Synergy Brands Reports Record Sales and Profits for FY 2008

SYOSSET, N.Y.--(Business Wire)--
Synergy Brands Inc. (OTCQX:SYBR):

* Revenues increase to $96 million.
* Fourth quarter Net Profit increases to $338,358 as compared to a loss of
$661,341.
* Reports full year Net Profit of $38,342 vs. a loss of $430,306.
* Annual Cash Flow rises to $2.3 Million
* Annual EBITDA grows to $4.3 million.

3 MONTHS 3 MONTHS Y/E Y/E
Results of Operation
12/31/2008 12/31/2007 12/31/2008 12/31/2007

Revenue 22,152,999 29,552,248 96,032,867 87,796,277
Gross Profit 1,939,814 1,990,976 9,457,776 7,736,069
Operating Profit (loss) 748,098 689,303 2,408,890 2,813,605
Net GAAP Profit (loss) from continuing operations attributable to shareholders 338,358 250,406 296,441 743,455
Per Share continuing operations 0.02 0.02 0.02 0.08
Cash Flow 847,322 948,041 2,296,776 2,229,458
Net loss from discontinued operations (911,747 ) (258,099 ) (1,173,761 )
Per share discontinued operations (0.10 ) (0.02 ) (0.13 )
Net GAAP Profit (loss) attributable to shareholders 338,358 (661,341 ) 38,342 (430,306 )
Per Share 0.03 (0.08 ) 0.00 (0.05 )
Financing & Dividend Charges 482,644 519,830 2,509,435 2,509,141
Per Share 0.04 0.05 0.21 0.28

3 months 3 months year ended year ended
Cash Flow reconciliation 12/31/2008 12/31/2007 12/31/2008 12/31/2007
Net GAAP Profit (loss) from continuing operations attributable to shareholders 338,358 250,406 296,441 743,455
Depreciation & Amortization 182,494 147,909 636,178 361,859
Operating non-cash charges 200,802 312,047 812,373 556,742
Non cash-Financing Charges 125,668 237,679 551,784 567,402
Cash Flow* 847,322 948,041 2,296,776 2,229,458

EBITDA Reconciliation
Net GAAP Profit (loss) from continuing operations attributable to shareholders 338,358 250,406 296,441 743,455
Depreciation & Amortization 182,494 147,909 636,178 361,859
Operating non-cash charges 200,802 312,047 812,373 556,742
Financing & Dividend Charges 482,644 519,830 2,509,435 2,509,141
EBITDA* 1,204,298 1,230,192 4,254,427 4,171,197

*EBITDA and cash flow are NON-GAAP measures that management believes are
relevant to the grocery industry.

Revenues increased by 9% to $96,032,867 for the year ended December 31, 2008
while gross profit increased by 22% to $9,457,776 for year ended December 31,
2008 as compared to the same comparable period in 2007. The increase of sales is
directly attributable to our food manufacturing operations, which nearly doubled
from the prior period. The Company further expanded its food manufacturing
operations by adding packaging lines for bakery mixes, potatoes prepared pasta
dinners, dried beans and pasta salads During the year the company added 85,000
square feet of manufacturing and storage space. Based on the current increases
in product demand, the company is in the process of leasing an additional
100,000 square feet in order to expand its production and storage capabilities.
Total operating facilities will be 276,00 square feet by June of 2009 up from
91,000 square feet in the beginning of 2008

Synergy reported a consolidated net profit of $38,342 for the year ended
December 31, 2008 as compared to a loss of $430,306 for the same comparable
period in 2007. The Company`s profitability resulted from a rapid expansion in
its manufacturing operations to meet growing customer demand. Gross profit
margins for the fourth quarter jumped by 30% to 8.8%, which enabled the Company
to generate a $338,358 profit for the period predominately due to the sale of
manufactured goods in Michigan.

The Company also reported $2.3 million in cash flow and $4.3 million EBITDA for
2008. The Company has used internally generated cash flow to grow its inventory
and accounts receivables to support its expanding operations. The increase in
business is attributable to an expanded customer base, the addition of
manufactured product lines, and increased sales to existing customers. The
Company is gaining traction for its "Loretta" and "Country Value" labels by
gaining customers from coast to coast as well as in Latin American, European and
Middle Eastern markets that are adopting the Company`s brands as their and store
brands.

Synergy is focusing its growth by expanding its manufacturing operations and
coordinating the logistical requirements to triple its capacity by the end of
2010. The Company expects to reach $112 million in sales in Fiscal 2009 with
free cash flow of $4 million from operations, EBITDA of $5 million and a $1.2
million in net profit.

For a detailed annual report go to:
http://www.otcqx.com/otcqx/market/quote?search=sybr

More information can be found at www.sybr.com, www.qfbi.net, www.phsgroup.com.

Forward-looking statements:

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 1994. 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", "believe" and other derivations thereof
and other words of similar meaning. In particular, these include, but are not
limited to, statements reflecting the projected business activities and goals,
revenues, earnings, non-GAAP measures of operations, 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 or uncertainties.

Martin E. Janis & Company, Inc.
Beverly Jedynak
312-943-1123
bjedynak@janispr.com

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