Jason Pharmaceuticals, Inc., the Company’s wholly owned manufacturing subsidiary, produces most of the Medifast products in a 49,000 square-foot state-of-the-art food and pharmaceutical-grade facility in Owings Mills, MD.

Sunrise Distributing, our 119,000 square foot state-of-the-art distribution center is located in the Eastern Maryland town of Ridgely, 82 miles from the Owings Mills facility. We have several operations running simultaneously. Three pick and pack lines allow us to fill over 1,000 packages each day. The packages are inspected for correct content and preparation at least two times before they leave the facility.

The formulation, processing, packaging, labeling and advertising of the Company's products are subject to regulation by several federal agencies, but principally by the Food and Drug Administration (the "FDA"). The Company must comply with the standards, labeling and packaging requirements imposed by the FDA for the marketing and sale of medical foods, vitamins, and nutritional products. The FDA also requires "medical food" labeling to list the name and quantity of each ingredient and identify the product as a "weight management/modified fasting or fasting supplement" in the labeling.

The operations of the Company are also subject to the regulations and enforcement powers of the Federal Trade Commission ("FTC"), and the Consumer Product Safety Commission. The Company's activities are also regulated by various agencies of the states and localities in which the Company's products are sold. Medifast manufactures private label products that are packaged in accordance with customers’ specifications and sold both domestically and in foreign countries through their own distribution channels.

The plant strictly adheres to all Good Manufacturing Practices (GMP) and has maintained its status as an "OU" (Orthodox Union) Kosher-approved facility since 1982. Additionally, the plant has the capability for much higher production output without substantial capital expenditure.