Who's Your Daddy, Inc.'s Management Expresses Confidence in Brand with Corporate Restructuring of Executive Compensation and Changes to Previously Issued Warrants

The Chief Executive Officer, President and Chief Financial Officer have elected to modify all warrants previously issued to them by eliminating the cashless exercise provision and extending the term.

As a further restructuring of its executive compensation packages, the CEO and President have also agreed to forfeit their current revenue sharing provision. Under the terms of their current employment agreements, both the CEO and President were to receive 2% of the annual gross revenues as additional compensation. Both executives have elected to forfeit this revenue sharing compensation provision and instead, they have opted to receive future non cashless warrants based on annual gross revenues of the Company.

In addition, all previously issued warrants with cashless exercise provisions resulting from prior financing transactions shall be converted to warrants which require full payment on exercise.

If the warrant holders fully exercise all of these warrants, the elimination of the cashless exercise feature would result in the payment to the Company of an additional $13,000,000 (thirteen million dollars).

Edon Moyal, CEO of Who's Your Daddy, said, "We feel these are the right steps at this time to reaffirm managements' strong commitment and confidence in Who's Your Daddy and its future success. We want our shareholders to know that we are building a first class organization and brand and that we as management believe these are necessary steps to demonstrate the depth of our commitment and the importance that we place on enhancing shareholder value."

The full details of this modification will be filed with the SEC on Form 8-K later this week.



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