October 8, 2008
Medifast Announces Opening of First Franchise Clinic
OWINGS MILLS, Md., Oct. 8 /PRNewswire-FirstCall/ -- Medifast, Inc. announced the opening of the first franchisee-owned Medifast Weight Control Center in the Baltimore, Maryland market located at 5 Bel Air S. Parkway, Bel Air, MD 21015 in the Festival at Bel Air Shopping Center. This marks a milestone for the company as it continues to expand the brick-and-mortar clinic model throughout the United States using a combination of both corporate and franchisee-owned clinics. The first clinic opening in the Baltimore market is part of the previously announced sale of four franchise rights agreements in this market. The franchisee also has the right to open four additional Medifast Weight Control Centers in the Baltimore area over the next two years, bringing the total to eight locations.
In addition to the recently opened franchise clinic, the company currently operates 20 corporate-owned clinics including 10 in Dallas, eight in Houston and two in the Orlando market. The company continues to seek opportunities to expand its reach throughout the United States in both corporate- and franchisee-owned clinics with an additional five clinics expected to open through the end of the year.
"We are pleased to announce the opening of our first franchisee-owned Medifast Weight Control Centers," commented Mr. Michael S. McDevitt, Chief Executive Officer of Medifast. "We believe this is a significant step in geographically expanding the awareness of the clinically proven Medifast weight loss program and the extensive support channels that we provide to help customers successfully achieve their weight loss goals and to improve the quality of their lives."
"In light of the extraordinary financial environment currently confronting the country, Medifast wanted to provide an update to our long-term shareholders. Our business continues to operate at a very high level and we expect financial results for the third quarter to be strong," added Mr. McDevitt. "Our Take Shape For Life direct sales segment continues to exhibit strong growth as the number of Health Coaches increases month to month. This increase in Health Coaches is being driven by the unique market potential for our products combined with our strong field organization and the recent tools and the training that we have made available to our coaches. The prevailing market conditions may also be a positive factor. During a recession or downturn in the overall economic environment, direct selling business models such as Take Shape For Life often experience accelerated growth as people look for supplemental income opportunities."
Col. Brad MacDonald, USMC (Ret.) Chairman of the Board of Medifast Inc. commented, "Medifast has been profitable for 35 consecutive quarters and has had strong revenue growth rates over the past number of years. In difficult economic times, it has been shown that consumers look to personal and health care products to improve their quality of life as major ticket items are delayed. The economy, while difficult for the Nation, represents a unique opportunity for Medifast through our diversified business model. We remain optimistic about the short and long term future for Medifast as we successfully navigate the rough seas of this economy. Fortunately, Medifast is navigating through the storm with little debt, superb assets and strong liquidity ratios."
The Company expects financial results for the quarter to be reported in early November.
About Take Shape For Life
Take Shape For Life is a physician led network of over 2,800 independent Health Coaches who are trained to provide coaching and support to Clients on Medifast programs. Health Coaches are conduits to give Clients the strategies and skills to successfully reach a healthy weight and then provide a road map to empower the individual to take control of their health. Take Shape For Life offers the exclusive BeSlim(TM) lifestyle, which encourages long-term weight maintenance. Take Shape For Life also moves beyond the scope of weight loss to show Clients how to achieve optimal health through the balance of body, mind, and finances. Take Shape For Life uses the high quality, medically validated products of Medifast as the platform to launch integrity based lifelong health optimization program.
About Medifast Weight Control Centers
Medifast Weight Control Centers offers guaranteed results on a supervised program. Each client receives a customized solution to their weight-loss needs, and can expect to lose an average of two to five pounds per week. Behavior modification tools to help individuals change their overall lifestyles as well as one-on-one personal support by Medifast certified and trained staff are also part of the program.
For more information on this business opportunity, please visit http://www.medifastcenters.com/.
Franchisee Requests: Rick Logsdail Vice President of Sales Medifast Franchise Systems 410-504-8180 [email protected] About Medifast:
Medifast is the leading easy-to-use, clinically proven portion-controlled weight loss program. Medifast has been recommended by more than 15,000 physicians nationwide. The number of customers utilizing the Medifast Weight Loss program exceeds 1 million. Medifast 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 Internet and national call centers; 2) a national network of physicians; 3) medically supervised Medifast Weight Control Centers; and 4) the Take Shape For Life direct-selling division, a network of health coaches. Medifast was founded in 1980 and is located in Owings Mills, Maryland. For more information, log onto http://www.choosemedifast.com/.
Safe Harbor Statement
Please Note: This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as "intend" or other similar words or the negative of such terminology. Similarly, descriptions of Medifast's objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Medifast believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Medifast's inability to attract and retain independent Associates and Members, stability in the pricing of print, TV and Direct Mail marketing initiatives affecting the cost to acquire customers, increases in competition, litigation, regulatory changes, and its planned growth into new domestic and international markets and new channels of distribution. Although Medifast's believes that the expectations, statements, and assumptions reflected in these forward- looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
Contact: Brendan Connors Lytham Partners, LLC Vice President - Finance Joe Diaz [email protected] Robert Blum Joe Dorame 602-889-9700
CONTACT: Brendan Connors, Vice President - Finance,[email protected]; or Joe Diaz, Robert Blum, Joe Dorame, all of LythamPartners, LLC, +1-602-889-9700, for Medifast, Inc.
Web site: http://www.medifastcenters.com/http://www.choosemedifast.com/