Investor PresentationSeptember 2008

NASDAQ: NTRI

NASDAQ: NTRI 2

Forward Looking Statements

We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, including those described in the Company’s filings with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements.

NASDAQ: NTRI 3

Well positioned for growth in a large addressable market with a proven and effective weight loss system.

•E-Commerce Business Model •Flexible, Efficient Supply Chain

•Marketing Driven Organization

•Focus on Customer Lifetime Value

•Expansion Opportunities

•Excellent Free Cash Flow

NASDAQ: NTRI 4

Growing Need for Commercial Weight Loss

Overweight

Obesity

2005 2015

Up 75%

Up 44%

Obesity is a Global Issue

Sources: World Health Organization & US National Center for Health Statistics via Merrill Lynch June 2008

US is a Large and

Growing Market

Overweight 1.6B 2.3B

Obese 400M 700M

Obesity More Than Doubled Since 1980

14% 32%

2/3 Population

Overweight & Obese

NASDAQ: NTRI 5

Large Addressable US Market

2008 Gallup Study

US Market 96 Million Dieters

56% - Self Designed Diet

8% - Structured Plan, Paid to JoinDoctor/Hospital Plan – 5%

Plan Followed On,

Own/No Fee - 18%

13% - Diet from Gym, Book, Other

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Commercial Programs Drive High Success Rate

% Dieters Very Satisfied

Effectively Takes

Off WeightHealthfulness Satisfies

Hunger

Easy to

Follow

Provides

Moral

Support

Cost

16%

45%

23%

64%

15%

26%

12%

40%

63%

42%

33% 33%

Self Designed DieterCommercial Program Dieter

Source: 2008 Gallup Study

NASDAQ: NTRI 7

NutriSystem: A Proven Nutritional Way to Lose Weight

30 Years of Research

Customers Lose 1.5-2 Pounds a Week

OmegaSolTM

Low Sodium

Heart Healthy

High in FiberBefore and after of Marie

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Unique Web Based Business Model

1-800-321-THIN

www.nutrisystem.com

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Top E-Commerce Site

Rank Company 2007 e-Commerce Sales1 Amazon.com 14,800,000,0002 CDW 2,407,520,4633 Newegg.com 1,900,000,0004 QVC 1,880,530,0005 Netflix 1,205,000,0006 Systemax 974,610,0007 HSN 871,200,0008 Quixtar 861,000,0009 Zappos.com 850,000,00010 Overstock 760,200,00011 Buy.com 614,460,00012 PC Connection 528,400,00013 Drugstore 445,700,00014 Scholastic 397,000,00015 Peapod 339,000,00016 Blue Nile 319,300,00017 Oriental Trading Co. 299,000,000

Top Internet Only Retailers

$420,000,000

Source: Internet Retailer, Top 50 Internet Sales 2007

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Marketing Driven Organization

Marketing Efficiency

ROI Based

Continuous Feedback

In House Creative Development & Testing

In House Media Buying Team

Use of Celebrities

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Creating Agile Multi-Channel Marketing

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Customer Focused Operations

The Perfect Order

In House Supply Chain Management

Outsourced Fulfillment

Outsourced Delivery

In House 500+ Person Call Center

Sales, Counseling, Customer Service

In House Research Teams with Outside Medical Board Outsourced Manufacturing

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Future Growth Driver - Marketing

Media effectiveness and efficiency has many known and controllable levers to drive growth and profitability

Drivers of Success:

Prospects Leads Orders Re-activation

Media PromotionCall Volume Web Traffic

Conversion

Targeted MarketingDatabase Mining

Creative Promotion Media Mix ConversionEffectiveness

CustomerRelations Mgmt

Measurement &Tracking

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Future Growth Drivers - Product Innovation & Expansion

Success from a single, gender based

product line drives innovation to create

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Delivering Customer Satisfaction

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Leading the Business Forward

A talented leadership team with decades of

experience in large scale subscription

businesses leading an energized & data

driven E-Commerce, Marketing, Supply

Chain & Customer Service organization to

the next level of customer satisfaction &

shareholder value.

NASDAQ: NTRI

Financial Section

NASDAQ: NTRI 18

Consolidated Annual Financial Summary

millions 2005 2006 2007Revenue $ 210 $ 566 $ 777

% growth 170% 37%

Gross Margin % 48.4% 52.2% 53.2%

Adjusted EBITDA1 $ 35 $ 140 $ 173% growth 300% 24%

Net Income $ 21 $ 85 $ 104% growth 305% 22%

Net Cash Provided by Operations $ 18 $ 67 $ 108% growth 272% 61%

1 Adjusted EBITDA – defined as income from continuing operations excluding non-cash employee compensation, other expense, equity loss, interest, income taxes and depreciation expense

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Illustrative Customer Economics*

* Illustrative only, not actual figures

Our current customer EBITDA contribution is very strong; however many levers exist to improve EBITDA contribution.

Typical Customer Contribution Key DriversFood

Fulfillment

Freight Costs

Media

Creative Production

Celebrity Endorsements

Revenue $700Cost of Goods 350 50%Gross Margin 350

Marketing 175 25%Contribution $175

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Levers on Revenue & EBITDA Contribution

Increasing Customer Subscription adds Significant Revenue1

Based on 1 Million Annual Customers:

Retention – Increase average customer time on program 1 day

$10,000,000

Up Sell – Up Sell 20% of Customer Base 1 Snack Pack ($30)

$6,000,000

Pricing - $5 increase in average selling price

$10,000,000

A 100 Basis Point Improvement:

Cost of Food

Improving Gross Margin adds Significant EBITDA Contribution2

1 For Illustrative Purposes Only 2Assumes $700M in sales.

– Menu, Ingredients, Suppliers

$7,000,000

Perfect Order – Accurate Order, On-Time Delivery, No Substitutions

$7,000,000

Supply Chain Optimization – Inventory and Distribution Management

$7,000,000

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Customer Potential

4x $ value

•A customer who accepts the second order delivers four times the $ value of a customer that does not

•Value is driven by length of stay and reactivation

•Engagement aids length of stay and reactivation

•Customers who stay with program at least 8 weeks have high satisfaction

Accepted 2nd Order

Single Order

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Growing Customer Database & Reactivation Revenue

2000 2001 2002 2003 2004 2005 2006 2007

Members On Program Inactive

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008E

A growing database

of members & customers…

Reactivation as a % of Revenue

…leads to growing

reactivation revenue

& EBITDA contribution.

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2008 First Half Financial Performance

Revenue - $410M

Gross Margin – 50.4%

Marketing Efficiency – 26.6%

Adjusted EBITDA – $66M

$62M Cash and Equivalents, June 30, 2008

NASDAQ: NTRI 24

Impressive Return On Invested Capital

73%

37% 37%

19% 18% 16% 14% 12% 12% 10%7% 7%

NMNM0%

10%

20%

30%

40%

50%

60%

70%

80%

NutriSys

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atche

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Medifa

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itnes

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Kraft

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s.com

Nautilu

sLTM Return on Invested Capital¹

¹¹NOPAT / (Debt + Equity). 3/31/08NOPAT / (Debt + Equity). 3/31/08

NASDAQ: NTRI 25

Focus on Shareholder Value

Business generates significant free cash flow to support not only growth but return to shareholders

Shareholder distribution a focus of management team

$60MM of stock purchased in 2008Quarterly dividend with approx 4% yield

$200MM credit facility available, currently undrawn

Authorized share re-purchase of $123M

Self Funding Business Model

145% Cash CAGR

0

20

40

60

80

100

120

2005 2006 2007

Capital Expenditures

Cash Flow from Operations

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Investment Highlights

• Large addressable market

• Proven effective program

• Marketing driven E-Commerce business model

• Highly measurable marketing spend

• Cost Structure Leverage

• Flexible, efficient supply chain

• Opportunities for product & geographic expansion

• Integrated customer management platform focused on lifetime value

• Excellent free cash flow, strong balance sheet