House of Brussels Chocolates Inc.
OTC Bulletin Board : HBSL

House of Brussels Chocolates Inc.

November 01, 2005 09:00 ET

Board Chairman Donovan Comments on Board and Management Realignment at House of Brussels Chocolates

HOUSTON, TEXAS--(CCNMatthews - Nov. 1, 2005) - House of Brussels Chocolates ("Brussels", the "Company"or "HBSL") (OTCBB:HBSL), through its Chairman of the Board of Directors (the"Board"), William Donovan, makes the following statement.

"Brussels' wishes to thank its departing Directors and Officers, including Harold Kahn, Dale Frey, Corbin Miller and Robert Wesolek for the sincere efforts they have expended on the Company's behalf. In just the three short years, Brussels has come a long way in terms of manufacturing infrastructure, blue chip clients, and top line revenue growth. The Company recognizes, however, that its pace of expansion has resulted in challenges to the cost effective integration of its operations. In an effort to reduce costs and enhance results, the Board has determined to geographically streamline Company operations, and realign its management team. Accordingly, Brussels recently closed its Houston based administrative office and accepted the resignation of Robert Wesolek from his role as the Company's CFO. Mr. Wesolek will continue to serve as a Company Director. Dr. Donovan also accepted the resignations of Harold Kahn, Dale Frey and Corbin Miller as Directors of the Company. The Board is currently evaluating possible nominees to replace certain resigning members."

Donovan continued, "Brussels' sales for the year ended April 30, 2005 increased 202% when compared to the prior year and assets increased 160% during that same period. These increases resulted from the Company's continued investment in its growth and facilities. We believe our enhanced infrastructure directly resulted in new customers and opportunities. Our private label relationships have grown substantially and we have experienced a maturation of opportunities for our nutraceutical subsidiary, ChocoMed™. Currently however, the Board is convinced that the time has come to cut our costs and focus on the efficiency of newly acquired capacity. The Company believes elevated cost-control and consolidation efforts will provide a basis for enhanced pricing, plant controls and production margins. In that connection, the Board also terminated the employment of its Chief Operating Officer, Guy Debbas. To support an orderly transition, the Board expects to shortly finalize consulting arrangements to supply the Company with manufacturing and financial expertise while management replacements are identified and installed."

"With the above changes, and better shareholder communications the Board believes, shareholder confidence and increased value should be sustained."

About House of Brussels Chocolates Inc. (

For more than 20 years, House of Brussels Chocolates has manufactured and distributed high-end, award-winning chocolates. HBSL's signature product is the chocolate hedgehog, which marries the traditional Belgian symbol of good luck (i.e., the hedgehog) with taste (i.e., chocolate) for a strong customer appeal. In addition to its house brands, HBSL creates custom packaging, shaping and sizing as well as private labels for numerous North American retailers.

DeBas Chocolatier, a wholly owned subsidiary of HBSL, produces the Company's artisan chocolates. Every piece of DeBas chocolate is handcrafted to be a true work of art that is distinctly superior in quality and taste. DeBas is also famous for its panned chocolate products such as chocolate-covered coffee beans, fruits and nuts. The DeBas factory is certified as organic by the State of California, in addition to being Orthodox Kosher certified.

About ChocoMed™, Inc. (

ChocoMed, Inc., as a wholly owned subsidiary of House of Brussels Chocolates, has a mission to interface with third party companies, laboratories, or organizations that provide us nutritional and dietary supplements, functional foods and pharmaceutical compounds that are suitable candidates for hosting in chocolate-based products. ChocoMed will then bring these compounds to House of Brussels' manufacturing division who will attempt to "marry" these compounds with chocolate. If successful, the resulting nutraceuticals using chocolate as a delivery mechanism should prove to be an extremely marketable product.

Safe Harbor: Certain statements in this news release regarding future expectations and plans may be regarded as "forward looking statements" as defined by federal law. Although the Company believes such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. They are subject to various risks, including uncertainties regarding timing, and capital availability, as discussed in detail in House of Brussels quarterly and annual reports filed with the SEC.

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