SOURCE: Straight Up Brands, Inc.

January 24, 2007 09:00 ET

Straight Up to Acquire Additional Brands

Revenues to Increase Through Combined Marketing and Distribution Efforts

NEW YORK, NY -- (MARKET WIRE) -- January 24, 2007 -- Straight Up Brands, Inc. (PINKSHEETS: STRU) (the "Company"), an emerging developer and international marketer of premium branded spirits headquartered in New York, announced today the pending acquisition of a privately held company that is the owner of several celebrity-affiliated spirits brands. The Company has completed its due diligence on the acquisition, and the acquisition agreement is expected to be signed this week, with the closing of the purchase consummated within a short period of time thereafter.

Straight Up will acquire 100% of the capital stock of the private company, thereby causing the acquired company to become a wholly owned subsidiary of Straight Up.

The private company sales for 2006 surpassed $1,000,000 with very limited marketing of its brands. The combined revenue of Straight Up and the private company are expected to increase significantly in 2007 as these brands reach more markets and the acquisition's products are introduced to the Company's distribution and marketing network. The Straight Up marketing program, encompassing various media forms, including product placement CDs and videos produced by hip hop entertainers, will significantly increase consumer awareness with the anticipated result of a large scale increase in case sales for 2007. Upon closing of the acquisition, Straight Up will announce consolidated projections for the two companies for 2007.

David McCallen, CEO of Straight Up Brands, commented: "Acquiring this company has been a high priority target for our Company for some time, as it offers very promising growth prospects both in the US and internationally. We have worked closely with current management of the acquisition on several media and marketing projects, as our due diligence was being completed, and therefore there will be no delays in the integration of the acquisition's brands into our distribution and marketing systems. As with other brands that we are building and acquiring, we offer a strong route to market for premium branded spirits. We are very pleased to add these three exciting new brands to our portfolio. After the closing, we will announce details about the acquisition, its brands and our financial guidance for 2007 for both companies."

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About Straight Up Brands, Inc.

Straight Up Brands, Inc. develops, produces, and markets branded wine and alcoholic beverages through collaborations with artists, DJs and other influential celebrities. The Company's premium branded products are within three growing categories of the spirits industry: wine, vodka and liqueurs/cordials. The Company's first product brought to market is Bracco Wine; future products include Foxy Brown's sparkling wine, Storm Vodka with DJ Clue, and MoMo Mojito with Ja Rule. The Company anticipates adding to these product lines with additional celebrity endorsements throughout 2007. Leveraging the marketing power of artists combined with the current growth and solid profit margins in the spirits industry, the Company is well positioned for strong revenue growth, earnings and success.

The Company has distribution contracts with 10 distributors, including Southern Wine and Spirits, Opici and Stoller, who distribute the Company's products in 20 states. It is anticipated that the remaining large markets such as Texas, California, Massachusetts and Georgia will be penetrated by the end of the first quarter of 2007.


Statements about Straight Up Brands, Inc.'s expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. Straight Up's actual results could differ materially from expected results. Straight Up undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release, Straight Up will appropriately inform the public.

Contact Information

  • Contacts:

    Investment Banker:
    Paul Gozzo
    PMG Capital

    Investor Relations Contact:
    Gerald Kieft or Ryan Audin
    Wall Street Resources, Inc.
    2646 SW Mapp Road, Suite 303
    Palm City, Florida 34990

    Straight Up Brands, Inc
    David McCallen