eDiets.com names a new CEO as it seeks to stem its financial losses

EDiets.com Inc., the online weight-loss company that reported growing financial losses in 2008, has named Kevin N. McGrath president and CEO. He replaces Stephen Rattner who will serve as executive vice president of corporate services.

McGrath was previously president and CEO of Digital Angel Corp., a manufacturer of animal identification products and satellite-based search and rescue equipment. Before that, he was chairman and CEO of pay-TV provider DirecTV Latin America.

"We are very excited to have a proven leader with a long track record of successfully building industry leading subscription and B2B businesses profitably, become the CEO of eDiets," says Kevin Richardson, chairman of eDiets. "Kevin McGrath is very familiar with our business model and has the experience and proven discipline needed to return our company to strong positive cash flow and profitable growth."

EDiets, which sells weight-loss and meal-delivery plans to consumers through its web site and provides services to large corporations, reported a loss of $11.5 million in the first nine months of 2008, more than double the $5.2 million loss during the first three quarters of 2007.

"I am very eager to begin this tremendous opportunity as CEO of eDiets," McGrath says. "This company is well positioned to return to profitable growth and I am committed to expand the company`s market presence and leverage its core strengths in order to achieve the results this company is capable of producing. I believe my background of building companies into market leaders while maintaining strict cost controls will serve shareholders well in the coming years."

The sale of meals through eDiets.com accounted for $8.2 million in revenue for the first nine months of 2008, or 41.2% of the company’s $20.0 million in sales. The company in October appointed Linda Kohler as vice president and general manager of meal delivery.

Rattner joined eDiets.com in May 2006 following its acquisition of Nutrio.com, which he helped found. He became president of eDiets in October 2006 and added the CEO title in November 2007.

"I am pleased that Stephen Rattner will be leading our corporate services," McGrath says. "Stephen brings over 10 years of experience and relationships to this segment of our business and the board and I believe with Stephen`s dedication, this segment has the ability to become one of the fastest growing and most profitable parts of the company."