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Medifast Announces Record Revenues in Its 30th Consecutive Quarter of Profitability
Company Reiterates Financial Guidance for Growth in 2007

Medifast, Inc. announced today first quarter results for the period ended March 31, 2007. The Company reported first quarter revenue of $20.1 million, compared to revenue of $19.2 million for the same period in 2006, an increase of 5%. The company reported net income of $1,442,000, or $.11 per basic share ($.10 per diluted share), compared to $1,694,000, or $.13 per basic share ($.13 per diluted share) for the first quarter of 2006. The first quarter of 2007 represented the Company's 30th consecutive quarter of profitability.

The Company had stockholders' equity of $29.6 million and working capital of $10.3 million at March 31, 2007, compared to $23.7 million and $9.9 million at March 31, 2006, respectively.

"In the first quarter, we were pleased to develop new marketing initiatives in our core business channels by bringing on additional industry expertise to grow our business platform. Our disciplined strategy towards advertising in the first quarter allowed us to build a proven program for continued expansion in 2007. In advertising, we concentrated on introducing new creative and buying strategies to develop the appropriate message and mix of media to drive business efficiently which resulted in improved month-to- month return on advertising spend in the first quarter. The advertising spend in the first quarter, although smaller than the spending in several quarters in 2006, has set what we believe is an opportunistic stage that should allow for an effective increased advertising spend throughout the second and third quarters of 2007.

During the first quarter, Take Shape for Life executed one of the most successful customer retention campaigns in company history and is the beginning stages of recruiting growth. We are excited by the current trends in our direct response division and the gaining momentum of our network of Take Shape for Life health coaches as we expand on these programs throughout the year," stated Michael S. McDevitt, Chief Executive Officer.

2007 Full-Year Guidance

The Company reiterates previous guidance and expects to report revenue of $85 to $88 million, representing a year over year increase of 15% to 19%, with after-tax profit of $0.45 to $0.46 per diluted share, an increase of 18% to 21% from 2006. On a quarterly basis, full-year 2007 guidance will be reviewed, reiterated or updated as necessary.

First Quarter Conference Call

Medifast will release full-year financial results for the period ended March 31, 2007 on Thursday May 10, 2007 after the market closes. The Company will hold a conference call and webcast at 5:00 PM EDT. Interested participants should call (800) 573-4754 when calling within the United States or (617) 224-4325 when calling internationally. Please refer to pass code 23712014. There will be a playback available as well. To listen to the playback, please call (888) 286-8010 when calling within the United States or (617) 801-6888 when calling internationally. Please use pass code 62761554 for the replay. The replay will be available until August 17, 2007.

The webcast may be accessed via the Company's web site at Interested parties should go to the section marked "Investor Relations" to listen to the call. The webcast can be accessed until August 17, 2007.

About Medifast: (

Medifast is the leading easy-to-use, clinically proven portion-controlled weight loss program. Medifast has been recommended by 15,000 physicians and used by over one million customers. It is committed to enriching lives by providing innovative choices for lasting health. Medifast programs have been proven effective through studies by major university teaching hospitals. The company sells its products and programs via four unique distribution channels: 1) the web and national call centers, 2) national network of physicians, 3) medically supervised Medifast Weight Control Centers, and 4) Take Shape For Life program. Medifast was founded in 1980 and is located in Owings Mills, Maryland.

                       MEDIFAST, INC. AND SUBSIDIARIES

                                         March 31, 2007   December 31, 2006
                                          (Unaudited)         (Audited)
   Current assets:
    Cash                                      $1,857,000        $1,085,000
    Accounts receivable-net of
     allowance for doubtful accounts of
     $100,000                                    525,000           448,000
    Inventory                                  8,707,000         8,255,000
    Investment securities                      1,414,000         1,540,000
    Deferred compensation                        798,000           673,000
    Prepaid expenses and other current
     assets                                    3,483,000         2,599,000
    Note receivable - current                    174,000           174,000
    Deferred tax asset                            92,000            90,000
         Total Current Assets                 17,050,000        14,864,000

   Property, plant and equipment - net        14,575,000        14,020,000
   Trademarks and intangibles - net            6,301,000         6,274,000
   Deferred tax asset, net of current
    portion                                      418,000           367,000
   Note receivable, net of current
    portion                                    1,314,000         1,355,000
   Other assets                                   53,000            47,000

         TOTAL ASSETS                        $39,711,000       $36,927,000

   Current liabilities:
    Accounts payable and accrued
     expenses                                 $3,615,000        $2,913,000
    Income taxes payable                         689,000           535,000
    Line of credit                             1,906,000         1,256,000
    Current maturities of long-term
     debt                                        528,000           548,000
         Total current liabilities             6,738,000         5,252,000

    Long-term debt, net of current
     portion                                   3,392,000         3,509,000
         Total Liabilities                    10,130,000         8,761,000

   Stockholders' Equity:

   Common stock; par value $.001 per
    share; 20,000,000 authorized;
    13,643,998 and 12,782,791 shares
    issued and outstanding,
    respectively                                  14,000            14,000
   Additional paid-in capital                 26,752,000        26,629,000
   Accumulated other comprehensive
    income                                       348,000           334,000
   Retained Earnings                           7,653,000         6,231,000
                                              34,767,000        33,208,000

   Less: cost of 274,184 and 210,902
    shares of common stock in treasury        (1,994,000)       (1,686,000)
   Less: unearned compensation                (3,192,000)       (3,356,000)
   Total Stockholders' Equity                 29,581,000        28,166,000

    EQUITY                                   $39,711,000       $36,927,000

                       MEDIFAST, INC. AND SUBSIDIARIES

                                           Three Months Ended March 31,
                                              2007              2006
                                          (Unaudited)       (Unaudited)

  Revenue                                    $20,089,000       $19,183,000
  Cost of sales                                5,058,000         4,778,000
  Gross Profit                                15,031,000        14,405,000

  Selling, general, and administration        12,792,000        11,318,000

  Income from operations                       2,239,000         3,087,000

  Other income/(expense)
       Interest expense                          (95,000)          (89,000)
       Loss on Sale of Consumers Choice
        Systems                                    -              (323,000)
       Stock compensation expense               (241,000)          (33,000)
       Interest income                            33,000            98,000
       Other expense                              51,000            79,000
                                                (252,000)         (268,000)

  Net income before provision for
   income taxes                                1,987,000         2,819,000
  Provision for income tax (expense)            (565,000)       (1,125,000)

  Net income                                   1,422,000         1,694,000

  Basic earnings per share                         $0.11             $0.13
  Diluted earnings per share                       $0.10             $0.13

  Weighted average shares outstanding -
       Basic                                  12,899,543        12,965,518
       Diluted                                13,690,788        13,474,411

First Call Analyst:
FCMN Contact:

SOURCE: Medifast, Inc.

CONTACT: Sara Huber of Warschawski, +1-410-367-2700, ext. 19,
sara.huber@warschawski, for Medifast, Inc.; or Investor Relations: