/FRAuD DISCOVERY info@frauddiscovery.net INSTITUTE Phone & Fax: 1-888-300-8307 Open Letter to Mr. Bradley MacDonald, Chairman, Medifast, Inc. and the “Independent Committee of distinguished members of the Board of Directors of Medifast, Inc.” January 12", 2010 Dear Mr, MacDonald and “Committee;” | am writing in reference to your recent press releases where you indicated that our past and current reports prepared by our expert were ‘false, misleading, and/or without merit... The same is true for the re-issue of the report posted January 8, 2010 — the allegations are false, misleading, and/or without merit." | will immediately retract and formally apologize to you, your stockholders and your Board of Directors (including the “distinguished members of the Board of Directors of Medifast, Inc.”) if you can simply show me where we are factually incorrect. Were we ‘false, misleading or without merit’ when we demonstrated that Medifast knowingly and willingly omits and fails to disclose that only 6% of the entire organization of TSFL ever reaches the Executive level? Were we ‘false, misleading or without merit’ when we demonstrated that 67% of all commissions paid in the TSFL scheme go toa 10% remnant of the organization? Were we ‘false, misleading or without merit’ when we stated that the foundation of Medifast's recent stock surge is tied to the recent rise in its revenue, which is driven by the “endless chain” income opportunity that it markets to consumers through the integration of its “income opportunity” product with its meal replacement products? Were we ‘alse, misleading or without merit’ when we stated that the pyramid selling scheme of Medifast, based on the lure of income to consumers from an endless recruiting chain, is now being leveraged by the company into the securities market on Wall Street? Were we ‘false, misleading or without merit’ when we demonstrated that the mean average income of the bottom 80% of coaches — of those that do eam income — is a modest $52.00 (that is fifty two dollars only) a week, which is about one-half of what the meal replacement products cost? look forward to receiving the documentation from the independent committee of the Board of Directors of Medifast, Inc. as they must have them right at their fingertipsoO Fraup Discovery info frauscovery ot INSTITUTE Phone & Fax: 1-888-300-8307, before publioly stating that our computations are “false, misleading or without merit.” Since truth is our only real defense against your recent allegations, we would appreciate you forwarding the corroborative documentation that substantiates your assertions. Respgetfully Submitted Barty ‘Mink Co-Founder Fraud Discovery Institute, Inc www.frauddiscovery.net