Shareholder Class Action Filed Against NutriSystem, Inc. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP

29/10/07 The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all securities purchasers of NutriSystem, Inc. from February 14, 2007 through October 4, 2007, inclusive.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.

The Complaint charges NutriSystem and certain of its officers and directors with violations of the Securities Exchange Act of 1934. NutriSystem is a marketer and provider of weight management systems based on a portion-controlled, prepared-meal program. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: that the Company's sales and revenues were significantly impacted by the introduction of alternative weight loss products into the market; as such, the Company added fewer new customers, and the Company's customer acquisition costs significantly increased for those new customers; and that as a result of the foregoing, the Company's statements about its 2007 financial and operational results were lacking in any reasonable basis when made.

On October 3, 2007, the Company shocked investors when it reported preliminary third quarter 2007 financial and operational results that were significantly below the Company's previously issued guidance. Specifically, the Company stated that its quarterly revenue would be approximately $188 million, significantly lower than the Company's previously issued quarterly revenue guidance of between $200 and $208 million, and that its quarterly earnings per share would be between $0.62 and $0.66, against EPS guidance of between $0.77 and $0.82. Additionally, the Company stated that it expected to add approximately 218,000 new customers during the quarter, which represented a 7 percent decline from the third quarter 2006, and which was dramatically lower than the Company's previously issued guidance of adding 245,000 new customers in the quarter. The Company's Chief Executive Officer admitted that the results for the quarter "didn't meet our expectations," and revealed that the Company's performance with new customers was "affected by shorter-term competitive pressures" which caused the Company's marketing dollars to become "less efficient." As a result, the Company added a substantially lower number of new customers for the quarter, and incurred significantly higher customer acquisition costs. The Company also stated that it would revise its full year 2007 financial guidance. On this news, the Company's shares fell $15.98 per share, or almost 34 percent, to close on October 4, 2007 at $31.59 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.