VALUE OF ALLIED BRANDS (ABQ) CONTINUES TO PLUMMET - NOW THE ASX WORST PERFORMING SHARES FOR 2010!!!

CURRENT VALUATION BY MARKET:

$14, 969,000

WHERE IS ALL THE MISSING CASH?

FAILED ALLIED BRANDS MANAGEMENT UNDERMINED BY EMPLOYEES WHO WANT THEM TO GO

As predicted, Allied Brands has released a "presentation" that tries and fails to explain the collapse of the company.

On page three, they have however made one statement that franchisees can agree with!

A share market analyst who has previously evaluated the company's financial statements has been solicited for his comment on this pathetic attempt to defend the indefensible.

ALLIED BRANDS DOWN ANOTHER 12%!

MASSIVE VOLUME ALREADY TODAY

MORE THAN 3 MILLION SHARES

WHAT DO INSIDERS KNOW?

We understand from insiders that the collapse in company value is related to Mr. Jury Wowk's abrupt resignation as company director after only nine weeks in the job. As word starts to spread in the "old boy's network", some are getting out while sticking new unsuspecting investors with a company under siege - ED.

The company is now valued by the market at $15.6M.

JUST ONE SHOCKING EXAMPLE OF ALLIED BRANDS (ABQ) MANAGEMENT FAILURE TO MEET ANNOUNCED GOALS

Investors day by day are discovering the shocking level of non-performance by Allied Brands (ABQ) management despite their grandiose announcements. These announcements are apparently designed to sucker in more investors and placate the angry existing investors. Because they never come to pass.

On 3rd December 2007 Allied Brands gave the media and market THIS PRESS RELEASE from Managing Director Peter Graham about an "aggressive expansion" in Western Australia designed to give a "significant boost" to store numbers across the brands. It says:

• "Kenny's Cardiology currently has two stores in WA. We expect to increase that to 18"

• "Baskin Robbins and Cookie Man are earmarked for similar expansion from their current stores numbers of eleven and three"

Over two years later, what is the result?

• Kenny's Cardiology - from 3 to 5

• Cookie Man - from 3 to 5

• Baskin Robbins - FROM 11 to 10!

(numbers from company websites)

AT LEAST FORTY EIGHT SHOPS SHORT OF THEIR SO-CALLED TARGET!

Two of these three failures, Kenny's Cards and Baskin Robbins are under the general management of Tony Cavanaugh, an ex-Wendy's Ice cream manager, who was PROMOTED despite these stunning failures in Western Australia. And also despite the fact that there has been NO downturn in the Perth area economy despite the global finance crisis! If ABQ can't grow the brands in a hot market like Perth, something is seriously wrong.

The big problem is the disappearance of $10M capital raising that was done to raise funds for this "aggressive expansion" at the time of this December 2007 announcement. This money was, according to the company, going to be used to secure sites and open shops prior to having a franchisee in place.

WHAT HAPPENED TO THE $10M FOR THIS NON-EXISTANT EXPANSION THAT'S NOW LONG GONE?

ALLIED BRANDS SHARES CONTINUE PRICE COLLAPSE AS GOOD NEWS INCREASINGLY HARD TO FIND OR INVENT

Allied Brands (ABQ) said in a market announcement last week (21st April) "The company will be in a position to give an overall update to the market by the end of April on results to March 2010".

The end of April is come and gone. Once again another LIE by Allied Brands. Of course the last set of announcements before the last annual report saw Managing Director Peter Graham insisting the company was "on track" to a $6million to $7.5million annual profit when just weeks later the company so spectacularly missed these numbers. So we should be thankful that Shane Radbone hasn't yet figured out what story to tell the market on Allied's behalf.

Especially as there has been no explanation for the departure of Director Jury Wowk after barely nine weeks inside the company. Likewise the disappearance of investors Tom Krulis (Godfrey's) and Barbara O'Brien (Breville) who've made themselves scarce after big announcements of their participation. Guess when you're that rich, you can do your dough on a company like this and still take advantage of the tax loss.

The question of the week - is it a conflict of interest for Chairman Lachlan McIntosh to appoint Korda Mentha as liquidator, seeing he's also a director at Korda Mentha? Or is this just mate's rules???

The company is now valued by the market at $17.8M.

Allied paid:

$7.1 MM Awesome Water

$5.8 MM Kenny's Cardiology

$5.83 MM Cookieman

$2.8 MM Villa & Hut

$.15MM Coffee Bean & Tea

$ 0 Bayswiss (known moneyloser)

$21.7MM PAID BY ALLIED FOR THESE DOG COMPANIES

And the company did some "fast and loose" with the Awesome Water purchase, leaving the sellers short by some $4MM, according to insiders.

Plus the only real operation, Baskin Robbins Australia which was sold to the market for $4.8MM at the original float, which was said to represent only part of the company's worth.

TOTAL INVESTMENT BY ABQ INTO THESE

ALLIED BRANDS COMPANIES

$26,455,000

Time for someone with skill and talent in running franchised businesses to come and pick up this carcass for a song.