910329--3/16/2007--MEDIFAST

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Much of our growth and future profitability depends on the effectiveness of our advertising spend in the Direct to consumer channel. We may be subject to health related claims from our customers A competitor or new entrant into the market may develop a product and program similar to ours New fad diets or pharmaceutical solutions could put us at a competitive disadvantage The business may grow too quickly for the current infrastructure to handle Our stock price may experience volatility due to fluctuations in our operating results We may be subject to claims that our employees are unqualified to provide weight loss counseling Negative publicity in the weight loss industry could adversely affect our business Our results of operations may decline as a result of a downturn in general economic conditions or consumer confidence Our Business is subject to regulatory and legislative restrictions

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910329--3/16/2007--MEDIFAST_INC