For more information on Snorenz call: 800-392-4006 Tru-Vantage International 7300 Lehigh Ave.

= {3 {4 {8 {9 [10] 14] (12) [13] {14] [15] 116] 17] [18] 19] [20) 21) [22] (23) (24) 125] Page 30 (1) Niles, IL 60714 [2] (847)647-0300 (33 ON SCREEN: The preceding has been a paid 4] commercial for SNORENZ brought to you by Kevin (s} Trudeau's Tru-Vantage International, America’s premier is) direct response marketing company. it) (The videotape was concluded.) (8) (9] {10} {11] [12] (13) [14] [15] [16] 117] 118] 119] (20) (21) [22] (23) (24) (25) 1] CERTIFICATIONOFTRANSCRIBER [2] 3 DOCKET/FILE NUMBER: 0023211 4) CASE TITLE: MED GEN, INC.

3} RECORDING DATE: OCTOBER 13, 1999 (e) TRANSCRIPTION DATE: MAY 15, 2000 7) I HEREBY CERTIFY that the transcript contained (33 herein is a full and accurate transcript of the (9] videotapes transcribed by me on the above cause before (19) the FEDERAL TRADE COMMISSION to the best of my 11] knowledge and belief.

[12] [13] {14] [15] £16] [17] [18] {18] [20] {21} [22] [23] [24] (25) DATED:

SUSANNE Q. TATE CERTIFICATIONOFPROOFREADER I HEREBY CERTIFY that I proofread the transcript for accuracy in spelling, hyphenation, punctuation and format.

DIANE QUADE Page 29 - Page 31 (10) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC.

Matter Number 0023211 VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT VIDEO October 13, 1999 (1) 12) OFFICIAL TRANSCRIPT PROCEEDING (3) [4] FEDERAL TRADE COMMISSION {5} 6) MATTERNO. 0023211 (7) {8} TITLE MED GEN INC.

[9] (10) DATE RECORDED: OCTOBER 13, 1999 [11] TRANSCRIBED: MAY 8, 2000 [12] (13] PAGES 1 THROUGH 34 (14) 115] (16] VP SNORENZ 3 - KT W/DISCLAIMERS SNR3 SOFT 17] VIDEOTAPE [18] [19] (20) (24) (22) (23) (24 (28) [1] FEDERAL TRADE COMMISSION {2} INDEX {3] 4] VIDEOTAPE PRESENTATION: PAGE:

5) VP SNORENZ 3 - KT W/DISCLAIMERS SNR3 SOFT 3 {6} it) {8} [9] [10] [11] {12} {13} (14) {15} (16) (17) {18} [19] [20] (24) (22) [23] {24} [25] Page 1 {1} [2] 3] 4] (5) {6} 7] (8} 9} [10} [14] {12] {13] (14) {15} {16} (17) [18] [19] (20) {21] {22} [23} [24] [25} Page 2 FEDERAL TRADE COMMISSION In the Matter of: ) Med Gen, Inc., ) Matter No. 0023211 October 13, 1999 The following transcript was produced froma videotape provided to For The Record, Inc. on May 8, 2000.

(1) [2} [3] 4] 5) 6] 7) [8 {9 [10] [14] 112] [13] [14] 115] 116] (17) [18] 119] [20] (21) (22) (23) [24] 125} Page 3 PROCEEDINGS ON SCREEN:

Client: Trudeau Marketing/TVI Project: VP SNORENZ 3 Price Point: Soft Offer Edit Date: 11/13/98 Editor: WPS Audio: Mixed Notes: Generic - Keys, No Phone The following is a paid commercial for SNORENZ brought to you by Kevin Trudeau's Tru-Vantage International, America’s premier direct response marketing company.

Lower test scores linked to snoring There’s More to Snoring Than Meets the Ears Can you win the snore war? Something to lose sleep over MALE ANNOUNCER: The following is a paid commercial brought to you by Kevin Trudeau’s Tru Vantage International.

(Music playing.) KEVIN TRUDEAU: For years over 150 million people have suffered from the effects of snoring. It can cause headaches, sleeplessness, irritability, poor job For The Record, Inc. (301)870-8025 Min-U-Script® Exhibit C VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT October 13, 1999 VIDEO MED GEN INC.

Matter Number 0023211 Page 4 [1] performance, a lack of energy and even big relationship {23 problems, Well, what can be done about it? Until now, {3} nothing.

[4] On Vantage Point today, hear about a new ts) breakthrough discovery that could possibly eliminate the {6} sound of snoring.

ta) VANTAGE POINT with Kevin Trudeau i3} KEVIN TRUDEAU: I am Kevin Trudeau, you're (9) watching Vantage Point, and joining me is John Ziglar. i1¢} John, how are you doing? Good to have you here. 11] JOHN ZIGLAR: Magnificent. Good to be here, 12] Kevin.

13) KEVIN TRUDEAU: You have discovered a product, [14] a new patented — I don’t know if this is a medical (15) discovery — that can solve the effects or the sound of (16) snoring. Tell me about this product and what it does. 177 JOHN ZIGLAR: Kevin, a friend of mine (18) introduced me to the product from down in Ft.Lauderdale, 199 Florida.The guy’s name is Paul Cravatz. And Paul was (20) an investment banker and a Korean man came into his [21] office one day and had a product called Snorenz that he [22] wanted to have Paul look at to see if he could help him (23) to market it.

(24) Well, Paul put it over to the side of his desk, (28) didn’t think too much about it because he never really Page 5 thought about snoring too much.

KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: But he made the mistake of saying a [2 (3 [4 8] been married for 37 years and his wife suggested that he ie} might bring that product home. (Laughter.) 7m KEVINTRUDEAU: CLaughter.) 13) JOHN ZIGLAR: And, so, when he brought the ig] product home, then, he tasted the product; the product (iq) tasted terrible; but he quit snoring. (11) So, he found a product that actually worked and (12) helped him to eliminate the noise of snoring. 3] KEVIN TRUDEAU: Now, when he found that (14) product, was this a patented process that this Korean (15) gentleman invented? tt6) JOHN ZIGLAR: No, it wasn’t, Kevin. At the (17) time, what he had was a combination of oils that he had (13) in a little formula that he sprayed in the back of his (19) throat and then Paul went to his laboratories and he (20) developed a lysosome formulation of the all-natural oils. (21) He put some vitamins, minerals in it and put a whole lot 122] better taste. He put a spearmint taste into the product (23) SO that it would taste good and then still solve the (24) problem.

25) KEVIN TRUDEAU: So, now this is a patented something about it to his wife when he went home. Paul’s {1] 2) 3] (6 (8 {9 {10} [11] (12) [13} [14] 115} (16) 17] (18) 119) (20) (21) (22) [23] (24) 125} Page 6 formula? JOHN ZIGLAR: Yes, it is.

KEVIN TRUDEAU: Okay. Patented process. Now, explain to me why somebody snores. JOHN ZIGLAR: The reason people snore, Kevin, when somebody lays down at night and they go to sleep, what happens is your muscles on your skeletal structure begin to relax, and the muscles and the tissues inside of your throat also relax at the same time. KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: And when that occurs, what happens is the air passageway inside of your throat actually diminishes in size. When that happens, then you've got the same amount of air flow and so the velocity is greater and it causes the air to run across your uvula and the soft tissue from the back of your _ throat and your tongue and they hit against each other and that clatter is the noise that we call snoring. KEVIN TRUDEAU: Now, up until this point, John, what has been done to solve the problem? Are there any drugs, any surgery, any other herbal or natural supplements that people have tried? JOHN ZIGLAR: There’ve been — people have been trying to solve the problem for years. In the dental profession, they have a mechanical device that you put aN rt) [10] (11) [12] [13] (14) {15} [16] 17] 118] 119] (20) 21] 122] (23) (24) 125] Page 7 inside of your mouth that will actually bring your jaw forward to make the air passageway larger. KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: It’s very uncomfortable; very few people are able to live with that on a consistent basis. There have been — there’s surgery that people have gone through where they go in and they actually take part of the uvula — the little hangy-down part in your throat — KEVIN TRUDEAU: Un-huh.

JOHN ZIGLAR: — where they take and they cut that out. They take some of the soft tissues off of the back of the throat and it’s an expensive surgery, it’s very painful and the results up to date have been that a year, two years, down the road you’ve got wives poking their husbands in the chin — in their ribs again because they've begun to snore again.

KEVIN TRUDEAU: Any drugs available? JOHN ZIGLAR: I’m not aware of any drugs that have been used. I know from time to time you see a thing where there have been pills that people can take to try to eliminate snoring, but I do not know exactly what the technology has been.

KEVIN TRUDEAU: So, this — this — this is an all-natural product; this is clinically tested; no after effects; natural ingredients; vitamin enhanced; fresh Page 4 - Page 7 (4) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT Matter Number 0023211 VIDEO October 13, 1999 Page & Page 10 (1] [2 {3 {4 (5) (6) (7 (8 {9] [10] {11] [12} [13] {14] [15] {16} {17} {18} (19} (20) (21) [22] [23} (24) (28) breath — 97 percent effective — now, let’s explain exactly — all that’s in here are natural oils and it just says the natural oils and is a taste like a peppermint — type of wintergreen taste.And all you do — I just want to show people what it looks like. This is the spray and you just spray this in your mouth three times before you go to sleep. JOHN ZIGLAR: Right.

KEVIN TRUDEAU: I just want to spray it now. I'll just spray it once. Now, the first thing is before I did this I assume — you mentioned it tasted terrible JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: — but, until Paul Cravatz fixed the taste.

JOHN ZIGLAR: Correct.

KEVIN TRUDEAU: It tastes either like either a chewing gum or a — a mint.

JOHN ZIGLAR: It tastes like spearmint gum. KEVIN TRUDEAU: Okay, it tastes just like spearmint gum.

JOHN ZIGLAR: Yes, it does.

KEVIN TRUDEAU: It’s actually a very refreshing taste.

JOHN ZIGLAR: Yes.

ie] {2 [3 {4} {5 (6) (7) (8 {9} (10) {11] {12} [13] (14] (15] {16] (17] [18] {19} [20] {21} [22] {23} {24} (25) Page 9 KEVIN TRUDEAU: Tell me how this eliminates the snoise of noring (sic)? What exactly happens when I spray this in my mouth before I go to sleep? JOHN ZIGLAR: Because of the technology — what we have been able to do with the oils in this product, is we have been able through a lysosome technology, put it so that when it lands on the back of your throat it will actually stay there. It will stay topical for up to eight hours.

And, so, it’s just like — Kevin, have you ever seen a car going down the road that didn’t have enough oil in it and you could hear the pinging and the knocking of the engine? KEVIN TRUDEAU: Right.

JOHN ZIGLAR: What we’re doing right here is we're going to oil the parts inside your throat so that we eliminate the clatter and that’s all this product will do.

KEVIN TRUDEAU: So, you just spray this on your throat and it just basically lubricates, if you will, the inside of your throat.

JOHN ZIGLAR: Exactly.

KEVIN TRUDEAU: And it’s designed, because of the proprietary formula, where it lasts all night long. JOHN ZIGLAR: That’s right.

{1} (3) iG} [10] [11] [12] 113] 114} {15} (16) 117) [18} 119} (20) (21) (22) (23) (24) (25) KEVIN TRUDEAU: And there’s nothing else — you can’t buy this at a store or something — they can only get it directly from the company.

JOHN ZIGLAR: That’s correct.

KEVIN TRUDEAU: And then all night long the person sleeps without any noise? JOHN ZIGLAR: That’s right.

KEVIN TRUDEAU: We have on the phone, Dr. ° Michael Leonard. Dr. Michael Leonard is a doctor I believe in Detroit — JOHN ZIGLAR: Um-hmm.

DR. LEONARD: Kalamazoo.

KEVIN TRUDEAU: Kalamazoo. How you doing, Dr. Leonard? DR. LEONARD: Good, how are you.

KEVIN TRUDEAU: I'm doing great. Explain to me what type of reaction or results or experience you've had with this product? ON SCREEN: Called from Kalamazoo, MI — DR. MICHAEL LEONARD — TVI.

DR. LEONARD: Uh — originally I was introduced to it by a friend of mine. Again, ’'ma dentist, and dealing with patients that have problems with snoring and making appliances, et cetera, that are difficult for people to comply with. We can look for,youknow, making S [10] (11] [12] {13} {14] (15] {16} (17) [18] (19] (20) [24] (22) (23) (24) (25} Page 11 these appliances, advancing the jaw and getting the tissues up off the — (inaudible) — aspect of the mouth, but a lot of those people won't wear the appliance but for many a couple of nights because they are fairly uncomfortable.

I was told about this product and went ahead and ordered a case hoping to start dispensing to a few patients and let them try it out and see if it worked, and got positive feedback from these people. So, 1 was telling my wife about it and she said, Yeah, before you give all that stuff away you better bring some home for yourself, because you also have a problem with snoring. And to tell you the truth I’m using it for a year and it doesn’t bother me that I snore but certainly my wife, who gets my attention at night as I’m falling asleep and, you know, she knows I haven't sprayed down just yet, she’ll give me a little nudge and say, you know, be sure and use that before you go to bed, because it does eliminate to a point where she’s quite comfortable also.

KEVIN TRUDEAU: Now, in your profession, you said you've used other things to help patients of yours with the snoring problem, like appliances? DR. LEONARD: Correct. | KEVIN TRUDEAU: And what — what’s the success For The Record, Inc.

(301)870-8025 Min-U-Script® (5) Page 8 - Page 11 VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT October 13, 1999 VIDEO MED GEN INC.

Matter Number 0023211 ti (2) 3) [4 {5] [6 [7] IC) [9 (10) (11] (12 {13} (14) (t5] [16] {17] (18) {19] (20) (21) (22] (23) (24] (25) Page 12 rate of one of those appliances? I know they’re very uncomfortable — ON SCREEN: Called from Kalamazoo, MI — DR. MICHAEL LEONARD — TVI.

DR. LEONARD: Yeah, it really — it really is dictated on patient compliance, and when things are uncomfortable, the compliance drops to very, very low numbers.

KEVIN TRUDEAU: Un-huh.

DR. LEONARD: And I don’t have a percentage of number of people that are — 100 percent comply with it and, on the other hand, with something like this that you can keep with you, throw it in your dog kit, have one at home — it’s there, it’s available and it’s easy to use and it works.

KEVIN TRUDEAU: Yeah, I mean, it tastes really good. So, I mean, obviously, right before you go to sleep to have this by your nightstand to just spray a couple of squirts, it shouldn’t be a problem. As a matter of fact, John was telling me that if somebody forgets to spray it in your mouth, it’s not a problemat all because your wife will remind youaboutan hour and a half after you’ve gone to sleep — DR. LEONARD: That’s right.

KEVIN TRUDEAU: — with a little nudge — (1) 13) 14) 15] (6) m1 18) re) [10] 11] (12) [13] [14] [15] [16] 117) 118] {19} (20) 21) (22) (23) [24] 125) Page 13 DR. LEONARD: Yeah.

KEVIN TRUDEAU: — and you just spray it there and then sleep the whole night.

DR. LEONARD: Yeah. Well, just like Pablo’s dog, eventually you remember to do it before you go to sleep.

(All laughing.) KEVIN TRUDEAU: Now, you've given this to many of your patients? DR. LEONARD: Correct.

KEVIN TRUDEAU: And do you find it working for everyone? It says 97 percent effective, so there’s some people, allegedly, that it does not work for. What’s your personal experience? DR. LEONARD: My experience has been people that use it and use it properly — and by properly, I'll get to that in just a second — people that are using it on a regular basis, they are getting relief. And, again, when you talk to somebody who comes into the office and says, ’m having — my wife tells me or my husband tells me — I’ve having difficulty with snoring and it’s bothering her, the next time they come in and you don’t get that complaint or the wife comes in shortly: thereafter and is not complaining at that point, it works well.

Page 14 4) KEVIN TRUDEAU: Say — 3 DR. LEONARD: The — the trick with using it 3] properly is just getting it to these tissues in the back of your mouth. Now, if you open your mouth wide and spray the surface of your tongue only, it’s not going to be effective.

So, l ended up doing a study here in the office and taking some photographs of distribution of the product, staining it and spraying it in people’s mouths with different head positions so we’re assured that it gets to where it needs to go.

KEVIN TRUDEAU: Um-hmm.

DR. LEONARD: With the proper positioning of the head and spraying it to the back of your throat, letting it sit there for maybe five seconds before you . swallow, I think the effectiveness is tremendously increased.

KEVIN TRUDEAU: Hold with us just for a few moments, but 1 do want people to know right now if you're watching and you do want information on Snorenz, if you are a snorer or if you know someone that is, this really could be a Godsend. It’s a patented product, it’s not available in any stores, it’s only available directly from the company. Call the number on your screen to get more information on Snorenz. It’s very inexpensive, it {4 {5 (6 el (8 9] [10] [11] [12] [13] {14] {15} [16] 17] [14] [19] [20] (21) [22] (23) (24) (25) Page 15 tastes great, it’s all-natural, it’s clinically proven to (2) eliminate the noise of snoring in 97 percent of the (3) Cases, and in my personal experience is virtually 100 4] percent.

{5) Call right now, it’s unconditionally fe) guaranteed.The very first time you use it, it will 7) eliminate your snoring.

(8) Michael, just stay with us for just a moment. 19] John, I want to go back to the people that it’s (19) worked for and those it hasn’t worked for. {11} I have a friend of mine that I sent this to {12} when you first came to me and said, I got this product, {13} it gets rid of snoring. I said, well — JOHN ZIGLAR: Right.

15} KEVIN TRUDEAU: — you know, I know snoring can (16) be an issue because I’ve known people that snore like (17) freight trains.

JOHN ZIGLAR: Right.

119) KEVIN TRUDEAU: I was fishing with a fellow who (20) was in a log cabin, we were up north — as a matter of (21) fact, you were with us last year — 223 JOHN ZIGLAR: Right.

23) KEVIN TRUDEAU: — but this was like the year 124] before — and there were nine guys in this cabin. They (25) threw this fellow out. Now, we’re there for a week, they ( {14} (18) Page 12 - Page 15 (6) Min-U-Scripto For The Record, Inc. (301)870-8025 MED GEN INC. VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT Matter Number 0023211 VIDEO October 13, 1999 Page 16 Page 18 (1) threw — this poor guy had to sleep in the shower cabin 4) said it worked up until he went to bed at 11:00 at night, 2} — the shower stall because he was so loud and still — 2) 10:00 at night — is] you could still hear him in the cabin across camp. 13} JOHN ZIGLAR: Yes. {4 {5 (6 [8 (9 [10} 14) (12) (13) [14] 115] [16] 17] [18] 119] (20) [21] (22) (23) (24) (25) JOHN ZIGLAR: I know.

KEVIN TRUDEAU: This guy was — crazy. But I had sent this to a friend of mine who snored so bad his wife was not sleeping in the bedroom anymore. They — they'd go to sleep together and then an hour later she would leave and go and sleep on the couch because she just could not get a good night's rest. JOHN ZIGLAR: That’s common.

KEVIN TRUDEAU: Now, he used this and the first night he called me up and said, Gosh, darn it, 1 sprayed this — I woke up, my wife was lying next to me for the first time in like three years. This actually worked. I mean, it knocked out my snoring. He says and better than that, Kevin, I had the best night’s sleep I ever had. Now, we'll talk about what happens when you keep waking up in the middle of the night. JOHN ZIGLAR: Right.

KEVIN TRUDEAU: But here’s the thing: three days he called me and he said, It doesn’t work any more. JOHN ZIGLAR: No.

KEVIN TRUDEAU: And I said, What do you mean? So, I got back to you and let’s talk about why it {1 {2 3] (4) (5) (6 ta) [8 (9] {10} {11} {12] {13] [14] [18] [16] (17] {18} [19] [20] [24] {22} {23} [24] {25] Page 17 wouldn't work in a particular case. We had a situation last night with Doug McCleary and with this fellow. Explain some of the reasons why it wouldn't work. JOHN ZIGLAR: Okay. Here’s — there’s a couple of things. What happened in this particular guy’s case is before he went to bed, he had a beer. KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: And when he had the beer, he didn’t clean his palate off. In order words, there was still alcohol. Well, alcohol is an agent that will cut through oils. And, so, since this is an oil-based, a natural oil-based product, when he had the alcohol still on his palate and he sprayed it, it cut through and the Snorenz actually went right straight down his throat, was not on the tissues where it would create the lubrication. KEVIN TRUDEAU: So, you can’t eat or drink for a half an hour before you use the product? JOHN ZIGLAR: Exactly.

KEVIN TRUDEAU: Which is a good healthy practice anyway. You shouldn’t be drinking or eating right before you go to sleep.

JOHN ZIGLAR: Of course. Or you could even brush your teeth before you go to bed. It would be a good practice.

KEVIN TRUDEAU: You know, a fellow last night KEVIN TRUDEAU: — and at 5:30 in the morning got woken up because of the snoring. JOHN ZIGLAR: Exactly.

KEVIN TRUDEAU: So, it worked up until 5:30 a.m. What happened there? ON SCREEN: JOHN ZIGLAR, Master Strategies Researcher, TVI.

JOHN ZIGLAR: What happened is when he sprayed the product in his mouth, he did it correctly, but he only put one spray.

KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: He only did one pump. And what we recommend is three. All right? So, if you do three, it will last the full eight hours. KEVIN TRUDEAU: Dr. Leonard — let’s go back to you. I have a question about — you're a dentist — DR. LEONARD: Yes.

KEVIN TRUDEAU: — obviously. Bad breath — DR. LEONARD: Yes.

KEVIN TRUDEAU: Do you — have you found that people who snore have a worse bad breath problemwhen they wake up as opposed to nonsnorers? BS 5) (6] {8} [9 {10} (11] [12} {13} [14] [15] [16] (17) £18] {19} (20) (21) (22) (23) (24) (25] Page 19 DR. LEONARD: I don’t know of a direct correlation with that — KEVIN TRUDEAU: Does this — ON SCREEN: Caller from Kalamazoo, MI — DR. MICHAEL LEONARD — TVI.

DR. LEONARD: — certainly having your mouth open and all the tissues drying out and — you could see where — and it depends on the diet, also — but it’s interesting. I don’t kriow that offhand. It has to be something to look into a bit.

KEVIN TRUDEAU: Does this product help with breath in the morning? I mean, a lot of us have morning breath.

DR. LEONARD: Oh, yes. Just by nature of the way it tastes. You know, you're going to bed with something that tastes and has a pleasant smell to it to begin with — KEVIN TRUDEAU: Um-hmm.

DR. LEONARD: — as opposed to like the guy who went to bed slugging down a beer.

KEVIN TRUDEAU: Right, right.

DR. LEONARD: I don’t know about you, but I'd rather have somebody have a mint candy before they went to bed and slept for eight hours instead of a Miller Lite or whatever.

For The Record, Inc.

(301)870-8025 Min-U-Script® (7) Page 16 - Page 19 VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT MED GEN INC. October 13, 1999 VIDEO Matter Number 0023211 Page 20 Page 22 1) KEVIN TRUDEAU: Right. ty KEVIN TRUDEAU: So, a person may not even 3 DR. LEONARD: So, in that case, yeah, I think | realize that he’s constantly waking up and going back to 3] it could be — could be said that that would certainly i) bed during the night? 4} help out a bit with morning breath. 7 DR.LEONARD: That’s right. ] KEVINTRUDEAU: Yeah, because that’s one of the i) | KEVIN TRUDEAU: And, therefore, their sleep (6) things that I’m finding from people that I have actually 6) pattern’s getting — ™ given this to in my testing — ™ Dr. Leonatd,I know you have to get back to i] DR. LEONARD: Um-hmm. (] your practice, thanks very much for calling in. 9) KEVIN TRUDEAU: — and I say, you know, what’s i] DR.LEONARD: Thank you. (to) your reaction? And primarily from the wives, they say, (1) | KEVIN TRUDEAU: Have a great day. (11) Wow, I can give him a kiss in the morning and it’s not 14) DR. LEONARD: Thanks. (12) that yucky morning breath. 14) KEVIN TRUDEAU: Let’s talk about that, John, 131 DR.LEONARD: They're not blown away, huh? 113] because — 4 KEVIN TRUDEAU: Yeah, which is kind of (14) JOHN ZIGLAR: Yeah, Kevin, because that’s what (15) interesting. And then, of course, the fellows are saying 11s] my experience has been. (16) the same thing. I wake up and I feel more refreshed 116) | KEVIN TRUDEAU: Okay. (17) because my mouth is clean and it has this great taste to 177 JOHN ZIGLAR: When I started to take the (18) it. (18) product myself — [19] So, in addition to having a soundful sleep 193 KEVIN TRUDEAU: Um-hmm. (2) without any snoring whatsoever, butthey wake up — they 120) JOHN ZIGLAR: — I noticed — first of all, 21] have this clean feeling in their mouth. You know, with 21) that I don’t turn over in my sleep as many times. And, 22] addition to the extra energy they’ll get — (22) so, I noticed it because I don’t pull the covers out of 2a) DR.LEONARD: Sure. 23] the bottom of the bed every night. 4) KEVINTRUDEAU: — and — 4) KEVIN TRUDEAU: Right. 8} DR.LEONARD: Plus they’ve had a good night’s 2s) JOHN ZIGLAR: And, you see, it’s not a Page 21 Page 23 uy sleep. {1} conscious thing when you wake yourself up snoring and 2 KEVIN TRUDEAU: Correct. But, let’s talk about 2] then you immediately go back to sleep. We've got (3) that. The person who snores, Dr. Leonard, if they are 3] testimonial letters from all over the country. 4] Snoring and it “doesn’t bother them.” 4] One of the ladies said that for the first time i] DR.LEONARD: Um-hmm. 5) in her life she can remember dreams. ) KEVIN TRUDEAU: They don’t get woken up. Is tf) KEVIN TRUDEAU: Hmmm. 7 it, in fact, having an adverse effect on the person’s m JOHN ZIGLAR: And what that means is that she, 8] sleep patterns, thus making them more potentially a] for the first time in a long time, has gotten some deep (9) irritable and fatigued during the day? i] sleep where she now has recollection of dreams. We all (199. «§ DR. LEONARD: Certainly. Potential (19) dream — (11] irritability and fatigue throughout the day has got to be m4) KEVIN TRUDEAU: Um-hmm. {12} Commonplace. 12] JOHN ZIGLAR: — if we get deep sleep. 113] KEVIN TRUDEAU: Now, why use that? I mean, if 1133 KEVIN TRUDEAU: Now, 90 million people snore — 114) I snore and I don’t wake up during the night and I don’t (14) JOHN ZIGLAR: Yeah. (1s) — I don’t even know I snore — (16) KEVIN TRUDEAU: — that means about 150 million (16) DR.LEONARD: Um-hmm. (16) people are affected because of the sleeping partners. 7 KEVIN TRUDEAU: — how is it having that effect 7) JOHN ZIGLAR: Correct. ; [18] On me? (189 KEVIN TRUDEAU: How young does somebody snore, 9] DR.LEONARD: If you're sleeping and snoring, (19) they start snoring? I mean, can they start as child? 2) obviously, like you're talking about exchanging air and (29) JOHN ZIGLAR: They can absolutely. We've got 21] still breathing and your air passage is restricted, once 2) someone in our office who has a child who started snoring 22) things are restricted to a point, you automatically or 22) and the child is eight years old. 123} for the most part most people will wake up, catch a deep 23} KEVIN TRUDEAU: I want to talk about that, 24) breath, roll over, what-have-you. So, yeah, your sleep 24] about how snoring can affect even grades in school, (25) pattern is disturbed by that. (25) because there was an article I know in the Chicago Page 20 - Page 23 (8) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC.

Matter Number 0023211 VIDEO VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT October 13, 1999 1] (2) 3] [4 [5 (6 (7) (8 9] {10] {tt} (12} {13] {14] {15} [16] (17) {18} [19] (20) (24) {22} [23} (24] [25] Page 24 Tribune about that.

JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: But if you’re watching right now and you do want more information on Snorenz,it’san all-natural product, it’s not available at any stores, call the number on your screen, If you are a snorer or know someone that is, call that number and get this very inexpensive, it’s all natural, tastes great, it’s guaranteed to work the very first time you try it. You just put three squirts in your mouth before you go to sleep, no snoring all night long.

If you're not thrilled, send it back fora refund, Clinically proven in studies to eliminate the sound of snoring in 97 percent of the cases. And in my personal experience, virtually everybody that we've given it to. It’s all natural and it can work for you. Call the number on your screen for Snorenz if you are a snorer or know anyone that is, they need this product for their own health and the people around them. Let’s talk about the kids. As young as eight years old — JOHN ZIGLAR: Yeah.

KEVIN TRUDEAU: — that can start snoring. And how does that adversely affect their grade performance in school? {1 (2 {3 (4) {5 (6) 7] {8 (9 {10} (11) {12} [13] 14} {18} (16} {t7] [18] [19] {20} [21} {22] [23] (2a) Page 25 JOHN ZIGLAR: Kevin, as you know, I have four children myself — KEVIN TRUDEAU: Um-hmm. .

JOHN ZIGLAR: — and I know that with my own children if I let them stay up too late at night or they do not get enough sleep, | notice the next day whetheror not they're as pleasant to their brothers and sisters. I notice, for instance, if they go for a period of time where they don’t get good sleep, that it does impact their grades, their performance on the athletic field or wherever they are, and, quite honestly, it’s no different for them than it is for us. Sleep depravation affects us all.

KEVIN TRUDEAU: So, it can affect us in our job performance? JOHN ZIGLAR: Certainly.

KEVIN TRUDEAU: Irritability during the day? JOHN ZIGLAR: Yes.

KEVIN TRUDEAU: Relationship with your spouse? JOHN ZIGLAR: Of course.

KEVIN TRUDEAU: And not just because you’re not maybe sleeping in the same room orsame bed, but the next day because you're tired, because your sleep pattern has been interrupted all night long, that you're just Page 26 and snappy and that’s going to have an adverse affect on the relationship.

JOHN ZIGLAR: Exactly.

KEVIN TRUDEAU: Now, let’s talk about this — there was this article we were talking about right before the start of the show — JOHN ZIGLAR: Yeah.

KEVIN TRUDEAU: — in the Chicago Tribune, I think it was. , JOHN ZIGLAR: Right.

KEVIN TRUDEAU: What was that about? JOHN ZIGLAR: There was a study that was done with medical students over in West Germany. KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: And what they did is they found — they did a test and they found which of the students snored and which of the students did not snore, and then what they did is they just simply took and put them in two distinct categories and then they took and they took the average of the grades of the snorers and the nonsnorers, and in this particular case, the snorers ended up with six points less than the nonsnorers did. KEVIN TRUDEAU: That seems like a major difference in grades.

JOHN ZIGLAR: I would have to think so, SS {10) {11] {12] 13] (14] (18) (16) (17) (18) {19] (20) (21) {22} (23) (24) Page 27 especially where the amount of sleep that a med student would have an opportunity to get.

KEVIN TRUDEAU: Right.

JOHN ZIGLAR: You — another — let me just share a story with you.This — we talked with a lady who — whose husband was a fireman — KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: — and he was out in Phoenix, and he snored so loud and since he was a fireman he was required to sleep at the fire station — KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: — with the other guys who were on duty at the same time. Well, they only have a certain amount of hours that they can sleep and, so, they would all rush — when it got time to go to bed — they would all rush to get to bed before John got up there because when he got to sleep — if you weren't to sleep before he got to sleep, his snoring was so loud that you couldn’t get to sleep.

KEVIN TRUDEAU: Um-hmm.

JOHN ZIGLAR: And it was such a problem for him that he went to the expense of having the surgery and everybody in the fire station was thrilled to death that he had done that. It was an expensive process and the 28) probably not as pleasant and you can be a little snippy 25) healing process from the surgery is six months — For The Record, Inc. (301)870-8025 Min-U-Script® (9) Page 24 - Page 27 VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT MED GEN INC. October 13, 1999 VIDEO Matter Number 0023211 Page 28 Page 30 1) KEVIN TRUDEAU: Hmmmm. tt) JOHN ZIGLAR: And in my own relationship I can 1 JOHN ZIGLAR: — so, it affected diet, it 2 tell you for a fact I am getting better sleep. (31 affect a lot of different things in his life, but he 3] | KEVIN TRUDEAU: So, you're having more energy (4) wasn’t snoring. 4) during the day? ] <A -year after the surgery, he gets the old elbow is) JOHN ZIGLAR: I am. ie) in the ribs from his wife and she says, Roll over, John, () | KEVIN TRUDEAU: Thinking clearer? 77 you've started to snore. 1 JOHN ZIGLAR: Uh — I don’t know — I don't 3] And, so, even with the surgery — a) think I was thinking unclear. 2) KEVINTRUDEAU: Hmmmm. 19] (Laughter.) 19) JOHN ZIGLAR: — he had started to snore again. (19) KEVIN TRUDEAU: But you definitely — well, let (1) And when he started back up — (11) me ask you this: You definitely feel better during the 2] KEVIN TRUDEAU: Is that normal — is that 12) day? {13} common, by the way? I mean, you had this expensive 113} JOHN ZIGLAR: Yes, I do.I do not get tired. (14) surgery, you go through six months of healing, all this 14) KEVIN TRUDEAU: Because now you are actually (15] pain, it eliminates the snoring for a year and then it 115] really getting a full night’s sleep. (16) picks up. Is that — is that common? (1) JOHN ZIGLAR: Exactly. 17) JOHN ZIGLAR: I have heard lots of cases where 17) KEVIN TRUDEAU: As — and you didn’t notice — (18) that has occurred. (18) you, like most snorers — 19} KEVIN TRUDEAU: It’s amazing. iq) JOHN ZIGLAR: Right. 2] | JOHN ZIGLAR: Yes, it is. So, all of a sudden 20) KEVIN TRUDEAU: — did not notice that you were 21) appears at the fire station, now, the guys in his 21) actually waking up all night? 22} dormitory where he sleeps, had taken and gotten some 223 JOHN ZIGLAR: No. 23] sheet rock — za) | KEVIN TRUDEAU: So, your rapid eye movements, 24) KEVINTRUDEAU: Un-hmm. (24) your dreams, all those things are being adversely 2s) JOHN ZIGLAR: — and built a cage around John’s 28) affected by this interruption of the breathing pattern Page 29 : Page 31 11] bed because he had started to snore again. (1) waking you up and then going back to sleep; and waking 2 KEVINTRUDEAU: Hmmmm. - 21 you up and going back to sleep? 33 JOHN ZIGLAR: And we had put a small ad ona 3] JOHN ZIGLAR: Exactly. I really didn’t notice (4) radio station out there, his wife had heard about 14) that much, Kevin, except for when I’m up here in Chicago {5} Snorenz, she said, My goodness, we’ve got nothing to is} in my apartment by myself. i) lose. She bought the product, she squirted it in his i) «396 KEVIN TRUDEAU: Um-hmm. ™ mouth before he went to bed that night,andfromthatday | > JOHN ZIGLAR: Where I have to make the bed {a} to this John does not snore. 8} myself. (3 KEVIN TRUDEAU: That’s incredible. I mean, it i] KEVIN TRUDEAU: (Laughter.) (10) seems incredible — you could call this a medical tio) JOHN ZIGLAR: And I noticed that I don’t turn (11) breakthrough, but it’s not a medical device and it’s not (11) over and get the sheets out of the foot of the bed. (t2] a drug. 112} That’s when I really noticed it. 3] JOHN ZIGLAR: No, no. 3] | KEVIN TRUDEAU: Folks, if you’re watching right iq) KEVIN TRUDEAU: What do you cail it? (14) now and you are a snorer or if you know someone that is, (1s) JOHN ZIGLAR: I don’t know — you call ita 115] get on the telephone and call to get Snorenz. It’s a (16) miracle. (16) very simple, all natural product, it’s just natural oils 17) KEVIN TRUDEAU: (Laughter.) 117) with some vitamins and minerals. You simply just spray 118} JOHN ZIGLAR: I don’t know what you call it. 118] it in your mouth three times before you go to bed. (19) Let me tell you, when I — when I first got the product 19) It tastes great, it’s a patented product, it 20] myself, I, you know, I told Linda, my wife, about the 20) has been proven to be 97 percent effective in eliminating 21) product and she says, Well, you know, you need to bring (21) the snoise — the noise of snoring. You'll wake up with 122) some home.And I told her, Well, Honey, I said, you 22) a great, fresh, clean mouth. 23} really don’t snore that bad. Laughter.) zs] You'll have more energy during the day, you'll 24) She suggested it wasn’t for her. 24) have less irritability, you’ll be more pleasant, kids get i) KEVIN TRUDEAU: (Laughter.) 26) better grades in school, as evidenced by the study in the Page 28 - Page 31 (10) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VP SNORENZE 3 - KT W/ DISCLAIMER SNR3 SOFT Matter Number 0023211 VIDEO October 13, 1999 Page 32 Page 34 tt) Chicago Tribune, you'll think clearer, potentially, i CERTIFICATION O F TYPIST 2] throughout the day, perhaps better job performance, 3] MATTER NUMBER: 0023211 3) definitely a better relationship with your spouse or (4) CASE TITLE: MED GEN INC. 4) significant other. So, call the number right now for 5} TAPING DATE: OCTOBER 13, 1999 ] Snorenz. 6) TRANSCRIPTION DATE: MAY 9, 2000 : : itd (3 The reason I have John here is we tested it 3) 1 HEREBY CERTIFY that the transcript contained 7) with the people that I know in my life and it works 9) herein is a full and accurate transcript of the tapes 13) beyond a shadow of a doubt. (19) transcribed by me on the above cause before the FEDERAL 19] It’s all natural, it’s patented, and it’s not 114) TRADECOMMISSION to the best of my knowledge and belief. . . : . (12) (19) available in any store, So, pick up the phone right now i] DATED: MAY 9, 2000 (11) for more information on Snorenz.And it’s pennies, it’s [14] 112) very cheap and it'll eliminate your snoring. [15] [13] This is Kevin Trudeau with my guest John [16] DIANE QUADE Ziglar. We've been talking about snoring and you’ve been!" 4) ABN ning a° ganey [18 CERTIFICATIONOFPROOFREADER (4) watching Vantage Point. We'll see you next time. Bye- (19) (16) bye. eo) | I HEREBY CERTIFY that I proofread the transcript for (17) (Music playing.) 2] accuracy in spelling, hyphenation, punctuation and 1) ON SCREEN: For more information or to order 22] format. tig] Snorenz call: i (20) If snoring is accompanied by any signs of Sleep (25) ELIZABETH M. FARRELL 2] Apnea, you should consult a physician before using any (223 product.

[23] Tru-Vantage International, 7300 N. Lehigh Ave, 24) Niles, IL 60714 (847)647-0300. {25} The preceding has been a paid commercial for Page 33 SNORENZ brought to you by Kevin Trudeau’s Tru-Vantage International, America’s premier direct response 3] marketing company.

4] (End of videotape.) [5] 6} 7] (8) (9] [10] [11] {12} [13] ig] (2 [14] [15] [16] (17] {18} {19] (20) {21} [22] (23) {24} (28) For The Record, Inc. (301)870-8025 Min-U-Scripto (11) Page 32 - Page 34 Lawyer’s Notes MED GEN INC.

Matter Number 0023211 VIDEO VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 October 13, 1999 Page 2 (1 (1) FEDERAL TRADE COMMISSION [2] OFFICIAL TRANSCRIPT PROCEEDING 2) 13] {3] In the Matter of: ) (4) FEDERAL TRADE COMMISSION {4] Med Gen, Inc., ) Matter No. 0023211 (5) {5} [6] MATTER NO. 0023211 [6} October 13, 1999 1) tg (8} TITLE MED GEN INC. [8] {9} 19] (10) DATE RECORDED: OCTOBER 13, 1999 [10] 11) TRANSCRIBED: MAY 10, 2000 14] (12] {12] The following transcript was produced froma {13} PAGES 1 THROUGH 35 {13] videotape provided to For The Record, Inc. on May 8, [14] [14] 2000.

[15] (15] [16] VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 (16) (17) VIDEOTAPE [17] [18] [18] {19} [19] [20] (20) [21] [24] {22} {22} (23] (23) [24] (24 (25) (25} (26] Page 3 Page 1 | [t) PROCEEDINGS (1) FEDERAL TRADE COMMISSION 2] (2] INDEX (3) ON SCREEN:

13] 14] Tru-Vantage & Mercury Media {4} VIDEOTAPE PRESENTATION: PAGE: 15] Present [5] VP SNORENZE 4-JD W/ DISCLAIMER SNR4 3 is) WP SNORENZ 4 (6) 11 JD WITH DISCLAIMERS // SNR4 7) (8) 28:30 MINUTES 8] 191 1-800-835-8941 9) (19) TUESDAY, NOVEMBER 17, 1998 0} 111) NCMG MASTER #293 Randy Pfeiffer m1) (12) CUSTOMIZATION BY NORTH COUNTRY MEDIA GROUP _ . [13] Www.ncmg.com [14] 4) 08) [15] ON SCREEN:

[16] 16} The following is a paid commercial for SNORENZ “17 177 brought to you by Kevin Trudeau’s Tru-Vantage [18] (18] International, America’s premier direct response 19} (19] marketing company.

[20} [20] (21} 21) ANNOUNCER: The following is a paid commercial {22} (22) brought to you by Kevin Trudeau's Tru Vantage [23] 23) International.

[24] [24] (Music playing.) (26) 25} UNIDENTIFIED MALE: For millions of Americans, For The Record, Inc. (301)870-8025 Min-U-Scripte Exhibit D VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 4 i) this is the most annoying and unwelcome sound in the (2) world.

33 ON SCREEN: News clippings.

4) ANNOUNCER: That’s right, more than 90 million ts) Americans have a snoring problem and it can cause sleeplessness, headaches and a lack of energy, and that (6 171 goes for the snorer, as well as the person trying to — {s) sleep next to the snorer.

(91 What can be done about it? On Vantage Point tq) today, hear about a new discovery that could eliminate (114) the sound of snoring.

2] ON SCREEN: VANTAGE POINT with Kevin Trudeau. v3} ON SCREEN: John Denny.

14) JOHN DENNY: Hi, ’'m John Denny, and this is a (18) special edition of Vantage Point. We're going to talk (16) about snoring today, and if you're a snorer, or just 17) happen to sleep next to one, then you know snoring is no (1g) laughing matter. Snoring can and does seriously diminish (19) the quality of your sleep, your life, and it could drive 120) two people apart, meaning the snorer and the person next (21} to the snorer.

{22 My guests today are Dr. Bob Currier, physician, 23) surgeon and associate clinical professor at Michigan 124) State University, and John Ziglar, who represents a 25) Company that manufacturesa product called Snorenz,which Page 5 tt] is designed to end your snoring problem. (2) Gentlemen, thank you for joining me. Guys, got (3] to ask you this first question, because for some people a) it’s a light matter and for others it seriously impacts 1] their life, certainly impacts their sleep. What causes [s) Snoring? What is the reason behind that all too familiar 7] rumbling sound that keeps half of America, it seems, up (a1 every night? i) ON SCREEN: Dr. Bob Currier, Physician/Surgeon. to) DR.BOB CURRIER: Well, what snoring really is, (4) John, is just simply a relaxation of the tissues in the (12) back of your throat. It’s when we fall asleep, much of (13]. our muscles in our body, as well as our throat relax. 114) That’s the time we sleep. We're supposed to get our [15} rest.

vie) JOHN DENNY: Um-hmm.

7) DR.BOB CURRIER: What happens with that, (18) though, unfortunately, is as the tissues relax, they [19] occlude or actually narrow, and they cause a funnel 20) effect for the air as it goes through, flapping the 21} tissue.

223 JOHN DENNY: Un-hmm.

3} DR.BOB CURRIER: This is in the back of the 124) throat, hence creating the noise. It’s very positional. 25) It’s very — also very dependant on habits that we have, Page 6 tt) such as smoking or dietary habits. And then also it 2] affects really how much we sleep and how much rest we (3) actually get throughout a night. 4) JOHN DENNY: Now, you were both snorers, (s] presumably? } DR.BOB CURRIER: Um-hmm.

7) JOHN ZIGLAR: Sure.

339 DR.BOB CURRIER: Absolutely.

3 JOHN DENNY: Tell me, how did you get involved (10) in Snorenz? How did this all come about? 14}. ON SCREEN: John Ziglar, SNORENZ. 12} JOHN ZIGLAR: This all came about, John, I met (13) a friend down in Fort Lauderdale, Florida, named Paul (14) Kravitz.

ys} JOHN DENNY: Um-hmm.

tte} JOHN ZIGLAR: Paul Kravitz was in the banking (17) industry. And he had a Korean man that came into his (18) office with a product. He had a little bottle of it, it (19) didn’t have any labels on it or anything, but he says 20) this will make you quit snoring. And Paul looked at it 1) and he put it over on the side of his desk, he didn’t (223 think too much about it. But he did make the mistake of 23) telling his wife that somebody had come in with this 24) product.And she asked him would he go ahead and bring 25] it home and try it. Bottom line is he did use the Page 7 tt] product, it did make him quit snoring, but it tasted (2) terrible.

(3] And, so, Paul says Whoa, you know, what a price 4] to pay, so he took that product, he developed it, he took [5] it to the laboratories and they did some liposome (6 technology with the product and they put a flavor to the i product to make it so that it tasted good and we now call ig) the product Snorenz, and it’s just phenomenal. =) JOHN DENNY: And in your first exposure to it - [10] (147) JOHN ZIGLAR: Correct.

(127 JOHN DENNY: — you were a rumbler. You — we (13) heard Harley-Davidson sounds coming from you at night — 4) JOHN ZIGLAR: CLaughter).

(1s) JOHN DENNY: — is the word on the street. 164} JOHN ZIGLAR: CLaughter).

17, JOHN DENNY: Tell me your first experience with (1g) the product.

199 JOHN ZIGLAR: My first experience really, when 120) I — I had been married for 25 years, my wife, Linda. I 24) came home after talking with Paul and I told my wife zz) about this new product that we were looking at.And she [23] Said — and she says well, when are you going to bring it (24) home. And I said Well, honey, I said, really, you know, (25) you don't snore that bad. And she said it really wasn’t Page 4- Page 7 (4) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 Matter Number 0023211 October 13, 1999 Page 8 Page 10 i} for her. 1) the things that happen to us on an everyday basis: the 1 JOHN DENNY: (Laughter). 2} energy level that we have. We're not rested. 3} DR.BOB CURRIER: (Laughter). 3] JOHN DENNY: So, you're saying snorers — 4) JOHN ZIGLAR: And up until that point I really 4, DR. BOB CURRIER: That’s the battle. 5) didn’t realize that I snored. ts) JOHN DENNY: — snorers get less rest, get a te) JOHN DENNY: Um-hmm. i) less restful — 7) JOHN ZIGLAR: But I did turn over in the bed an m DR.BOB CURRIER: Absolutely. They do not (3) awful lot at night, and I knew that. And, so, I used the 8) sleep. 19 product and, John, what I found is for me personally, I 9] JOHN ZIGLAR: See, what happened to me, what (10) quit turning over so many times at night. And I began to (10) was going on in my night, is I would literally turn over (14) get a more peaceful, restful sleep. 1) 20 or 30 times a night. And the reason I would is 12] JOHN DENNY: Unrhmm. 112] because I would go to sleep, my tissues would relax, I 113] JOHN ZIGLAR: So, that’s what personally 113] would snore — I would literally wake myself up,and then (14) happened in my life. 4) I would turn over. And I would turn. Well, now, I (15) JOHN DENNY: Well, that raises an interesting (15) didn’t wake up and get up out of the bed to turn over. (16) point, because for some people snoring in a litany of 16) JOHN DENNY: Um-hmm. 117) problems, you know, that we face on an everyday basis, 17) JOHN ZIGLAR: I would just wake up and turn [18] Snoring is not at the top of the list. But, in fact, if t18} over.And what that does is it keeps me, John, from (19] you speak to people who sleep next to a snorer, as well (19) getting the deep, restful sleep. (20) as the snorer themselves, there are some real health 0) JOHN DENNY: Hmm. (21) issues, there are some real serious concerns that a 21) JOHN ZIGLAR: We get letters. We got a letter 22) snorer has, or should have. How does, and why does, a 22) from a lady out in Phoenix also who told us that for the (23) snorer — why should a snorer worry about this? Why is 23) first time in her life she started taking this product 24] ita problem? 24) and she can remember her dreams, Well, you see, dreaming 3) DR.BOB CURRIER: Well, it is a problem, but 25) is an important thing, and we all dream, if we get Page 9 Page 11 (1) the real problem is an awareness.A lot of people aren’t (1) peaceful, restful sleep. 2] aware, as you were, that you didn’t snore, you don’t 7 JOHN DENNY: But isn’t dreaming or the dream i3) snore. It's — and people don’t want to offend someone 3] State indicative of a deep, restful, REM sleep, I think 4) else that they may sleep with or someone in their family 14) they call it? i) by telling them they snore. ) DR.BOB CURRIER: Yes. Yes, it is. 6) JOHN DENNY: Unrhmm. 3) JOHN DENNY: So if you're a snorer, you won't ™ DR.BOB CURRIER: And they've put up with it dream as much, meaning you're not getting as deep a [8] for years. (3) Sleep. Is that what — i) JOHN DENNY: Unrhmm. i} | DR.BOB CURRIER: That is correct. You almost, io) DR.BOB CURRIER: The problem with that is all i199 because of the snoring, and sometimes we're not aware of (14) the things that go with it, even on a personal level. Me (11) it, keep waking ourselves up. We snore, and we huh (12) personally, I snore and have snored, and I’ve used the 12) Gindicating), and then we wake up, then we try to (13) product, as well, and it’s worked great for me. 113) reposition ourselves. We're just not comfortable. We (14, ON SCREEN: These statements have not been (14) Can't get our air; we can’t get the oxygen we need, hence (18) evaluated by the Food and Drug Administration. This (15) the headache, the irritability when we wake up. We're (16) product is not intended to diagnose, treat, cure or (16) not rested. That’s the problem. (17) prevent any disease. 17) ON SCREEN: 13) DR.BOB CURRIER: Why do I know this? Because (18} Dr. Bob Currier (19) of my energy level, I feel better, I get better sleep. (197 Physician/Surgeon. 20} | The problems that happen, J think people go to 0) DR. BOB CURRIER: Another side effect, a cute 21) sleep, they assume they're automatically goingto wakeup —_|j21, story, my brother is also a snorer. I think this is just 22) rested. They don’t.And then they wake up with a 22] something that runs in families, as well. Anyway, he has 23] headache, less energy, they hurt, they're sore, they're 23) since tried the product, as I have, and I use it and I (24) irritable. The health problems are really insidious. (24) think it’s fantastic because it does stop the snoring. [25] But let’s not even go that deep. Let’s just talk about 25} My brother has also — he doesn’t have the aches and For The Record, Inc. (301)870-8025 Min-U-Script® (5) Page 8 - Page 11 VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 12 Page 14 (1) pains he used to wake up with. 2] You were also talking about the tossing and {3] turning, we're also forgetting his wife used to jab him 4] in the middle of the night, so he does not wake up {5} bruised, so this also helps, a little sidelight there. i) DR.BOB CURRIER: Yes.

jm JOHN DENNY: How does Snorenz work? There have i) been other products available, over the course of the last, you know, 10 and 20 years that are — have been in pill form, surgeries. People have gone through painful, [11] expensive surgeries.

(12] In fact, we're going to — I think we're going (13] to talk to a caller later who has a story to share with (14) us about this product and the journey she went through with her husband to essentially reduce this problem or eliminate this problem. How does this product work? JOHN ZIGLAR: John, what we've done is we have taken all-natural oils, and we have taken and put them together in a liposome formulation. And we have taken it and so that you can actually spray this product into the back of your throat. And the process is really quite simple. Have you ever seen a car go down the road that didn’t have enough oil in it? JOHN DENNY: Um-hmm.

JOHN ZIGLAR: And you hear the clatter and the [g (10) {15} (16) (17) (18) [19] (20) [21] [22] (23) [24] (25) Page 13 (} Clanking.

2] ON SCREEN:

3) JOHN ZIGLAR [4] SNORENZ 5} JOHN DENNY: Yes.

3) JOHN ZIGLAR: Well, what happens is we took m that same philosophy, that same technology, and we said is] hey, if we can oil the parts and we can take and make a topical solution that will stay in a place for an extended period of time, we can eliminate the noise — JOHN DENNY: Um-hmm.

(127 JOHN ZIGLAR: — of snoring. You're still (13) going to have the same amount of air that’s going to pass {14} through the passage, but all we’re going to do is we're going to lubricate the parts so that there is no noise associated so that you don’'tthen wake up or wake up your neighbor.

JOHN DENNY: So, it’s essentially lubricating what part of the throat, and which part of the throat is causing that sound? DR. BOB CURRIER: Well, to take this just a (22) little bit further,a dentist has studied this and has 23] actually sprayed this in models, and he actually used a (24) dye at the time so he could see where it was applied. In i25} the soft tissues, in the back of the throat, the ones i) (10) (11) (15) [16] (17] (18) {19} (20) (21] {1} {2 {3} is (6 (7) (8 ie) 110] [11] [12] [13] [14] [15] [16] 17] [18] [19] [20] (21) 122] [23] [24] [25] that we say that flap and flutter and then need the lubrication — JOHN DENNY: Yeah.

DR. BOB CURRIER: — when it is applied there, but when the technology goes even further and better through this liposome technology, is to apply it evenly. And the very neat thing about this is it stays. It stays there all night.

JOHN DENNY: Hmm.

DR. BOB CURRIER: That's where others have failed, and that’s also where a lot of the appliances, that’s where also a lot of the applications of surgeries, -. pills, other things that have been attempted and tried have failed.

JOHN DENNY: Um-hmm.

DR. BOB CURRIER: This product here stays there. It’s easy application. As a physician, one of the problems that I have with patients is compliance, trying to get them to use and continually use something. JOHN DENNY: Um-hmm.

DR. BOB CURRIER: If we're going to geta restful sleep, we need it on an every-night basis. This is accrued, we have a clock and we have a bank and it’s for sleeping purposes. So, it isn’t something that just one night good sleep will help. This is something that’s 1) (2) (3 [4] (5) [6] cs) (8) 19) {10} {11] {12} (13] [14] [15] (16) {17] (18) (19} {20} (24) {22} [23] (24) [25] Page 15 accrued over time. When you get good sleep, that helps a lot. We need compliance. With the ease of application, as what he is talking about, okay? JOHN DENNY: Um-hmm.

DR. BOB CURRIER: With the effectiveness of its staying there, it’s a winner. And that’s how it works. JOHN DENNY: So, it’s basically — correct me if I'm wrong — it’s two or three sprays in the back of your mouth. I have a friend who underwenta session with a dentist who fitted him with a clamp of some sort, which pushed his jaw out and tried to create more breathing space essentially, and that lasted for about three to four months. This works, and it stays working for people? DR. BOB CURRIER: Yes, what you're trying to do with the appliance is just simply try to open up the airway more so you don’t get the fluttering of the tissues.

JOHN DENNY: Um-hmm.

DR. BOB CURRIER: What — and that’s what we do when we snore. When we snore, we essentially wake ourselves up in a snore, and then reposition ourselves, trying to again open up our airway to get more air so we get more oxygen. What happens with this product, this lubricates, stays there, again through the technology, Page 12 - Page 15 (6) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 Matter Number 0023211 October 13, 1999 Page 16 Page 18 and then you don’t have the snore; hence, you don’t wake up; hence, you get a more restful sleep. JOHN ZIGLAR: And the problem, John, with the appliance is it’s very uncomfortable. JOHN DENNY: Um-hmm.

JOHN ZIGLAR: And there have been a lot of people, and dentists will tell you that they have got patients who have paid for the procedure, paid to get the appliance, could not sleep with it hooked up. JOHN DENNY: Un-hmm.

JOHN ZIGLAR: And, so, it did not work for them because they were so uncomfortable. JOHN DENNY: Um-hmm.

JOHN ZIGLAR: Okay? And, so, when I saw this first — this product the first time, I looked at this thing and I thought oh, my goodness, you know, I’m going to spray oil in the back of my throat. I'm thinking WD- 40 or something like that, you know — JOHN DENNY: Right.

JOHN ZIGLAR: — and an oil slick, and ’'m going oh, but it’s the consistency of water.And the nice thing about it is is that it does — there's no feeling associated with the spray in the back of your throat. All you get is a nice, clean, peppermint taste ia} (2 {3 {4 (5) (6) [7 (8 {8 {10} {t4] [12] [13] [14] {15} [16] {17} (18} [19] (20) (21) [22] (23) [24] (25] Page 17 JOHN DENNY: Hmm.

JOHN ZIGLAR: — which made it wonderful, so compliant, people will do it.

ON SCREEN: This is a paid commercial for Snorenz.

6 DR. BOB CURRIER: Well, the aftertaste. 7) JOHN ZIGLAR: Yes.

i) DR.BOB CURRIER: In the morning, when you wake up, it’s better.

JOHN ZIGLAR: Exactly.

DR. BOB CURRIER: You don’t feel like you have an oil sludge at all. It’s a minty taste. 13} ON SCREEN: 1-800-835-8941 114) JOHN DENNY: If you have a snoring problem, if you have problems sleeping nexttoa snorer,then Snorenz may be the answer you've been waiting for. Snoring can seriously reduce your energy levels, your concentration, and can seriously affect your work habits, as well. And you can be sure your snoring is seriously bothering someone other than you.

Snorenz is the first all-natural spray that has been proven to give you a healthy, natural, good night’s sleep. It has no side effects, it’s as easy as a few sprays before bed, and it lasts all night. If you want more information on Snorenz, if you want to stop the iG (2) (4 (5) {9 {10} {11} [12] {18} [16] [17] (18} {19} (20} (21) [22} (23) {24] {25} i} {10} [11] {12} (13) [14] 115} (16) 117] (18) (19) (20) (21) (22) (23) [24 (25) snoring, if it’s a snorer next to you or if you be the snorer, you may want to call the 800 number on your screen.

We have, I believe, a caller on the line from Arizona, and I believe it’s Tina Heinz.Tina, are you on the air with us? TINA HEINZ: I’m here.

JOHN DENNY: Great. How you feeling today? TINA HEINZ: Good. I’m listening to your show, and I have to tell you that snoring, you know, is a lot more dangerous than people think.

JOHN DENNY: Hmm.

TINA HEINZ: My husband was a chronic snorer. He’s a firefighter/paramedic, so I wasn’t the only one affected by this.

JOHN DENNY: Hmm. Um-hmm.

TINA HEINZ: I mean, we didn’t sleep together for years.

JOHN DENNY: Now, you’ve been married for how long, Tina? TINA HEINZ: Sixteen years.

JOHN DENNY: Sixteen years. And this was a problem that occurred right from the start of your marriage? TINA HEINZ: Oh, yeah.

(1 {2 (3 i4 5] (6) 7] (8) ie) [10] {44] 12] 113} [14] 115} [16] 17] [18] [19] (20) (21) (22) (23) [24] 125) Page 19 JOHN DENNY: I mean, you found you were married to a snorer? TINA HEINZ: Oh, absolutely. And the poor guy, it would be all night, John, turn over, turn over. It did not matter, he could be sleeping on his head and he would still snore. Well, it got so bad that even at the fire department he was being, you know, hassled at the fire department because these guys sleep at different shifts, they don’t all sleep at the same time. JOHN DENNY: Um-hmm.

TINA HEINZ: And when John was sleeping, he would be waking everybody else up, and they'd be pounding on the walls, and he’d come home all aggravated, he’d come home and want to sleep. They built a partition around my husband’s bunk bed to try to keep out the noise.

(Laughter).

TINA HEINZ: Well, it got so bad he finally went to the doctor and, in order for the insurance company to pay for this surgery, they put him in the hospital in the sleep center and found out that he also had sleep apnea, which is very dangerous because when you're snoring you stop breathing and you forget to sleep.

JOHN ZIGLAR: Um-hmm.

For The Record, Inc. (301)870-8025 Min-U-Script® (7) Page 16 - Page 19 VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 VIDEO MED GEN INC.

October 13, 1999 Matter Number 0023211 Page 20 Page 22 4) TINA HEINZ: So, they did this surgery, and 12] needless to say, it lasted for a while and after that he [3] Started up again, and he would not even believe when I (4) would tell him John, you’re snoring again. i} JOHN DENNY: Hmm.

} TINA HEINZ: You don’t want to go through 7 surgery and find out that you’re snoring again. JOHN DENNY: So, this was after a surgery, he (91 had — the problem re-emerged? io) TINA HEINZ: Right, they did surgery on all his (14) sinuses. They went through his nose, and they removed [12] all his polyps, thinking that was the problem. So, now, (13) he’s in for a second surgery, and they decided that (14) they're going to remove part of his uvula and the roof of 15] his mouth, his tonsils and his adenoids. (iq) 4 JOHN DENNY: Hmm.

7) TINA HEINZ: And this will give his tongue more (1a) room, I guess is what they said, so he wouldn’t snore. na DR.BOB CURRIER: Um-hmm.

2) TINA HEINZ: Well, he went through this and it 2) was a horrible surgery. I really felt very, very bad for 22] him. He was out of work for six weeks, and he had high 23) hopes-that this was going to work and our life was going (24) to change, we could sleep in the same room together, go (25) on vacation, the guys wouldn't be hassling him. Well, (8 Page 21 (1) that did work for quite a while and then it started up [2] again.

3] ON SCREEN:

4) Caller from Phoenix, AZ (5) Tina Heinz is) TINA HEINZ: And I tell you, I was even afraid is) {2 [4 {5 [6 [8 {sg [10] [14] [12] [13] [14] [15] [16] [17] [18] 119] (20) (21) (22) (23) [24] (25) morning and I] would bea grouch at work because Iwas — I was tired.

JOHN DENNY: Yes.

JOHN ZIGLAR: Um-hmm.

TINA HEINZ: And I was aggravated. You're talking two surgeries, what is it going to take? He tried those stupid nose-strip things, they didn’t work. JOHN DENNY: Hmm.

TINA HEINZ: So, one day I’m sitting here watching TV and I see a commercial out here in Phoenix, and a couple’s talking about the same things. And I'm thinking, well, what have I got to lose. My husband tells me I’m nuts because his two surgeries didn’t work, a spray was not going to work.

I figure well, I’m going to try it. So, I sent for it; put it on the nightstand. First night he was home, I woke him up, I said John, spray your throat; he’s like yeah, yeah, yeah, yeah. I said John, please, spray your throat. So, we sprayed his throat, and I’m like wait, I’m laying there, I’m laying there, I’m like oh, wow, he was sleeping, there was no noise coming out of him, And I was — 1 was pretty well hooked.And he still was not a believer; he said it was just a fluke. So, it took a few times of using the Snorenz. Now, I ia] [2 (3 [4] (5) {6} Page 23 tell you what, he’s taking it up to the fire department. I had the wives calling up from the fire department asking me the 800 number. I've given away more bottles, T can’t tell you — JOHN DENNY: (Laughter).

TINA HEINZ: — because I bought the Snorenz [7] to tell him, because I couldn’t believe it myself. It’s tm bottle-of-the month club. (8) aggravating; it’s annoying. I don’t get a good night’s 3] JOHN DENNY: Um-hmm. | 9] sleep; he doesn’t get a good night’s sleep. I hated to i] TINA HEINZ: And I just gave one to my daughter (10) say, but I was happy when he was at the fire department 110) last week. She came over and she was like Mom, I’m going 111) because I got a good night's sleep. (11) crazy, Timmy’s snoring. I said here, take my last (12) (Laughter). 142] bottle, take it home. 3] JOHN DENNY: Tina, 1 want to interrupt you for 13] JOHN DENNY: And how long now has your family (14) a second, because this is, you know, a real relatable (14) or your husband in particular been using Snorenz? [15] Story to some, perhaps not all have gone through 1s) TINA HEINZ: Oh, for months. (16) surgeries and so forth, but for the millions of people 16) JOHN DENNY: For months? i17) who sleep next to a snorer, their lives are affected as 7] TINA HEINZ: Months, absolutely. (18) well. How did you find your life or your sleep quality ta} JOHN DENNY: And it works for him pretty much [19] affected by sleeping next toa snorer? (19) every night? 20) TINA HEINZ: Well, I didn’t, 1 chased him out. 0) TINA HEINZ: Well, he takes it in his little 1) JOHN DENNY: Right. 21) duffle bag when he goes to the fire department, because 22, TINA HEINZ: Actually, I have insomnia, and I 22) being a medic also he might be called to another station. i233 don’t get — I mean, I could hear the dog turn over, so 23} He doesn’t want to go to another station with, you know, 24} he'd have to go into the other room, and I would still 24) guys he doesn’t know and start snoring. (25) hear him through the vents, but I would get up in the zs) JOHN DENNY: Hmm. Page 20 - Page 23 (8) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 Matter Number 0023211 October 13, 1999 Page 24 Page 26 tt} TINA HEINZ: So, he carries it in his little 1] This way, with using Snorenz, he could get his 2) bag and every place he goes the Snorenz goes with him. 2) Clock back in order, he could go to sleep, and he could 3] JOHN DENNY: Right. Well, Tina, thank you for is) go to sleep snoring free, wake up refreshed in the 4) calling from Arizona. 4) morning. He figured it all out real simple, and it took =] TINA HEINZ: Hey, thanks for the Snorenz, I'll 5} us years to figure all this out and he did it in a very (6) tell you. fe) Short time.

7 JOHN DENNY: Well, we appreciate your calling 7 JOHN DENNY: Um-hmm. (8) and continue to get a full, silent night's sleep. ts} | DR.BOB CURRIER: Now, he doesn’t have a bed i) TINA HEINZ: Absolutely. 9] partner, and so what happens is he did this for himself, tio} JOHN DENNY: Okay, Tina, thank you. 110) for his own energy level. 14) TINA HEINZ: Thank you. 147 JOHN DENNY: Um-hmm. 121 JOHN DENNY: Bob, tell us about some of your 12) DR.BOB CURRIER: And, so, you know, there it {13} patients who have been turned on to Snorenz. 113) has worked successfully for him. It isn’t always a bed 14) DR. BOB CURRIER: Well, I'll give you a good (14) mate telling someone that they have it. (1s) example. I have Mike. Now, we always think of a snorer 4s} JOHN DENNY: Um-hmm. (16) aS someone that’s older, okay, and that’s a little bit 116) JOHN ZIGLAR: That’s right. 17] more past middle age, always a male, and it’s always 17) DR.BOB CURRIER: He did it for himself. tts) Grandpa, the chain saw — 1g) JOHN ZIGLAR: Right. 19) JOHN DENNY: Um-hmm. tig) JOHN DENNY: You think of snorers as older 99 DR. BOB CURRIER: — somebody like that. 20) people, your grandfather, your father. I remember 21) Interestingly enough, I had a 25-year-old patient of mine 21) growing up, my father — listening to my father across 22) named Mike who is an optician. Now, Mike was trying to 22) the hallway snoring. It sounded like the start of the 23) qualify, okay, for the certifying exam to become a 23] Indianapolis 500 every night. But, in fact, younger 2a) certified optician. He was losing energy. He just 24) people snore, too, do they not? In fact, there’s a study 25) couldn’t — he couldn’t understand it, he couldn’t 125) out about students who were snorers who were provento Page 25 Page 27 tt) understand why he didn’t have the get-up-and-gotodohis | | have lower test scores. Tell me about that. 2] job plus go home to study. 2) JOHN ZIGLAR: I was reading the newspaper here i313 He’s single. He lives by himself. So, he’s 3) in Chicago one day, and the Sun-Times has an article and 4] wondering why. I said, well, you know, maybe you're not 4] the top of the article says Test Scores Affected by is] sleeping well. And he said well, you know, I just — I is} Snoring. And, so, I’m looking at it and I’m thinking (s) just can’t sleep.And so what happens to him is I give 6) wow, you know, there’s actually been a study done. And 7 him some Snorenz.1 said well, just try this, it’s just m what had happened isaresearch program was done overin is] an outside shot, and I said you've got to try this, let fq} West Germany with medical students. } me know how it works. 3) JOHN DENNY: Um-hmm. (10) He comes back, now I don’t see him in a week or 19) JOHN ZIGLAR: And what they did is they tracked (4) two,on another appointment basis.He comesbackandmy _{111) an entire medical school class from the day they started 112) word, he says — he’s just aglow. He passed the 112} to the day they finished, and they put them in two [13] certifying exam; he feels like he is more awake, more 113] Categories. One category was the snorers, and over here (14) energetic. He feels like he can do anything. He can 114) was the category of the non-snorers. And after 115) Conquer the world, he’s 25 years old. (1s) everything was said and done from start to finished, the (16) ON SCREEN: These statements have not been (16) non-snorers scored 6 percent higher on their tests — (17) evaluated by the Food and Drug Administration. This u7 JOHN DENNY: Hmm. (1g) product is not intended to diagnose, treat, cure or (1g) | JOHN ZIGLAR: — than the snorers did, all [19] prevent any disease. (19) other things being equal. zo) DR. BOB CURRIER: And what has happened is he 09) 1DR.BOB CURRIER: Hmm. And you just happened 21) relayed the story. What happened to him is he would fall _—_| 21) to run across this, so it’s now becoming an awareness. 122) asleep; he couldn’t get to sleep at night, okay, so he’d 122, JOHN ZIGLAR: Exactly. (23) sit up and watch late-night TV, he becomesandinsomniac. j,233 DR.BOB CURRIER: Right. People are becoming 24) What he would do is fall asleep, but he'd wake with a 124) aware now. And it’s — see, it’s all too obvious now (25) snore. (28) when you read something like this why that would happen, For The Record, Inc. (301)870-8025 Min-U-Script® (9) Page 24 - Page 27 VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 VIDEO MED GEN INC. October 13, 1999 Matter Number 0023211 Page 28 Page 30 {t [2 (3) (4) (5] (6) 7] (8) (9 [10] 14] 12] 113] [14] (15) [16] 17] [18] (19) (20) (21) (22) (23) 124] (25) because we're all aware, and my patients are aware. Interestingly enough, I store this on — well on shelves and such in the office. When we do our inventory at the end of the day, I find that some has been taken. I don’t want to say stolen, because these are my patients and we've created a relationship, but actually it’s missing. JOHN DENNY: Right.

DR. BOB CURRIER: So, what happens is it just plain gets taken, people want this. JOHN DENNY: Hmm.

DR. BOB CURRIER: People are now aware. And I think this is what’s happening here, and we know why people don't score well, they don’t sleep well, they snore.

ON SCREEN: This is a paid commercial for Snorenz.

JOHN DENNY: Ninety million Americans snore. That doesn’t include the countless millions who sleep next to a snorer.

ON SCREEN: 1-800-835-8941.

JOHN DENNY: And if you wanted more information about this revolutionary, breakthrough product which has been proven effective in 97 percent of cases to eliminate or reduce the sound of snoring, call the toll-free 800 number on your screen, get more information about [1] (2) [3] 14) [5] [6 7] (8) (9) {10} (11] (12) [13] (14] [15} [16] (17) (18) [19] {20] (21) [22] (23) (24) (25] Page 29 Snorenz.

Do it for him, do it for yourself, do it for your family. It is worth the phone call, and it is pennies per day to end the snoring problem. This is a product, as I mentioned, that has been proven effective in studies. And you actually conducted the studies out of your auspices in Michigan.Tell us about how Snorenz worked.

DR. BOB CURRIER: Interestingly enough, it’s not only the results of the studies we got, but the comments we received.Many people, again,they’re aware of snoring, but they aren’t aware of the problems that come with it.And actually it’s like until it’s resolved, the snoring itself, oh, my word, what a problem it was.And you can see the changes it’s made. That was probably the most interesting part of doing that whole study — JOHN DENNY: Um-hmm.

DR. BOB CURRIER: — was the comments that we got back, the little stories that people had through the week — JOHN DENNY: Yes.

DR. BOB CURRIER: — you know, of using this product. And that was the beauty of this. I loved doing the study, it was highly effective. 2] 3] [4 it) (é {3 (g (10) 11] 12] (13) [14] (15) (16) 117] [18] 119] (20) 21] (22) (23) (24) (25) JOHN DENNY: And, John, this is an all-natural product? JOHN ZIGLAR: It’s all-natural oils. And we also have some vitamins — JOHN DENNY: Um-hmm.

JOHN ZIGLAR: — that we have also put into the product.

JOHN DENNY: And tell us about snorer’s breath. I'm going to test this here.

JOHN ZIGLAR: Yes.

JOHN DENNY: I hope I don’t get it in my eye. (Laughter).

JOHN DENNY: In my — in my — some problem in my eye perhaps, but it’s minty.

JOHN ZIGLAR: Yes.

JOHN DENNY: Actually, it tastes a lot like mouthwash, I mean, in a good way.Three sprays of this before bed.

JOHN ZIGLAR: Right.

JOHN DENNY: And how long will this last, through the night? JOHN ZIGLAR: It’ll last through the night. It'll last from six to eight hours. JOHN DENNY: Um-hmm. In what cases doesn’t this work? (10] (14) (12] 113] {14] [15] [16] 117] [18] [19] [20] [24] [22] (23) (24) 125] Page 31 JOHN ZIGLAR: You know, when I first got this product, we did test, and I've given it to everybody that I know that snores — JOHN DENNY: Um-hmm.

JOHN ZIGLAR: — so that I could find out, you know, because Ialways wanted to knowexactly how did it work on everybody else. And, so, we had one friend we gave it to and, quite honestly, they've been married for three years, they're already sleeping in different bedrooms because he snores so loudly — JOHN DENNY: Hmm.

JOHN ZIGLAR: — and he would go to bed, they would go to bed together, wake up in different rooms. And, so, Kevin was taking the product and the first night it worked perfectly; second night it worked perfectly; third night it worked perfectly; fourth night, didn’t work; fifth night, didn’t work.

He called me up and he says look, you know, it works temporarily but after that it doesn’t work. And I said wait a minute, you know, there’s got to be a reason, there’s something wrong here that only guy it doesn’t work for all in the world. (Laughter). And he says well — and so I started to ask him some questions, and here’s the point, what I found out was the night that it did not work, he had a beer just before he went to bed. Page 28 - Page 31 (10) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VIDEO VP SNORENZE 4 - JD W/ DISCLAIMER SNR4 Matter Number 0023211 October 13, 1999 Page 32 Page 34 JOHN DENNY: Hmm.

JOHN ZIGLAR: And what we have here was a situation where the alcoho! in the beer literally cut through the oils in our product and it went down his throat, so it was not there.

JOHN DENNY: Um-hmm.

JOHN ZIGLAR: Since it was not there, it could not work, and it proved that he still was a snorer, he just needed the product to stay where it was — JOHN DENNY: Um-hmm.

JOHN ZIGLAR: — so that he would live without the noise.

JOHN DENNY: So, you suggested that he sort of cut down his drinking right before going to bed? JOHN ZIGLAR: Exactly. Don’t eat or drink anything 30 minutes before you go to bed — JOHN DENNY: Um-hmm.

JOHN ZIGLAR: — or if you do, then take a couple of swallows of water just to clear your palate so that your throat is clean — JOHN DENNY: Um-hmm.

JOHN ZIGLAR: — so that when you put the product in, on the back of your tongue, that it'll stay there.

JOHN DENNY: Your wives are happy, gentlemen, (1) (2) (3 [4 {s {6 [7 (8 (9 [10] {11] (12] [13] {14] {15} [16] (17) {18} [19] (20) (21) (22) {23] (24) [28] Page 33 that you are — DR. BOB CURRIER: Happier.

3) JOHN DENNY: Happier. We won't get into that, 4) but they’re happy that your snoring problems have been 3) reduced or eliminated? DR. BOB CURRIER: Yes, very much so. JOHN ZIGLAR: And now, you know, I roll over and Linda gives me a kiss before we go to bed, and I think that’s just real sweet. She’s checking to see if I've taken the Snorenz, okay? (Laughter).

JOHN DENNY: If you want more information about this revolutionary, all-natural, vitamin-based spray, no pills, no surgery, no clamps, no strips across your nose, Snorenz will end your snoring problem and do it naturally, It is pennies in comparison to the value and the almost priceless value of a full, restful, silent night’s sleep for all, and that goes for the snorer as well as the person sleeping next to the snorer. For more information, call the 800 number on the screen. Dr. Bob Currier, thank you for joining us on iG (2) {6 it] (8 {8 {10} {11} (12) {13} (14) {15] [16] (17) [18] {19} (20) {24} {1} {2 {3} (4) (5) (6] tg} [8] 19] {10] [11] {12} (13] (14] [15] (16) (17] [18] {19} {20] (21) {22} [23] (24) {25] JOHN DENNY: I may knock off a few sprays tonight and try to get my snoring down. This is John Denny saying goodbye from Vantage Point,and we willsee you next time.

(Music playing.) ON SCREEN:

For more information or to order Snorenz call: 1-800-835-8941 If snoring is accompanied by any signs of Sleep Apnea, you should consult a physician before using any product.

ON SCREEN:

Tru-Vantage International 7300 N. Lehigh Ave. Niles, IL 60714 (847)647- ANNOUNCER: The preceding has been a paid commercial brought to you by Kevin Trudeau's Tru Vantage International.

ON SCREEN:

The preceding has been a paid commercial for SNORENZ brought to you by Kevin Trudeau's Tru-Vantage International, America’s premier direct response marketing company.

(End of videotape.) (1) (2] (3] 14} {5} {6} it) (8) {9} {10} (14) [12] {13} [14] {15} {16} [17] (18) {19} [20] (21) Page 35 CERTIFICATION O F TYPIST MATTER NUMBER: 0023211 CASETITLE: MED GEN INC.

TAPING DATE: OCTOBER 13, 1999 TRANSCRIPTION DATE: MAY 13, 2000 1 HEREBY CERTIFY that the transcript contained herein is a full and accurate transcript of the tapes transcribed by me on the above cause before the FEDERAL TRADE COMMISSION to the best of my knowledge and belief. DATED: MAY 15, 2000 SARA J. VANCE CERTIFICATIONOFPROOFREADER 1 HEREBY CERTIFY that I proofread the transcript for accuracy in spelling, hyphenation, punctuation and 122} Vantage Point. 122} format.

vs} DR. BOB CURRIER: Thank you for having me. (23) 4), JOHN DENNY: And, John Ziglar, thank you. (24) 25} JOHN ZIGLAR: You're welcome. (28) ELIZABETH M. FARRELL For The Record, Inc. (301)870-8025 Min-U-Script® (11) Page 32 - Page 35 Lawyer’s Notes MED GEN INC.

Matter Number 0023211 VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 VIDEO October 13, 1999 (1] (2] {3} (4) {5} 6) 7) 8} (9} {10} {11] [12] [13] [14] [15] (16} (17) 118} [19] (20) 21] (22) (23) {24} [25] FEDERAL TRADE COMMISSION INDEX VIDEOTAPE: Page VP Snorenz 8 JD/JPK (Replace SNZ6) Rollout SNZ8 Soft 3 Page 1 (1) 2) 13) 14) 5] rc) m is} i) [10] (11) (12) [13] 114) (15) (16) 117] (18) [19] (20) 21] (22) [23] (24) (25) FEDERAL TRADE COMMISSION In the Matter of: ) ) Matter No. 0023211 Med Gen, Inc. ) October 13, 1999 The following transcript was produced from a live tape provided to For The Record, Inc. On May 8, 2000.

Page 2 {1] (2) 3) (4) (5) (6) (8) {9] £10] (11] (12] {13] (14) (15) [16] {17] {18] (19} (20) (21) [22] (23) {24} Page 3 PROCEEDINGS ON SCREEN: Client: TVI Project: VP Snorenz 8 Generic Price Point: Soft Offer Edit Date: 3/29/99 Editor: WPS Audio: Mixed Notes: Generic ON SCREEN: The following is a paid commercial program for SNORENZ.

MALE ANNOUNCER: The following is a paid program.

JON DENNY: For millions of Americans, this is the most annoying and unwelcome sound in the world. That’s right, more than 90 million Americans have a snoring problem, and it could cause sleeplessness, headaches and a lack of energy, and that goes for the snorer as well as the person trying to sleep next to the snorer. What can be done about it? On Vantage Point today, hear about a new discovery that could eliminate the sound of snoring.

ON SCREEN: Vantage Point with Jon Denny (28) Jon Denny (] (2 [4 {5 {6 7) 8} [9] [10] (11] (12) [13] {14] {15} {t6] {17] [18] [19] [20] 21) (22) (23) (24) {25} Page 4 JON DENNY: Hi, I’m Jon Denny, and welcome to Vantage Point. We are going to talk about snoring today, and we are going to do it with Paul Kravitz, who has brought to the market an exciting breakthrough product called Snorenz, which has been proven from snorers around the country to reduce or eliminate their snoring problem.

Paul, welcome to the show.

PAUL KRAVITZ: Thank you, Jon.

JON DENNY: Tell me, is this a breakthrough medical discovery, is this a revolutionary new direction to help people stop their snoring problem? ON SCREEN: Paul Kravitz, Snorenz For The Record, Inc. (301)870-8025 Min-U-Scripte Exhibit E VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 October 13, 1999 VIDEO MED GEN INC.

Matter Number 0023211 Page 5 (} PAUL KRAVITZ: Well, John, I don’t know if 2] you would call it a medical breakthrough or a new 13] discovery.To me it was a major breakthrough. In ) fact, it saved my marriage.

5] I had been a heavy snorer for years, and [6] at One point in my life, my — my ribs hurt so much tm in the morning from my wife poking me to wake up to {a] Stop snoring, it was just a terrible thing, and 3] over the course of many years, I was thinking about (109) Surgery, a lot of potential cures that I — that I (14) thought I would find to help the situation out, and 112] I met somebody about six or seven years ago, a Korean gentleman who was — lived in Brazil, actually, and who was working with an EMT specialist who lived next door, and they came up with a product, and I had met him, they were looking for somebody to invest in the company, and things just went — went the way of the world, and finally, I asked him if I could try the product, and I did, and it worked.

It was — at that time it was in its infancy, it was terrible tasting, and — but it worked, and I used it for five days straight, and I made a small investment, which became a larger investment and even a larger investment, until wy [13] [14] 115) (16) 17] (18) [19] (20) (21) (22) (23) [24] (25) Page 6 (1] (2) 13) (4 (5} [6] | (8} fe) finally I bought the formula from the Korean, and we went to work on it. It took a year and a half to develop, and Jon, we've tested it, we’ve proven it, it works. And it works, and it’s a very simple way it does work.

JON DENNY: Now, before we get into how Snorenz works, what is snoring? What causes that terrible Harley Davidson rumbling sound that seems to emanate from almost every bedroom across America? I mean, I grew up with a father, and it sounded like the start of the Indianapolis 500 every night, the house would literally rattle. What is snoring? PAUL KRAVITZ: Well, snoring is caused by a vibration of three parts of your mouth — in your throat. It’s a vibration of the back of your tongue against the uvula, which is the small part of the skin that hangs down from your throat, and your soft pallet, which vibrates. Now, you can either vibrate the two pieces together, either the back of the tongue and the uvula, or you can vibrate all three, and the deeper the resonance, the more vibrations you're going to hear. Our product really addresses the vibrations. You can’t stop the vibration, but you 110] [14] [12] 113] 114] 115) [16] 117] (18) [19] (20) (21) (22) (23) [24] [25] it [2 ie) [4 5} (6) SS {10} (11) (12] [13] (14] [15] {16} [17] {18} [19] (20} (21) [22] (23) (24) (25) Page 7 can stop the snoring noise.

JON DENNY: Well, how does Snorenz work? It is a spray, an all-natural spray? PAUL KRAVITZ: It’s an all-natural spray, yes:

JON DENNY: Vitamin-based? PAUL KRAVITZ: It’s vitamin based, it’s all natural, and it’s manufactured in a very special technique called liposome. JON DENNY: And is this a patented process? PAUL KRAVITZ: Yes, it is, it’s patented. JON DENNY: And how does it work exactly? So, we have a snorer — we are going to go to some video feeds of some couples who have experienced what snoring has done in their lives and really impacted their marriages. We may consider this a laughing matter, but for many people, it isn’t a laughing matter at all.

PAUL KRAVITZ: No, it’s a very serious problem, John.

JON DENNY: How does Snorenz work to correct or address the problem you're talking about? PAUL KRAVITZ: Well, very simply put, it i (2) (3 {4} (5 (é 7, {8} (9} [10] [11] {12} {13] [14] [15] (16] (17] [18] [19] {20] {24} (22) {23} (24) [25] Page 8 oils the vibrating parts of your — of your throat, and when you put oil on a rusty part, it silences it, and that’s exactly how it does work. The secret of the product and what we’ve spent millions of dollars to find out is how to get it to attach itself, the product itself, the spray, to staying in the back of the throat so that the noise stays for — I mean, the noise stays away for six to eight hours.

JON DENNY: Um-hum.

PAUL KRAVITZ: And we were able to find a trace product that we use in all of our products that let’s it stick to the back of the throat, thereby quieting the noise. So, in its simplest form, what you're doing is greasing the noisy parts.

JON DENNY: Right, like someone would if a car’s axis or Car parts were rumbling or rattling together, oil would essentially grease those areas? PAUL KRAVITZ: That’s it, right, that’s it.

JON DENNY: Now, when I hear oil and I hear grease, my word, not yours, I’m thinking terrible tasting, I’m thinking that — I'm not sure that I want to spray oil in my mouth. Tell me Page 5 - Page 8 (4) Min-U-Scripto® For The Record, Inc. (301)870-8025 MED GEN INC.

Matter Number 0023211 VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 VIDEO October 13, 1999 Page 9 about the taste of this.

PAUL KRAVITZ: Well, we’ve added peppermint flavor to it, so — as a matter of fact, the taste is delicious. It almost tastes like bubble gum, and I used to love bubblegum as a kid, and J love it.I take it in every day — every night, I go to bed at night, I spray my throat, I wake up in the morning, my throat is fresh, I have had a good, restful night’s sleep, and so has my wife, as a matter of fact. We both think this product is wonderful, and we’ve turned a lot of people on to this product.

JON DENNY: Now, why is snoring a problem? On one hand we know it’s a problem for the person sleeping next to us, the snorer, they’re not getting enough sleep because of that sound coming tight next to them, but in what other ways is snoring a real problem for both the snorer as well as the person trying to sleep next to them? PAUL KRAVITZ: Well, from the snorer’s point of view, Jon, it’s a major problem. First of all, you don’t know it, but if you were a snorer, you wake up maybe a thousand times a night, because the snoring does wake you up. You go right back to sleep again, and then you wake up again. Even if {1 [2 {3 [4 (5) (6 7] (8] (9) [10] (14) (12] {13} {14] {15} {16} [17] [18] [19] [20] (21) [22] [23] {24} {25} Page 10 your wife doesn’t wake you up or your girlfriend doesn’t wake you up, you are really not sleeping soundly.

As a matter of fact, there was a Times atticle, the Los Angeles Times, if you don’t mind me reading it, it says basically that the snoring decreased — as snoring decreased, you were able to function better in the daytime, and they’ve actually been able to prove that people function better with a better night’s sleep, obviously if you don’t snore, you do get a better night's sleep. As far as your wife is concerned or your girlfriend is concerned or anybody nearby you, obviously they're going to sleep better, as well. So, it’s a dual effect.

JON DENNY: Interestingly. We have Dr. Mike Leonard on the line from Kalamazoo, Michigan. Dr. Leonard, are you with us? DR. MIKE LEONARD: Yes, I am.

ON SCREEN: Caller: Dr. Michael Leonard {21} Kalamazoo, MI (22) JON DENNY: Dr. Leonard, I believe (23) conducted some tests on the efficacy of this 124] product out of his auspices in Michigan. Dr. (25) Leonard, let me ask you a question. As a dentist, (4 (2 (3 (4) (S {6 (8 (9) [40] (t1] (12) [13] {14] [15] [16] {t7] (18} {19] {20} (t (2 (3 [4 {5 (6 (8 (2 {10} (11] (12) [13] [14] {15} [16} (17) {18} [19] {20] (24) (22) (23) (24) (25) Page 11 is this something that you have recommended to your patients who have sleep problems, most particularly snoring problems? DR. MIKE LEONARD: Yes. Initially, as a dentist, we — historically we fabricate occlusal appliances or guards that go in your mouth that, oh, essentially keep your mouth open wider or really position your lower jaw forward so you can keep the airway open like you were talking about earlier and don’t have those tissues vibrating and rolling around.

The problem is a lot of people can’t tolerate those appliances. They are large, they are cumbersome, and throughout the night, if you’ve got it in your mouth, you may end up with it on your pillow in the morning, because you're just subconsciously take it out.

JON DENNY: These are clamps that dentists are in the past put into people’s mouth to create more airspace? DR. MIKE LEONARD: Exactly, of varying different sizes and shapes, et cetera, but they’re custommade appliances, and for some people that can’t tolerate them, it’s an expense to go through if you're not going to be able to utilize it. a] [2 (3 [4] {5 (6 (7) (8) [9 {10} (14] {12} [13] [14] [15] (16) (17) (18) J9 (20) (21) (22) {23} (24) (25) Page 12 So, I had, through the grapevine, heard about a spray to use and got the name of the company, called them up and ordered a case of Snorenz and had it sent to my office to start dispensing to patients and having them try it out and see what they thought, because quite simply, it’s easily reversible.

If you are not tolerating it, if it was not working, you just stop using it. You're not really out anything. And that — the feedback that I got was very, very positive. People were getting good results, and the people that were coming in with the problems were not the snorers themselves; it was the mate, the partner that was sleeping next to them that was kept up all night or irritated all night that they were having to rol! their spouse over to get them to quiet down a little bit so they could get a more restful sleep.

JON DENNY: Now, the rumor out of Michigan was that not only did you dispense Snorenz to some of your patients, but you may have tried it or been urged to try it yourself. Tell me about your personal experience with the product. DR. MIKE LEONARD: Yes, exactly, I was at home one night talking — just talking to my wife For The Record, Inc. (301)870-8025 Min-U-Scripto (5) Page 9 - Page 12 VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 MED GEN INC.

Actober 13, 1999 VIDEO Matter Number 0023211 Page 13 Page 15 tt) about the daily goings-on, et cetera, and I was (1) typical snoring problem? 2) telling her I gave a patient of a sample of the 2 DR. MIKE LEONARD:It’s an extremely (3} Snorenz, and it kind of caught her ear, and she 3) logical, common sense, first line approach to 4) perked up a little bit and said, Well, what — tell 4) dealing with it. Use it, and if you use it is} me about this stuff.And I told her, got a case of is} properly and if you use it consistently, I find [6] it, been giving it out, and she said, Well, don't e) that it works. It works for me and it works fora ™ give all of it out, she said, you better bring some (7 number of the patients that I’m having use it in 13} of it home yourself, because you snore like a 8) the practice. 1 lumberjack, which was prior to that unbeknownst to i) PAUL KRAVITZ: I am really so excited (1q) me, I had no idea. (19) about listening to the successes of people that use 11] So, since then, I've been bringing it (11) the product, Jon. Every time I get a letter — I 12] home. I’ve got a bottle of it on my bedside table [12] must have a stack of testimonials from different 113} that I use every night, and if I forget, as I’m (13] people, some of Dr. Leonard's clients — patients, 114) dozing off to sleep at night, if I forget to use (14) as well, and I just — I get chilled all over, (15) it, she will give me a little nudge at this point (is) because I think it’s just so wonderful, because to (16) and make sure that I've used my spray, and I get a (16) me, this was an affliction. I really think this is (17) restful sleep, she gets a restful sleep, and we're (17) a major breakthrough, and for something that is 1a} both happy. (1a) really hurting people, not allowing them to sleep. 197 JON DENNY: Now, Paul, if people want more 19] Direct application of this oil or solution that we 20] information about Snorenz, this patented product 20) have that actually quiets the noise down, that’s f21] process that is apparently helping people get a 21] what happens. 22) full, restful, silent night’s sleep across the 22] JON DENNY: We want to talk — we have 123] country, where do they get more information about 23) from Chicago a couple, Ralph and Julie Dynek (24) it? 124) (phonetic), who are being beamed in to us as we 25) PAUL KRAVITZ: Well, actually, for this 25) speak. Welcome to the show, guys. Page 14 Page 16 show and this show only, Jon, we're giving a special bonus offer, and if they — people call in and they see this 800 number on the bottom of the screen, all they have to do is call in and they can get a special offer of Snorenz.

JON DENNY: Great, great.

PAUL KRAVITZ: And Dr. Leonard, you know, what was interesting about what you said is that I actually went to a dentist to get this appliance, and I have a terrible problem with gagging, and the appliance — I could not wear that appliance at night, and I just — I must tell you something, your wife turning you onto the product was really tremendous. I have seen your orders come through the office, so now I have gotten to speak to you, Doctor.

DR. MIKE LEONARD: Very good.

PAUL KRAVITZ: And it’s a pleasure. JON DENNY: Now, there have been not only clamps but also pills that have been tried and also strips across one’s nose, very expensive and painful surgeries, as well.

3} #DR.MIKE LEONARD: That’s right. (24 JON‘DENNY: So, Doctor, would you consider i25) Snorenz to be a logical, common sense approach to a ig (2) 13} [4 (5) (6) A (8) (9) [19] 14] (12) 113] (14) (15) [16] 17] 118] [19] [20] [24] 122] {1 (2 (3 [4 5] {6) 7) (8) (9) (10) 14] [12] [13] [14] [15] [16] [17] [18] [19] (20) 21] 122] (23) [24] [25] JULIE DYNEK: Hi.

RALPH DYNEK: Thank you.

JON DENNY: You experienced your own story with both a snoring problem and success with this product.Tell me a little bit about what happened and why snoring was a problem in your life. JULIE DYNEK: Well, it — for as long as I've known Ralph, as long as we've been married, the snoring has been terrible, absolutely terrible. Sometimes I'd get up, go sleep in another bedroom. Many times I'd be like punching him, telling him please stop snoring, you're snoring, I can’t sleep. He’s like, I don’t snore, I don’t snore, but it’s been a real — it was a terrible, terrible problem, and I thought of millions of things, I didn’t know what to do, because it was always waking me up, every single night, and I was getting no — barely any sleep.

So, I thought of — I heard that you could like sew a tennis ball in their T-shirt, and when they roll over on their back, it’s uncomfortable, but I didn’t know what to do. 1 just said — you know, I'd just punch him overnight. JON DENNY: I would think you would want to put the tennis ball in his mouth to stop the Page 13 - Page 16 (6) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 Matter Number 0023211 VIDEO October 13, 1999 Page 17 Page 19 {t] snoring problem. But you actually, Ralph, you (1) Snorenz. 2) didn’t believe that you had a snoring problem until 3 JULIE DYNEK: Well, it’s kind of a funny 31 Julie did something. Is that correct? [3] story. My same sister-in-law told me, I have this 4) RALPH DYNEK: Yeah, that’s true. She got 4) product that I heard about, I think you guys should 5} up in the evening while we were sleeping and went 5} try it, and so we tried it for a whole week, and i) and got the tape recorder, and it was — it wasa js) that week, it didn’t really even dawn on me, I said 7 widening of the eyes. It was just — I couldn't 7 to her one day, I said, I feel like I have so much {3} believe it. I mean, I was loud, and I felt really is) energy, and I have — I don’t know what's going on, 19] bad. 1) I feel so rested, and she said, Oh, hello, don’t (109) I mean, ] love Julie, and we have a very, (10) you think it’s that product I gave you? Don't you [11] very energetic life, and if you fall behind in your (14) think it’s the Snorenz? And then it dawned on me (12) sleep, who knows how the next day is going to be, (12) that definitely it was. At that point I was very (1a) and sometimes, you know, we were running out of 13] happy. (14) energy, and I know I was waking up, too, and the 14) JON DENNY: And, Ralph, do you find (45) more information I got, we didn’t know where to 118) yourself, now that the product has helped cut down (16) turn. (16) or eliminate your sound of snoring, do you feel 177 | We were concerned, she was concerned, and 117) more rested? Are you getting a better night’s 1g] there was also threatening — you see ads in the 118) sleep? [19] paper or you hear ads on TV about people could be (19) RALPH DYNEK: Clearly I am, and I'll tell j20) even having life-threatening situations. So, we (20) you what, I didn’t really believe it, but I was jet) wanted to address it. We were definitely 21) waking up, and when you — when you go back and you 223 concerned, and thank God we ran into this product. 22} think about the times or actually when it happens, (23 It’s been just fabulous. 23] if I fall asleep sometimes in the afternoon, if I'm 24) JON DENNY: And Julie and Ralph from 24) having a nap after a rough day at work, then all of 125) Chicago, how did the problem, before you addressed 25) a sudden I'll be woken up, you know, you can do Page 18 Page 20 tt) it with Snorenz, how did the problem affect your 11] these short, ten-minute naps, and I can actually 2) relationship? I mean, was it difficult for, Julie, 2) hear the tail end of the snore — of course, I’m 3] for you to get a good night’s sleep next to Ralph? Ia] not using the product at that time, and then I just 4) JULIE DYNEK: Oh, it was terrible, 14) turn and go, Oh, my gosh, I can’t believe it. It’s 15) especially when I was pregnant, I mean, you don’t 8] a little bit embarrassing. It’s a lot [) get very much sleep anyways, I would be — like I [6] embarrassing. So — 7 said, I would punch him, 1 would kick the bed, I 7 JON DENNY: And it’s worked throughout the (a) would like be, “shh, shh,” all night long, and 3) night for you every night? [9] nothing — it would stop for a little while, I 3) RALPH DYNEK: Yeah, it’s been a very solid (10.) would fall asleep, and then it would start roaring (10) performance out of it, and it’s amazing, and you [11] again. (11) know what, the — I can’t really tell, but — but 12) I can remember one time when my (12) Julie tells me, and then I can tell in the morning, 13] sister-in-law slept over, and she was actually 113] because I can just take one look at her and know if (14) sleeping in a spare bedroom in the basement and 14) she had a good night’s rest, if she says 48th (15) through the ceiling of the basement she actually (15) although to me nicely, because sometimes she was a (16) thought that there was either a tornado or an {16} little bitter at me in the morning. (17) earthquake or something. She came running up the 7) JON DENNY: Um-hum, oh, I bet. Ralph and [18] stairs, and she said, What is that? What is that? 118) Julie, thank you for joining us from Chicago. 19] I’m like, What? She’s like, Oh, my God, it’s (1s) Continue to get a full and restful, silent night’s 20) Ralph’s snoring. I’m like, Oh, yeah — that — I'm 20) sleep. 21) so used to it, you know, it’s like, you know, you fe) | JULIE DYNEK: Thank you. 22] get used to it, but somebody new coming into the 223 ON SCREEN: Paul Kravitz, Snorenz (23) house, it was just horrible for her. (23) PAUL KRAVITZ: You know, Jon, they say 4). JON DENNY: And tell me about the (24) snorers are broken into three categories, those who 28) experience and the success that you've had with 25) know they snore, those who are in denial and those For The Record, Inc. (301)870-8025 Min-U-Script® (7) Page 17 - Page 20 .

VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 VIDEO MED GEN INC.

Matter Number 0023211 October 13, 1999 [ (2 [3] [4 (5) td) [8 [10} [11] {12} {13} (14] (18) [16] {17] (18) [19] (20) (21) (22) (23) (24) [25] Page 21 who sleep alone. I’m happy to hear that these people bought some of our product and it works. JON DENNY: Now, Paul, tell us how snoring can affect other aspects of people’s lives. There have been — there’s a study, I believe, in a Chicago newspaper about how — a study was conducted that students who snored actually were proven to get worse grades, that as the snoring decreased or was eliminated, energy levels were up, restlessness, and better grades. Have you heard that story? PAUL KRAVITZ: Yeah, I've heard it.I have heard so many stories, Jon, talking to doctors, and I’m not a doctor, I'm a businessman, but I’m happy to have introduced this product into the world.

I have heard so many stories about students who are now getting better grades because they found a way to sleep well at night and get rest. I have heard stories of mothers — you know, actually, speaking, 60 percent — in studies that have been conducted, 60 percent of the men — of the people in the world are male are snorers and 40 percent are female, which is kind of wild when you think about it, that there are more men snorers (1) 13] [4 5) (6) m1 18) (10) 14] 112] (13) (14] [15] [16] (17] (18) [19] [20} 21) 22) 23} 24) 25] Page 22 than women, and I have no answer for that. The truth of the matter is that the stories that I have — that are bound today, and the medical profession is really getting into this big time. In fact, I read an article about a month ago in the New England Medical Journal that addressed the problem of snoring. They had tried almost everything, surgery and everything else, and here’s a very simple product which costs very little money, easy to use, tastes good. As a matter of fact, it’s a breath freshener. JON DENNY: I wanted to ask you about this. Essentially tree sprays, and I know Dr. Leonard is still on the line from Kalamazoo — and compliance, patient compliance is a very important issue, to actually do it right. So, it’s actually three easy sprays of this.

PAUL KRAVITZ: Three sprays in the back of your throat.

JON DENNY: Right.

PAUL KRAVITZ: And you will have a good night’s sleep.

JON DENNY: And tell me about morning breath, because snoretrs are notorious — PAUL KRAVITZ: Well, John, I haven’t slept it (3 [4 7] (8 (9 {10] [14] (12) 113] {14] [15] [16] 17] 118] [19] (20) (21) (22) (23) [24] (25) Page 23 with you lately, but morning breath is a problem. JON DENNY: And we are going to keep it that way.

PAUL KRAVITZ: Right.

JON DENNY: But tell me about morning breath.

PAUL KRAVITZ: Morning breath is — actually, this takes away morning breath. I mean, everybody has a stale mouth when they wake up in the morning. This — this gives you a lasting, sweetness, pepperminty flavor in your mouth, and it lasts all day long almost. It never — it lingers, and it’s just a wonderful product. It really takes away. that stale breath — mouth feeling when you wake up in the morning.

JON DENNY: Now, Dr. Leonard, how has it worked for you personally back in Kalamazoo? ON SCREEN: Caller: Dr. Michael Leonard Kalamazoo, MI DR. MIKE LEONARD: I guess I would have to sum it up by saying my wife every night nudges me to make sure I use it, so the snoring never bothered me to begin with, and the only one that it really noticeably bothered was her. She consistently has me use it, so it works. a) (2) (3 {4] (5) {6) 7) {8} (9) {10} Page 24 JON DENNY: Right, and you would recommend this to other people out there who are experiencing the problems that snoring can bring? DR. MIKE LEONARD: Right, I do recommend it.

JON DENNY: Dr. Leonard, thank you for joining us from Kalamazoo.

DR. MIKE LEONARD: Thank you.

ON SCREEN: This is a paid commercial for Snorenz 11} JON DENNY: Paul, if people want more (12] (13} {14] (15) {16} [17] (18} {19} (20) 21} (22) (23] [24] (25) information about Snorenz, this revolutionary product that is reducing or eliminating the sound of snoring in cases all across the world, because this product now, through your company only, is being distributed throughout the world and being — is being made — a special offer is being made here through this show, it’s — do they call an 800 number that’s on the screen now? PAUL KRAVITZ: There’s an 800 number that should appear on the screen, and if the — if your listeners call in, they will receive a special price for this show.

JON DENNY: Right.

PAUL KRAVITZ: And they will enjoy the Page 21 - Page 24 (8) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VP SNORENZ 8 jD /JPK REPLACE SNZ6 ROLLOUT SNZ8 Matter Number 0023211 VIDEO October 13, 1999 Page 25 Page 27 4] product. {1} in the middle of the night by his snoring? 7 JON DENNY: And you had a little story 2 CINDY BROWN: It was awful, because he (33 flying here, did you not? 13] would always fall asleep before me, and I would 14 PAUL KRAVITZ: As a matter of fact, it-was 1a always end up not being able to go to sleep, and if 5] a great story. brought — I was asked to bring a 5] I did go to sleep, I would wake right back up 6) box of 24 of our Snorenz product to the show, and is) because of his snoring, even with the door closed 7 the box on the side had a Jabel, it said, Snorenz,” 7 in the other room, I still could hear him. (] and it says, “Stops snoring,” and so forth, and I (3) JON DENNY: You could hear him even with 9] was putting it up on the top of the seat on the (9) the door closed? (10) plane, and the plane was full as all planes are 1109) CINDY BROWN: Yes. [11] today, and I get it up there. (11) JON DENNY: So, your husband, Kevin, is 12} And finalty a gentleman — nice guy, got (1q snoring in the other room. You're out on the couch 13] up, and he said, Let me fix it for you, and he put {13} in the living room with the door closed still (14) it up on the top, and that was — we take off, and (14) hearing the snoring. It’s affecting your sleep, 118) about halfway into the flight here from — to 115] obviously. (16 Chicago from Florida, I hear this terrible noise, 116) CINDY BROWN: Right. 117) somebody snoring across the way from me. 1 mean, 7 JON DENNY: How is it affecting your (18) he had the plane in an uproar. It was the funniest (1g) relationship? (9) thing you ever heard. I mean, the noise was just 97 CINDY BROWN: Well, it wasn’t so good. We 1209) tremendous. (20) were never sleeping together, and I would wake up 21] So, the guy next to me, the passenger next (21) the next day being very angry at him for him 22} to me said, Well, why don’t we just open up the 22] snoring. I knew it wasn’t his fault, but it was — (233 box, 1 saw what you — I said, Well, I’m the 23] it sure seemed like it should be. joa) manufacturer of the product. He says, Why don’t we 24) JON DENNY: And how was it affecting you 25) break out a bottle and spray it in his throat. es) during the course of the day, you know, you're not Page 26 Page 28 11} But, you know, that’s a remarkable thing. Sleeping (1) getting obviously the full restful, silent night’s 2] — falling asleep on a plane, you're not only a sleep that you probably deserve. i] annoying other people, but you're just not getting 3) CINDY BROWN: Right. Well, I was always 4) a good restful sleep when you do that. 4) tired, constant tired, never felt energetic. Then 5} JON DENNY: Right. We have Cindy Brown 5] once he quit snoring, you realize how much you need (6) with us from a studio, and Cindy, you have a story 6) sleep. (7) about snoring and how it actually affected your m JON DENNY: It’s a good thing, sleep. js} marriage. Tell us about that. 39 CINDY BROWN: Oh, definitely. 1 CINDY BROWN: Well, my husband, Kevin, and 7 JON DENNY: How did you get turned on to tio] Ihave been married for four years now, and for the (19) or at least become aware of this product called (11) last two, he’s been snoring really badly, and I 14) Snorenz? (127 always ended up on the couch because of him 1a) CINDY BROWN: Well, it was given to us to (13) snoring. (13) try, and I thought, Yeah, right, this isn’t going 114) JON DENNY: You ended up on the couch? 114) to work, but we tried it, and it ended up working. (15) CINDY BROWN: Yes, I did. 1s) JON DENNY: Hmm. And did it work for you 16) JON DENNY: Now, how did that happen? You (16) right away and did it work for you through the 17) couldn’t like hit him a couple times and send him 17) night? [18] Out to Siberia? tia) CINDY BROWN: Yeah, it did. Actually, it ig) CINDY BROWN: Yeah, I would try hitting (19) was funny, because the first week it worked, and 20} and punching and rolling — trying to get him to 20) then it quit working, and so then we found out that 24] roll over, and nothing worked. So, I just got 2} he shouldn’t eat anything or drink anything about a 22) frustrated and ended up on the couch. ,22} half an hour to an hour before. 23) JON DENNY: Now, what — how did it affect 33 JON DENNY: Hmm. And does it now work for (24) you? I mean, was the snoring that loud that you 24) you? Is it something that Kevin is using at your 25) really couldn’t sleep at night? Were you awakened 25) behest and insistence, probably, every night? For The Record, Inc. (301)870-8025 Min-U-Script® (9) Page 25 - Page 28 VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 October 13, 1999 VIDEO MED GEN INC.

Matter Number 0023211 Page 29 i) CINDY BROWN: Yes. Yes, it does. Yep, I a make sure that if he doesn’t take it, I’m waking (3]} him back up to make sure he takes it. 4) JON DENNY: And I presume that you've ts} moved book into the bedroom? 6) CINDY BROWN: Yes, I have.

17 JON DENNY: And I feel like I’m prying (8) here.

9] CINDY BROWN: No, no. I have — we're (10] sleeping together again, and so everything is {11} great.

12] JON DENNY: That’s terrific. Cindy, thank (13] you for your story, and continue to get a full (14) restful silent night’s sleep with Snorenz. CINDY BROWN: Thank you.

PAUL KRAVITZ: Isn’t that a wonderful story? JON DENNY: Yeah, it really is.

Now, teli me about how as a former snorer before you tried Snorenz, how has it improved your life and your marriage? PAUL KRAVITZ: Well, it really has. Obviously my — I’m bigger than my wife, so I — she left the bedroom, I didn’t, but actually, my wife — my rest, my days are a lot more vigorous, {15} [16] (17] (18) [19] (20) (21) (22) (23) (24) (25} Page 30 my wife is very much happier, and even my daughter, who sleeps in a room four bedrooms down, doesn’t hear me anymore. So, it really has improved my life.

JON DENNY: Right. And if people want more information about Snorenz, the all-natural spray that people are using all around the country now to great effect, where do they get more information, Paul? PAUL KRAVITZ: Well, John, I’m delighted that we have a special offer today on your show, and if the listeners would call the 800 number on the bottom of the screen and call in their order today, they will receive a special price and a money-back guarantee if it doesn’t work. JON DENNY: All right. So, it must be gratifying for you to get all these letters and phone calls and people who come up to you on the street telling you thank you, you not only helped them get better sleep, you have saved some 21] marriages, I assume, in the process. , rq PAUL KRAVITZ: It sounds like I have, (23} John.

24) JON DENNY: That’s great.

2) PAUL KRAVITZ: It truly does.

[1] (2 (3 (4) 15] {6} {7] [8] )] [10] 11] [12] [13] (14] 15] {16] [17] (18) [19] (20) 2] {3} (4) {5 {6 7] (8) (9) {10] (11) [12] {13] [14] 15] [16] (17) [18] [19] (20) (21) [22] (23) 124} [25] Page 31 JON DENNY: That’s great. Paul, thank you for being here.

PAUL KRAVITZ: Thank you for having me. JON DENNY: If you want more information about Snorenz, the patented process, all-natural spray that could help reduce or eliminate the sound of snoring, if you are a snorer or you sleep next to a snorer, this may be the product for you. Money-back guarantee, it costs pennies to address this very serious problem, and hopefully you shall all get a full, restful, silent night’s sleep. I’m Jon Denny on Vantage Point. I think I'm going to knock off a few sprays, because I’ve been told I'ma snorer. We'll see you next time on Vantage Point. Take care.

ON SCREEN: For more information or to order Snorenz call: NO NUMBER Tru-Vantage International 7300 N. Lehigh Ave.

Niles, IL 60714 (847)647-0300 If snoring is accompanied by any signs of Sleep Apnea, you should consult a physician before using any product.

The preceding has been a paid commercial 1] 2] 13) 14) (5) (6) (8) fe) {10} 14] 112] 113} [14] (15) [16] 117] [18] [19] (20) [21] [22] (23) (24) (25) Page 32 program for SNORENZ.

(The videotape was concluded.) Page 29 - Page 32 (10) Min-U-Script® For The Record, Inc. (301)870-8025 MED GEN INC. VP SNORENZ 8 JD /JPK REPLACE SNZ6 ROLLOUT SNZ8 Matter Number 0023211 VIDEO October 13, 1999 Page 33 (1) CERTIFICATEOFTRANSCRIBER 2] 33 DOCKET/FILE NUMBER: 0023211 4, CASE TITLE: Med Gen, Incorporated (s} RECORDING DATE: October 13, 1999 (6) TRANSCRIPTION DATE: May 15, 2000 7) I HEREBY CERTIFY that the transcript is} contained herein is a full and accurate transcript 1) of the videotapes transcribed by me on the above (19) cause before the FEDERAL TRADE COMMISSION to the 11) best of my knowledge and belief. [12] {13} DATED:

(14) 15] [16] SUSANNE Q. TATE 17) [18] CERTIFICATEOFPROOFREADER (19) i209] I HEREBY CERTIFY that I proofread the 121) transcript for accuracy in spelling, hyphenation, [22] punctuation and format.

123} [24] [25] DIANE QUADE For The Record, Inc. (301)870-8025 Min-U-Scripto (11) Page 33 - Page 33 Lawyer’s Notes VOLUME 133 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent, its attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all jurisdictional facts set forth in the aforesaid draft complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true and waivers and other provisions as required by the Commission’s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Act, and that a complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of (30) days for the receipt and consideration of public comments, and having duly considered the comments received from interested persons pursuant to section 2.34 of its Rules, and having determined to modify the Decision and Order in certain respects, now in further conformity with the procedure prescribed in § 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following Order: 1. Respondent, Tru-Vantage International, L.L.C., is a limited liability company with its office and principal place of business located at 7300 North Lehigh Avenue, Niles, Illinois 60714. VOLUME 133 Decision and Order 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest. ORDER DEFINITIONS For purposes of this order, the following definitions shall apply: 1. "Competent and reliable scientific evidence" shall mean tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that has been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results.

2. "Clearly and prominently" shall mean as follows: A. In an advertisement communicated through an electronic medium (such as television, video, radio, and interactive media such as the Internet and online services), the disclosure shall be presented simultaneously in both the audio and video portions of the advertisement. Provided, however, that in any advertisement presented solely through video or audio means, the disclosure may be made through the same means in which the ad is presented. The audio disclosure shall be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it. The video disclosure shall be of a size and shade, and shall appear on the screen for a duration sufficient for an ordinary consumer to read and comprehend it. In addition to the foregoing, in interactive media, the disclosure shall also be unavoidable and shall be presented prior to the consumer incurring any financial obligation. VOLUME 133 Decision and Order B. In a print advertisement, promotional material, or instructional manual, the disclosure shall be in a type size and location sufficiently noticeable for an ordinary consumer to read and comprehend it, in print that contrasts with the background against which it appears. In multipage documents, the disclosure shall appear on the cover or first page.

C. On a product label, the disclosure shall be in a type size and location on the principal display panel sufficiently noticeable for an ordinary consumer to read and comprehend it, in print that contrasts with the background against which it appears. The disclosure shall be in understandable language and syntax. Nothing contrary to, inconsistent with, or in mitigation of the disclosure shall be used in any advertisement or on any label.

3. Unless otherwise specified, "respondent" shall mean Tru- Vantage International, L.L.C., and its successors and assigns and its officers, agents, representatives, and employees. 4. “Drug” shall mean as defined in Section 15 of the Federal Trade Commission Act, 15 U.S.C. § 55. 5. “Food” shall mean as defined in Section 15 of the Federal Trade Commission Act, 15 U.S.C. § 55. 6. "Commerce" shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44. I.

IT IS ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, promotion, offering for sale, sale, or distribution of SNORenz or any other food, drug, or dietary VOLUME 133 Decision and Order supplement, as “food” and “drug” are defined in Section 15 of the Federal Trade Commission Act, in or affecting commerce, shall not make any representation, in any manner, expressly or by implication that:

A. Such product reduces or eliminates snoring or the sound of snoring in users of the product, B. A single application of such product reduces or eliminates snoring or the sound of snoring for any specified period of time, or C. Such product can eliminate, reduce or mitigate the symptoms of sleep apnea including daytime tiredness and frequent interruptions of deep restorative sleep; unless at the time the representation is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.

II.

IT IS FURTHER ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product that has not been shown by competent and reliable scientific evidence to be effective in the treatment of sleep apnea, in or affecting commerce, shall not represent, in any manner, expressly or by implication, that the product is effective in reducing or eliminating snoring or the sounds of snoring, unless it discloses, clearly and prominently, and in close proximity to the representation, that such product is not intended to treat sleep apnea, that the symptoms of sleep apnea include loud snoring, frequent episodes of totally obstructed breathing during sleep, and excessive daytime sleepiness, that sleep apnea is a potentially lifethreatening condition, and that persons who have symptoms of sleep apnea should consult their physician or a specialist in sleep medicine. Provided, however, that for any television commercial VOLUME 133 Decision and Order or other video advertisement fifteen (15) minutes in length or longer or intended to fill a broadcasting or cablecasting time slot fifteen (15) minutes in length or longer, the disclosure shall be made within the first thirty (30) seconds of the advertisement and immediately before each presentation of ordering instructions for the product. Provided further, that, for the purposes of this provision, the presentation of a telephone number, e-mail address, or mailing address for listeners to contact for further information or to place an order for the product shall be deemed a presentation of ordering instructions so as to require the announcement of the disclosure provided herein.

III.

IT IS FURTHER ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of SNORenz or any other product, service, or program in or affecting commerce, shall not make any representation, in any manner, expressly or by implication, about the benefits, performance, efficacy or safety of any such product, service, or program, unless, at the time the representation is made, respondent possesses and relies upon competent and reliable evidence, which, when appropriate, must be competent and reliable scientific evidence, that substantiates the representation.

IV.

IT IS FURTHER ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product, service, or program in or affecting commerce, shall not misrepresent, in any manner, expressly or by implication, the existence, contents, validity, results, conclusions, or interpretations of any test, study, or research. VOLUME 133 Decision and Order V.

IT IS FURTHER ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product, service, or program in or affecting commerce, shall not represent, in any manner, expressly or by implication, that the experience represented by any user testimonial or endorsement of the product, service, or program represents, the typical or ordinary experience of members of the public who use the product, service, or program unless:

A. At the time it is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation; or B. Respondent discloses, clearly and prominently, and in close proximity to the endorsement or testimonial, either: 1. what the generally expected results would be for users of the product, or 2. the limited applicability of the endorser's experience to what consumers may generally expect to achieve, that is, that consumers should not expect to experience similar results.

For purposes of this Part, "endorsement" shall mean as defined in 16 C.F.R. § 255.0(b).

VI.

IT IS FURTHER ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product, service, or program in or affecting commerce, shall disclose, clearly and prominently, and in close proximity to the VOLUME 133 Decision and Order endorsement, a material connection, where one exists, between a person or entity providing an endorsement of any product, service, or program, as “endorsement” is defined 16 C.F.R. 255.0 (b) and respondent, or any other individual or entity manufacturing, labeling, advertising, promoting, offering for sale, selling, or distributing such product, service, or program. For purposes of this order, “material connection” shall mean any relationship that might materially affect the weight or credibility of the endorsement and would not be reasonably expected by endorsers. VII.

Nothing in this order shall prohibit respondent from making any representation for any drug that is permitted in labeling for such drug under any tentative final or final standard promulgated by the Food and Drug Administration, or under any new drug application approved by the Food and Drug Administration. VIII.

Nothing in this order shall prohibit respondent from making any representation for any product that is specifically permitted in labeling for such product by regulations promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and Education Act of 1990.

IX.

IT IS FURTHER ORDERED that respondent and its successors and assigns shall, for five (5) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying: A. All advertisements and promotional materials containing the representation;

VOLUME 133 Decision and Order B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in its possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations. X.

IT IS FURTHER ORDERED that respondent and its successors and assigns shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to current personnel within thirty (30) days after the date of service of this order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities.

XI.

IT IS FURTHER ORDERED that respondent and its successors and assigns shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable VOLUME 133 Decision and Order after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 601 Pennsylvania Ave., N.W., S-4302, Washington, D.C. 20580.

XII.

IT IS FURTHER ORDERED that respondent and its successors and assigns shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order. XIII.

This order will terminate on February 5, 2022, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years;

B. This order's application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the VOLUME 133 Decision and Order later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal. By the Commission.

VOLUME 133 Analysis Analysis of Proposed Consent Order to Aid Public Comment The Federal Trade Commission has accepted an agreement, subject to final approval, to a proposed consent order from Tru- Vantage International, L.L.C. ("TVI" or the "proposed respondent"). TVI is an infomercial producer. It also purchases media time, disseminates its infomercials, and fulfills the orders for products featured in the infomercials. The proposed consent order has been placed on the public record for thirty (30) days for reception of comments by interested persons. Comments received during this period will become part of the public record. After thirty (30) days, the Commission will again review the agreement and the comments received and will decide whether it should withdraw from the agreement and take other appropriate action or make final the agreement’s proposed order.

This matter concerns advertising and promotional practices related to the sale of Snorenz, a purported anti-snoring product. Snorenz is a dietary supplement consisting of oils and vitamins that is sprayed on the back of the throat of persons who snore. The Commission’s complaint charges that TVI failed to have a reasonable basis for claims, which were contained in infomercials it produced to promote Snorenz, about the product’s efficacy in (1) reducing or eliminating snoring or the sounds of snoring, (2) reducing or eliminating snoring or the sounds of snoring for six to eight hours, and (3) treating the symptoms of sleep apnea. The complaint also alleges that TVI lacked a reasonable basis to substantiate representations that testimonials from consumers who used Snorenz represented the typical and ordinary experience of users of the product. TVI is also charged with making false claims that clinical proof establishes the efficacy of Snorenz. Further the complaint alleges that that the proposed respondent failed to disclose that the product is not intended to treat sleep apnea; that sleep apnea is a potentially life-threatening disorder characterized by loud snoring, frequent interruptions of sleep, and daytime tiredness; and that persons experiencing those symptoms should seek medical attention. Finally, the complaint alleges that VOLUME 133 Analysis TVI failed to disclose adequately that a material connection existed between a physician who appeared in the infomercials to endorse the product and the product’s manufacturer and marketer, Med Gen, Inc. A separate consent settlement with Med Gen, Inc. (File No. 002-3211) is also being placed on the public record for comment.

Part I of the consent order requires that TVI possess competent and reliable scientific evidence to substantiate representations that Snorenz or any other food, drug, or dietary supplement reduces or eliminates snoring or the sound of snoring; reduces or eliminates snoring or the sound of snoring for any specified period of time through a single application; or eliminates, reduces or mitigates the symptoms of sleep apnea. Part II of the order requires that, for any product that has not been shown to be effective in the treatment of sleep apnea, TVI must affirmatively disclose, whenever it represents that a product is effective in reducing or eliminating snoring or the sounds of snoring, a warning statement about sleep apnea and the need for physician consultation. Part III of the order requires proposed respondent to substantiate any representation about the benefits, performance, efficacy, or safety of Snorenz or any other product, service or program. Part IV prohibits false claims about scientific support for any product, service, or program. Part V requires that, for any consumer endorsement or testimonial respondent uses to promote a product, service or program, it must either possess competent and reliable scientific evidence that the testimonial represents the typical or ordinary experience of users or make an affirmative disclosure that the testimonial is not typical. Part VI requires an affirmative disclosure of any material connection between TVI and any endorser or between an endorser and the marketer. Parts VII and VIII of the proposed order permit proposed respondent to make certain claims for drugs or dietary supplements, respectively, that are permitted in labeling under laws and/or regulations administered by the U.S. Food and Drug Administration. The remainder of the proposed order contains standard requirements that respondent maintain advertising and any materials relied upon as substantiation for any representation VOLUME 133 Analysis covered by substantiation requirements under the order; distribute copies of the order to certain company officials and employees; notify the Commission of any change in the corporation that may affect compliance obligations under the order; and file one or more reports detailing its compliance with the order. Part XIII of the proposed order is a provision whereby the order, absent certain circumstances, terminates twenty years from the date of issuance. This proposed order, if issued in final form, will resolve the claims alleged in the complaint against the named respondent. It is not the Commission’s intent that acceptance of this consent agreement and issuance of a final decision and order will release any claims against any unnamed persons or entities associated with the conduct described in the complaint. The purpose of this analysis is to facilitate public comment on the proposed order, and is not intended to constitute an official interpretation of the agreement and proposed order or to modify in any way their terms.

VOLUME 133 Complaint