News

Profit Warning For The First Quarter Ended 31 October 2005

In anticipation of the announcement of the Group's first quarter financial statements for the three months ended 31 October 2005 ("Q1 FY2006"), the Board of Directors of LifeBrandz Ltd (the "Company") deems it appropriate to issue a profit warning.

The Group's Q1 FY2006 performance has been affected by factors previously outlined in our 29 September 2005 announcement of the full year financial statements for the year ended 31 July 2005 ("FY2005"). Unfavorable developments arising in the last quarter of FY 2005 ("Q4 FY2005") such as the slowdown in demand across the beauty and health supplements industry which our products occupy, higher advertising & promotion ("A&P") rates, increased competition, and continuously changing regulations in our overseas markets, have persisted and negatively impacted the Group's Q1 FY2006 sales and profitability. Furthermore, set-up and A&P costs have been incurred in Q1 FY2006 for projects under development in the Group's LifeStyle and Fashion categories whilst operation for most of these various projects are scheduled to only commence progressively from second quarter of 2006 ("Q2 FY2006").

While the Company is still finalizing the results, it expects to report a loss for Q1 FY2006. Further details of the Group's performance will be disclosed when it announces its unaudited financial results.