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Medifast Announces Updated Full Year 2007 Guidance
Date:10/4/2007

ng campaign. This campaign has proven to be more effective than past advertising campaigns. The successful results have been most evident in the web advertising spend, including increased banner ad click through rates as well as increased traffic from search engines. The television and print advertising campaigns have also shown increased effectiveness, however due to the timing of the rollout of these venues, the full impact is yet to be realized. Due to the late in the year launch of these campaigns and expected seasonality in the November and December holiday months, the Company will not recognize the major benefits of the proven campaigns until the following year.

In the fourth quarter of 2007 the Company plans to update the new campaign, which will be launched in the first quarter of 2008. The updated campaign will highlight all of the essential investments made in the business over the course of 2007, and will feature our two celebrity spokeswomen, who have both lost significant weight on the Medifast program. The campaign will also feature the release of the new Medifast program, highlighting results associated with the advantages of our clinically proven products and our extensive choices for customer support.

We believe that the new campaign will be the most successful advertising campaign in Company history in acquiring both new customers as well as reactivating former Medifast customers. The proven strategy will now feature even slimmer celebrity spokeswomen along with the release of a new Medifast program. The upcoming campaign, along with the recent strategic investments to make the campaign more effective and to extend the customer's lifetime value will be driving forces to propel Medifast into strong future growth patterns. Programs recently implemented to increase Lifetime value and drive revenue include a newly built in-house call center, the launch of the consumer auto ship program, an enhanced customer web platform for ordering, and an
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SOURCE Medifast, Inc.
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