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Effective the opening of the market on February 5th, 2001, HealthRite, Inc.
The Company recently restructured its business model and significantly reduced operational and financial costs while boosting margins from 35% to 50%. The Company recently launched its physician lifestyles program that gives patients access via the Internet and an 800-telephone number to the entire Medifast® program while paying physicians a consultation fee. The test program conducted in Denver, Colorado was a success and increased per patient sales significantly. This program is expected to increase the number of medical practitioners using Medifast®.
The Company's new product development program recently introduced: (a) three (3) new soy protein, yogurt covered bars, (b) three (3) ready-to- drink Medifast® shakes, (c) one (1) fruit drink, and (d) the widely acclaimed "Medifast® Plus" with Super Citrimax, a safe and effective appetite suppressant. Medifast® will also be introduced to millions of consumers via its new 2001 advertising program delivered via e-mail, cable television, radio, and print to our physician and patient customer base. The company shipped QVC product and expects to air in February. Medifast®, without advertising in 2000, generated over 2,000,000 hits on its website. Safe and effective Medifast® is again a leading clinical meal replacement brand.
Because the Company has attained six (6) quarters of profitability, its subsidiary, Jason Pharmaceuticals, Inc., has attracted a new financial package to more adequately fund its operations. GE Capital is providing equipment financing and Star Financial is currently providing working capital financing. Mercantile-Safe Deposit & Trust Company, of Baltimore has offered the Company a working capital line at more favorable terms, which will dramatically reduce interest costs for the year 2001. The Chairman will continue to personally guarantee the financing. Medifast, Inc. now has attained its goal of developing a business model that will increase revenues while improving profit margins and reducing its sales and general administration costs using new digital and Internet technologies.
This release contains forward-looking statements which may involve known and unknown risks, uncertainties and other factors that may cause Medifast, Inc.'s actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Medifast, Inc. cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectation on this date.
SOURCE: Medifast, Inc.
Contact: Bradley T. MacDonald, Chairman & Chief Executive Officer of
Medifast, 410-581-8042, ext. 231