Our Company

FOR IMMEDIATE RELEASE
Contact: Katie Shugart
CRT/tanaka
Ph: 804-675-8142

ATKINS NUTRITIONALS, INC. TRANSFORMS FROM DIET COMPANY TO NUTRITION FOOD COMPANY AS COURT APPROVES DISCLOSURE STATEMENT

Company to Focus on The Atkins Advantage –
Innovative, Convenience Food Products with a Nutrition and Taste Advantage

(New York, NY), November 17, 2005 – During a hearing held today in the US Bankruptcy Court in Southern District of New York, Atkins Nutritionals, Inc. (“ANI”), the maker of Atkins Advantage nutrition food products, received approval of its Disclosure Statement. The company’s lenders and unsecured creditors support the restructuring and a confirmation hearing has been scheduled for December 21, 2005 to confirm ANI’s Plan of Reorganization.

“We are pleased to have quickly reached this milestone and with such strong support from our major customers, suppliers and lenders,” said Mark S. Rodriguez, President and Chief Executive Officer of ANI. “This event is another key achievement in ANI’s restructuring process, which will conclude in the weeks ahead. We expect to have the plan confirmed by the end of 2005, and subsequently emerge from bankruptcy as a stronger, faster and more flexible company.”

A new ANI management team has implemented a fundamental change in strategy to dramatically improve ANI’s financial performance. ANI has transitioned into a functional food marketer -- offering great-tasting, nutritionally superior Atkins Advantage bars and ready-to-drink shakes to the broad adult population of active men and women seeking to improve their overall health and wellness. This is a shift from ANI’s previous strategy of educating consumers about the benefits of a controlled-carbohydrate diet.

To support its new focus on portable, convenient and nutritious food products, ANI has optimized its supply chain, simplified its business systems and is strengthening its consumer and customer relationships. In the past six months, ANI has streamlined its offerings to focus on the successful Atkins Advantage line of nutrition bars and shakes, which are packed with essential nutrients -- high protein, fiber, vitamins, minerals, low sugar and no trans fats. ANI has also improved the taste, freshness and overall quality of its products.

"The new Atkins Advantage line represents an uncompromising commitment to quality, nutrition and taste, and will be embraced by consumers making smart food choices," continued Rodriguez. “Our new line of Advantage Caramel Cookie Dough Bars and Caramel Fudge Brownie Bars is simply the first example of this new mission. ”

To educate the public about its change in strategy, ANI is investing in new marketing communications to raise awareness that Atkins Advantage products have a taste and nutrition advantage. Last month it released a newly designed website [www.atkins.com], to make consumers more aware of how to choose foods more wisely. New Advantage packaging with a fresh, modern look designed to highlight the products nutrition and taste benefits will be on retail shelves by January 2006. In addition, an exciting new advertising campaign will launch in Q1 2006.

About Atkins Nutritionals Inc.: ANI is a market-leading portable nutrition foods company offering great-tasting bars and shakes under the Atkins Advantage® brand that have a proven nutrition advantage versus the competition -- higher protein, fiber, vitamins and minerals, low sugar and no trans fats. Atkins Advantage nutrition bars and shakes appeal to the broad audience of healthy, active men and women who choose foods wisely to enhance their health and well-being, and are available for purchase in more than 30,000 locations throughout North America. To see how Atkins Advantage is staking its claim as the new look of nutrition, visit the newly designed Web site at www.atkins.com.
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THIS PRESS RELEASE INCLUDES FORWARD LOOKING STATEMENTS THAT REPRESENT THE COMPANY'S EXPECTATIONS AND BELIEFS CONCERNING FUTURE EVENTS THAT INVOLVE RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED. FORWARD-LOOKING STATEMENTS INCLUDE BUT ARE NOT LIMITED TO THE INTENT, BELIEF OR CURRENT EXPECTATIONS OF THE COMPANY AND MEMBERS OF ITS SENIOR MANAGEMENT TEAM WITH RESPECT TO THE TIMING OF, COMPLETION OF AND SCOPE OF THE COMPANY’S REORGANIZATION PLAN, FINANCING ARRANGEMENTS, MARKET CONDITIONS AND THE COMPANY’S FUTURE LIQUIDITY, AS WELL AS ASSUMPTIONS UPON WHICH SUCH STATEMENTS ARE BASED.