NutriSystem, Inc. Affiliates With Costco Wholesale Corporation

HORSHAM, PA--(Marketwire - January 5, 2009) - NutriSystem, Inc., a leading provider of weight management products and services, announced today that it has partnered with Costco, a leader in wholesale retail. Through this collaboration, consumers will be able to purchase the NutriSystem® program in all 384 continental U.S. Costco stores through its existing, innovative Customer Gift Card Acquisition program. The new relationship will allow NutriSystem to expand its offerings to a wider consumer audience while still maintaining its highly successful e-commerce and telephone consultative selling business model.

Costco members are now able to walk into their local warehouse and easily find details on both the men's and women's NutriSystem program through highly visual in-store displays. Once they choose the program that is right for them, new members can either call 800-215-9275 or log onto nutrisystem.com/redeemnow to place their order for home delivery.

"We are thrilled to be working with Costco," said Will Auchincloss, NutriSystem's Senior Vice President Business Development. "We see Costco as a great partner during these tough economic times, and are excited to leverage our direct to consumer model in the retail channel with Costco. Through their gift card program, Costco will allow us to expand our existing customer base in the retail channel and capitalize on our strong consumer brand."

Costco members who purchase the plan will receive 35 days worth of food from the NutriSystem favorites menu, free shipping, and a meal planner at the price of $259.99 for women and $284.99 for men.

At this great value, this is a perfect new year gift for Costco customers or their friends and families, who are looking forward to a healthier 2009. As a matter of fact, NutriSystem's Costco plan costs much less than many Americans' basic food expenditure: $95 less/month on the women's plan and $100 less/month on the men's plan, according to Official USDA Food Plans: Cost of Food at Home at Four levels, Liberal Food Plan, US Average, Sept. 2008 (adjusted 4.5% for inflation to reflect 2008 expenditures). Cost of fresh grocery items not included.

"We believe so strongly in this collaboration that we are offering Costco customers the opportunity to lose weight while saving significant amounts of money," said Auchincloss. "We know that when Costco customers lose weight and feel great while enjoying our wide variety of 120 delectable, perfectly portioned, ready to go meals such as our Lasagna with Meat Sauce or our Chocolatey Nougat Bar with Peanuts and Caramel, they will keep coming back."

About NutriSystem, Inc.

Founded in 1972, NutriSystem is a leading provider of weight management products and services. The company offers a proven nutritionally balanced weight-loss program based on hunger-satisfying high-fiber, heart healthy, "good carb" meals that are low on the Glycemic Index and do not contain trans fats. NutriSystem is hundreds of dollars cheaper than other weight loss programs, based on an independent study by National Business Research Institute (October 2008). The program has no membership fees and provides free online and telephone counseling. NutriSystem now stands as a constant pillar of support, information and convenience with direct home delivery for those looking to lose weight in a busy world. As an Internet force, its wide-ranging web content, combined with its knowledgeable and highly trained counselors, equals a powerful resource for all dieting consumers. NutriSystem believes in its clients and is there to help them, every day and every step of the way. For more information, visit http://www.nutrisystem.com.