NutriSystem (NTRI)

Dependence on Suppliers

Approximately 26% and 19% of inventory purchases for the three months ended March 31, 2009 were from two suppliers. The Company has supply arrangements with these vendors that require the Company to make minimum purchases (see Note 7). For the three months ended March 31, 2008, these vendors supplied approximately 16% and 11% of total purchases, respectively.

In both the three months ended March 31, 2009 and 2008, the Company outsourced more than 85% of its fulfillment operations to a third-party provider.

Dependence on Suppliers

In 2008, approximately 19% and 15%, respectively, of inventory purchases were from two suppliers. The Company has supply arrangements with these vendors that require the Company to make minimum purchases. In 2007, these vendors supplied 24% and 11% of total purchases and in 2006, these vendors supplied 32% and 12% of total purchases (see Note 9).

In 2008, 2007 and 2006, the Company outsourced more than 85% of its fulfillment operations to a third-party provider.

Dependence on
Suppliers

In 2008, approximately 19% and 15%, respectively, of inventory purchases were from two suppliers. The Company has supply arrangements with
these vendors that require the Company to make minimum purchases. In 2007, these vendors supplied 24% and 11% of total purchases and in 2006, these vendors supplied 32% and 12% of total purchases (see Note 9).

Dependence on Suppliers

Approximately 17% and 14% of inventory purchases for the nine months ended September 30, 2008 were from two suppliers. The Company has supply arrangements with these vendors that require the Company to make minimum purchases (see Note 8). For the nine months ended September 30, 2007, these vendors supplied 25% and 10% of total purchases, respectively.

In both the nine months ended September 30, 2008 and 2007, the Company outsourced more than 85% of its fulfillment operations to a third-party provider.

Dependence on Suppliers

Approximately 18% and 14% of inventory purchases for the six months ended June 30, 2008 were from two suppliers. The Company has supply arrangements with these vendors that require the Company to make minimum purchases (see Note 7). For the six months ended June 30, 2007, these vendors supplied 23% and 9% of total purchases, respectively.

In both the six months ended June 30, 2008 and 2007, the Company outsourced more than 85% of its fulfillment operations to a third-party provider.

Dependence on Suppliers

Approximately 16%, 12% and 11% of inventory purchases for the three months ended March 31, 2008 were from three suppliers. The Company has supply arrangements with these vendors that require the Company to make minimum purchases (see Note 7). For the three months ended March 31, 2007, these vendors supplied 20%, 18% and 10% of total purchases, respectively.

In both the three months ended March 31, 2008 and 2007, the Company outsourced more than 85% of its fulfillment operations to a third-party provider.

Dependence on Suppliers

In 2007, approximately 24%, 14% and 11%, respectively, of inventory purchases were from three suppliers. The Company has supply arrangements with these vendors that require the Company to make minimum purchases. In 2006, these vendors supplied 32%, 11% and 12% of total purchases and in 2005 these vendors supplied 35%, 1%, and 11% of total purchases (see Note 7).

In 2007, 2006 and 2005, the Company outsourced approximately 90%, 87% and 75%, respectively, of its fulfillment operations to a third-party provider.

Dependence on Suppliers

SIZE="2">In 2007, approximately 24%, 14% and 11%, respectively, of inventory purchases were from three suppliers. The Company has supply arrangements with these vendors that require the Company to make minimum purchases. In 2006, these vendors
supplied 32%, 11% and 12% of total purchases and in 2005 these vendors supplied 35%, 1%, and 11% of total purchases (see Note 7).

In 2007, 2006 and 2005,
the Company outsourced approximately 90%, 87% and 75%, respectively, of its fulfillment operations to a third-party provider.