Press Releases

Medifast, Inc. (BULLETIN BOARD: MDFT) 10-QSB results for the 1st Quarter of 2002 show revenues up 33% to 1.7 million vs. 1.3 million in 2001, gross margins improved to 63%, while maintaining net income at $263,000 for the Quarter. The Company’s SG&A expense increased by 379K (88%) due to the increased costs of a highly successful advertising and marketing campaign introducing new products. Income from operations and net income were approximately the same as last year, 302K vs. 333K in 2001 and 238K vs. 245K in 2001, or $.03 per share on a fully diluted basis.

Medifast now has achieved ten consecutive quarters of profit since it restructured the Company in 1999. It improved its cash position by 624K over 2001, increased net cash through operating activities by 566K over 2001, and improved total capital to 2.9 million, a 3.7 million increase over the last two years. The Company expects to drive revenues to new levels of success to ensure profitable growth and increased shareholder value.

The company recently launched the first clinical meal replacement product for the nutrition and weight management of diabetics in May 2002. Its national advertising campaign includes placement in People Magazine, National Enquirer, Reader’s Digest, Parade Magazine, and selected radio markets. Johns Hopkins Medical School will be conducting additional ground-breaking clinical studies on the efficacy of the new program.

This release contains forward-looking statements, which may involve known and unknown risks, and uncertainties and other factors that may cause Medifast’s actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Medifast cautions investors not to place undue reliance on forward-looking statements, which speak only to management’s expectations on this date.

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SOURCE: Medifast, Inc.