Press Releases

Medifast, Inc. announced today plans to deploy the funds from its recently completed private placement to accelerate advertising initiatives. The company recently raised $6.82 million through the sale of 550,000 shares of common stock and the issuance of warrants to purchase 82,500 shares of its common stock. A significant portion of the proceeds are expected to be used to launch television advertising, enabling the company to expand its highly successful advertising campaign featuring celebrity sportscaster Dick Vitale. To date, the company's advertising has been principally print-based, with some radio commercials.

"We believe this financing will enable us to accelerate our advertising activities significantly," said Brad MacDonald, CEO of Medifast. "Our print and radio advertising has been so successful, that we now believe we can substantially increase revenues and earnings by utilizing cable television to enhance the consumer awareness of our products. The returns from advertising spending to date have been compelling. We expect the additional funding will allow us to dramatically increase revenues and earnings."

The company plans to also use the proceeds to expand its print advertising, which has yielded a 50% return on each dollar spent. It expects to increase advertising spending with Parade Magazine, AARP Magazine and in similar publications, as well as CBS Radio, among other outlets.

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.