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Medifast Announces First Quarter 2008 Financial Results
Date:5/12/2008

compared to 1,350 for the same time period in 2007, an increase of 63%. We believe that the growth in health coach activity is a positive trend that should continue, and will lead to significant revenue growth in the near future."

Mr. McDevitt continued, "Our Medifast Weight Control Centers experienced revenue growth of 75% versus last year's comparable quarter. We are particularly pleased with the average monthly revenue per clinic growing 35%, to $39,000 per clinic in the first quarter from $29,000 in the first quarter last year. In the more established Dallas market, average monthly revenue per clinic is approximately $50,000. We believe that the recent growth in the Medifast Weight Control Centers validates our model and confirms the high demand from this segment of the weight loss market. During the first quarter we opened four additional corporate owned clinics in the Houston market and we plan on opening four additional corporate owned clinics in the Houston market by the end of the second quarter of 2008. We also expect to further develop the Dallas market by opening two additional clinics. Although we are in the very early stages of developing this channel, we are heartened by the consumer response."

"During the quarter," Mr. McDevitt continued, "Medifast Direct Response increased revenues by 6%. The engine that drives product sales in this business is advertising spend. Commencing this month, we have realigned our advertising spend between the different media types. In the first quarter of 2008, we assessed the return to spend on each advertising medium which has changed since prior year. We have made adjustments to the allocation of our advertising dollars between print, TV, and web and believe we will see the benefit of these changes in the coming quarters of 2008. Additionally, we will continue to generate revenue by expanding our client base through remarketing efforts such as direct mail and e-mail campaigns. The umbrella of national br
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SOURCE Medifast, Inc.
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