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Biotech / Medical : MED.....E-MedSoft.com -- Ignore unavailable to you. Want to Upgrade?

To: shearson who wrote (130)	6/12/2003 12:19:59 PM
From: dkgross	Respond to of 131

Medifast, Inc. Acquires Women's Wellbeing; Accretive Acquisition Expected to Increase Annual Revenues by $2 million June 12, 2003 09:02:00 AM ET OWINGS MILLS, Md., June 12 /PRNewswire-FirstCall/ -- Medifast, Inc. MED announced today that Jason Enterprises, Inc., a wholly owned subsidiary of Medifast, acquired the assets of Consumer Choice Systems, Inc. (CCS) a Delaware corporation. The purchase price was 76,120 restricted shares of Medifast's restricted common stock and the issuance of 50,000 warrants to purchase Medifast's common stock at $10.00 per share. Medifast also assumed $1.35 million in CCS's liabilities. The acquisition is expected to be immediately accretive. CCS assembles and distributes its products to over 18,000 chain food and drug stores across the United States. Its Women's Wellbeing products focus on women in the age group of 14 to 84, encompassing multiple product categories including: 1) Urinary Tract Infection products that address detection, relief, and prevention and 2) Menopause Relief products that address night sweats, hot flashes and vaginal dryness. Additionally, Jason Enterprises, Inc. will develop cutting edge disease and condition management supplements and skin care products under the Women's Wellbeing trademark. The newly acquired company has an annualized 12-month revenue of approximately $2 million. "We believe that the synergies between the two companies are compelling," says Bradley MacDonald, CEO and Chairman of Medifast. "CCS has always been on the leading edge of the women's health industry with advances in new products and technologies developed to assist mature women under the Women's Wellbeing brand. We believe we can become a leader in this category by combining our highly successful marketing programs and distribution with their promising product lines. The acquisition of CCS demonstrates our commitment to expanding our business model to include an array of nutritional and health care products. The Company will now be able to leverage its health network, advertising and distribution programs to further enhance shareholder value. We are very excited about this opportunity." "We are excited about this opportunity to join the Medifast team which produces the finest quality medical meal replacement products in the disease and weight management industry," said Terry Kelley, the president of CCS. "Women's Wellbeing and UTI branded products are a perfect complement to the Medifast distribution system working with over 15,000 physicians across the country." Additionally, in order to capitalize on this new opportunity, Mercantile Safe Deposit and Trust increased Medifast, Inc.'s secured line of credit from $500,000 to $1,000,000. This release contains forward-looking statements, which may involve known, and unknown risks, uncertainties and other factors that may cause Medifast's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Medifast cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectation on this date. © 2003 PRNewswire Back to Recent News