Jamba, Inc. Reports Net Income of $2.8 Million for Fiscal Third Quarter 2009

Jamba, Inc. (NASDAQ:JMBA) today reported financial results for the fiscal third quarter ended October 6, 2009.

Financial and Operational Highlights

Highlights for the 12 weeks ended October 6, 2009, compared to the 12 weeks ended October 7, 2008:

• Consolidated EBITDA* increased 308% to $7.0 million from $1.7 million for 3Q08, reflecting an increase of $5.3 million.

• Store-level EBITDA* improved $2.1 million to $15.9 million from $13.8 million for 3Q08, reflecting an improvement of 15.1%.

• Total revenue for 3Q09 decreased $7.1 million to $79.0 million from $86.1 million for 3Q08, a decrease of 8.2%.

• Net income for 3Q09 of $2.8 million showed significant improvement when compared to a net loss for 3Q08 of $(12.4) million.

• Diluted earnings per share for 3Q09 of $0.04 compared to a diluted loss per share for 3Q08 of $(0.23).

• Company-owned comparable store sales for 3Q09 declined 5.3%(1) but reflected an 800 basis point sequential improvement over 2Q09 comparable store sales.

• 10 new franchise stores and one new company-owned store were opened during the fiscal third quarter of 2009, bringing the store count to 742 stores system-wide, of which 254 are franchise stores and 488 are company-owned stores.

"We continued to make solid progress throughout the quarter in several strategically important areas, including food, franchise development, brand licensing, cost management and operating efficiency. Our performance reflected this progress with improvement quarter over quarter in 2009 in our comparable store sales and EBITDA gains," said James D. White, president and chief executive officer, Jamba, Inc. 'We achieved the gains despite the slow pace of economic recovery and continued high unemployment in California where Jamba has a concentrated store presence.'

'I am especially pleased with our food initiative,' continued Mr. White. "Food is now present with full or limited offerings in 377 stores. As an early indicator of progress, system-wide our stores with food are showing a 200-400 basis point improvement in comparable store sales over our non-food stores. We believe our future performance will be boosted by a recently launched marketing campaign, the 'Feel Good Campaign,' which is Jamba's most comprehensive effort ever. The 'Feel Good Campaign' is a multi-faceted, integrated campaign that is already driving additional traffic.'

"We opened 10 new campus locations, which gives us brand presence on over 30 college and university campuses across the nation, and one new company store in California. We also recently completed the sale of eight company stores to current franchise operators in conjunction with our goal of refranchising up to 150 Company-owned stores by the close of 2010,' concluded Mr. White.

Outlook for 2009

The Company is tracking against targeted 2009 expense goals as follows:

• Cost of sales at or below 26% of company store revenue;

• Labor costs at or below 34% of company store revenue;

• Other controllable expenses included in store operating, at or below 3.5% of company store revenue; and

• General and administrative costs at or below $35 million, before share-based compensation expense.

Outlook for 2010

The Company plans to achieve the following in 2010:

• Deliver positive comparable store sales;

• Build on Jamba's disciplined approach to expense management and cost savings including reducing G&A by 10-12 percent (excluding share-based compensation);

• Deliver consolidated EBITDA of 5-7 percent;

• Deliver store level EBITDA of 15-17 percent;

• Grow via franchise development by adding up to 50 franchise stores and expanding into one major international market;

• Execute additional licensing agreements in relevant categories; and

• Complete the refranchising initiative of up to 150 company-owned stores started in 2009.

The Company will continue to be focused on efforts to improve sales and build a sustainable business model for growth throughout 2010.

Logos, product and company names mentioned are the property of their respective owners.

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