OWINGS MILLS, Md., June 3 /PRNewswire-FirstCall/ -- Medifast, Inc. (NYSE: MED) today announced that Medifast Franchise Systems has sold the rights to open four Medifast Weight Control Centers in Southern California and three Medifast Weight Control Centers in Central California to two different local 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 additional Medifast Weight Control Centers in San Diego County over the next two years, bringing the total to eight locations. The Central California franchisee plans to open Centers in Modesto, Stockton, and Pleasanton over the next 18 months.
"The sale of nine new Medifast Weight Control Center franchises in California is a significant step toward growing a successful franchise network of Medifast Weight Control Centers," said Michael S. McDevitt, Chief Executive Officer, Medifast, Inc.
In December 2007, Medifast Franchise Systems received approval to sell franchises and has sold a total of 13 locations.
Medifast Weight Control Centers offers guaranteed results on a supervised program. Each client receives a customized solution to their weight-loss needs, and can expect to lose an average of two to five pounds per week. Behavior modification tools to help individuals change their overall lifestyles are also part of the program.
The Company currently operates 14 corporate-owned Medifast Weight Control Centers in Texas and Florida, and will open six more Centers in Houston and two more Centers in Dallas by August 2008. The Company plans to open an additional 20 corporate-owned Centers over the next two years in selected markets.
For more information on this business opportunity, please visit http://www.MedifastCenters.com.
About Medifast:
Medifast (NYSE: MED) is the leading easy-to-use, clinically proven portion-controlled weight loss program. Medifast has been recommended by 15,000 physicians and used by over one million customers. Medifast programs have been proven effective through studies by major university teaching hospitals. Medifast was founded in 1980 and is located in Owings Mills, Maryland.
Please Note: This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as "intend" or other similar words or the negative of such terminology. Similarly, descriptions of Medifast's objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Medifast believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-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 initiatives affecting the cost to acquire customers, increases in competition, litigation, regulatory changes, and its planned growth into new domestic and international markets and new channels of distribution. Although Medifast's believes that the expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
SOURCE Medifast, Inc.
