Tobacco One, Inc. Announces Acquisition of Popular Mexican Cigarette Brand

Source from:  centredaily.com SCOTTSDALE, Ariz. Jul. 02, 2008 07/04/2008

Tobacco One, Inc. (Pink Sheets: TBCO) announced today that they have purchased a regionally popular cigarette brand from a Mexico City businessman for cash plus common stock. The previous owner will stay on as a consultant to Tobacco One, Inc. for a minimum two-year term. The brand was first introduced in Mexico City in 2006. It remained a regional brand until recently when Tobacco One's international marketing team finished a three-month feasibility study focusing on national expansion and consumer acceptance. During this study, Tobacco One in partnership with the Mexico City marketing firm Integra Marketing, S.A. de C.V. obtained numerous commitments that will result in expanded distribution nationwide. Currently, the brand is sold throughout Mexico City in premier retailers. Recently, these global chains have authorized the brand to immediately expand to all of their locations nationwide. This new authorization will add approximately 90 club locations, 120 big-box style stores and 80 super-centers to the brand's current base of participating retailers. This new rollout will feature the brand at over 4,000 cash register locations within these new stores. This program will be implemented during the months of July and August, 2008. Tobacco One, Inc. will provide the necessary resources and manpower needed to expand this brand into each targeted trade class in all major population centers throughout the country. "Along with the new expansion, and the additional contracts currently under review, Tobacco One, Inc. expects unit volume over the next 12 months to exceed 200 million sticks (cigarettes) for the cigarette brand, resulting in revenues of over $12 million, and net earnings (EBITDA) of nearly $3 million or 25%," stated Shawn Ulizio, Tobacco One's President and CEO. He continued, "The new brand is clearly positioned to be a market leader in Mexico's newly emerging discount cigarette price tier, and Tobacco One is nicely positioned to dominate in this specialized tobacco category." Safe Harbor Statement Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors available from the Company. Enditem