SOURCE: eDiets.com

eDiets.com

May 18, 2011 16:00 ET

eDiets.com® Completes Rights Offering

FORT LAUDERDALE, FL--(Marketwire - May 18, 2011) - eDiets.com, Inc. (NASDAQ: DIET), a leading provider of convenient at-home diet, fitness and healthy lifestyle solutions, today announced that on May 13, 2011 it completed its previously announced rights offering. Under the offering, a total of 4,788,341 common shares were issued at a price of $0.4125 per share for gross proceeds of approximately $1.975 million.

"I am pleased to announce the successful completion of our rights offering," said Kevin McGrath, President and Chief Executive Officer of eDiets.com. "The proceeds will provide us with the financial and operating flexibility to expand our meal delivery customer base through investment in our multi-faceted marketing program and return to sustainable profitability by the end of 2011."

Following completion of the rights offering, eDiets.com has 66.1 million common shares issued and outstanding.

About eDiets
eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and weight-loss programs. eDiets features its award-winning, fresh-prepared diet meal delivery service as one of the more than 20 popular diet plans sold directly to members on its flagship site, www.eDiets.com. The company also provides a broad range of customized wellness and weight management solutions for Fortune 500 clients. eDiets.com's unique infrastructure offers businesses, as well as individuals, an end-to-end solution strategically tailored to meet its customers' specific goals of achieving a healthy lifestyle. For more information, please call 310-954-1105 or visit www.eDiets.com.

Forward-Looking Statements
In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that, whether or not expressly stated, certain statements made in this report that reflect management's expectations regarding future events and economic performance are forward-looking in nature and, accordingly, are subject to risks and uncertainties. This news release contains forward-looking statements about the Company including (i) expectations regarding our ability to continue the positive trend of growing meal delivery business, (ii) expectations regarding our ability to manage our advertising expenditures in a manner that enables us to acquire new meal delivery customers in a profitable manner, (iii) expectations that our new and re-designed advertising programs and practices will enable us to acquire new meal delivery customers in a profitable manner and (iv) expectations regarding operational and financial performance in 2011, including revenue, marketing expenses, meal delivery margins, adjusted EBITDA and EBITDA.

These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from those expressed in any forward-looking statement. These factors include those risk factors set forth in filings with the Securities and Exchange Commission, including our annual and quarterly reports, and the following:

  • our ability to raise additional capital;
  • our ability to maintain compliance with applicable regulatory requirements;
  • our ability to maintain our listing of our common stock under The Nasdaq Capital Market;
  • our ability to attract and retain customers in a profitable manner through advertising, and our ability to secure advertising commitments;
  • our ability to sufficiently increase our revenues and maintain expenses and cash capital expenditures at appropriate levels; and
  • the state of the credit markets and capital markets, including the level of volatility, illiquidity and interest rates.

These risks are not exhaustive and may not include factors that could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

We cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We do not undertake any responsibility to update any of these forward-looking statements to conform our prior statements to actual results or revised expectations.

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