Medifast (MED) Plans to Increase Build Out of New Corporate-Owned Weight Control Centers

June 12, 2009 10:00 AM EDT

Medifast, Inc. (NYSE: MED) today announced that it plans to increase the build out of new corporate-owned Medifast Weight Control Centers. Earlier in the year, the Company stated it would be more conservative in the build out, and analyze the success of the model throughout the year. As a result of strong success, the Company will be expanding its investment in this area.

Despite the economic environment, Medifast, Inc. has seen tremendous growth of in-store revenues and average store sales and has experienced a strong opening in its recent expansion into the Austin, Texas market. Due to this success, Medifast, Inc., plans to open 10 new corporate centers in Texas and Florida which will expand the presence in the markets where the Company currently has centers. The Company intends to continue to monitor the success of this model and anticipates continued expansion into new markets throughout 2010.

Medifast, Inc. also intends to expand the Medifast Weight Control Center franchise-owned model. This model has already sold rights to 19 franchise-owned Medifast Weight Control Centers, including 10 which are currently open and operating in San Diego, Phoenix, Baltimore and San Ramon Calif., and two additional franchise-owned centers opening in 2009 in Tracey, Calif., and Chandler, Ariz. Medifast, Inc. recently sold the rights to a new franchisee in Tucson, Ariz., who has the right to open three centers over the next five years.

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