Press Releases

Medifast Inc. (BULLETIN BOARD: MDFT) announced today it has been named an OPS Seedling™ by StockDiagnostics.com, the company that provides investors with objective research based on a company's operational cash flow as well as reported earnings per share. In addition, the Company has announced that preliminary revenue results for the third quarter of 2002 indicate that it has exceeded forecast and achieved over 100% revenue increase over last year.

Taglich Brothers, Inc., a member of the NASD, SIPC, and a leader in Microcap Market Investments has done an initial research report rating the Company a "Speculative Buy" setting a 15 month price target of $4.69 per share based on estimated for 2003 and a discounted cash flow model. For more information go to www.taglichbrothers.com.

In its current issue of the OPS Newsletter, StockDiagnostics.com chose Medifast Inc. as an OPS Seedling because the company appears poised to grow from an OPS Seedling into a larger "tree." This selection is given to small companies with lower priced stocks that have withstood extremely difficult market conditions and are in a position to experience significant growth. These OPS Seedlings are frequently companies that are not yet discovered by Wall Street and have the potential to provide significant returns to investors.

According to StockDiagnostics.com's OPS Newsletter, Medifast was chosen because: "For its previous 12 months (Medifast) had an OPS (operational cash flow per share) of $.19 and an EPS of $.16 and has nine consecutive quarters of positive OPS and EPS. Medifast's share price is also holding up well in an otherwise miserable market. Medifast's stock has climbed significantly from its October 15, 2001 52-week low of $.15."

The newsletter added that Medifast continues to see significant revenue growth as a result of the company's major marketing and sales efforts "to a society focused on its weight problems. Moreover, Medifast has moved decisively into the Asian market." The OPS Newsletter also lauded Medifast's distribution of its product through physicians and health care professionals.

StockDiagnostics.com is a private company that has spent the past six years researching and developing proprietary software that is designed to reveal the logical relationships between financial statement data and stock price performance. This software examines, combines and displays financial statement data in unique ways, allowing breakthrough discovering to be made.

StockDiagnostics.com believes that investors can better judge a company's future performance by looking at the company's operational cash flow, and as a result, StockDiagnostics.com provides investors with an at-a-glance view of OPS as compared to EPS. In addition, StockDiagnostics.com provides OPS ratings for more than 7,000 publicly traded companies. All of the data provided by StockDiagnostics.com comes from companies' public filings with the SEC. The site can be reached at http://www.stockdiagnostics.com/.

This release contains forward-looking statements, which may involve known, and unknown risks, 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 expectation on this date.

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SOURCE: Medifast Inc.