CoolBrands International Inc. reports financial results for the first quarter of fiscal 2008



    TORONTO, Jan. 14 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") today announced its operating results for the
first quarter of fiscal 2008 ended November 30, 2007. The Company's
consolidated financial statements and management's discussion and analysis of
financial results can be found on the Sedar website at www.sedar.com.

    Operating results (amounts expressed in Canadian dollars)

    CoolBrands reported a loss in the first quarter of fiscal 2008 of
$(3,318,000), or $(0.06) per basic and fully diluted share, compared to a loss
of $(5,423,000), or $(0.10) in the first quarter of fiscal 2007. The loss in
the first quarter of fiscal 2008 was comprised of a loss from continuing
operations of $(2,759,000), or $(0.05) per basic and fully diluted share, and
a loss from discontinued operations of $(559,000), or $(0.01) per share. This
compared to a loss from continuing operations of $(873,000), or $(0.02) per
share and a loss from discontinued operations of $(4,550,000), or $(0.08) per
share in the first quarter of fiscal 2007.
    The primary source of the loss in the first quarter of fiscal 2008 was a
loss on foreign exchange of $(2,995,000). The Company continues to hold U.S.
dollar cash assets resulting from sale proceeds received in fiscal 2007 and
has incurred a foreign exchange loss on the assets as a result of the
appreciation of the Canadian dollar versus the U.S. dollar between August 31,
2007 and November 30, 2007.

    Cash and working capital

    Cash and short-term investments decreased to $61,508,000 at November 30,
2007, compared to $68,351,000 at August 31, 2007. The decrease in cash in the
first quarter of fiscal 2008 resulted primarily from the foreign exchange loss
and the payment of $2,750,000 to settle the litigation brought against the
Company by Godiva Chocolatier, Inc. Working capital was $47,914,000 at
November 30, 2007 compared to a working capital of $49,608,000 at August 31,
2007.

    Forward Looking Statements

    The information in this document contains certain forward-looking
statements with respect to CoolBrands International Inc., its subsidiaries and
affiliates. These statements are often, but not always made through the use of
words or phrases such as "expect", "should continue", "continue", "believe",
"anticipate", "estimate", "contemplate", "target", "plan", "budget" "may",
"will", "schedule" and "intend" or similar formulations. By their nature,
these forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant, known and unknown, business, economic,
competitive and other risks, uncertainties and other factors affecting
CoolBrands specifically or its industry generally that could cause actual
performance, achievements and financial results to differ materially from
those contemplated by the forward-looking statements. These risks and
uncertainties include the Company's ability to recover its assets relating to
the sale of its businesses; its ability to sell the remaining assets or
rebuild the business; the ability of CoolBrands to effectively manage the
risks inherent with mergers and acquisitions; the ability of the Company to
minimize the negative impact of any litigation; the effect on foreign
operations of political, economic and regulatory risks; currency risk
exposure; the ability to recruit and retain qualified employees; and other
risks described from time to time in publicly filed disclosure documents of
CoolBrands and its subsidiaries and affiliates. In view of these uncertainties
we caution readers not to place undue reliance on these forward-looking
statements. CoolBrands disclaims any intention or obligation to update or
revise any statements made herein, whether as a result of new information,
future events or otherwise.

    %SEDAR: 00003887E




For further information:

For further information: Carla Aedo, Telephone: (905) 479-8762

Organization Profile

COOLBRANDS INTERNATIONAL INC.

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