Vertical Branding's Role as Category Leader for Major Retail Chains Continues to...

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Thu Jul 31, 2008 7:50am EDT

Vertical Branding's Role as Category Leader for Major Retail Chains Continues to Grow

    Company's 'As Seen on TV' Displays Now in Over 4,000 Locations
LOS ANGELES--(Business Wire)--
Vertical Branding, Inc. (OTCBB: VBDG) provided an update today on
its growing success as a "category leader" for some of the best-known
names in retailing. In this role, Vertical Branding works with retail
chains in managing an "As Seen on TV" product display strategically
positioned in-store and featuring Vertical Branding products as well
as best of breed offerings from other DRTV product marketers such as
TeleBrands, Ontel, IdeaVillage and Allstar Marketing Group.

   Since launching the initiative toward the end of last year, the
Company has established exclusive or non-exclusive category leader
arrangements with several high profile retailers, including:

   --  Staples;

   --  Bealls;

   --  SuperValu;

   --  Albertsons;

   --  Stop & Shop;

   --  Circuit City; and

   --  Jewel-Osco.

   Vertical Branding's category leader presence currently extends to
more than 4,000 storefronts, with the goal of adding additional stores
and retail chains on an ongoing basis. The Company designs customized
fixtures for each retailer featuring eye-catching "The Best of the
Best" signage.

   The category leader strategy is designed to capitalize on the
visibility and consumer awareness surrounding products advertised on
television while at the same time introducing the consumer to other
complementary or contextually appropriate products within the display
space, all with the ultimate objective of helping retailers convert
store real estate and customer traffic into sales and generating
additional distribution for Vertical Branding products in the process.

   "By serving as the intermediary between product manufacturers and
leading retailers, we have created a 'win-win' scenario for all
involved," said John Cammarano, President of the Company's Adsouth
retail sales unit. "Our 'As Seen on TV' fixtures get optimal placement
in stores. Our retailer partners gain new product categories outside
their core product mix, broaden their customer base and ring up
incremental sales from existing customers. In addition to distribution
for Vertical Branding products and fee-based compensation for
placement of third-party products, we receive constant streams of
invaluable point-of-sale information and actionable, real-world
consumer data."

   "Serving as category leader makes us a true marketing partner with
our retailers and gives us a unique competitive advantage," noted
Vertical Branding CEO Nancy Duitch. "It represents a deeper
relationship than that of a supplier. Among other benefits, it allows
us to entrench ourselves in strategic areas of each store and achieve
constant product placement. Our category leader initiative is part of
our overall strategy of building an industry-leading retail
distribution channel. Based on the sell-through we have achieved as
category leader to date, we are hopeful that adoption of our program
by top-tier retailers will continue to spread."

   Also commenting on the emerging trend toward collaboration among
product companies and partnership with retailers was consumer product
pioneer and marketing authority A.J. Khubani: "Vertical Branding's
visionary distribution strategy has truly been a coup for
TeleBrands--getting our products into 4,000 additional retail doors
that we have had difficulty penetrating. I believe the key has been
the creation of a powerful line of products that could have only been
accomplished by the collaboration of the key players in the 'As Seen
on TV' business. We are thankful to John Cammarano and his team for
initiating this collective effort and making the category a highly
successful reality at these key retailers." Mr. Khubani is the founder
and chief executive of TeleBrands, one of the nation's top
direct-response TV marketing companies, and is a frequent lecturer on
entrepreneurship at Princeton University.

   About Vertical Branding, Inc.

   Vertical Branding is a consumer products company selling
high-quality household, beauty and personal care products at
affordable prices. The Company builds consumer awareness for its
products and brands through direct response television, Internet and
print advertising, with the goal of broader wholesale distribution to
many of the country's largest retailers and drug chains as well as
catalogs, home shopping channels and international distributors.
Vertical Branding develops its own proprietary products and brands and
licenses the rights to other select products that pass its rigorous
screening process. The Company's hottest-selling products and brands
currently include MyPlace, SteamBuddy, Hercules Hook, ZorbEEZ, EZ
Foldz Step Stool and StarMaker Cosmetics.

   Information Regarding Forward-Looking Statements

   This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements include information regarding the Company's expectations,
goals or intentions about the future, including explicit or implied
statements about product or program success. These statements reflect
current expectations only and are qualified by numerous risks and
uncertainties described from time to time in our filings with the
Securities and Exchange Commission under the heading 'Risk Factors,'
as well as other factors or circumstances that could cause actual
results or events described in forward-looking statements to differ
materially from those anticipated or implied, and there can be no
assurance that any such statements will ultimately prove to be
accurate. All forward-looking statements speak only as of the date
made, and the Company undertakes no obligation to update these
forward-looking statements except as required by law.

CCG Investor Relations and Strategic Communications
Sean Collins, Senior Partner
310-477-9800 ext. 202
www.ccgir.com

Copyright Business Wire 2008
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