Planet Organic Health Corp. Corporate Update


    TSX Venture Exchange - "POH"

    EDMONTON, May 22 /CNW/ - Planet Organic Health Corp. ("Planet Organic")
Mr. Darren Krissie, Chief Financial Officer of Planet Organic, Canada's
leading natural products retailer, provides the following update on its
current status with its lenders. As previously announced on March 2, 2009,
Planet Organic remains in default of its debt covenants with its senior
lenders based on its results for the period ending December 31, 2008. Planet
Organic is required to be in compliance with certain covenants measured
quarterly under the company's loan agreements. It is also expected that
additional covenants will be breached for the quarter ended March 31, 2009.
Planet Organic has been in negotiations with its lenders to amend the terms of
its existing agreements.
    Planet Organic has undertaken a restructuring of its board of directors
and senior management team. Effective immediately, Ron Francisco will step
aside as President and CEO and be replaced by Darren Krissie, currently
vice-president and chief financial officer, and Brent Knudsen, currently a
director, who have been appointed to a newly created "Office of the CEO". The
Office of the CEO will oversee the company on a day to day basis while the
company begins a search for a permanent CEO. Both Mr. Krissie's and Knudsen's
long involvement with Planet Organic will ensure the continuity of leadership
and the direction of the business. Their primary responsibility will be to
lead Planet Organic during this transition, maintain strong financial
discipline within the organization, strengthen Planet Organic's balance sheet,
and restore the confidence of its shareholders. It is expected that the Office
of the CEO will be an interim office and will be in effect for 3-6 months or
until a suitable CEO with extensive retail experience has been appointed. The
office of the CEO will report directly to the board of directors. Planet
Organic is currently interviewing various executive search firms to locate an
experienced CEO. Planet Organic wishes to extend its deep gratitude and
appreciation to Mr. Francisco for his valuable contributions to the company as
President and CEO since 2002. Mr. Krissie says "without Mr. Francisco's
guidance and leadership, the company would not be the leading national chain
it is today. Ron has been integral in providing the company with the early
stage financings that helped catapult Planet Organic from a small retailer
with one location in 2001 and generating $1.7M in revenue to the successful
chain it is today with revenues of over $120M." Mr. Francisco will remain as a
director of Planet Organic.
    In addition, Planet Organic has appointed Dan Katz and Mike Arougheti to
the board of directors. Mr. Arougheti is President of Ares Capital Corporation
(ARCC) and Mr. Katz is Co-head of Portfolio Management at ARCC. Planet Organic
also announces that Roy Sangster has resigned from the board of directors to
pursue other interests. Planet Organic wishes to express its thanks to Mr.
Sangster for his service to the company and wishes him success in his future
endeavours.
    Although the company has had initial discussions with its lenders to
waive certain events of default, any agreement is subject to definitive
documentation, which the company expects to complete shortly. To date, all
principal and interest payments have continued to be made to the lenders, such
that the respective loans are all in good standing up to the date hereof
except for the aforementioned covenant defaults. While the outcome of these
negotiations is uncertain, management is optimistic that they will be
successful based upon the company's relationship with its lenders. In addition
to negotiating with its lenders, the company has engaged Partnership Capital
Growth ("PCG") as a financial adviser and agent to assist the company in
exploring strategic alternatives, including raising additional capital,
exploring asset sales to reduce leverage and provide the company with
additional liquidity or a teaming agreement with one or more industry
partners. Planet Organic has agreed to pay PCG a success fee on the closing of
any transaction, calculated as a percentage of the transaction's value.About Planet Organic Health Corp.
    ---------------------------------Planet Organic Health Corp. (TSX-V: POH) is a natural products industry
company, comprising manufacturing, distribution and retail. Planet Organic is
listed on the TSX Venture Exchange as a Tier One company. Planet Organic
operates ten natural food supermarkets throughout Canada under the Planet
Organic Market banner and eleven natural food supermarkets in the U.S. under
the Mrs Green's Natural Markets banner. The Company also operates 43 natural
health outlets under the Sangster's Health Centre banner and eight natural
health outlets under the Healthy's and Planet Organic Living banners. Another
Planet Organic division, Trophic Canada, is the country's leading manufacturer
of natural supplements. The Company has a total of 61 stores throughout Canada
and eleven in the U.S. and has more than 650 employees.Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.

    -------------------------------------------------------------------------Forward-Looking Statements

    Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, budgets, projected costs, capital
expenditures, financial results, taxes and plans and objectives of or
involving Planet. Many of these statements can be identified by looking for
words such as "believe", "expects", "expected", "will", "intends", "projects",
"anticipates", "estimates", "continues", or similar words and include but are
not limited to, statements regarding the accretive effects of the acquisition
and the anticipated results and expected benefits of the acquisition upon
closing thereof. Planet Organic believes the expectations reflected in such
forward-looking statements are reasonable but no assurance can be given that
these expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon. Forward-looking statements are
not guarantees of future performance and involve a number of risks and
uncertainties some of which are described in Planet Organic's continuous
disclosure documents. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties and other factors, which may cause
Planet Organic's actual performance and financial results in future periods to
differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. Such factors include,
but are not limited to: general economic, market and business conditions;
industry capacity; competitive action by other companies; refining and
marketing margins; the ability of suppliers to meet commitments; actions by
governmental authorities including increases in taxes; changes in
environmental and other regulations; and other factors, many of which are
beyond the control of Planet Organic. Any forward-looking statements are made
as of the date hereof and Planet Organic does not undertake any obligation,
except as required under applicable law, to publicly update or revise such
statements to reflect new information, subsequent or otherwise.




For further information: Planet Organic Health Corp., Darren Krissie, VP
Corporate Development, CFO, (780) 719-4667