PNGB Panglobal Brands Inc (CE)

Panglobal Brands Inc. (OTCBB:PNGB) will again record its best quarterly sales revenue in the history of the Company, growing 8% over June 30, 2008. Sales revenue for the three months ended September 30, 2008 totaled $5,800,000 versus sales revenue of $5,300,000 for the prior three months ended June 30, 2008 and $210,000 for the prior year three months ended September 30, 2007. The company exited development stage status on January 1, 2008 and sales revenue for the nine month period ending September 30, 2008 totaled $14,000,000. Full fiscal year to date sales revenue for the twelve months ended September 30, 2008 totaled $14,169,000 versus $592,000 for the twelve months ended September 2007. Panglobal Brands Inc. currently has a sales order backlog which continues to grow totaling $9,100,000�for deliveries to retail stores. In addition, we had almost $3,000,000 in shipments for October. Our Scrapbook brand accounts for $3,700,000 of that total and our SoSik brand and our contemporary divisions account for the balance of $5,400,000. Most of the order backlog is intended to be shipped during the five months to March, 2009. Panglobal Brands acquired the Scrapbook label in June. Scrapbook sales contributed approximately $2,000,000 toward the revenue for the quarter ended September 30, 2008 and revenues are expected to continue to grow in the current quarter. The Scrapbook label is aimed at junior (teen and early 20�s) contemporary markets and is known for its mix and match prints and comfortable knit fabrics. Scrapbook products can be found at department stores and boutiques. Our strategy has been to build a series of apparel brands, consisting of mainly women�s apparel. We now manage our business in three segments-SoSik/juniors, Scrapbook, and contemporary labels. Our SoSik junior business has been our biggest seller for the twelve months ended September 30, 2008 with sales over $9.4 million. We have built some strong customer relationships with Charlotte Russe, Ross, The Buckle and Forever 21. Under the SoSik label, we design and market junior denim, t-shirts, dresses and sportswear. �We are very pleased with our continued growth during the last three months and with our ability to keep our backlog of open orders consistent and growing. We have trimmed our organization and our overheads as we move forward in difficult times clearly focused on our three strong product lines and on dealing with excellent retailers who can weather this economic storm. We are proud to see our products gaining tremendous acceptance within the channels which we sell,� said Stephen Soller, Chief Executive Officer of Panglobal Brands Inc. About Panglobal Brands Inc. Panglobal Brands, Inc. is committed to building a diverse stable of apparel brands, capitalizing on opportunities to participate in the hottest fashion trends as they happen. Our business strategy is to create a balance with dynamic branded products and the traditionally more stable private label apparel business by selling branded products through specialty retailers and by running a private label division catering to department store chains. Our current brands include: SoSik, which represents affordable fashions for the burgeoning junior market; Scrapbook, which is aimed at the teen and junior markets and features mix and match knits; Tea & Honey, a casual ladies wear collection that has onto the scene this year; Haven, a value oriented contemporary print dress label. This strategy plus a management team with significant apparel industry experience, enables Panglobal Brands to bring eye-popping product lines to market at competitive price points. Forward-Looking Statements This news release contains �forward-looking statements.� Statements in this press release, which are not purely historical, are forward-looking statements and include statements concerning the Company�s business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and assumptions or expectations relating to any future events, conditions, performance or other matters. Such forward-looking statements include, among others, that: (i) our orders backlog will become a firm sale (ii) we will ship our entire sales order backlog of $9,100,000 through March 2009; (iii) we can build brand recognition by marketing our products to fashion conscious consumers, (iv) Scrapbook sales can continue to grow. Forward-looking statements are subject to risks, uncertainties and factors include, but are not limited to, the nature of the apparel industry, including changing customer demand and tastes, seasonality, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, general economic condition. In regards to our company, the following are also risk factors: our ability to finance operations and growth, our ability to attract and retain employees and consultants, competition from cheaper or more accepted products, and our ability to keep control on costs. Readers should also refer to the risk disclosures outlined in the Company�s quarterly reports on Form 10-QSB, annual reports on Form 10-KSB and the Company�s other disclosure documents filed from time-to-time with the Securities and Exchange Commission available at www.sec.gov. The Company assumes no obligation to update the information in this release.