[March 20, 2015]

Pershing Square Corrects Inaccurate Press Reports

Pershing Square Capital Management, L.P. ("Pershing Square") today released the following statement:

In a decision dated March 16, 2015, Judge Dale S. Fischer in the U.S. District Court in California dismissed a suit brought by Abdul Awad, a shareholder of Herbalife Ltd. Contrary to erroneous press reports, William Ackman and Pershing Square were not parties to the Awad case and have not brought suit against Herbalife.

Despite Herbalife's misleading public suggestions, the Court's decision did not address in any way whether Herbalife is an illegal pyramid scheme, nor did the Court exonerate or bless Herbalife's business practices.

Plaintiff Awad brought his claim seeking to recover money damages due to recent declines in the price of Herbalife's shares following scrutiny by the government of its deceptive practices.

To sustain his claim, Awad had to show that recent charges against Herbalife are based upon new information, previously withheld from investors.

The Court dismissed Awad's claim because, as it explained, "the market was already aware that Herbalife might be a pyramid scheme." In other words, Awad should have known of possible fraud charges against Herbalife.

There is nothing new in the possibility that Herbalife will be shut down for being a pyramid scheme. The Court noted:

"Herbalife has consistetly disclosed that - as an MLM - it is susceptible to legal challenge because its business model contains multiple components that resemble those found in illegitimate pyramid schemes."

According to Herbalife's own disclosures and press reports, Herbalife is under formal investigation by the Securities and Exchange Commission, the Federal Trade Commission, the Department of Justice, the FBI, the Illinois Attorney General, and the New York Attorney General.

Pershing Square believes that the result of these ongoing investigations will be that Herbalife will be shut down or will be required to modify its deceptive practices so substantially that the company will not be able to survive.

To view full decision, click here.

About Pershing Square Capital Management, L.P.

Pershing Square Capital Management, L.P. ("Pershing Square"), based in New York City, is a SEC (News - Alert)-registered investment advisor to investment funds. Pershing Square manages funds that are in the business of trading - buying and selling - securities and other financial instruments. Funds managed by Pershing Square are short the stock of Herbalife Ltd and own put options on the Company. Pershing Square may increase, decrease, dispose of, or change the form of its investment in Herbalife for any or no reason, at any time. Pershing Square may change its views about or its investment positions in Herbalife at any time, for any reason or no reason. Pershing Square may buy, sell, cover or otherwise change the form or substance of its Herbalife investment. Pershing Square disclaims any obligation to notify the market of any such changes. Please see the full Disclaimer appearing on website www.factsaboutherbalife.com and www.herbalifepyramidscheme.com.

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