Boo Koo posts 80% drop in net sales for Q1 2008

ADDISON, Texas, May 8 /PRNewswire-FirstCall/ -- Boo Koo Holdings, Inc.(OTC:BOKO)(BULLETIN BOARD: BOKO) (Boo Koo), an energy drink company, announced today financial results for the first quarter ended March 31, 2008.

Net sales for the first quarter of fiscal 2008 were $501,557 compared to $2.4 million for the first quarter of fiscal 2007, a decrease of 78.8 percent. The Company continues to be negatively impacted by the loss of key distributors. Many of the lost distributors are independent Coca-Cola distributors who have dropped Boo Koo over the last six months due to absorbing additional Coca-Cola North America products.

Gross margin for the first quarter of fiscal 2008 of 1.3%, as a percent of gross sales, versus the fiscal 2007 first quarter gross margin of 41.4%, was lower due to a much higher percentage of sales at close out prices in fiscal 2008, as well as the addition of Gazzu(TM), our private label brand for Circle K which has a lower margin than our Boo Koo energy drink.

Net loss for the three months ended March 31, 2008 was $(2.5) million or $(0.07) per share, compared to a net loss of $(1.2) million or $(0.06) per share for the three months ended March 31, 2007. The increased net loss is primarily the result of lower gross sales at lower margins, as well as higher operating expenses due to increased legal and marketing costs.

Currently, the Company is in the process of finalizing its launch of its next generation energy drink Boo Koo Burner(TM), which we expect to launch in early June. Additionally, we are negotiating an agreement with Circle K to add additional products to the Gazzu(TM) line. Gazzu(TM) is now available in over 2,000 Circle K stores across the US as well as expanding its product offerings under the brand name Gazzu(TM). Going forward part of management's restructuring plans is to focus on developing and launching new products that improve the company's performance, as well as reducing costs in areas that are not commercially viable.

About Boo Koo

Boo Koo develops, produces, markets and distributes alternative beverage category energy drinks under the Boo Koo(R) and Gazzu(TM) brand names. Boo Koo currently sells and distributes its products in parts of the United States and Canada through its network of regional bottlers and other direct store delivery distributors, including independent Coca-Cola, Cadbury Schweppes and other wholesale distributors. Gazzu(TM) is sold exclusively to Circle K. Boo Koo's products are sold primarily to mainstream convenience and grocery store chains, drug stores, gas stations and other retail outlets.

Source: Boo Koo Holdings, Inc.