KORDA MENTHA THE BLACK HAND BEHIND CONTINUAL ALLIED BRANDS RESTRUCTURING ? - WHERE IS ALL THE MISSING CASH?

The current collapse of Allied Brands Ltd. (ABQ) isn't the first time this company has pulled this scheme on shareholders.

WRITEOFFS PROFIT COMING SOON STATEMENT

This is in fact the THIRD time ABQ is on this merry-go-round of taking cash from shareholders, "sophisticated investors", and others only for it to end in huge writedowns but promises of future profits.

The organiser of this scam would seem to have a common connection to "restructuring specialist" Korda Mentha. When these techniques are used properly and honestly, companies can restructure and move forward. However the history is that these claims of restructuring are made falsely with cash injections being used for huge management salaries, plush new locations, big cars, and other unearned perks.

Announcements by Allied Brands this week of "big writedowns" and "return to profit" are lies according to a leading forensic accountant, because no profit has ever existed at this company. Even the "dividend" paid to shareholders last year was borrowed money, and window dressing to find new suckers! New money coming to to pay operating costs while telling the investors it's being used to expand the business is a SCAM. SCAM. SCAM. Even SMARTCOMPANY SMELLS A RAT

Review the filed statements and "broker presentations" on the ASX website. Ask yourself why a company would continually lie about international expansions, signed contracts for brand expansion on Cyprus, signed contracts to open 20 shops in Western Australia, etc, etc.

And then compare these statements to reality.

No shops on Cyprus. Never even the hint of who the "contracting party" was, because this was a fact that could be checked. No new shops in WA - in fact a net decline in shops, despite the company claiming "locations have been agreed, leases signed, and shops will be run prior to franchising". Who believes this shit? People like Tom Krulis (Godfrey's) and Barbara O'Brien (Breville) who dumped in money, leant their names and good reputations to this crooked operation, and took later share investor "blood money" as a "salary" from these people. Classic pyramid scheme behaviour.

What kind of people tell these repeated lies? SCAMMERS. And the management of Allied Brands Ltd. that is responsible for these lies has the company now claiming "people sacked" and "lessons learned". Sean Corbin couldn't even tell the truth about the sacking of former CEO Shane Radbone, and was required to issue a more truthful statement after being questioned about his first lies!

A franchisor is a company that lends its good name, business acumen, and management skills to small business so that both can prosper. Brands with once good reputations like Baskin Robbins and Villa Hut and Cookie Man now have franchisees with unsaleable shops, and ABQ can't sell any new except by lying and trickery, a skill they excel. They have no good name, only bad. They have no business acumen. And management only in place to line their own pockets. Without new franchisees no franchisor can stay in business. That's the essential truth for investors and franchisees alike.

A more blatant lying company cannot be found today in Australia.

EVEN TODAY'S ASX-ORDERED STATEMENT DOESN'T MATCH THE COMPANY'S STATEMENTS AS RECENTLY AS 20 MAY. IS SEAN CORBIN NOW JUST THE NEW "LIAR IN CHIEF"?

ANOTHER MARKET ANNOUNCEMENT AND MORE HUGE LIES FROM ALLIED BRANDS - WILL THEY EVER TELL THE WHOLE TRUTH?

With huge volumes of shares being traded over the last week while the company has sat mum, the ASX increasing demands for market information have led to another pack of lies from Allied Brands Ltd. (ABQ) management today.

ANNOUNCEMENT HERE

A quick spin by the ABQ offices shows all the company-paid luxury cars still in use. Apparently director and management perks haven't been affected by their so-called "cost cutting".

Missing from today's announcement is any suggestion how the company will finance the several million in redundancy and closure costs for the 18 failed Kenny's Cardiology shops, 10-12 failed Baskin Robbins shops, and the losses being made by Villa Hut. Allied Brands is in free-fall, and another press release filled with half-truths and lies isn't going to help now, is it chairman Lachlan McIntosh?

Franchisees at Baskin Robbins continue to report massive product shortages with containers sitting at the port unclaimed and unpaid. This is despite the brand giving completely untruthful reports to the auditors about the true condition of the brand.

Expect MORE PRESS RELEASES with MORE LIES as the truth becomes impossible to hide from the auditors. Funny, but Hackett's knew Allied Brands was lying to them last year. Shareholders should have a terrific compensation claim after the lies Hacketts has certified as truth. Even in today's statement Allied Brands uses "the auditors" as cover for these massive lies.

How can they "rationalise outside developers" when all the existing shops, as well as new locations, have been so unsaleable? Even existing shops with reasonable prospects cannot be sold due to the inability of Allied Brands to assist franchisees with basic levels of product and support. Until the corrupt management in place running these brands is removed there is no hope for better press and a renewed franchisee sale market.

The company is known to be virtually out of cash, with little coming in during the slack winter months. It's not clear that the ASX and ASIC are going to be satisfied with a half-baked pack of lies from the company that lets "the mates" continue to dump shares on bottom-feeding suckers.

SHAREHOLDERS ALSO DEMAND TO KNOW WHEN SACKED CEO SHANE RADBONE AND HIS WIFE VICTORIA RADBONE ARE PLANNING TO PAY BACK THE ALMOST $1,000,000 THE COMPANY "LOANED" TO HIM WHILE HE WAS CEO!!!

SHANE, WHERE'S THE MONEY, MATE?

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?