Organic To Go Reports Fourth Quarter and Year-End Results

Organic To Go (OTCBB:OTGO) today reported financial results for the fourth quarter and year ended December 31, 2007.

Revenue for the quarter increased 60% to $4.7 million, as compared with revenues of $2.9 million in the same quarter of the prior year. Gross profit for the quarter increased 98% to $2.7 million, as compared with $1.4 million in the same period last year. Gross profit margin improved 11.2% to 58.2% for the fourth quarter, as compared with 47.0% in the fourth quarter last year. The EBITDA loss for the quarter was approximately $(1.2) million as compared with an EBITDA loss of $(2.4) million for the same period last year. Compared with the third quarter of 2007, sales increased $1.0 million, gross profit margin improved 5.3% from 52.9% and our EBITDA loss decreased $1.6 million. As anticipated, the net loss was approximately $(3.3) million, or $(0.12) per share, as compared with $(3.3) million, $(1.15) per share, for the same quarter last year.

Revenues for the year increased 65% to $15.9 million, as compared with revenues of $9.7 million in the prior year. Gross profit for the year increased 78% to $8.5 million, as compared with $4.8 million in the same period last year. Gross profit margins were 53.7% for the year as compared with 49.5% in the same period last year. The EBITDA loss for the year was approximately $(7.5) million as compared with a loss of $(5.7) million for the same period last year. The net loss for the year was approximately $(12.1) million, or $(0.57) per share, as compared with $(8.0) million, or $(2.78) per share last year.

Jason R. Brown, Chairman and CEO, said, 'During the first three quarters of 2007, our focus was on refining operations and preparing to execute on our expansion strategy. By the fourth quarter, we had decreased operating expenses, increased our gross profit margin and expanded our revenue materially in all existing markets. In addition, we expanded into San Diego in all three segments of our business. We expect that the first quarter will show continued improvements.'

For the fourth quarter, sales increased in all three channels: Retail sales were $2.1 million, Delivery/Catering sales were $1.9 million and Wholesale sales were $700,000, increases of 71%, 47% and 65% respectively. For the year, Retail sales were $7.1 million, Delivery/Catering sales were $6.6 million and Wholesale sales were $2.2 million, showing increases of 37%, 100% and 100% respectively, year over year.

Brown commented, 'We have a very exciting and positive year ahead of us and I am more confident today than I have ever been that we have tremendous opportunity in business and customer development in front of us. Looking forward, we anticipate continued improvements quarterly in our financial results and customer development strategies, producing both above and below the line success, paving the way to EBITDA profitability during 2008. We expect that the first quarter will show revenue in excess of $5 million and improving gross profit margins producing a further reduction in our EBITDA loss.

'Organic To Go has expanded our brand in all three sales channels of our business and you can now find our branded grab and go selections in more than 160 locations:

-- Cafés - As of today, we operate 26 retail cafés, up from 12 at the end of 2006, serving over 280,000 customers during the fourth quarter and more than 1,000,000 customers in 2007.

-- Delivery/Catering - We more than doubled the number of customer's orders to over 16,000 for 2007 as compared with 7,800 for 2006. Our average delivery was approximately $350.

-- University Campuses - We now operate in 14 universities, up from 9 at the end of 2006,

-- Branded Partnership locations at LAX, medical centers and corporate centers continue to grow as well. We anticipate this channel will continue to see meaningful growth throughout 2008.

'To fuel continued growth in 2008, we closed $12 million in equity private placements during the first quarter with existing investors and a new strategic partner, Inventages Venture Capital Inc., a leading venture capital fund specializing in life sciences. We anticipate using this capital to expand our operations in our current markets as well as into the mid-atlantic in 2008. We plan to grow organically and through acquisition in the second quarter. To further support these efforts, we have recently added two additional foodservice veterans, a Vice President of Marketing and a Vice President of Retail Operations, to our management team and are now fully staffed to capitalize on further developing all three sales channels in all of our regions,' concluded Brown.



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