Kaboose Closes Acquisition of UK-Based Bounty Group

Acquires UK's Largest Parenting Club and #1 Online Family Destination in the
UK

TORONTO, Dec. 12 /PRNewswire-FirstCall/ - Kaboose Inc. ("Kaboose" or the
"Company") (TSX: KAB), one of the largest family-focused online media
companies in the world, announced today that it has completed the acquisition
of Bounty Group Limited ("Bounty"), the UK's largest parenting club and the
leading family destination online in the United Kingdom.
Under the terms of the agreement, Kaboose acquired 100 percent of Bounty
for a purchase price of (pnds stlg)70 million (approximately $140 million)
less debt and other long-term liabilities.
Bounty is the pre-eminent marketing and advertising platform in the United
Kingdom targeting new and expecting mothers, through exclusive contracts with
most UK-based hospitals, established relationships with brand owners and
direct access to over 95% of the estimated 750,000 annual births in the United
Kingdom. Over the past 48 years, Bounty has established a reputation as a
credible, independent source of information, products and services for new and
expectant mothers. As the number one life-stage marketing and advertising
company focused on new mothers in the UK, Bounty helps global advertisers
reach this coveted audience through online media and direct marketing, a
professional health network and product sampling, podcasting, photography and
online photos and parenting guides.
Bounty Highlights

- Europe's largest database of young families with approximately nine
million records;

- Number one online destination for young families in the United
Kingdom;

- UK's largest parenting club with over 2.4 million active members and
over 50,000 new members every month;

- Coverage of 95% of the approximate 750,000 annual births in the United
Kingdom, gained through 217 exclusive and 28 non-exclusive
distribution contracts with most of the maternity hospitals in the
United Kingdom;

- Largest coverage of the young family market and the greatest number of
touch points to consumers, starting in the early stages of pregnancy
and continuing until the child reaches five years of age;

- Generated revenue of $41.3 million in 2006 and $37.2 million for the
first nine months of 2007;

- Generated EBITDA (earnings before interest, taxes, depreciation,
amortization, non-recurring charges and share-based compensation) of
$7.2 million in 2006 and $6.9 million for the first nine months of
2007;

- Long-standing contractual client relationships with leading consumer
brands, including Procter & Gamble, Kimberly-Clark, Unilever,
Johnson & Johnson and ASDA (Wal-Mart); and

- Bounty's talented management team has signed three-year employment
contracts and will continue in their respective roles as part of the
Kaboose management team.

"The acquisition of Bounty is the biggest and most exciting step we have
made in our company's history," stated Jason DeZwirek, Chairman and Chief
Executive Officer of Kaboose. "Bounty has an unparalleled market position in
the UK and a fantastic recognizable brand with new and expecting families. The
UK is Kaboose's second largest audience and the acquisition of Bounty will
enable us to monetize our significant European online traffic. As we extend
our strategy to international markets targeting the young family audience, we
believe that we have identified the best company in Europe to meet our goals."
Simon Williamson, Managing Director of Bounty said, "The entire Bounty
team is thrilled to be teaming up with Kaboose. We look forward to the
combination of our many touch points with this highly coveted consumer
segment. The combined company will be a powerful and integrated global media
and marketing platform, helping leading consumer brands reach the young family
target audience."
Under the terms of the Bounty transaction, Kaboose acquired all of the
outstanding shares of Bounty from Bounty shareholders, including funds managed
by ECI Partners LLP, a UK-based private equity firm. The purchase price was
(pnds stlg)70 million (approximately $140 million) less debt and other
long-term liabilities of approximately (pnds stlg)12.3 million. Approximately
(pnds stlg)5.8 million of the purchase price was satisfied through the
issuance of approximately 4.2 million common shares of Kaboose to the Bounty
shareholders, (pnds stlg)8.2 million will be satisfied through the issuance by
Kaboose of loan notes that will be due in June 2008 and the balance will be
paid in cash. The cash portion of the purchase price was financed through a
$115 million equity offering and a new credit facility with the Royal Bank of
Canada. In addition, HSBC will continue its lending relationship with Bounty
following the acquisition by Kaboose.
EBITDA is a non-GAAP financial measure and does not have a standardized
meaning. The method used for calculating EBITDA may differ from methods used
by other entities and, accordingly, is unlikely to be comparable to similar
measures used by other entities.
About Kaboose Inc.
Kaboose is one of the largest family-focused online media companies in the
world and one of the top-five most visited family destinations online. From
pregnancy to parenting, birthday parties to scrapbooking, and entertainment to
education, Kaboose has the content and applications to help parents plan and
share their family life. Kaboose owns some of the world's leading online
properties targeting families, including Bounty.com, BabyZone.com,
ParentZone.com, Kaboose.com, AmazingMoms.com, TwoPeasInABucket.com,
BubbleShare.com, BirthdayInABox.com, Funschool.com and Zeeks.com. Kaboose
trades on the Toronto Stock Exchange under the symbol "KAB."
This document may contain forward-looking statements, relating to Kaboose
Inc.'s operations or to the environment in which it operates, which are based
on Kaboose Inc.'s operations, estimates, forecasts and projections. These
statements are not guarantees of future performance and involve risks and
uncertainties that are difficult to predict, and/or are beyond Kaboose Inc.'s
control. A number of important factors could cause actual outcomes and results
to differ materially from those expressed in these forward-looking statements.
Consequently, readers should not place any undue reliance on such
forward-looking statements. Kaboose Inc. disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE Kaboose Inc.

Jason DeZwirek, Chairman and Chief Executive Officer; Jonathan Pollack, Chief
Financial Officer, TEL: (416) 593-3000, FAX: (416) 593-4658; For additional
information on Bounty, please visit: www.bounty.com and
www.bountybusiness.com