PNGB Panglobal Brands Inc (CE)

Panglobal Brands Inc. (OTCBB: PNGB) will record its best quarterly sales revenue in the history of the Company, growing 85% over March 31, 2008. Sales revenue for the three months ended June 30, 2008 totaled $5,500,000 versus sales revenue of $ 2,963,000 for the three months ended March 31, 2008. Year to date sales revenue for the nine months ended June 30, 2008 totaled $8,584,000 versus $382,000 for the nine months ended June 30, 2007. Panglobal Brands Inc. currently has sales orders totaling $9,100,000,�for deliveries to retail stores in its order backlog. Scrapbook accounts for $3,400,000 of that total and SoSik and our contemporary divisions account for the balance of $5,700,000. Most of the order backlog is intended to be shipped during the four months to October 31st. Our strategy has been to build a series of apparel brands, consisting of mainly women�s apparel, and to build brand recognition by marketing our products to fashion conscious consumers who shop in boutiques and department stores and who want to wear and be seen in the latest and most fashionable clothing and accessories. Our SoSik junior business has been our biggest seller this year and has recorded sales of over $4,000,000 for the quarter ended June 30, 2008 while building some major customer relationships including Charlotte Russe, Buckle and Forever 21. Under the SoSik label, we design and market junior denim, t-shirts, dresses and sportswear. Our success in the juniors� business has reflected our ability to continually keep the products new, fresh and part of what is in fashion. Panglobal Brands acquired the Scrapbook label in June and Scrapbook sales contributed approximately $1,100,000 toward the revenue increase for the quarter ended June 30, 2008. 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. Key customers for the quarter ended June 30, 2008 included Nordstrom, Delia�s, and Top Shop (United Kingdom). Scrapbook products can be found at better department stores and boutiques. Our contemporary divisions consisting of Hauteur Mynk denim, Nela and Haven dresses and Tea and Honey sportswear mostly started shipping recently and our sales-to date and open orders should contribute $2,400,000 in sales revenue for 2008. The Nela and Haven labels design, merchandise and sell women's better dresses using Italian prints and related fabrics. Tea and Honey designs, merchandises and sells women�s mid-priced contemporary dresses. Tea and Honey is a more casual look for women with a vintage feel. �We are very pleased with our performance during the last three months and with the build-up of open orders for future shipments. Our products are gaining tremendous acceptance within the channels which we sell. With the addition of Scrapbook, we now have two brands in the junior market, which provides huge opportunities to cross-sell into multiple distribution channels. Our diverse stable of brands has allowed us to achieve tremendous growth over our previous quarters and gives us the confidence that we will be able to continue to grow and meet our objectives,� 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: Mynk, a high-end, high-fashion denim brand selling at specialty retailers and Saks 5th Avenue; Nela, an upscale contemporary print dress label; Tea & Honey, a casual ladies wear collection that�s ready to burst onto the scene later this year; SoSik, which represents affordable fashions for the burgeoning junior market; and Scrapbook, which is aimed at the teen and junior markets and features mix and match knits. 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 October 2008; (iii) we can build brand recognition by marketing our products to fashion conscious consumers,; (iv) we can update our product offerings continually to be seen as a trend setter in fashionable clothing and accessories. (v) we have opportunities to cross-sell into multiple distribution channels, and (vi) we will be able to continue to grow and meet our objectives. 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.