eDiets.com(R) Announces Q3 2009 Results

FORT LAUDERDALE, Fla., Nov. 12 /PRNewswire-FirstCall/ -- eDiets.com, Inc.
(Nasdaq: DIET), a leading provider of convenient at-home diet, fitness and
healthy lifestyle solutions, today announced results for the third quarter
ended September 30, 2009.

Revenues for the third quarter of 2009 were $4.2 million, compared to $4.8
million in the prior year period. The net loss was $(3.3) million, or $(0.13)
per diluted share, for the third quarter of 2009 compared to $(3.2) million,
or $(0.13) per diluted share, for the third quarter of 2008.

Adjusted EBITDA*, defined as net loss before interest, taxes, depreciation,
amortization, stock-based compensation, severance charges and bad debt
recovery or expense, for the quarter ended September 30, 2009 was $(1.2)
million compared to $(1.4) million in the prior year period.

For the nine months ended September 30, 2009, the Company recorded revenues of
$14.2 million compared to $20.0 million for the same period last year. Net
loss was $(8.8) million, or $(0.35) per share, compared to $(11.5) million, or
$(0.46) per share, for the first nine months of 2008. Adjusted EBITDA for the
first nine months of 2009 totaled $(2.2) million compared to $(6.2) million in
the comparable prior year period.

Third Quarter and Recent Operating Highlights:

-- Expanded margins on meal delivery program to 39% (excluding revenue
share, depreciation and promotional costs) from 36% in the second
quarter and 31% in the first quarter
-- Produced and began testing new television commercial for meal delivery
service
-- Launched a new e-commerce weight loss store

-- Raised a total of $3.7 million via Private Placements with the
Company's
largest shareholder, as well as certain members of management and the
Board of Directors since the end of Q2 to-date

"We are encouraged by our efforts to drive our business toward profitability
and excited about the opportunities ahead," said Kevin McGrath, President and
Chief Executive Officer of eDiets.com. "While our third quarter results
reflect economic challenges and traditional seasonal weakness in the diet
industry, we continued to execute well on our strategies, with a sequential
improvement in meal delivery margins and improved overall productivity. For
the past several months, the entire company has been focused on preparing for
the diet season. We have put our cash to use funding a very exciting
television commercial for our fresh meal delivery program and we continue to
make technology and operations improvements centered on optimizing our sales
channels and improving our conversion rates. We believe that we are
well-positioned operationally to improve our performance during the upcoming
diet season."

Conference Call

The company will host a conference call to discuss the third quarter 2009
results at 5:00 p.m. Eastern Time on Thursday, November 12, 2009. Participants
may access the call by dialing 866-730-5762 (domestic) or 857-350-1586
(international), passcode 76209431. In addition, the call will be webcast via
the Investor Relations section of the company's web site at
http://www.eDiets.com, where it will also be archived. A telephone replay will
be available through Thursday, November 19, 2009. To access the replay, please
dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode
89369613.

About eDiets

eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and
weight-loss programs. eDiets currently 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.

* Use of Non-GAAP Financial Measures

In its earnings releases, conference calls, slide presentations or webcasts,
the Company may use or discuss adjusted EBITDA, which is a non-GAAP financial
measure as defined by SEC Regulation G. Management regularly reviews adjusted
EBITDA as an analytical indicator of the Company's financial performance and
believes that it is useful to investors in evaluating operating performance.
In addition, the Company uses adjusted EBITDA as a measure of performance for
its business segments and for incentive compensation purposes. The Company
does not intend for adjusted EBITDA to be considered in isolation or as a
substitute for any GAAP measure. Adjusted EBITDA, as presented, may not be
comparable to similarly titled measures of other companies.

Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(in thousands)

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----

Net loss $(3,298) $(3,199) $(8,775) $(11,453)

Interest income, net 1 63 (1) 11

Interest expense on
secured notes 763 542 2,202 1,382

Amortization of secured
notes 556 321 1,508 836

Income tax provision 1 19 18 20

Depreciation 386 437 1,185 1,127

Amortization of
intangibles 9 176 284 705

Stock-based compensation 431 288 1,124 1,046

Bad debt (recovery)
expense (8) (7) 13 82

Severance charges - 4 220 39
------- ------- ------- -------

Adjusted EBITDA $(1,159) $(1,357) $(2,222) $(6,205)
======= ======= ======= =======

Forward-Looking Statements
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. These
forward-looking statements include statements regarding our expectation that
we will seek additional capital through a private placement or public offering
of our common stock; our belief regarding market demand for our products; our
expectation that our total gross margins will improve in the future as our
efforts to improve meal delivery margin are realized; our expectation that
revenue streams from revenue sources other than digital plan subscriptions
will continue to become a larger share of total revenues; our belief that we
can rapidly secure alternate technology infrastructure vendors if we
experience an interruption in Web site service; our expectation that we will
be successful in implementing programs designed to enhance the privacy
protection of our visitors to our Web site; our expectation that we will
conduct our operations in compliance with applicable regulatory requirements;
our expectation regarding the effect of any legal proceedings or legal
inquiries on our financial condition or results of operations; and our
estimates regarding certain accounting and tax matters, including the adoption
of certain accounting pronouncements.

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 through a private placement or
public offering of our common stock;
-- our ability to accurately assess market demand for our products;
-- our ability to improve our meal delivery margin and its effect on
total
gross margins;
-- our ability to rapidly secure alternate technology infrastructure
vendors if we experience Web site service interruption;
-- our ability to successfully implement programs designed to enhance the
privacy protection of our visitors to our Web site;
-- our ability to maintain compliance with applicable regulatory
requirements;
-- our ability to sufficiently increase our revenues and maintain
expenses
and cash capital expenditures at appropriate levels;
-- the state of the credit markets and capital markets, including the
level
of volatility, illiquidity and interest rates; and

-- our ability to successfully estimate certain accounting and tax
matters,
including the effect on our Company of adopting certain accounting
pronouncements.

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.

Although we believe the expectations reflected in the forward-looking
statements are reasonable, 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.

eDiets.com, Inc.
Summary of Consolidated Financial Information
(Unaudited)
(In thousands, except per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Digital plans $1,176 $2,079 $3,846 $7,815
Meal delivery 1,945 1,417 6,141 8,239
Business-to-business 800 935 3,280 2,573
Other 317 322 975 1,341
--- --- --- -----
Total revenues 4,238 4,753 14,242 19,968

Cost and expenses:
Cost of revenue
Digital plans 194 640 658 1,838
Meal delivery 1,398 1,407 4,646 8,530
Business-to-
business 39 40 163 103
Other 78 68 190 214
-- -- --- ---
Total cost of
revenue 1,709 2,155 5,657 10,685
Technology and
development 934 1,083 2,780 3,056
Sales, marketing
and support 2,427 2,190 6,749 9,685
General and
administrative 1,136 1,403 3,820 5,041
Amortization of
Intangibles 9 176 284 705
-- --- --- ---
Total cost and
expenses 6,215 7,007 19,290 29,172
----- ----- ------ ------
Loss from operations (1,977) (2,254) (5,048) (9,204)
Interest income 1 20 10 95
Interest expense (1,321) (946) (3,719) (2,324)
------ ---- ------ ------
Loss before income
tax provision (3,297) (3,180) (8,757) (11,433)
Income tax
provision (1) (19) (18) (20)
-- --- --- ---
Net loss $(3,298) $(3,199) $(8,775) $(11,453)
======= ======= ======= ========

Loss per common
share:
Basic and
diluted $(0.13) $(0.13) $(0.35) $(0.46)
====== ====== ====== ======

Weighted average
common and common
equivalent shares
outstanding:
Basic and diluted 25,460 25,150 25,364 25,103
====== ====== ====== ======

Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
STATEMENT OF CASH
FLOW DATA:
Net cash provided by
(used in):
Operations $(1,079) $(1,348) $(2,671) $(6,323)
Investing (9) 224 (38) (1,485)
Financing(1) 1,254 (343) 1,194 2,177

September 30, December 31,
2009 2008
---- ----
BALANCE SHEET DATA:
Cash and cash
equivalents $958 $2,523
Total assets 12,158 15,671
Deferred revenue 2,413 3,336
Long-term debt
(excluding
capital leases) 15,890 11,808
Stockholder's
deficit (9,098) (2,781)

(1) Following the close of the quarter ended September 30, 2009, an
additional $2.5 million of financing was received via exercise of
warrants by the Company's largest shareholder Prides Capital Fund I,
L.P.

SOURCE eDiets.com, Inc.

Investor Relations, John Mills. ICR, Inc., +1-310-954-1105,
John.Mills@icrinc.com