House of Brussels Chocolates Inc.

House of Brussels Chocolates Inc.

March 31, 2005 09:00 ET

House of Brussels Completes $6 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HOUSE OF BRUSSELS CHOCOLATES INC.

OTC Bulletin Board SYMBOL: HBSL

MARCH 31, 2005 - 09:00 ET

House of Brussels Completes $6 Million Financing

HOUSTON, TEXAS--(CCNMatthews - March 31, 2005) - House of Brussels
Chocolates Inc. (OTCBB:HBSL)

Company Ready to Proceed to Next Growth Level

House of Brussels Chocolates Inc. ("House of Brussels") (OTCBB:HBSL),
announced today the closing of a $6 million convertible financing
facility with Laurus Master Fund, Ltd. ("Laurus Funds"), a New York
based institutional equity fund that specializes in making direct
investments in growth-stage public companies that exhibit exceptional
promise.

Mr. Petersen, CEO of House of Brussels stated, "We are delighted to have
completed this important financing. Our Company is faced with
significant growth opportunities. This infusion of capital provides the
resources we've been seeking to support the expansion in production
required by our increasing sales volumes." "We are exceptionally pleased
to have a long-term strategic financing partner like Laurus Funds,"
Petersen added.

The $6 million facility consists of a $3.5 million 3-year term note and
a $2.5 million revolving line of credit based on eligible accounts
receivable. The financing is convertible, under certain conditions, into
shares of House of Brussels' common stock at a fixed price of $0.88 per
share. In connection with the financing, House of Brussels issued Laurus
Funds a common stock purchase warrant to purchase up to 1,500,000 shares
of its common stock at $1.20 each.

Bill Donovan, Chairman of HBSL's Board of Directors, commented, "The
ambition of House of Brussels' management is to build a world-class,
leading-edge chocolate company. We know this goal requires creative
thinking and a solid financial structure. We believe this financing will
allow us to improve the strength of our balance sheet and increase the
flexibility with which we respond to our customer's needs."

House of Brussels will file a Form 8-K with the Securities and Exchange
Commission, which will include copies of the material agreements
involved.

About House of Brussels Chocolates Inc. ( www.brusselschocolates.com )

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.

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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    House of Brussels Chocolates Inc.
    Grant Petersen
    Chief Executive Officer
    1.800.661.1524
    info@hobc.us