Medifast Announces Updated Full Year 200...( New Advertising Campaign Launche...),Health

New Advertising Campaign Launched in September Proving Successful

OWINGS MILLS, Md., Oct. 4 /PRNewswire-FirstCall/ -- Medifast, Inc. (NYSE: MED) announced today that based on the current business outlook, the Company is updating full year guidance for the year ending December 31, 2007. The Company expects to report revenue of $81 to $83 million with after-tax profit of $.31 to $.33 per diluted share. Previously, the Company expected to report revenue of $85 to $88 million with after-tax profit of $0.45 to $0.46 per diluted share.

The year of 2007 has been largely focused on setting the stage for the near future and long-term growth of the Medifast business. The Company made significant strategic investments in the internal capabilities of the business to drive revenues and to best capitalize on and retain future growth. This included building internal technical infrastructure, upgrading personnel capabilities, forming strategic alliances with industry leaders, and investing in future advertising campaigns to grow the awareness of the Medifast brand.

Included in these investments, was a substantial advertising spend utilized for testing unproven media campaigns, as well as integrating our TV, print, and web campaign to support the growth of the entire business model. The Company also ramped up its capabilities to better monitor and analyze the results of the advertising dollars spent. The Company believes this advertising spend, although not producing immediate results, was necessary to target venues the Company will pursue in its larger future media campaigns.

During the second and third quarters of 2007, the Company invested in celebrity endorsement contracts for the creation of a new adverti
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