The main objective of this study was to find the effectiveness of exercise on sugar level and to develop a model for measuring the unit change in the sugar level at different times. The sugar level depends upon the exercise, diet and hypoglycemic drugs. Regular exercise is the cheapest way to maintain the sugar level as compare to diet and the high cost of hypoglycemic drugs. A new model for assessing the effectiveness of exercise on blood sugar level was developed called Exercise Effect model. It was observed that the sugar level after three months exercise was reduced by 5 percent and after six months exercise it was reduced by 3 percent. The Exercise Effect Model is an effective Statistical method for assessing the unit change in sugar level after regular exercise.