Live Longer & Save Money™

5-time Inc 500 Inc 500 Internet Retailer

Winner Hall Of Fame Top 500

ICR Presentation – January 13, 2010

 Safe Harbor Summary

These slides and accompanying oral presentation contain forward-looking statements. Forward-looking statements include statements concerning our
plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs and other information that is
not historical information. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,”
“plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “seek” or the negative of these terms or other comparable
terminology or by discussions of strategy.
All forward-looking statements, including, without limitation, our examination of historical operating trends, are based upon our current expectations
and various assumptions. We believe there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain. We may not
realize our expectations and our beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-
looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others:
n the current global economic downturn or recession;
n difficulty expanding our manufacturing and distribution facilities;
n significant competition in our industry;
n unfavorable publicity or consumer perception of our products on the Internet;
n the incurrence of material product liability and product recall costs;
n inability to defend intellectual property claims;
n costs of compliance and our failure to comply with government regulations;
n our failure to keep pace with the demands of our customers for new products;
n disruptions in our manufacturing system, including our information technology systems, or losses of manufacturing certifications; and
n the lack of long-term experience with human consumption of some of our products with innovative ingredients.
We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able
to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking
statements. Except as required by applicable law, including the securities laws of the U.S. and the rules and regulations of the Securities and
Exchange Commission, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future
events or otherwise. Consequently, forward-looking statements should be regarded solely as our current plans, estimates and beliefs. Potential
investors should not place undue reliance on our forward-looking statements. Before investing in our common stock, investors should be aware that
risks exist that could have a material adverse effect on our business, results of operations, financial condition, cash flows, customer relationships and
value of our proprietary products. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or achievements.

2
Investment Highlights

n A leading online retailer and direct marketer of health and

wellness products, vitamins and dietary supplements (1)

n Large and growing market opportunity

n Superior customer value, product selection and experience

n Growing loyal customer base

n Grow profitability through margin expansion

n Strong infrastructure to support growth

n Experienced management team and board

3
(1) Based on annual sales volume.
 Vitacost At A Glance

Company Snapshot Revenue

($ Millions)
1994 Founded as Nature’s Wealth Co.
1999 Launched Vitacost.com; Introduced $140.0
proprietary products $120.0
Timeline
2004 Rapid expansion of proprietary $100.0
products $80.0
$60.0
2008 Started in-house manufacturing
$40.0
$20.0
Headquarters Boca Raton, FL; 250 employees
$0.0
Active 2004 2005 2006 2007 2008 2009
Recently exceeded 1,000,000 YTD
Customers (1)

Adjusted EBITDA (2)

($ Millions)

$19.5

$14.5
North Carolina
East Coast Distribution $9.5
Center
Manufacturing Center
Call Center
$4.5

Las Vegas Boca Raton, FL ($0.5)

West Coast Distribution Center Corporate Headquarters
2004 2005 2006 2007 2008 2009
YTD

(1) Active customers have made a purchase within the past year. 4
(2) Adjusted EBITDA excludes depreciation, amortization, stock-based compensation expense and non-cash items.
Large And Growing Market Opportunity

U.S. Online Commerce Industry U.S. Nutritional Industry

U.S. online retail sales growing 11% to $156 U.S. sales of dietary supplements grew
billion in 2009 compared to 2008. Sales 6.3% to $25.2 billion from 2007 to 2008.
expected to reach $229 billion by 2013 (1) Sales projected to grow 5% annually for
the next five years (2)(3)

U.S. Online Supplement Sales Forecast 2008 – 2017 (3)

($ Millions)

$5,000 $4,645

$3,938
$4,000
$3,332

$3,000 $2,815
$2,374
$1,999
$2,000 $1,669
$1,382
$1,135
$924
$1,000

$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(1) Forrester Research, U.S. Online Retail Forecast, 2008 – 2013.

(2) Nutrition Business Journal’s (NBJ) 2009 U.S. Nutrition Industry Overview. 5
(3) Nutrition Business Journal’s (NBJ) 2008 Supplement Business Report.
Value Proposition To Customers

Reliable And
Timely Order
Fulfillment
User
Friendly
Shopping
Experience

Broad
Consistently Product
Superior Selection
Value

6
Broad Product Selection

Vitamins, Minerals,
Broad Body Building / Personal Care Natural / Organic
Product Herbs &
Selection Sport Products Food
Supplements

Proprietary (1)

§ 870+ SKUs
§ 31% of YTD 2009
product revenue

Third Party (1)

§ 23,000+ SKUs
§ 1,000+ brands
§ 64% of YTD 2009
product revenue

(1) Number of SKUs and brands are as of August 31, 2009. Product revenue mix is for the YTD period ending September 30, 2009. 7
Formulation Of Proprietary Product

Broad
Product
Selection

Health
Concerns
Competitive
Advantage

Medical
Research
Customer
Feedback
Product
Gap
Analysis
Scientific
Research

Deliver refined
Leverage latest market research & Analyze demand from
selection of
scientific advisory board customer needs and
proprietary, trusted
competition
brands

8
 Consistently Superior Value

We offer products at savings, on average, of typically

Consistently
30% - 60% off manufacturers’ suggested retail prices
Superior
Value

3rd Party Pricing Comparison: Twinlab Vitamin B-12 (1) 3rd Party Pricing Comparison: Twinlab Vitamin D (1)

$18.00 $16.99 $18.00

$15.60 $15.59
$15.00 $15.00
$11.99
$12.00 $12.00
$9.41
$9.00 $7.99 $9.00 $7.19 $6.79 $6.79
$6.00 $4.99
$6.00
$3.00 $3.00

$0.00 $0.00

250 tablets 60 tablets

Vitacost Gross Vitacost Gross
Margin = 38% Margin = 24%

(1) Drugstore.com, Vitamin Shoppe, Vitacost.com and NSI prices sourced from vendor websites as of September 4, 2009. Whole Foods pricing sourced from 9
store visit on September 3, 2009.
 In-House Manufacturing Supports Margin Expansion

Ensure quality, control inventory and

expand margins
Consistently
Superior
Value

Proprietary Pricing Comparison: CoQ10 (1)(2)

$6.00

$4.00
$2.80 $2.79

$2.00
$1.00

$0.00

n Running 16 hours per day in 2 eight-hour

shifts, operating six days a week
Cost per Serving
n Capacity to run 24 hours a day in 3 eight-hour
Vitacost Gross
shifts, operating seven days per week Margin = 64%
n Over 620 SKUs are manufactured in-house

(1) GNC and Vitacost.com and NSI prices sourced from vendor websites as of September 4, 2009. Whole Foods pricing sourced from store visit on
September 3, 2009. 10
(2) Cost per serving based on serving size of 1,200 mg.
 Driving Margin Expansion

n 3rd Party margins continue to improve due to scaling volume purchasing

Consistently
and sophisticated pricing analytics and virtual inventory management
Superior
Value
n In-house manufacturing comprises approximately 72% of our
proprietary products

Gross Margin Comparison Large & Growing Proprietary SKU Count

58.5%
60.0% 53.0% 53.4%
48.5% 48.5% 48.5% 870+
50.0% 900
741
800
40.0% 700 620

Proprietary 600
30.0% 21% 22% 23% 24% 23.8% 27.1% 424
500
Third Party
20.0% 400 275
300
200 137
10.0%
100
0.0% 0
2004 2005 2006 2007 2008 Q3 09 2004 2005 2006 2007 2008 Q3 09

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User Friendly Shopping Experience

Our website is designed to provide a convenient, educational,

User
Friendly
secure and efficient shopping experience and drives
Shopping
Experience 15% conversion to purchase

Products are
searchable by
Products are brand, ingredient
cross-indexed and health
concern

Articles and
news relating to
medical, Customers
scientific and can review
health topics and post
opinions on
products

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 Excellent Customer Service

Reliable And
Timely
Order
24-Hour Call Center Operations
Fulfillment

We operate a call center in Lexington, NC and

use a 3rd party call center in Manchester, NH
n Onsite customer service department
n Website live chat and email support services
n After-hours support
n Customer returns of less than 1% in 2008

Call Center Volume 2006 – 2009 YTD Our 5-Star Guarantee

700,000 644,504
Everyday Low Prices
555,873
600,000
440,163
500,000 Ensured Quality And Safety
400,000
273,076
300,000 Selection
200,000
100,000 Security And Privacy
0
2006 2007 2008 2009 YTD
30-Day Money-Back Guarantee

13
Our Multichannel Marketing Strategy

Catalogs, Direct
Email Mail And
Campaigns Promotional
Inserts

Search Engine Affiliate

Marketing New and Programs
Returning
Customers

14
Highly Attractive Customer Economics

Average sales & marketing customer acquisition cost-per-order $11.25

Average order size, inclusive of shipping revenue ( 2009 YTD) $75.46
Average gross margin 31.9%
Average gross margin $ per order $24.07
ROI on cost per order (1) 114%

Active Customers (2)

1,200,000 1,034,574
1,000,000 820,000
800,000
555,000
600,000
390,000
400,000 270,000
185,000
200,000

0
2004 2005 2006 2007 2008 As of Q3 2009

(1)ROI on cost per order = [Average gross margin per order] – [per-customer acquisition cost] / [per-customer acquisition cost].
(2) Active customers have made a purchase within the past year. 15
 Vitacost’s Competitive Advantage

Channel Competition
Channel Competition

Natural & Specialty

Direct-to-Consumer

Mass Market

Multi-Level Marketing

16
 Multiple Opportunities For Exceptional Growth

Expand Product Offering Drive Top-

& Customer Base Line Growth

Expand Manufacturing Margin

Expansion
& Distribution Capabilities

International Expansion Global

Reach

17
 Vitacost At A Glance

($ Millions)

Revenue Adjusted EBITDA (1)

$18.9
143.6 141.5 $19.5
$140.0

$120.0
99.3 $14.5
$100.0

$80.0 66.4
$9.5
$60.0
41.5
$5.3
$40.0 29.6
$4.5 $3.3
$20.0
$1.2
$0.1
$0.0
2004 2005 2006 2007 2008 2009 ($0.5)
YTD 2004 2005 2006 2007 2008 2009 YTD

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(1) Adjusted EBITDA excludes depreciation, amortization, stock-based compensation expense non-cash items.
Financial Highlights

n Substantial revenue growth and diversification

n Advantageous working capital policies

n Strong gross margin structure

n Strong movement to profitability

n Scalable model

n Earnings growth expected to outpace revenue growth

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Quarterly Historical Revenue

($ Millions)

2007 2008 2009

47.3 48.4
50 45.9
45
38.2
40 35.5 36.7
33.2
35
30 27.6
25.6
22.8 23.3
25
20
15
10
5
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

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Income Statement

($ Millions)

2006 2007 2008 2009 YTD

Revenue $66.4 $99.3 $143.6 $141.5

Y-o-Y Revenue Growth (%) 59.9% 49.6% 44.6% 34.0%

Gross Profit $19.3 $28.9 $38.1 $45.1

Gross Margin % 29.1% 29.1% 26.5% 31.9%

Fulfillment Expense $4.1 $6.6 $8.4 $6.0

% of revenue 6.2% 6.7% 5.8% 4.2%
S&M $7.0 $10.8 $13.1 $10.0
% of revenue 10.5% 10.9% 9.2% 7.1%
G&A $8.0 $11.1 $14.9 $10.5
% of revenue 12.1% 11.1% 10.4% 7.4%

Adjusted Operating Income $0.2 $0.3 $1.7 $16.1

Net Income 0.2 1.8 0.0 10.3

Adjusted EBITDA (1) 1.2 3.3 5.3 19.0

Adjusted EBITDA Margin % (1) 1.8% 3.3% 3.7% 13.4%

21
(1) Adjusted EBITDA excludes depreciation, amortization, stock-based compensation expense and one-time non-cash items.
Balance Sheet

($ Millions)

As of June 30, 2009 2009 YTD

Cash and Cash Equivalents $0.05 $48.4

Accounts Receivable, net 1.1 1.1
Inventory, net 24.5 23.8
Total Assets $52.4 $77.3
Accounts Payable, Accrued Expenses and Other
21.1 24.3
Current Liabilities (1)
Total Debt 15.6 6.5
Total Liabilities $37.4 $34.8
Total Liabilities & Stockholders Equity $52.4 $106.2

(1) Other current liabilities include deferred revenue and income taxes payable.

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Operating Model

($ Millions)

2008 2009 YTD Target

Revenue 100.0% 100.0% 100.0%

Gross Profit 26.5% 31.9% 32 – 34%

Fulfillment Expense 5.8% 4.2% 3 – 5%

S&M 9.2% 7.1% 6 – 9%

G&A (1) 10.4% 7.4% 7 – 9%

Adjusted Operating Income 1.2% 11.4% 11 – 15%

Net Income 0.0% 7.3% 7 – 10%

Adjusted EBITDA (2) 3.7% 13.4%

(1) G&A includes depreciation & amortization expense. 23

(2) Adjusted EBITDA excludes depreciation, amortization, stock-based compensation expense and one-time non-cash items
 (1)
Guidance

Fourth Quarter 2009:

§ Projected revenue of $48 to $49 million or up 25.7% to 28.3% vs. the prior year period.
§ Projected EPS of $0.07 to $0.08 or net income of $2.1 to $2.4 million vs. the prior year.
§ Projected share count 29.5 million.

Full Year 2009:

§ Projected revenue of $189.5 million to $190.5 million or up 32.0% to 32.7% vs. the prior year.
§ Projected pro forma EPS of $0.50 to $0.51 or net income of $12.6 to $12.8 million vs. net income
of $0.0 million last year.
§ Projected share count 25.1 million.

Full Year 2010:

§ The Company will provide specific full year 2010 guidance when it reports fourth quarter and full
year 2009 financial results.
§ The Company is comfortable with the underwriters’ research analysts’ current consensus
revenue estimate of $242.6 million and EPS consensus estimate of $0.53.

(1) Guidance metrics were provided when the Company reported third quarter 2009 on November 4, 2009.
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Investment Highlights

n A leading online retailer and direct marketer of health and

wellness products, vitamins and dietary supplements (1)

n Large and growing market opportunity

n Superior customer value, product selection and experience

n Growing loyal customer base

n Grow profitability through margin expansion

n Strong infrastructure to support growth

n Experienced management team and board

25
(1) Based on annual sales volume.