eDiets.com(R) Completes $5,275,000 Registered Direct Offering

FORT LAUDERDALE, Fla., April 12 /PRNewswire-FirstCall/ -- eDiets.com, Inc. (Nasdaq: DIET) today announced that it has completed its previously announced registered direct offering to select institutional investors for an aggregate of 5,275,000 shares. The shares were priced at $1.00 per share, resulting in total net proceeds of approximately $4.7 million, after deducting placement agent fees and other offering expenses.

eDiets intends to use the proceeds from the registered direct offering for general corporate purposes, including working capital to fund future growth opportunities, such as the expansion of advertising related to its fresh-prepared meal delivery service.  

"We are pleased to broaden our institutional shareholder base and appreciate the investment community's confidence in our business model and growth opportunities," said Kevin McGrath, President and Chief Executive Officer of eDiets.com. "This financing strengthened our balance sheet and will enable us to make strategic investments in our business in 2010. Along with the various restructuring efforts we completed in 2009, we believe our improved balance sheet leaves us well positioned to generate improved results in coming quarters as we focus our resources on achieving profitability."

All of the shares of common stock were offered by eDiets.com pursuant to an effective registration statement filed with the Securities and Exchange Commission (SEC). Roth Capital Partners, LLC acted as the sole placement agent in connection with the registered direct offering.

Completion of the registered direct offering is the first in a series of previously announced transactions that are expected to provide the Company with approximately $5.2 million of new equity funding and convert all of its outstanding debt to equity.  

This announcement is neither an offer to sell nor a solicitation of an offer to buy any shares of common stock of eDiets. No offer, solicitation or sale will be made in any jurisdiction in which such offer, solicitation or sale is unlawful. Copies of the prospectus supplement together with the accompanying prospectus can be obtained at the SEC's website at http://www.sec.gov or from Roth Capital Partners, LLC by email to [email protected] or by mail to 24 Corporate Plaza, Newport Beach, CA 92660.

About eDiets

eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and weight-loss programs. eDiets 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. eDiets also provides a broad range of customized wellness and weight management solutions for Fortune 500 clients. eDiets' 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.

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 (i) the impact of the offering on the eDiets' balance sheet and eDiets' ability to make strategic investments and generate improved results and (ii) the timing, ability to close and proceeds of the private placement and the debt conversions.

These forward-looking statements reflect eDiets' current views about future events and are subject to risks, uncertainties and assumptions. eDiets wishes to caution readers that certain important factors may have affected and could in the future affect its actual results and could cause actual results to differ significantly from those expressed in any forward-looking statement. These factors include risks and uncertainties related to market conditions, eDiets' ability to effectively and successfully use the offering proceeds to generate improved financial results and eDiets ability to meet the conditions necessary to consummate the private placement and the debt conversions on the anticipated terms, or at all, and those risk factors set forth in filings with the SEC, including eDiets' annual and quarterly reports.

These risks are not exhaustive and may not include factors that could adversely impact eDiets' business and financial performance. Moreover, eDiets operates in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for eDiet's management to predict all risk factors, nor can eDiets assess the impact of all factors on its 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 eDiets believes the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither eDiets 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. eDiets does not undertake any responsibility to update any of these forward-looking statements to conform its prior statements to actual results or revised expectations.

SOURCE eDiets.com, Inc.