Weight Watchers Receives Adverse U.K. ...( NEW YORK June 30 /- Weight Watche...),Health

NEW YORK, June 30 /PRNewswire-FirstCall/ -- Weight Watchers International, Inc. (NYSE: WTW) today announced that on June 25, 2008 it received an adverse ruling from the U.K. Court of Appeal with respect to the imposition of value added tax, or VAT, on Weight Watchers meetings fees collected since April 1, 2005 by the Company's subsidiary, Weight Watchers (UK) Limited.

The Company previously disclosed that this adverse ruling, if received, would result in a total estimated amount owed of approximately $50 million at December 29, 2007, covering the period April 1, 2005 through the end of fiscal 2007. At the time of that disclosure, the Company recorded a charge of approximately $23 million in accordance with SFAS 5, Accounting for Contingencies. Therefore, as a result of this ruling, in the second quarter of fiscal 2008, the Company will record a charge in the amount not previously reserved for U.K. VAT for this prior period, currently estimated to be approximately $28 million inclusive of interest accruing on this amount through the second quarter of fiscal 2008. This incremental charge equates to a one-time reduction to 2008 earnings per fully diluted share of approximately $0.22.

On a going forward basis, the Company will record VAT charges associated with U.K. meeting fees as earned, consistent with this ruling. The additional 2008 annualized charges for U.K. VAT resulting from this ruling are estimated to be approximately $9 million. These additional charges are expected to have the impact of reducing fiscal 2008 earnings per fully diluted share by approximately $0.07, of which approximately $5 million, or $0.04 per fully diluted share, is expected to be charged in the second quarter of 2008 reflecting the additional VAT f
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