Vertical Branding's Role as Category Leader for Major Retail Chains Continues to Grow

Thursday July 31, 7:50 am ET

Company's 'As Seen on TV' Displays Now in Over 4,000 Locations

LOS ANGELES--(BUSINESS WIRE)--Vertical Branding, Inc. (OTC BB: VBDG.OB) provided an update today on its growing success as a "category leader" for some of the best-known names in retailing. In this role, Vertical Branding works with retail chains in managing an "As Seen on TV" product display strategically positioned in-store and featuring Vertical Branding products as well as best of breed offerings from other DRTV product marketers such as TeleBrands, Ontel, IdeaVillage and Allstar Marketing Group.

Since launching the initiative toward the end of last year, the Company has established exclusive or non-exclusive category leader arrangements with several high profile retailers, including:

Staples
Bealls
SuperValu
Albertsons
Stop & Shop
Circuit City
Jewel-Osco

As category leader for a growing roster of retailers, Vertical Branding designs customized fixtures featuring eye-catching "The Best of the Best" signage. View Multimedia Gallery

Vertical Branding's category leader presence currently extends to more than 4,000 storefronts, with the goal of adding additional stores and retail chains on an ongoing basis. The Company designs customized fixtures for each retailer featuring eye-catching "The Best of the Best" signage.

The category leader strategy is designed to capitalize on the visibility and consumer awareness surrounding products advertised on television while at the same time introducing the consumer to other complementary or contextually appropriate products within the display space, all with the ultimate objective of helping retailers convert store real estate and customer traffic into sales and generating additional distribution for Vertical Branding products in the process.

"By serving as the intermediary between product manufacturers and leading retailers, we have created a 'win-win' scenario for all involved," said John Cammarano, President of the Company's Adsouth retail sales unit. "Our 'As Seen on TV' fixtures get optimal placement in stores. Our retailer partners gain new product categories outside their core product mix, broaden their customer base and ring up incremental sales from existing customers. In addition to distribution for Vertical Branding products and fee-based compensation for placement of third-party products, we receive constant streams of invaluable point-of-sale information and actionable, real-world consumer data."

"Serving as category leader makes us a true marketing partner with our retailers and gives us a unique competitive advantage," noted Vertical Branding CEO Nancy Duitch. "It represents a deeper relationship than that of a supplier. Among other benefits, it allows us to entrench ourselves in strategic areas of each store and achieve constant product placement. Our category leader initiative is part of our overall strategy of building an industry-leading retail distribution channel. Based on the sell-through we have achieved as category leader to date, we are hopeful that adoption of our program by top-tier retailers will continue to spread."

Also commenting on the emerging trend toward collaboration among product companies and partnership with retailers was consumer product pioneer and marketing authority A.J. Khubani: "Vertical Branding's visionary distribution strategy has truly been a coup for TeleBrands--getting our products into 4,000 additional retail doors that we have had difficulty penetrating. I believe the key has been the creation of a powerful line of products that could have only been accomplished by the collaboration of the key players in the 'As Seen on TV' business. We are thankful to John Cammarano and his team for initiating this collective effort and making the category a highly successful reality at these key retailers." Mr. Khubani is the founder and chief executive of TeleBrands, one of the nation's top direct-response TV marketing companies, and is a frequent lecturer on entrepreneurship at Princeton University.

About Vertical Branding, Inc.

Vertical Branding is a consumer products company selling high-quality household, beauty and personal care products at affordable prices. The Company builds consumer awareness for its products and brands through direct response television, Internet and print advertising, with the goal of broader wholesale distribution to many of the country's largest retailers and drug chains as well as catalogs, home shopping channels and international distributors. Vertical Branding develops its own proprietary products and brands and licenses the rights to other select products that pass its rigorous screening process. The Company's hottest-selling products and brands currently include MyPlace, SteamBuddy, Hercules Hook, ZorbEEZ, EZ Foldz Step Stool and StarMaker Cosmetics.

Information Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding the Company's expectations, goals or intentions about the future, including explicit or implied statements about product or program success. These statements reflect current expectations only and are qualified by numerous risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission under the heading 'Risk Factors,' as well as other factors or circumstances that could cause actual results or events described in forward-looking statements to differ materially from those anticipated or implied, and there can be no assurance that any such statements will ultimately prove to be accurate. All forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update these forward-looking statements except as required by law.

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