SOURCE: Synergy Brands

October 25, 2005 12:56 ET

Synergy Brands Halts Operation in Miami Due to Hurricane Wilma

MIAMI, FL -- (MARKET WIRE) -- October 25, 2005 -- Synergy Brands, Inc. (NASDAQ: SYBR) reported that as a result of the power loss from Hurricane Wilma, the Company's Miami operation, Cigars around the World (CAW), which houses its cigar business, will have limited operating capabilities for a period of possibly up to four weeks. The Company reported that although the Company's structure is intact, the immediate area was severely damaged and is without power and basic business services. The Company plans to have limited operations using its back-up generator that should allow for the processing of online and wholesale orders within a few days.

"Although we will have limited operations for a brief period of time, I want to assure our shareholders that corporately do not expect any material damage to our overall business as this operation is insured and represents a small percentage the total Synergy Business," explained Mair Faibish, chairman of the Company.

He noted that the opening of its first Cigars Around the World retail store, which was scheduled for next week, would likely be delayed for at least 30 days. "While we are disappointed with the effect that hurricane has produced we are confident that the momentum the Company already has in its other areas will make up for any loss of business during this time," Faibish said.

Synergy Brands is a holding company that operates in wholesale distribution of consumer goods as well as retail distribution for premium cigars and salon products through three segments. It principally focuses on the sale of nationally known brand name consumer products from major U.S. manufacturers. More information on Synergy Brands and its subsidiaries is available at the company's website: http://www.sybr.com.

This press release and company review and assumptions made regarding the financial figures and other information, referenced and presented, state and reflect assumptions, expectations, projections, intentions and/or beliefs about past and future events that are intended as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate to historical or current facts. They use words such as "anticipate," "estimate," "project," "forecast," "may," "will," "should," "expect," "assume," and other deviations thereof and other words of similar meaning. In particular these include, but are not limited to, statements reflecting the projected revenues, earnings, profit and loss of the Company and associated costs. Any or all of the Company's forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. EBITDA is a financial term that management believes is a relevant measurement for the industries the Company operates in. However EBITDA is not recognized as a GAAP measurement and should not be relied upon as such. For a description of many of these risks and uncertainties, please refer to the company's filings with the U.S. Securities & Exchange Commission (www.sec.gov) including Forms 10KSN and 10QSB.

Contact Information

  • Contact:
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    Amy Ruffalo (ext. 15)
    Martin E. Janis & Company, Inc.
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