SOURCE: Celsius Holdings, Inc.

October 24, 2007 15:25 ET

Celsius Holdings Reports Increased Revenue

DELRAY BEACH, FL--(Marketwire - October 24, 2007) - Celsius Holdings, Inc. (the "Company") (OTCBB: CSUH) today reported revenue for the three month period ended September 30, 2007 was $508,000 as compared to $376,000 for the prior quarter, the three month period ended June 30, 2007 and as compared to $414,000 for the three month period ended September 30, 2006. The Company also reported a net loss of $784,000 or $0.01 per basic and diluted share for the three months ended September 30, 2007. This compares with net loss of $418,000 or $0.01 per basic and diluted share for the three months ended September 30, 2006.

Mr. Stephen C. Haley, chairman and CEO, said: "We are pleased to announce that we are seeing much more activity around our brand and have been successful in placing Celsius in many new retailers during the last few months. The revenue included more high profile retailers as well as significant reorders from multiple channels, grocery, convenience and health & fitness. The increase was not huge yet but the 'quality' of the revenue was high."

"Operationally," Mr. Haley said, "with our growing sales force and distribution coverage, our revenue is becoming more predictable. With this we have been able to get our gross margin back up to close to where we believe it should be. With more revenue, better forecasts and better purchasing leverage our gross profit was over 47% in the quarter."

Mr. Haley continued by stating, "We are pleased that the registration statement required under our stock purchase agreement with Fusion Capital has been declared effective by the Securities and Exchange Commission and we have started to get our financing from this source. Since October 16 we have sold Fusion Capital shares totaling $300,000. This will give us the possibility to more actively market our products and should show positive results to our revenue growth."

The company's quarterly conference call is scheduled for 4:30 p.m. ET, Thursday October 25, 2007. The call may be accessed through live webcast links on the company's Internet home page, www.celsius.com. The webcast will be archived and available on the company's website for one month following the call.

About Celsius Holdings, Inc.

Celsius Holdings, Inc. (OTCBB: CSUH) manufactures Celsius through its wholly owned operating subsidiary, Celsius, Inc. Celsius, Inc. is quickly gaining attention in the emerging $36 billion functional food and beverage industry, as the creator of the calorie burning beverage category and as a pioneer and leader in developing healthier beverage choices. Celsius, Inc. is building unique distribution strategies to gain broad penetration in all channels serving its consumer targets. The continued mission of Celsius, Inc. is to create healthy refreshment through science and innovation and growth through passion and integrity. For more information about Celsius and Celsius, Inc., please visit http://www.celsius.com. For investor information, please visit http://www.redchip.com.

Forward-Looking Statements

This press release may contain statements, which are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of the Company's future results of operations, financial position or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. You should not rely on forward-looking statements because the Company's actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations effecting our business, and other risks and uncertainties discussed in reports the Company files from time to time with the Securities and Exchange Commission. The Company does not intend to and undertakes no duty to update the information contained in this press release.

                  Celsius Holdings, Inc. and Subsidiaries
                   Condensed Consolidated Balance Sheet

                                                     September 30, 2007
                                                  ------------------------
                                                               (Unaudited)
Current assets:
  Cash and cash equivalents                       $                 90,116
  Accounts receivable                                              378,110
  Inventories, net                                                 515,720
  Other current assets                                              64,156
                                                  ------------------------
Total current assets                                             1,048,102
Property, fixtures and equipment, net                               55,804
Other long-term assets                                              50,901
                                                  ------------------------
Total Assets                                      $              1,154,807
                                                  ========================

Current liabilities:
  Accounts payable and accrued expenses           $                414,811
  Deposits from customers                                          350,000
  Loans payable                                                    572,446
  Short term portion of long term other
   liabilities                                                       7,048
  Due to related parties                                         1,037,190
                                                  ------------------------
Total current liabilities                                        2,381,495

Long term other liabilities                                         16,184
                                                  ------------------------
Total Liabilities                                                2,397,679
                                                  ------------------------

Stockholders' Deficit                                           (1,242,872)
                                                  ------------------------
Total Liabilities and Stockholders' Deficit       $              1,154,807
                                                  ========================

                  Celsius Holdings, Inc. and Subsidiaries
              Condensed Consolidated Statements of Operations
                               (unaudited)

                    For the Three Months Ended  For the Nine Months Ended
                          September 30,               September 30,

                        2007          2006          2007          2006
                    ------------  ------------  ------------  ------------

  Net sales         $    508,489  $    414,494  $  1,125,547  $  1,030,141
  Cost of sales          268,429       258,108       745,168       714,220
                    ------------  ------------  ------------  ------------

Gross profit             240,060       156,386       380,379       315,921

  Selling and
   marketing
   expenses              335,715       264,363       796,095       626,356
  General &
   administrative
   expense               646,598       278,933     1,591,224       504,718
  Contract
   termination
   expense                     -             -       500,000             -
                    ------------  ------------  ------------  ------------

Loss from
 operations             (742,253)     (386,910)   (2,506,940)     (815,153)

Other expense:
  Interest expense,
   related party          16,708        18,442        53,198        49,311
  Interest expense,
   net                    24,640        12,767        68,676        20,903
                    ------------  ------------  ------------  ------------

Total other expense       41,348        31,209       121,874        70,214
                    ------------  ------------  ------------  ------------

Net loss            $   (783,601) $   (418,119) $ (2,628,814) $   (885,367)
                    ============  ============  ============  ============

Basic and diluted:
Weighted average
 shares outstanding  104,213,018    70,912,246    99,105,323    70,912,246
                    ============  ============  ============  ============
Loss per share      $      (0.01) $      (0.01) $      (0.03) $      (0.01)
                    ============  ============  ============  ============

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