Nutrisystem, Inc. Expects to Record up to $5 Million Non Cash Goodwill / Intangibles Impairment Charge Related to Nu-Kitchen

HORSHAM, Pa.-- (BUSINESS WIRE) -- Nutrisystem, Inc. (NASDAQ:NTRI), a leading provider of weight management products and services, today announced that it expects to take a non cash charge of up to $5 million before taxes to reflect an impairment charge on the value of the goodwill and identifiable intangibles related to its Nu-Kitchen fresh food delivery business that currently services the New York City area, which the company acquired in July 2008. The company expects to take the charge in the fourth quarter of 2009 and intends to finalize its impairment analysis prior to the release of its 2009 financial results.

About Nutrisystem, Inc.

Nutrisystem, Inc. (NASDAQ: NTRI) is a leading provider of weight management products and services. Nutrisystem is sold direct to the consumer through nutrisystem.com, by phone, and at select retailers, for convenient home delivery. The company offers nutritionally balanced weight-loss programs designed for women, men, and seniors, as well as the new clinically tested Nutrisystem D plan, formulated specifically to help people with type 2 diabetes who want to lose weight. The Nutrisystem program is based on 35 years of nutrition research and offers a variety of great tasting, satisfying high-fiber, heart healthy, good carbohydrate meals that are low on the Glycemic Index and contain zero trans fats. Nutrisystem is hundreds of dollars cheaper than other weight loss programs, based on a survey by National Business Research Institute (October 2008). The program has no membership fees and provides 24/7 weight management support by trained weight loss coaches and online weight management tools free of charge. In 2009 Nutrisystem was selected as the #1 overall online retailer in the Food and Drug category and #46 out of the top 500 online retailers overall by Internet Retailer Magazine. Nutrisystem is proud to support the American Diabetes Association and its fight to stop diabetes. For more information or to become a customer visit http://www.nutrisystem.com or call 1-877-681-THIN (8446).

Forward-Looking Statement Disclaimer

This press release may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Nutrisystem’s expectations regarding impairment charges and other statements that are not statements of historical fact constitute forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, which are described in Nutrisystem, Inc.'s 2008 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. Nutrisystem, Inc. undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

Nutrisystem, Inc.

Cindy Warner

Investor Relations

Tel: 215-346-8136

Email: IR@nutrisystem.com