FROM: Scott Tomer RE: California Litigation

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Hey Team,

I wanted to make sure that each of you has the official response to inquiries regarding the lawsuit filed on August 4 by the California Attorney General's office.

As a matter of policy, we do not comment on pending litigation. However, YTB believes the allegations are without merit and we plan to vigorously defend against them. That said, we'd like to emphasize that we remain proud of our business model and believe our operations are conducted in an ethical and transparent way by management of the company and our dedicated and enthusiastic sales team. We also are wholly confident that our business model will withstand scrutiny, and look forward to setting the record straight.