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AGREEMENT REACHED TO KEEP NUTRI/SYSTEM IN BUSINESS

 PHILADELPHIA, May 7 /PRNewswire/ -- Heico Acquisitions, Inc., of Chicago, Illinois, announced that it has reached agreement with the shareholders of and lenders to Nutri/System, Inc., to obtain management control of Nutri/System and run the company in the ordinary course of business. Heico plans to immediately begin shipping food to the 267 Nutri/System franchise-owned diet centers around the country. Heico is continuing negotiations to purchase all of the assets of the Nutri/System Company.
 Michael Heisley, chairman of Heico Acquisitions, Inc., stated, "We are pleased that we have reached an agreement that saves thousands of jobs and allows tens of thousands of people to continue on the fabulous Nutri/System diet plan. I am happy to invest new money, and want to express my thanks to all the parties involved. It is only through the cooperative efforts of the banks, the shareholders and the franchisees that this agreement to sustain Nutri/System has been reached."
 Mr. Heisley's statement was echoed by former CEO and shareholder, Albert Di Marco, who executed the agreement with Heico and added, "The concern of management all along has been to save jobs. We are grateful that our efforts have succeeded."
 An involuntary Chapter 7 bankruptcy proceeding was filed against Nutri/System by its franchisees on May 4, 1993. The court has not entered an order on that petition. The agreement among the shareholders, the lenders and Heico is subject to the approval of the United States Bankruptcy Court.
 The franchisees, however, are pleased with the new arrangement, as are the lender banks. An officer with Fidelity Bank, National Association, the agent bank, commented, "The banks are cooperating fully with Heico. We have been working around the clock to reach a deal which accommodates the needs of all parties, and we believe this does it."
 Heico Acquisitions is a joint venture among Michael Heisley and four (4) Philadelphia investors. Nutri/System, Inc. is one of the premier diet center programs in the country, with approximately 857 franchises operated centers nationwide.
 -0- 5/7/93
 /CONTACT: Arthur Spector, 215-834-8710, or Brian Haveson, 215-940-3196, both for Nutri/System, Inc./


CO: Heico Acquisitions, Inc.; Nutri/System, Inc. ST: Pennsylvania IN: FOD SU: TNM

TM -- NY078 -- 6200 05/07/93 20:34 EDT
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Publication:PR Newswire
Date:May 7, 1993
Words:375
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