Medifast Announces Third-Quarter 20...( $.001 par value (1500000 authorized...),Health

(1,500,000 authorized, no shares

issued and outstanding) - -

Common stock; par value $.001 per

share; 20,000,000 shares authorized;

13,709,098 and 13,631,898 shares

issued and outstanding 14,000 14,000

Additional paid-in capital 26,930,000 26,629,000

Accumulated other comprehensive

income 367,000 334,000

Retained earnings 9,216,000 5,981,000

36,527,000 32,958,000

Less: cost of 270,534 and 249,184

shares of common stock in treasury (1,971,000) (1,686,000)

Less: Unearned compensation (2,864,000) (3,356,000)

Total stockholders' equity 31,692,000 27,916,000

TOTAL LIABILITIES AND STOCKHOLDERS'

EQUITY $40,673,000 $36,677,000

MEDIFAST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2007 2006 2007 2006

(Restated) (Restated)

Revenue $21,846,000 $19,642,000 $63,975,000 $58,779,000

Cost of sales 5,523,000 4,705,000 15,944,000 14,334,000

Gross Profit 16,323,000 14,937,000 48,031,000 44,445,000

Selling, general, and

administration 14,766,000 13,166,000 43,116,000 37,362,000

Income from operations 1,557,000 1,771,000 4,91
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