No exercise = No weightloss???

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Hey just wanted to know if anyone else finds that despite their calorie intake/deficit, if they don't exercise they will not loose weight.
I have a BodyMedia Fit and have been wearing it for over a month. I have my goals set so that regardless of exercise I have a 500 calorie deficit, so that it ensures I loose at one pound a week. With my exercising giving me that little umph for 2lbs per week. Well i had an average daily deficit of 900 cals last month, loosing about 1.75lbs per week. So I think my BMF is pretty accurate. What I noticed is that despite my deficit, even if it is 1000 cals, If I don't exercise at least 3 times per week, poof no weightloss, maybe even some weight gain! :-/ Now I am not starving myself as I have 2000-2200 calories per day as my BMR is approx. 2400 which is what my BMF said when I was sick and stayed in the bed all day. With a daily average 2700, for my normal sedentary job. Am I missing something or anyone else deal with this?