Corporate Overview 2013

Contents

03 CompanyHistory

04 BusinessTimeline

06 Science+Style

08 CustomerSatisfaction

09 Recommendations

10 TheBrands

11 MediaContact

“I wear them all day

they reduce the pain

enough to allow me

to continue my busy

schedule”. - diana

CompanyHistory

In 1979, Australian podiatrist Phillip Vasyli

designed a seemingly simple product that

would dramatically alter the podiatric

medical scene. Vasyli founded Vasyli

International, then known as Australian

Orthotic Laboratory, and invented his

first heat-moldable, prefabricated orthotic,

a device designed to support and realign

the foot to its natural position. He was able

to dispense in just minutes - without casting

– a less expensive yet highly effective

medical device. It offered a natural,

customizable alternative to traditional

orthotics.

To reach an even larger audience of people

struggling with sore feet, heel pain, and

even knee or lower back pain, in 1991 Vasyli

built that orthotic technology in to the

Australian footwear of choice - flip-flops

- and introduced the Orthaheel consumer

brand of footwear.

In 2007, the company began a new quest

of introducing Orthaheel products to

consumers in the United States. Amidst a

worldwide recession, within a short time

all aspects of the company grew exponen-

tially. Sales escalated, the product offering

expanded and more and more consumers

discovered the Orthaheel sandals. In less

than five years, the company has grown to

a passionate team of more than 35 team

members.

Orthaheel currently offers a collection of

slippers, sandals, boots and athletic shoes

featuring its technology built right in to the

shoe. Orthaheel offers something that other

brands don’t: podiatrist designed technol-

ogy in affordable, stylish footwear. With the

vital combination of style and function,

pain-sufferers quickly become loyal to the

brand, returning for renewed pain-relief in a

fashionable shoe. Customer reviews speak

to the brilliance of the shoes themselves.

One of many customers raves, “I love the

Orthaheel Footbed! I won’t wear any other

sandal!”

Vasyli’s technology continues to deliver

life-changing results, which have also earned

the recommendations of Dr. Andrew Weil

and the American Podiatric Medical

Association, who recognize the technology

as good for people’s foot health. Fuelled

by proven technology, customer satisfac-

tion and powerful testimonials, the footwear

company is soaring through the market,

now offering shoes through local brick and

mortar shops, Dillard’s, QVC and online

stores such as Zappos.com.

Expanding on Orthaheel technology,

Vasyli introduced Andrew Weil Integrative

Footwear in 2010 and will unveil the new

Vionic brand in Fall 2013. More information

can be found at: www.orthaheelusa.com

and www.weilbeing.com

3

BusinessTimeline

1979 1991

1980 2000

19871997

2004

Founds Footcare Centers.

Introduction of Orthaheel

over the counter

prefabricated orthotic.

Phillip Vasyli founds AOL

(Australian Orthotic Laboratory).

First AOL retail foot store was

opened in Australia.

Introduction of the Vasyli

custom heat-moldable

orthotic distributed to

practitioners worldwide.

Revolutionized medical

orthotics by providing a

fast, low-cost solution.

Introduction of

Orthaheel sandals

and shoes featuring

a built-in orthotic.

Chris Gallagher

joins Vasyli as

CEO.

Introduction of the

new style and

shape Orthaheel

flip-flop.

New focus on

new product

development.

Recruitment of

new key senior

management.

INNOVATION

20062010 2013

20072008

2011

2012

5

Orthaheel footwear & orthotics

distributed worldwide.

Introduction of the Vasyli

Think Tank.

Medical launch into US market.

Launch of Dr. Weil Integrative

Footwear into North America.

Launch of Orthaheel slippers and

expanded sandal collection.

Strategic alliance to open an

exclusive factory in Southern China.Introduces latest brand, Vionic

with Orthaheel Technology.

Introduction of Vasyli

signature orthotics.

Development & introduction of

the V+A diabetic orthotic.

SSL acquisition of Orthaheel

International.

Launch of Orthaheel into

North American market.

Strategic partnership

formed with QVC.

Launch of Vionic by

Orthaheel.

Earns QVC Rising

Star award.

INNOVATION

Science+Style

Since beginning his podiatry practice nearly

30 years ago, Phillip Vasyli has treated over

thousands of patients, ranging from young

children to amateur and professional ath-

letes. In addition to his busy medical

practice Phillip, undertook ground-breaking

research in lower limb biomechanics and

orthotic treatment. This led to his passion

for making orthotic treatment more

affordable and accessible to people in need

of pain relief, walking comfort and overall

well-being.

In treating patients at his Sydney, Australia,

clinics, Phillip saw the biomechanical effects

of ‘over-pronation’ from which the majority

of the global population suffers. Prior to the

introduction of his Vasyli custom heat mold-

able orthotic, the only treatment options

were costly and time-consuming. Through

clinical research and a commitment to col-

laborating with and educating the medical

community, Vasyli International has achieved

global recognition as a leader in orthotic

treatment, ensuring the highest quality in

foot care standards and practices.

In 1991 he invented the award-winning

Orthaheel orthotic, the world’s first and only

true orthotic available without a doctor’s

prescription. Orthaheel orthotic inserts and

sandals quickly expanded through Australia

and the U.K., and the company’s 2007 U.S.

market introduction has been received with

great enthusiasm and commercial success.

Today Vasyli International is well-positioned

to serve two vital markets through its

medical and consumer businesses.

THEINNOVATOR-PodiatristPhillipVasyli

7

Phillip Vasyli speaks about Orthaheel

Technology as an art. The foot is a piece

of art. The footprint is art. The orthotic

footbed in the shoes of Orthaheel, Weil

Integrative Footwear and Vionic is a

carefully crafted sculpture.

The footwear design team at Vasyli continue

the artistic process as they craft both

classic and on-trend, wearable shoe options

for each season. What sets this team apart

from others is the way they’re challenged

with creating stylish shoes on a footbed built

from specific technology. Unlike most shoe

brands who spend the least amount of

effort on the insole, every idea our designers

conceive for a new design has to be tailored

to the specifications of the orthotic – like one

sculpture carefully balanced upon another.

In a team that began as one designer, the

power-house is now made of four footwear

architects, led by Head Designer David

Warwick. Team members come from many

corners of shoe design – from Nike to Clarks,

from Australia to Rhode Island School of

Design.

With their strengths combined, it is their

goal to continually create an array of styles

to fill every space in a woman’s closet. In

this endeavor, style and the art of shoes

technology merge to outfit the working

woman, the athlete, the new mom and

anyone else ailing from the effects of hard,

unnatural surfaces.

Vasyli designers draw their inspiration from

our customers. When our loyal customers

continually ask for more work-appropriate

shoes, the design team rises to the occasion.

Boots for winter and walking shoes are some

of the most recent and successful additions.

Head Designer David Warwick says,

“While traveling, which we do often in

this role, I immerse myself in the colors,

tastes and geography. I am also inspired

by lifestyles and attitudes, about why

customers search out products for specific

reasons, what drives needs, what drives

desires for something new but at the same

time what makes something familiar.

Customers’ comments and feedback inspire

me as well after all these are what drive us to

be better every season.”

TheArtofShoes“You’ve got to understand that nobody needs another fashion

designer, so you’ve got to have a point of view. You’ve got to

have things that people go away with and remember.”

- Sir Paul Smith via Mark San Buenaventura, Assistant Footwear Designer

WEMAKEFOOTWEAR.WEMAKESLIPPERS.

WEMAKEBOOTS.ANDWE’REEVENMAKING

WEDGESWITHORTHOTICS–BECAUSEATTHE

ENDOFTHEDAY,THAT’SWHATPEOPLEWEAR

ANDTHAT’S WHAT THEY WANT.

- Phillip Vasyli, Founder of Orthaheel Technology

“I NOW HAVE OVER 30 PAIRS OF ORTHAHEELS, SANDALS, SLIPPERS,

SNEAKERS AND JUST BOUGHT TWO PAIRS OF EMMA IN BLACK AND

BROWN. I WON’T WEAR ANYTHING BUT ORTHAHEEL NOW.”

Karen

InnovationDrivenbyCustomerSatisfaction

Customer reviews have provided power-

ful testimonies of the life-changing results

people have found with the footwear.

A recent customer satisfaction survey

revealed that 85% indicated Orthaheel

technology was more effective than other

products in relieving their pain.

We may use big words, but the results of

the technology speak for themselves. We

receive passionate customer testimonials

on a daily basis. These words fuel our pas-

sion for making quality products that help

people walk pain-free.

“ I am able to endure days spent totally

on my feet, walk long distances and have

even danced a few steps with my husband.

I have improved more in this past month

wearing only my Orthaheels than I did in

the previous 15 months combined. Thank

you so much for this incredible shoe.”

Cyndi P.

“ I am on my feet a good amount of my

8-hour work day and they are the first shoe

I have found that make my feet feel almost

as good as when I get home as they did

when I left this morning. I don’t know how

else to thank you, except to continue to

purchase your shoes.”

Lilly F.

“ They are absolutely wonderful, so

comfortable, and have helped alleviate

the pain in my feet. Plus they look nice

too! I would recommend these to anyone

having foot pain.”

Lydia

the evangelistswalking in our shoes

Our most powerful tool for explaining the

benefits of our technology is sharing our

customers’ experiences.

Our ambassador program brings our brands

to life by sharing stories of our most pas-

sionate and loyal customers. Via the com-

pany blog at www.healthyfootnotes.com

– the program provides a learning center

and wellness forum for those curious about

Orthaheel technology and how our foot-

wear may be able to relieve their pains and

improve their well-being.

“ I met a woman at Trader Joes who saw

me limping. We started talking and she

told me her similar story and said I had to

try Orthaheel shoes. She was sporting a

rather snappy pair of Orthaheel sandals

so I was encouraged that I might find

something I liked. I went on the website

and bought the Orthaheel Arcadia Mary

Janes. This is the amazing part. When I

received them, just 9 days before our

trip, and put them on, I literally was in

tears! There was something about the

arch pushing up into and supporting my

foot that instantly gave me relief! I quickly

ordered two more pairs, the Talia sandals

and the Tide flip flops . The Talia sandals

really walked me through my trip

to France.”

Melette Cabot,

2012-2013 Ambassador for Orthaheel Technology

InnovationDrivenbyCustomerSatisfaction

9

Recommendations

Recommended by Dr. Weil

Andrew Weil, M.D., is an internationally

recognized leader and pioneer in the field of

integrative medicine, a healing oriented

approach to health care which encompasses

body, mind, and spirit. He has an A.B degree

in biology (botany) from Harvard College

and an M.D. from Harvard Medical School.

Dr. Weil recommends Orthaheel’s innovative

approach to foot health which his philoso-

phy of health and well-being from head to

toe. In fact, Dr. Weil collaborated with Vasyli

on a line of shoes known as Dr. Andrew Weil

Integrative Footwear, which incorporates

proven Orthaheel technology.

“From the integrative medicine approach,

we’re always looking at simple, low-tech,

non invasive ways of improving health. An

obvious area in which to concentrate is

designing really comfortable, effective

footwear that can enable people to have an

active lifestyle,” said Dr. Weil

Seal of Acceptance

by the APMA

For more than 35 years, the American

Podiatric Medical Association (APMA)

has been a reliable source of information

on the quality and efficiency of products

that promote foot health. The APMA

awarded Orthaheel shoes its Seal of

Acceptance, which is given only to foot-

wear considered to be among the best

choices for foot health.

A revolution in footwear

Designed by World-renowned Australian

podiatrist, Phillip Vasyli, Orthaheel technology

is biomechanically designed to help reduce

pronation and can aide in relieving associated

foot, ankle and knee pain.

Theseindustryleadersrecognizeourproductsasgoodforpeople’sfoothealth.

OneInnovativeTechnology,ThreeStylishCollections

WALK. MOVE. LIVE.

Dr. Weil has long advocated walk-

ing as a way to achieve optimum

health. With out proper footwear,

walking can be painful, making

it difficult to maintain an active

lifestyle. Weil Integrative Footwear

offers premium quality, supportive

shoes, sandals and walking shoes

that help to restore the foot’s

natural alignment. With properly

functioning feet, walking can

become an easy way to satisfy

your body’s daily requirements

for aerobic exercise.

WELL-BEING WITHEVERY STEP ™

Orthaheel’s biomechanical orthotic

technology is drawn from Vasyli

Medical, one of the most respected

and largest global medical suppli-

ers of pre-fabricated orthotics. The

company originated with a single

pair of sandals offering built-in or-

thotic technology.

Today, the brand features an

entire collection of shoes, sandals

and slippers with the same trusted

podiatrist designed footbed.

For those in need of lower-limb

alignment and pain relief, Orthaheel

provides unparalleled support in a

functional, affordable shoe.

Vionic footwear combines the best

of science with surprising style. The

hugely popular Orthaheel orthotic

technology provides biomechani-

cally contoured support in contem-

porary designs. The stylish classics

range from sandals to sporty and

dress casuals and wedge heels,

offering natural relief for all-day

comfort. Vionic customers can go

about their day with confidence

and in comfort.

™

OneInnovativeTechnology,ThreeStylishCollections

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Corporate office4040 Civic Center Dr, Suite 430San Rafael, CA, 94903 USAOffice: 1-888-882-7954

Media Contact:Amy Cunhaamy@bigpicpr.com

601 4th St. Ste. 321San Francisco CA 94107

www.orthaheelusa.com www.vionicshoes.com www.weilbeing.com