New Leaf Brands (OTC BB: NLEF) was founded in 2004 beverages for consumers that are great-tasting and made only with high quality ingredients. New Leaf Tea was the Company’s first product that was born out of that vision. Today, New Leaf is available to consumers in 14 unique flavors and is sold in over 8,000 outlets including 7-Eleven, Costco and Whole Foods. New Leaf has an aggressive growth strategy in place which includes expanding its current network from 80 distributors to 250 and 29 states to all 50 within the next 3 years.

Mr. Eric Skae, President and CEO, has spent the past eighteen years in the beverage industry working in senior level sales, marketing and distribution roles helping to grow major brands including Naked Juice, Fresh Samantha, Hansens and Arizona Iced Tea. Mr. Skae has tremendous experience and has formulated a strong plan to make New Leaf a nationwide brand.

Investment Highlights

•     Strong Growth - Case volume up 68% in Q2 of 2009 vs. Q1 of 2009.
•     Strong U.S. and Exported Distribution - New Leaf Iced Tea is already in 29 states and exported to 8 locations including Puerto Rico, Canada, and the Bahamas.
•     Established Distribution - 80 distributors and growing as well as 14 well known and established retailers who currently offer New Leaf Tea including 7-11, Costco, and Whole Foods.
•     New Focus - Company recently sold nutraceutical division to focus on New Leaf beverage line; simultaneously converting preferred stock, exercising warrants and significantly reduced debt.
•     Strong Public Valuations - There have been several recent transactions in the beverage industry at an average multiple of 4.2 times sales. Please find below a chart of the recent M&A activity.

Eric Skae, CEO and President—Mr. Skae was appointed Chief Executive Officer and Chairman of the Board of Directors of the company on March 4, 2009 and has served as a director since September 2008. Mr. Skae has spent the past nineteen years in the beverage industry working in senior-level sales, marketing and distribution roles. Prior to joining the Company, Mr. Skae founded Skae Beverage International, LLC as Midnight Sun Brands, LLC in October 2002. During this time he created the New Leaf Brand and was also a partner with Pepsi Iceland developing Iceland Spring Water. During a 5 year period the Iceland Spring Brand became a leading brand in the Natural/Health Food Channel having national distribution. Mr. Skae sold his interest in Iceland Spring Water in November 2008. From 1999 to 2002, Mr. Skae worked as President and General Manager of Fresh Solutions, Inc., a Division of Saratoga Beverage Group. While there he was responsible for a $25 million distribution business as well as advising the CEO on the company’s sale to North Castle Partners. He also was responsible for the East Coast roll-out the Naked Juice brand. From 1997 to 1999, Mr. Skae was Director of Sales at Fresh Samantha Inc. where he managed 7 distribution centers and assisted the company to grow from $5 million in total sales to $45 million in 2 ½ years. From 1996 to 1997, Mr. Skae was Vice-President of National Accounts at Hansen Beverage Company where he secured and managed National Accounts such as Seven Eleven, Walgreen’s, Circle K, Publix, Giant Foods, Mobil, Chevron, Texaco and Quik Trip. He also managed all Canadian business. From 1993 to 1996, Mr. Skae was a Regional Manager at Arizona Beverages where he managed the Midwest and Mid – Atlantic regions. He started his Beverage career as distributor in Orlando Florida in 1991. Mr. Skae graduated from Northwood University with a Bachelors degree in Business Administration.

For more information please visit www.newleafbrands.com