NutriSystem, Inc. Nasdaq: NTRI

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NutriSystem, Inc.Nasdaq NTRI

• May 2, 2007

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Safe Harbor

• We make forward-looking statements in this
  presentation which represent our expectations or
  beliefs about future events and financial
  performance. Forward-looking statements are
  identifiable by words such as believe,
  anticipate, expect, intend, plan, will,
  may and other similar expressions. In
  addition, any statements that refer to
  expectations, projections or other
  characterizations of future events or
  circumstances are forward-looking statements.
  Forward-looking statements are subject to known
  and unknown risks and uncertainties, including
  those described in the Companys filings with the
  Securities and Exchange Commission. In addition,
  actual results could differ materially from those
  suggested by the forward-looking statements, and
  therefore you should not place undue reliance on
  the forward-looking statements.

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The NutriSystem Program
Internet Ordering Counseling
No Membership Fees / 10 Per Day
No Center Visits / Delicious Meals Already
Prepared
Nourish Sound Science / Effective Program
Success
Convenience
Simplicity
Value
Anonymity
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New Customer Growth
798 K
347 K
?
52 K
23 K
2004
2007
2003
2005
2006
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Revenue Profit Growth
568 M
Revenue Operating Income
CAGR 191
213 M
132 M
38 M
23 M
33 M
2 M
-2 M
2004
2003
2005
2006
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Increasing Revenue Per Customer
632
605
521
440
347
2006
2002
2003
2004
2005
Average Sale Price (Autoship orders)
198
220
247
279
289
Numbers are approximate.
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The Diet Industry Fast Facts

• 65 of adults (218mm) in the U.S. classified as
  overweight or obese
• About 62mm Americans on a diet at any one time
• 1 out of 3 dieters are men
• Largest projected increase over next 10 years
  will be seniors
• Gallup Diet Study 2006

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Dieter Concerns Preferences

• Why have past attempts been unsuccessful?
• Lack of results
• Lack of time
• Lack of structure or organized meal
• Top 3 factors when deciding which diet to
• follow
• Easy to follow
• Safe
• Can be followed on your own without going to
  meetings

2006 Gallup Study
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Dieters Motivation
Source The Gallup Organization
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Our Core Customer

• Female 87 (05), 76 (06)
• 46 years old
• 190 lbs. female, 245 lbs. male
• Want to lose 50 lbs.
• Lose 1.5-2.0 lbs./wk
• Stay on 10-11 weeks
• Serial dieter
• Autoship (90 of revenue)
• Referrals drive growth
• Surveys indicate satisfaction

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How Were Positioned in the Space

• Commercial Weight Loss
• No Embarrassing
• Weigh-ins
• No Membership Fees
• Less Expensive

• Home-Based Dieter
• 8 out of 10 Dieters Are Self-directed
• Simpler, More Effective Plan
• No Cooking
• Men!

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Market Opportunity
Estimated number of Americans on a weight loss
diet at any one time 62 million
Source The Gallup Organization, May-July 2006
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How We Go to Market
Direct Response TV
Direct Mail
Public Relations

DIETERS
30-minute Infomercials
Print Advertising
Internet
Multiple creatives, repeat exposure, brand
repetitiongenerates Program Customers
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Were Just Getting Started
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Explore Lead Market Segmentation
Expand Marketing Channels
Product Innovation
2007 Strategy
Test Expand New Distribution Channels
Improve Customer Reactivation Efforts
Extend Platform Into Wellness
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Financial Performance
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First Quarter Results
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Customer Revenue Contribution
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Aggregate Reactivation Revenue and Contribution
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Target Margins
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Outlook Q207 and FY07
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NutriSystem, Inc.Nasdaq NTRI

• www.nutrisystem.com
• 300 Welsh Road, Building One
• Horsham, PA 19044
• tel [phone]