exercise will definatly help it will make your body consume more calories and metabolize more fat quicker. 5IBS in 2 1/2 weeks is exactly on target, if this is indeed fat your loosing, it could be water or muscle which is a common occurance.
1000 a day normaly would be too low, but I do not know your height, and build.
if it is indeed to low then some of the weight would be from muscle and when you stop dieting. your maintenace level will be lower since you have less to maintain which is bad, weight training and cardio will help a great deal in counter this effect along with what I perviously said.
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