Vertical Branding Inc.(fka VBDG)

[pnnymn]

VBDG Conference Call Highlights:

Retail sales up 50% over Q1.

Steam Buddy having superb sell-through. Sold out at every single cataloger that it's been in.

MyPlace selling out as soon as it hits the retail shelf including the drug store chains that normally only sell low-priced products. Were on QVC and sold out in 7 minutes. Going back on QVC Sept 1-2. Wal-mart they sell out right away too.

Our products selling the highest per square foot of any product in Staples.

Much financial cost-cutting improvements only began in 2nd half of Q2 and will be reflected more in Q3 onward.

2 more new products expected to be launched by year's end.

Still feel that they can hit $50 million in 2008 and are affirming their forecast of profitability for 2008 as a whole for any sales within that range.

-- that translates to +.07 EPS absolute minimum for the 2nd half of the year or a +.14 annual pace. If they hit the high end of guidance or $6 million over the lowend in sales, if they can achieve 50% of those extra sales going directly to the bottom line like they did this Q, that's an extra .10 EPS or +.17 EPS total for the 2nd half of the year or a +.34 EPS annual pace.

+.14 EPS annual pace:

PE of 10 = $1.40
PE of 20 = $2.80

+.34 EPS annual pace:

PE of 10 = $3.40
PE of 20 = $6.80