2008 Annual Meeting Key Statistics

April 13, 2008

2

Program Statistics

Adult47%

Junior20%

Life4%

Family29%

Members: 726,993

Junior25%

Family12%

Adult58%

Life5%

Memberships: 582,639

Membership Growth 2006 vs. 2007**

0

100,000

200,000

300,000

400,000

Adult Family Junior Life

2006

2007

+1.5%

+4.7%

+9.9%

+0.8%

February 2008*

*Source: Business Objects 3/08

**Source: Business Objects: calendar year 2006 and 2007 data

3

Retention Rates Trend - New vs. Tenured Members

Slight decrease in retention in tenured members due to delayed impact of 2006 dues increase among 3 and 5 year members

However, retention efforts targeted to new members helped increase the new member retention rate by a full percentage point.

70.1%

45.3%

67.0%

46.8%

65.7%

45.7%

66.1%

45.1%

66.8%

44.2%

66.1%

45.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2+Years Tenure 1 Year Tenure

2002

2003

2004

2005

2006

2007

Source: Business Objects: calendar year 2006 and 2007 data. Rates are for each calendar year as of 12/31.

Calculation = # of members who renewed/# of members who were due to renew

4

2006 and 2007 Section Retention Rates

30%

35%

40%

45%

50%

55%

60%

65%

70%

Inte

rmou

ntai

n

Haw

Pac

Mid

-Atla

ntic

Sou

ther

n

Mid

dle

Sta

tes

Nor

. Cal

.

New

Eng

land

Car

ibbe

an

Mid

wes

t

Pac

ific

NW

Nor

ther

n

Tex

as

MO

Val

ley

Sou

thw

est

So.

Cal

.

Eas

tern

Flo

rida

Int'l

2006 2007

National 60.7%

Source: Business Objects 3/08: calendar year 2006 and 2007 data as of 12/31.

Retention Rates by Section (Sorted by 2007 Retention Rate)2006 vs. 2007

There is up to a 10% variance in retention rates across Sections.

5

US Open

Total sales in 2007 were up due to optimal weather conditions – 2006 weather resulted in five canceled sessions and drop in memberships

sold

Upgrade premiums have little impact on decision to purchase a membership onsite

Source: US Open Reporting*2006 & 2007 Intro rate increased to $25

Intro Rate Adult Adult Adult Family Family Family Junior Junior Junior

$20 1-Year 3-Year 5-Year 1-year 3-year 5-year 1-year 3-year 5-year

2007 721 372 208 169 91 51 56 176 73 57 9 1,983 +52%

2006 386 356 127 99 74 53 29 123 32 19 7 1,305 -33.70%

2005 525 475 235 144 103 66 54 137 75 75 79 1,968 -7.60%

2004 956 392 310 65 70 57 13 155 61 15 37 2,131

Life Total Variance

2004 – 2007 US Open BoothMemberships Sold by Member Type

6

2007 New Memberships Acquired

Continue to enjoy growth in five year memberships across product types

Source: Business Objects 3/08

0

10,000

20,000

30,000

40,000

50,000

60,000

Intro Adult 1 Family 1 Junior 1 Junior 3 Junior 5

2004

2005

2006

2007

New 1 Year Memberships

New 3 and 5 Year Memberships

0

1,000

2,000

3,000

4,000

5,000

6,000

Adult 3 Adult 5 Family 3 Family 5 Junior 3 Junior 5

2004

2005

2006

2007

7

2007 Renewals Processed

Similar to new memberships, continued growth in five year memberships across product types

Source: Business Objects 3/08

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Adult 1 Family 1 Junior 1

2004

2005

2006

2007

Renewal – 1 Year Members

Renewal 3 and 5 Year Members

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Adult 3 Adult 5 Family 3 Family 5 Junior 3 Junior 5

2004

2005

2006

2007

8

DRTV Orders by Section

All Sections benefit to some extent from National TV coverage. A total of 12.8% of DRTV order in 2007 came from the Southern section.

Source: Business Objects 3/08: calendar year 2006 and 2007 data

0

200

400

600

800

1,000

1,200

Total DRTV Orders by Section 2006 vs. 2007

2006 18 7 7 74 142 165 173 135 308 274 280 384 294 502 460 564 579 820

2007 20 25 26 85 134 167 168 184 326 339 346 372 377 527 556 557 651 1,005

Int'l Caribbean Haw. Pac. Northern Southwest MO Valley Pacifi c NWInter-

mountainNo. Cal. Middle States New England Texas Mid-Atlantic Florida Midwest So. Cal. Eastern Southern

9

2007 Acquisition Mix

Direct Mail remains the largest marketing “channel” for new member acquisition.

Source: Business Objects 3/08

2007 Total New Memberships by "Channel"

13,656

6,576

1,9831,376 1,176 706 145

-2,0004,0006,0008,000

10,00012,00014,00016,000

Dire

ct M

ail

DR

TV

US

Ope

nB

ooth

Take

-One

s

Clu

b-Ta

ke-

One

s

Mem

ber

Eve

nts

Blu

e an

dW

hite

App

licat

ion

10

2007 Call Center Statistics

Source: PRC, Pittsburgh 12/31/07 Report

Note: This report contains disposition reasons for each call coming in The disposition is the last description the agent uses to close the call. It describes the end result of the transaction.

Calls handled by Customer Service Agents have decreased 15% as more Members go to the Web and IVR to self-service their membership account.

– 68% of new memberships are processed through the web– 43% of renewals are processed through the web and IVR

Call Reasons 2006 2007 %Change

US Open 1,176 768 Down 53%

Account Maintenance 17,845 12,952 Down 38%

Web Help 2,266 1,733 Down 31%

Membership 120,785 92,876 Down 30%

Payment Inquiries 905 761 Down 19%

Membership Inquiries 25,464 23,073 Down 10%

Case Management 24,853 23,384 Down 6%

Other (misc & pswd rqst) 36,514 40,338 Up 9%