Apple Rush Announces Second Quarter 2008 Financials; Revenues Double From First Quarter

BLUE ISLAND, Ill., Sept. 29 /PRNewswire-FirstCall/ -- Apple Rush (Pink Sheets: APRU) today announced financial results for its second quarter 2008. The full set of financial statements can be viewed at http://www.applerush.com.

Revenues more than doubled in the second quarter of 2008 to $1.66 million, up from $599,000 in the first quarter of this year. Revenues totaled $2.26 million for the first six months of 2008. The growth is exponential compared to the first six months of 2007, in which revenues totaled $42,952. The increases were largely due to the first full three months of operations from Garden Distributing, Apple Rush's distribution company.

Total operating expenses increased from $223,127 in the first quarter to $435,095 in the second quarter as the Company logged its first full three months of managing Garden Distributing. Much of these increased expenses were incurred because of the full employee burden of the Garden Distributing operation as well as increased costs related to fuel, raw materials and added insurance costs. The Company posted a loss in both quarters in 2008.

Apple Rush continues to make improvements in managing and controlling its operating costs and expects that the net loss will decrease in the 3rd quarter and turn to profitability in mid to late 2009.

In comparing the first six months of 2007 to 2008, the Company has dramatically improved its gross profit from $3,651 to $329,987 respectively. Most of these improvements are related to increases in the sales of more highly profitably products and the controlling the costs of raw materials.

Robert Corr, President and CEO of Apple Rush, said the results were within management expectations. "The addition of Garden Distributing has greatly changed the complexity and profitability of our operation. The addition of new and more profitable items at Garden Distributing and the increased outreach of Apple Rush will continue to show a steady increase in sales and profitability into the future."

Mr. Corr concluded: "Our investment in Garden Distributing is continuing to pay off as can be viewed by the contribution it makes to our bottom line. This investment has given us the immediate growth that we expected. With the expansion of new products and the increased sales of Cintron Beverages, Garden Distributing is expanding its distribution reach. We are also adding new food items to our distribution system to bolster our fall and winter sales. Apple Rush Organic Sparkling Beverages continues to provide us new opportunities and the potential to develop it into a nationally recognized brand. We have plans to complete many of the line extensions slated for Apple Rush to expand its distribution reach. With this continued growth we will seek to raise additional capital to keep up with this demand. Our strategy is to continue to improve our operations and utilize our capital to expand the distribution and promotion of Apple Rush."

ABOUT APPLE RUSH(R): Apple Rush Company, Inc. markets a line of Sparkling Organic Juice products through an extensive distribution network of nearly 40 Distributors throughout the U.S. and in foreign markets. Garden Distributing, Inc. is a wholly owned subsidiary that distributes a variety of popular juice, RTD tea, soft drink and food items within the Metro-Chicago and Northwest Indiana market. Updated information is available at http://www.applerush.com.

Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.

     Contact:  Paul Knopick
     E & E Communications
     949/707-5365
     pknopick@eandecommunications.com

SOURCE Apple Rush