Nutrisystem 2005 Annual Report Download - page 22

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ITEM 2. PROPERTIES
We currently lease two locations in Horsham, Pennsylvania and one location in Yardley, Pennsylvania. The
two Horsham locations total approximately 121,600 square feet of office and warehouse space at a combined
annual rent of $1,141,789. One lease in Horsham expires in 2009, while the other expires in 2010. We also lease
1,400 square feet at an annual rent of $23,669 in Yardley, Pennsylvania, where our Slim and Tone business was
formerly located. In late 2005, Slim and Tone relocated to Horsham. This lease expires in November 2006. In
2005, we obtained additional fulfillment capacity in Chambersburg, Pennsylvania; Sparks, Nevada;
Edwardsville, Missouri; and McDonough, Georgia through an outsourced provider. We also use an additional
third party fulfillment provider in Pennsauken, New Jersey during periods of peak demand. We have no lease
obligations to any of our outsourced fulfillment providers. Management believes the Horsham facility, combined
with the outsourced fulfillment capacity, are adequate to meet our needs for the foreseeable future.
ITEM 3. LEGAL PROCEEDINGS
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None submitted.
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