BOCA RATON, FL -- (Marketwire) -- 08/31/12 -- Celsius Holdings, Inc., (PINKSHEETS: CELH), the creator and marketer of the Celsius® brand, today reported results of operations for the three and six months ended June 30, 2012.

In the second quarter of 2012 Celsius Holdings partnered with legendary fitness icon Tony Little to become Celsius' Fitness Ambassador, expanded international sales channels, increased focus on direct-to-consumer sales, launched a new digital marketing initiatives and invested in new technology to position for future growth.

Net Revenue for the three months ended June 30, 2012 totaled $1.8 million as compared to $2.0 million for the same quarter in 2011, a decrease of 10%. The decrease is attributable to the Company's shift in 2012 to emphasize direct to consumer and international distribution as opposed to retail distribution.

Net Revenue for the six months ended June 30, 2012 totaled $4.3 million as compared to $4.2 million during the same period in 2011, a 2% increase. The increase in net revenue is mainly due to new international sales and a reduction of discounts, promotions, and returns compared to 2011, off-set by a decrease of approximately $402,000 in retail accounts and distribution outlets from 2011.

The Company recorded a net loss of $1,119,000 for the second quarter compared to a net loss of $456,000 in the same quarter a year ago, or ($.06) and ($.02) per share, respectively. The increase in net loss is mainly due to decreased revenues, increases in option expense associated with our new fitness ambassador Tony Little, enhanced sales and marketing programs, and a significant increase in cost of goods. This increase of $255,000 relates primarily to a 2010 reserve adjustment realized in 2011 and increased product rework and component costs. Additionally we continue to invest in human resources directed toward growth in the direct to consumer, and international distribution and retail segments of our business.

For the six months ended June 30, 2012, the Company recorded a net loss of $1,655,000 as compared to $916,000 for the same period last year, or ($.08) and ($.05) per share, respectively. The increase in net loss is mainly due to increases in option expense, enhanced sales and marketing programs and a significant increase in cost of goods ($475,000) associated with the 2010 reserve adjustments realized in 2011 and increased product rework and component costs.

The Company also announced an amendment of its long term line of credit with CDS Ventures of South Florida, LLC (CDS). On June 28, 2012, the line of credit limit was increased to $5.275 million. The remaining available balance as of June 30, 2012 is $750,000.

Celsius had several key initiatives implemented during the second quarter of 2012:

• The move from the 4-pack on retail shelves to single cans is being implemented nationwide, which we believe will provide a lower entry price point for the consumer to try the brand and will also reduce the Company's input costs.
  
  
• New upscale packaging will be introduced into our distribution system by the end of October. The new packaging design will feature a focus on "Burn Calories and Provides Lasting Energy" on the front of the can. The new packaging was greeted with extremely positive reviews by both retail category managers and consumer focus groups.
  
  
• Tony Little, the Fitness Hall of Fame inductee was engaged as the Company's Fitness Ambassador. Tony Little has sold over $4 billion of fitness and wellness products to over 45 million consumers over the past 20 years. Mr. Little has been seen on television in 81 countries. Tony Little is a daily consumer of Celsius and says, "I enjoy drinking Celsius before my workouts and could truly feel the benefits afterwards," says Tony Little. "As I used Celsius, it became clear that this was a product that I wanted to recommend and be a part of."
  
  
• A successful geo-targeted radio campaign was launched featuring Tony Little. The Company realized a lift in both retail store and online sales. This campaign will be rolled out regionally in Q3.
  
  
• The "Earn while you Burn" program was kicked off in Q2. This program incentivizes the consumer to purchases and directs them to our corporate website to purchase the product.
  
  
• A new digital marketing initiative was tested in the south Florida market. The campaign provides an incentive for consumers to share an offer with friends and family using social media. Those receiving the introduction to the Celsius brand, receive a coupon for redemption online or in a local retailer and are also eligible to win a $500 sporting goods store shopping spree simply by sharing the Celsius information with as many friends as possible. The digital marketing program will also be rolled out regionally in Q3.
  
  
• The initial phase of Celsius' new digital marketing campaigns were launched in Q2 resulting in expanded brand awareness online. Several of these campaigns will be expanded in Q3 and Q4.
  
  
• Recently the Company's management team met with over 40 category buyers for mass retail, catalog and online. The category buyers were introduced to Celsius' new packaging, Tony Little's role as our Fitness Ambassador and our marketing plans which include, radio, television, public relations and social/digital media.
  
  
• 5W, the Company's New York PR firm generated over 165 million impressions with coverage of the Celsius brand by CBS, Fox, ABC, the examiner.com, ask.com. shape.com and numerous industry journals.
  
  
• DRTV spots featuring Celsius were presented at the European Electronic Retailers Association conference in Berlin. The Company's international group is following up on interest by companies broadcasting DRTV spots in over 30 countries.
  
  
• The Celsius brand received approval for distribution in the UK, Singapore and New Zealand.
  
  
• The Company implemented the Great Plains accounting and reporting platform. This software now provides a real time accounting and management information system. In addition, the Company is developing a new corporate website scheduled for release in October and is working on the relocating of our manufacturing and warehousing to reduce cost of goods.
  

About Celsius Holdings, Inc.
Celsius Holdings, Inc. (PINKSHEETS: CELH) markets Celsius®, which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. Information about Celsius Holdings, Inc. and Celsius is available at http://www.celsius.com.

Forward-Looking Statements
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.

                  Celsius Holdings, Inc. and Subsidiaries
                   Condensed Consolidated Balance Sheets
                                (Unaudited)

                                               -------------  -------------
                                                  June 30      December 31
                                               -------------  -------------
                    ASSETS                          2012           2011

Current assets:
Cash and cash equivalents                      $     131,342  $     130,536
Accounts receivable, net                             766,701        537,867
Inventories, net                                     726,069        871,779
Other current assets                                 405,857         69,340
                                               -------------  -------------
  Total current assets                             2,029,969      1,609,522

Property, fixtures and equipment, net                 63,954         67,000
                                               -------------  -------------
    Total Assets                               $   2,093,923  $   1,676,522
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable, accrued expenses and other
 liabilities                                   $   1,215,360  $     694,914
Due to related parties, short-term portion           192,624        172,989
                                               -------------  -------------
  Total current liabilities                        1,407,984        867,903

Due to related parties, long-term portion             32,104        114,000
Convertible note payable, related party            1,500,000      1,500,000
Note due to related parties                        4,525,000      3,000,000
                                               -------------  -------------
  Total Liabilities                                7,465,088      5,481,903
                                               -------------  -------------

Stockholders' Equity (Deficit):
Common stock                                          20,181         20,181
Additional paid-in capital                        36,812,264     36,722,894
Accumulated deficit                              (42,203,611)   (40,548,456)
                                               -------------  -------------
  Total Stockholders' Equity (Deficit)            (5,371,165)    (3,805,381)
                                               -------------  -------------
    Total Liabilities and Stockholders' Equity
     (Deficit)                                 $   2,093,923  $   1,676,522
                                               =============  =============



                  Celsius Holdings, Inc. and Subsidiaries
              Condensed Consolidated Statements of Operations
                                (unaudited)

                           For the Three Months       For the Six Months
                              Ended June 30,            Ended June 30,
                             2012         2011         2012         2011
                         -----------  -----------  -----------  -----------
    Net revenue          $ 1,822,742  $ 2,032,201  $ 4,308,584  $ 4,238,098
    Cost of revenue        1,440,600    1,185,760    3,059,127    2,585,126
                         -----------  -----------  -----------  -----------
Gross profit                 382,142      846,441    1,249,457    1,652,972

    Selling and
     marketing expenses    1,002,790      825,941    1,848,813    1,643,337
    General and
     administrative
     expenses                423,392      414,714      916,512      802,197
                         -----------  -----------  -----------  -----------

Loss from operations      (1,044,040)    (394,214)  (1,515,868)    (792,562)

Interest expense, net         74,856       61,839      139,289      123,123
                         -----------  -----------  -----------  -----------

Net loss                 $(1,118,896) $  (456,053) $(1,655,157) $  (915,685)
                         ===========  ===========  ===========  ===========

Basic and diluted:
  Weighted average
   shares outstanding     20,181,408   18,515,575   20,181,408   18,515,575
                         ===========  ===========  ===========  ===========
  Loss per share         $     (0.06) $     (0.02) $     (0.08) $     (0.05)
                         ===========  ===========  ===========  ===========

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