Press Releases

Medifast announces that 1st Quarter revenues will be increased by $1 million as a result of export sales to Elken International of Malaysia, the Company's strategic partner. Medifast's Take Shape/Dr. Diet line of soy-based, weight management products are currently being launched throughout the Asian market. Take Shape/Dr. Diet by Medifast, was clinically tested by a National Institute of Health study conducted by the University of Vermont. Patients lost 45 - 65 lbs. on these products based on published study results. The strategic partnership between Medifast and Elken will continue to grow as it launches new products in the Asian market. It is estimated that Elken, will contribute at least $2 million of additional revenue in 2003.

Chairman of the Board and CEO, Bradley T. MacDonald, also clarified his ownership of common stock during the months of December and January. Mr. MacDonald increased his number of voting common shares by 28,000, after family member sales and purchases through the exercise of options, as reported to the SEC.

Medifast is optimistic that 2002's stellar operating results will continue into 2003, despite tough economic conditions. The significant increase in cash flow to date in the 1st Quarter of 2003 will pay for its increased advertising expenditure, advanced software and phone systems that will support ten times its current volume, and help fund a new nutritional bar line. Furthermore, Baltimore County has granted the Company a $200,000 development loan on favorable terms to purchase additional manufacturing equipment.

In summary, the fundamentals of the Company remain the same as reported in 2002 and continued growth in revenues and profits within the current business model will enhance shareholder value without dilution in 2003. Sales YTD through January 24th are 225% above last year as a result of export sales and the successful launch of the Take Shape for Life Division. Medifast's Board of Directors is convinced that the market will fairly value the stock based on performance in 2003 as expressed in a recent market analyst report on stockontheweb.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.

SOURCE: Medifast, Inc.