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.