OWINGS MILLS, Md., June 3 Medifast, Inc.(NYSE: MED) today announced that Medifast Franchise Systems has sold therights to open four Medifast Weight Control Centers in Southern California andthree Medifast Weight Control Centers in Central California to two differentlocal business operators.
The entire build-out process will take no more than two years to complete.The Southern California franchisee also has the right to open four additionalMedifast Weight Control Centers in San Diego County over the next two years,bringing the total to eight locations. The Central California franchisee plansto open Centers in Modesto, Stockton, and Pleasanton over the next 18 months.
"The sale of nine new Medifast Weight Control Center franchises inCalifornia is a significant step toward growing a successful franchise networkof Medifast Weight Control Centers," said Michael S. McDevitt, Chief ExecutiveOfficer, Medifast, Inc.
In December 2007, Medifast Franchise Systems received approval to sellfranchises and has sold a total of 13 locations.
Medifast Weight Control Centers offers guaranteed results on a supervisedprogram. Each client receives a customized solution to their weight-lossneeds, and can expect to lose an average of two to five pounds per week.Behavior modification tools to help individuals change their overalllifestyles are also part of the program.
The Company currently operates 14 corporate-owned Medifast Weight ControlCenters in Texas and Florida, and will open six more Centers in Houston andtwo more Centers in Dallas by August 2008. The Company plans to open anadditional 20 corporate-owned Centers over the next two years in selectedmarkets.
For more information on this business opportunity, please visithttp://www.MedifastCenters.com.
Medifast (NYSE: MED) is the leading easy-to-use, clinically provenportion-controlled weight loss program. Medifast has been recommended by15,000 physicians and used by over one million customers. Medifast programshave been proven effective through studies by major university teachinghospitals. Medifast was founded in 1980 and is located in Owings Mills,Maryland.
Please Note: This release contains "forward-looking statements" within themeaning of Section 27A of the Securities Act of 1933, as amended, Section 21Eof the Securities Exchange Act of 1934, as amended, and the Private SecuritiesLitigation Reform Act of 1995. These forward-looking statements generally canbe identified by use of phrases or terminology such as "intend" or othersimilar words or the negative of such terminology. Similarly, descriptions ofMedifast's objectives, strategies, plans, goals or targets contained hereinare also considered forward-looking statements. Medifast believes this releaseshould be read in conjunction with all of its filings with the United StatesSecurities and Exchange Commission and cautions its readers that theseforward-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 initiativesaffecting the cost to acquire customers, increases in competition, litigation,regulatory changes, and its planned growth into new domestic and internationalmarkets and new channels of distribution. Although Medifast's believes thatthe expectations, statements, and assumptions reflected in theseforward-looking statements are reasonable, it cautions readers to alwaysconsider all of the risk factors and any other cautionary statements carefullyin evaluating each forward-looking statement in this release, as well as thoseset forth in its latest Annual Report on Form 10-K and Quarterly Report onForm 10-Q, and other filings filed with the United States Securities and