SOURCE: Zealous, Inc.

February 24, 2010 17:20 ET

Update: Zealous Board Announces Corporate Restructuring Plan to Settle Debt

Plan to Provide Needed Liquidity to Retire Debt and Support Stockholders

NEWPORT BEACH, CA--(Marketwire - February 24, 2010) - Zealous, Inc. (OTCBB: ZLUS) announced today that its Board of Directors has approved a corporate restructuring plan. The plan includes Gary Gottlieb, currently the CFO of Zealous, Inc., to transition to the new position of Chief Restructuring Officer effective March 1, 2010. "We are very pleased with our progress we have made with some of our creditors and believe with our focus on these issues we can expedite this process to the benefit of all concerned," said Gottlieb. Gottlieb continued, "We are very serious about settling our debt while continuing to do the best we can for our shareholders and creditors. We have been working hard to incubate our subsidiaries and believe focusing on settling our debt ultimately supports these efforts."

It was also announced that Milton C. Ault III will remain President, CEO and Chairman of Zealous Inc., the holding company that controls both Zealous Interactive and Health and Wellness Partners, Inc. "Given Mr. Gottlieb's resume, experience and his familiarity with many of the Company's creditors, the choice was strategic and simple. Mr. Gottlieb has been methodical in helping us develop our subsidiaries and believe he will bring that same dedication and energy to this position," said Mr. Ault. Mr. Gottlieb previously has been a part of the restructuring of several companies including Sweetheart Cup, United Way of LA and Computer Science Corporation.

The Company also reported that it has moved to a new permanent headquarters at 105 Palm in Newport Beach, CA. The phone number remains the same, (949) 471-0123.

It was also announced that the Company will have news on March 1, 2010. The Company will hold a teleconference this day after the market close for all investors to review this news and discuss the future of the Company. To participate please send an email to ir@zealousinc.net.

About Zealous, Inc.

Zealous, Inc. is a holding company which operates through its three subsidiaries, Zealous Interactive, Inc., Health and Wellness Partners, Inc., and Zealous Holdings, Inc. Zealous Interactive, Inc. is a multimedia company specializing in online media distribution and content management. The flagship enterprise of Interactive is its adult portal and social network and features its print and online publications and over 600 URLs and websites. Health and Wellness Partners, Inc. is a distributor of health, energy and vitality products that promote wellness in body, mind and spirit. Zealous Holdings, Inc. was a financial services holding company now discontinued and involved in Chapter 7 dissolution.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Zealous Inc. "plans," "expects," "should," "believes," "anticipates" or words of similar importance. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release and Zealous Inc., does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

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