Hot Growth Special Report 2006 >

Hot Growth Companies 1 VAALCO Energy 2 Hansen Natural 3 Palomar Medical Technologies 4 W&T Offshore 5 NAVTEQ 6 Under Armour 7 VASCO Data Security International 8 Programmer's Paradise 9 LCA-Vision 10 Blue Nile 11 Volcom 12 American Science & Engineering 13 ASV 14 PeopleSupport 15 Imperial Industries 16 Cognizant Technology Solutions 17 Multi-Fineline Electronix 18 Hittite Microwave 19 OmniVision Technologies 20 NutriSystem 21 Resources Connection 22 EFJ 23 InfoSonics 24 Amedisys 25 LifeCell 26 RPC 27 PetMed Express 28 NeuStar 29 Netflix 30 Ceradyne 31 MEMC Electronic Materials 32 Empire Resources 33 Gevity HR 34 Berry Petroleum 35 Endo Pharmaceuticals Holdings 36 Cimarex Energy 37 Alliance Resource Partners 38 VSE 39 Chico's FAS 40 Build-A-Bear Workshop 41 St. Mary Land & Exploration 42 Hurco 43 Unit 44 Barrett Business Services 45 Encore Wire 46 Ansoft 47 Sonic Solutions 48 Reliv International 49 Quality Systems 50 LoJack 51 Dynamic Materials 52 Diodes 53 Leucadia National 54 Argon ST 55 ValueClick 56 eCollege.com 57 Ventiv Health 58 Packeteer 59 Digital River 60 TTM Technologies 61 Sun Hydraulics 62 Coldwater Creek 63 Parlux Fragrances 64 CNX Gas 65 Altera 66 Ventana Medical Systems 67 Gen-Probe 68 Trimble Navigation 69 Radyne 70 Helix Energy Solutions 71 Providence Service 72 Miller Industries 73 Headwaters 74 Hydril 75 aQuantive 76 Commercial Vehicle Group 77 Brigham Exploration 78 Guess? 79 NETGEAR 80 Labor Ready 81 Pharmaceutical Product Development 82 Korn/Ferry International 83 DSW 84 Rofin-Sinar Technologies 85 ADTRAN 86 MSC Industrial Direct 87 MICROS Systems 88 Concur Technologies 89 Kforce 90 Lamson & Sessions 91 Stratasys 92 AngioDynamics 93 AMCOL International 94 Denbury Resources 95 Lufkin Industries 96 Lifetime Brands 97 II-VI 98 Digitas 99 Old Dominion Freight Line 100 Brady

...Alphabetical 85 ADTRAN 37 Alliance Resource Partners 65 Altera 93 AMCOL International 24 Amedisys 12 American Science & Engineering 92 AngioDynamics 46 Ansoft 75 aQuantive 54 Argon ST 13 ASV 44 Barrett Business Services 34 Berry Petroleum 10 Blue Nile 100 Brady 77 Brigham Exploration 40 Build-A-Bear Workshop 30 Ceradyne 39 Chico's FAS 36 Cimarex Energy 64 CNX Gas 16 Cognizant Technology Solutions 62 Coldwater Creek 76 Commercial Vehicle Group 88 Concur Technologies 94 Denbury Resources 59 Digital River 98 Digitas 52 Diodes 83 DSW 51 Dynamic Materials 56 eCollege.com 22 EFJ 32 Empire Resources 45 Encore Wire 35 Endo Pharmaceuticals Holdings 67 Gen-Probe 33 Gevity HR 78 Guess? 2 Hansen Natural 73 Headwaters 70 Helix Energy Solutions 18 Hittite Microwave 42 Hurco 74 Hydril 97 II-VI 15 Imperial Industries 23 InfoSonics 89 Kforce 82 Korn/Ferry International 80 Labor Ready 90 Lamson & Sessions 9 LCA-Vision 53 Leucadia National 25 LifeCell 96 Lifetime Brands 50 LoJack 95 Lufkin Industries 31 MEMC Electronic Materials 87 MICROS Systems 72 Miller Industries 86 MSC Industrial Direct 17 Multi-Fineline Electronix 5 NAVTEQ 29 Netflix 79 NETGEAR 28 NeuStar 20 NutriSystem 99 Old Dominion Freight Line 19 OmniVision Technologies 58 Packeteer 3 Palomar Medical Technologies 63 Parlux Fragrances 14 PeopleSupport 27 PetMed Express 81 Pharmaceutical Product Development 8 Programmer's Paradise 71 Providence Service 49 Quality Systems 69 Radyne 48 Reliv International 21 Resources Connection 84 Rofin-Sinar Technologies 26 RPC 47 Sonic Solutions 41 St. Mary Land & Exploration 91 Stratasys 61 Sun Hydraulics 68 Trimble Navigation 60 TTM Technologies 6 Under Armour 43 Unit 1 VAALCO Energy 55 ValueClick 7 VASCO Data Security International 66 Ventana Medical Systems 57 Ventiv Health 11 Volcom 38 VSE 4 W&T Offshore

20

NutriSystem (NTRI)

This weight-loss operator has slimmed down?and prospered. NutriSystem used to operate a nationwide network of weight-loss centers. The company began shuttering those in the 1990s completed the overhaul in 2003, after a new management team took over. Under that team, led by chairman and CEO Michael J. Hagan, NutriSystem began emulating insurance operator Geico and computer maker Dell by creating a low-cost weight-loss business. NutriSystem has no membership fees and no stores. Instead, customers pay about $289 per month for prepackaged meals, plus phone or Web counseling. That means most customers can do the NutriSystem program for about $10 a day, well below the $15-or-more-per-day cost of rivals. Average annual sales and profits over the past three years have jumped 94.4% and 101%, respectively. And the only people getting fat are investors: The stock was trading under $1 a share when Hagan's team came on board in 2002, and it's now at about $48.

Michael J. Hagan, 43

Chairman and Chief Executive Officer

Total Compensation*

$ 405,050

Total Options Value*

$ 12,380,396

* Fiscal Year 2005

Executive Bio

Michael Hagan has been chairman and chief executive officer of Nutri System since December, 2002. Hagan served as president and CEO of Verticalnet from January, 2001, to February, 2002, executive vice-president and chief operating officer from January, 2000, to January, 2001, and senior vice-president prior to that time. Prior to joining Nutri System, Hagan was the co-founder of Verticalnet, a business-to-business internet and software company and held a number of executive positions at Verticalnet since its inception in 1995. Prior to founding Verticalnet, Hagan served as vice-president and senior manager at Merrill Lynch Asset Management from 1990 to 1995 and worked for Bristol Meyers Squibb from 1988 to 1990. He served as chairman of Verticalnet from February, 2002, to May, 2005. He has been a director of Verticalnet since 1995. He has been a director of Nutri System since December, 2002, and is a member of nominating committee. Hagan has been a trustee of American Financial Reality Trust since April, 2003. He serves as a member of the board of trustees of Saint Joseph's University. Hagan received a BS from St. Joseph's University and was formerly a Certified Public Accountant.

Management Team

Key Executives

Michael J. Hagan; Thomas F. Connerty; Bruce Blair; Djordje Jankovic; James D. Brown

Board Directors

Djordje Jankovic; Warren V. Musser; Ian J. Berg; Brian P. Tierney; Stephen T. Zarrilli; Michael J. Hagan; Michael A. DiPiano; Robert F. Bernstock; Warren V.Musser

Executive Data provided by