SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2012

NOTE 11:

SUBSEQUENT EVENTS

In July 2012, the Company entered into a Services Agreement with Integrated Distribution and Logistics Direct, LLC (doing business as SPExpress) whereby Mannatech began outsourcing its United States warehousing and distribution functions to SPExpress. In connection with this agreement, SPExpress provides the space, labor, materials, facilities, equipment, and personnel necessary to fulfill Mannatech's warehousing and distribution needs in facilities on both the east and west coasts of the United States, as well as in Texas. Additionally, in connection with such outsourcing arrangement, the Company sold certain assets related to the distribution and warehousing functions previously performed by Mannatech to SPExpress and is subleasing the majority of the space in the distribution center it leases in Coppell, Texas to SPExpress for the purpose of providing the warehousing and distribution services under the Services Agreement.

On July 26, 2012, the Company participated in a hearing with the Appeals Division of the IRS concerning the examination of the 2005 -2009 tax years. The Company believes the net tax deficiency should approximate amounts previously recorded as uncertain income tax positions.

- Definition

Tabular disclosure of significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, losses resulting from fire or flood, losses on receivables, significant realized and unrealized gains and losses that result from changes in quoted market prices of securities, declines in market prices of inventory, changes in authorized or issued debt (SEC), significant foreign exchange rate changes, substantial loans to insiders or affiliates, significant long-term investments, and substantial dividends not in the ordinary course of business.

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