Rapid Brands Reports Second Quarter Results

    MINNEAPOLIS, MN, Sept. 5 /CNW/ - Rapid Brands Inc. (the "Company", RAP)
reported its second quarter 2008 results for the period ended June 30, 2008 on
August 29, 2008. For the quarter, Rapid reported a net operating loss of
US$(292,431) of which US$150,000 of the loss was due to a continued write-down
of goodwill. Cash and securities as of June 30, 2008 were reported as
US$367,000 reflecting a net operating usage of cash during the second quarter
of US$(192,000).
    In addition, the Company noted that, as of August 1, 2008, at its current
debt retirement obligations, total estimated run rate expenses and projected
revenue going forward, the current cash and securities balances of the Company
are projected to be barely sufficient to operate the Company and meet the
needs of the Company's strategic and tactical revenue plans through early
fourth quarter 2008 based on the current revised projection of two new
franchise sales monthly. Accordingly, there is a risk the Company will have
insufficient cash reserves to continue operations through the end of 2008.
    A variety of capital infusion and debt restructuring options for the
Company are being explored with a goal of a resolution some time in October
2008. All of the options being explored are complex and may not occur given
their nature.
    For more information, please see the Company's interim financial
statements and management discussion and analysis which are available on SEDAR
at www.sedar.com.

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy and accuracy of this release.

    Forward Looking Statements

    By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, which give rise to the
possibility that predictions, forecasts, projections and other forward-looking
statements will not be achieved. We caution you not to place undue reliance on
these statements as a number of important factors could cause our actual
results to differ materially from those expressed in such forward-looking
statements. These statements are not a guarantee of future performance and are
subject to risks and uncertainties that could cause actual results to differ
materially including management of market, liquidity and funding and
operational risks, the effects of competition in the markets in which we
operate, the timing and technological advancement of new products introduced
by us or by our competitors, timely development of new products and services,
the impact of changes in laws and enforcement thereof, the strength of the US
economy, our ability to maintain operating service levels, our ability to
manage technology costs and other variable operating expenses and other
factors set forth in reports and other documents filed with the relevant
Canadian securities regulatory authorities from time to time including our
quarterly and annual management discussion and analysis and annual information
form. We caution that the foregoing list of factors that may affect future
results is not exhaustive.
    In addition, we have made assumptions in the preparation of this release
including that the operating requirements of our current business will not
materially change necessitating material change to our operating expense
structure. The foregoing assumptions, although considered reasonable by us at
the date of this release, could prove to be inaccurate and consequently our
actual results could differ materially from expectations set out herein. This
assumption covers significant areas, but is not comprehensive in scope. Please
see previously issued documents to provide additional information and details
as well as other potential risks.

    About Rapid Brands: Chanhassen, Minnesota-based Rapid Brands, Inc.,
through its wholly owned subsidiary Rapid Refill Corp., is a retail franchise
in the multi-billion dollar ink and toner industry. The shares of Rapid Brands
Inc. trade on the TSX Venture Exchange under the stock symbol RAP. For more
information, visit http://www.rapidrefill.com.

For further information:

For further information: Roger Block, Chief Executive Officer, Rapid
Refill, Tel: (877) 880-4465, Email: rblock@rapidbrandsinc.com

Organization Profile

RAP Acquisition Corp.

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