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| DELAWARE                                                                 |   | 13-3714405                                 |
|--------------------------------------------------------------------------|--------|--------------------------------------------|
| Incorporation                  State                                     |   | Tax                  Identification number |
|                                                                     |   |                                       |
| 11445                  CRONHILL DRIVE, OWINGS MILLS,                  MD |   | 21117                                      |
| Principal                  Office Address                                |   |                                       |

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| Large                accelerated filer o |   | Accelerated                filer  x |   | Non-accelerated                filer  o |
|------------------------------------------|--------|-----------------------------------------------|--------|---------------------------------------------------|

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**7.      TRADEMARKS AND INTANGIBLES **

|                                                 |   | **As                  of December 31, 2006** |      | **As                  of December 31, 2005** |   |
|------------------------------------------------------|--------|----------------------------------------------|-----------|----------------------------------------------|--------|
|                                                 |   | (Restated)                                   |      | (Restated)                                   |   | (Restated) |   | (Restated) |   |
|                                                 |   | **Gross                  Carrying**          |      | **Accumulated**                              |   | **Gross                  Carrying** |   | **Accumulated** |   |
|                                                 |   | **Amount**                                   |      | **Amortization**                             |   | **Amount** |   | **Amortization** |   |
|                                                 |   |                                         |      |                                         |   |   |   |   |   |
| Customer                  lists                      |   | $                                            | 5,587,000 |                                         | $      | 1,969,000 |   | $ | 4,356,000 |   | $ | 1,398,000 |   |
| Non-compete                  agreements              |   |                                         | 840,000   |                                         |   | 840,000 |   |   | 840,000 |   |   | 566,000 |   |
| Trademarks,                  patents, and copyrights |   |                                         |      |                                         |   |   |   |   |   |   |   |   |   |
| finite                  life                         |   |                                         | 1,557,000 |                                         |   | 210,000 |   |   | 920,000 |   |   | 121,000 |   |
| infinite                  life                       |   |                                         | 909,000   |                                         |   | - |   |   | 1,059,000 |   |   | - |   |
| Goodwill                                             |   |                                         | -         |                                         |   |   |   |   | 894,000 |   |   | - |   |
|                                                 |   |                                         |      |                                         |   |   |   |   |   |   |   |   |   |
| Total                                                |   | $                                            | 8,893,000 |                                         | $      | 3,019,000 |   | $ | 8,069,000 |   | $ | 2,085,000 |   |

**Amortization          expense for the years ended December 31, 2006, 2005 and 2004 was as          follows:**

|                                                 |   | (Restated) |      | (Restated) |   |      |   |
|------------------------------------------------------|--------|------------|-----------|------------|--------|-----------|--------|
|                                                 |   | 2006       |      | 2005       |   | 2004      |   |
| Customer                  lists                      |   | $          | 774,000   |       | $      | 1,004,000 |   | $ | 244,000 |   |
| Non-compete                  agreements              |   |       | 273,000   |       |   | 369,000   |   |   | 162,000 |   |
| Trademarks,                  patents, and copyrights |   |       | 152,000   |       |   | 58,000    |   |   | - |   |
|                                                 |   |       |      |       |   |      |   |   |   |   |
| Total                  trademarks and intangibles    |   | $          | 1,199,000 |       | $      | 1,431,000 |   | $ | 406,000 |   |

| For                the years ending December 31, |   | Amount     |
|--------------------------------------------------|--------|------------|
| 2007                                             |   | $1,290,000 |
| 2008                                             |   | 1,265,000  |
| 2009                                             |   | 1,118,000  |
| 2010                                             |   | 550,000    |
| 2011                                             |   | 545,000    |

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**SIGNATURES      **

| MEDIFAST, INC.                                            |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|
| (Registrant)                                              |   |   |   |
|                                                      |   |   |   |
|                                                      |   |   |   |
| /s/ BRADLEY              T. MACDONALD                |   |   |   |
| Bradley              T. MacDonald                         |   |   |        |
| Executive              Chairman              of the Board |   |   |   |
| Dated: November 2,              2007                      |   |   |   |

| Name                                                                          |   | Title                                        |   | Date                          |
|-------------------------------------------------------------------------------|--------|----------------------------------------------|--------|-------------------------------|
|                                                                          |   |                                         |   |                          |
| /s/ BRADLEY T. MACDONALD              Bradley T. MacDonald                    |   | Chairman of the Board,              Director |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ GEORGE LAVINGeorge                Lavin                                   |   | Director                                     |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ MICHAEL C. MACDONALDMichael                C. MacDonald                   |   | Director                                     |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ MARY T. TRAVISMary                T. Travis                          |   | Director                                     |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ REV. DONALD F. REILLY, OSARev.                Donald F. Reilly, OSA  |   | Director                                     |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ MICHAEL J. MCDEVITTMichael                J. McDevitt                     |   | Director                                     |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ JOSEPH D. CALDERONEJoseph                D. Calderone                     |   | Director                                     |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ CHARLES P. CONNOLLYCharles                P. Connolly                     |   | Director                                     |   | November 2, 2007              |
|                                                                          |   |                                         |   |                          |
| /s/ DENNIS M. MCCARTHYDennis                M. McCarthy                       |   | Director                                     |   | November 2,              2007 |

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