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?