VitaCube Systems Holdings, Inc. Reports Second Quarter Results

DENVER, Aug 16, 2005 (PRIMEZONE via COMTEX) -- VitaCube Systems Holdings, Inc. (PRH), a Denver-based nutraceutical company, today reported second quarter operating results for the period ended June 30, 2005.

The second quarter results were principally influenced by the closing of a public offering of the Company's securities raising approximately $7.3 million after offering costs and expenses along with the continued growth of independent distributors that sell and market the Company's products.

Net losses for the quarter ended June 30, 2005 totaled $1,043,488 compared with net losses of $446,718 for the quarter ended June 30, 2004. Income per share was a net loss of $.11 as compared to a net loss of $.07 per share in the same period in 2004. Changes in net losses are attributed to an increase in both sales and marketing expenses and general and administrative expenses.

Revenues for the current quarter totaled $222,670, a 42% increase as compared with $156,483 for the corresponding quarter in 2004, and were also up for the six months ended June 30, 2005 at $459,726, or a 39% increase as compared with revenues of $331,017 for the six months ended June 30, 2004.

The Company's gross profit increased by 18% for both the quarter and six months ended 2005 over the same quarter and six months in 2004. The major contributing factor was due to the increase in net sales. Gross profit margin decreased to 52% for the current quarter from 63% for the comparable quarter in 2004 and from 59% for the six months ended June 30, 2005 from 69% for the six months ended June 30, 2004 due to sales of lower margin items.

Earnest Mathis, CEO of VitaCube Systems Holdings, Inc., stated, "The financial results this quarter reflect an improving base of operations - our customer count was up, our endorser ranks continued to increase and, for the first time, we were able to enroll a significant number of experienced network marketing sales leaders. We delivered these results with far lower expenditures than originally projected in our prospectus. The entire VitaCube organization remains focused on growing the top line, and ultimately, delivering a solid bottom line return."

Among the highlights completed or announced during the second quarter:

-- Gross Proceeds from Financing of $9 Million
-- Addition of Veteran Marketing Professionals
-- Strategic Technology Alliance for Improved Research and
-- Addition of Doug Ridley as Company President

About VitaCube Systems Holdings, Inc.

VitaCube Systems Holdings, Inc. (V3S) is a provider of nutritional foods and beverages designed to help enhance physical health and overall performance. V3S has developed a comprehensive line of nutritional supplements and functional foods designed in systems that are easy to take, simple to understand, and conveniently fit within a lifestyle. V3S's commitment to quality, science, and research has earned them a loyal following of over 350 world-class athletes, such as PGA Tour Professional, Tom Pernice, Jr., 5-Time Cy Young Award Winner, Randy Johnson, Super Bowl Champions Mike Alstott and Lawyer Milloy, Olympic Medalists Briana Scurry and Caroline Lalive, and Stanley Cup Winner Blake Sloan. V3S products are only available through independent distributors located throughout the nation. For more information about VitaCube, please visit the following website

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release regarding VitaCube Systems Holdings, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-KSB for the most recently ended fiscal year.

Certain statements in this release regarding the Company's agreements are in accordance with the guidelines established by the Federal Trade Commission for endorsements in advertising.

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