PRH Vitacube Systems Hld

Revenues More than Doubled on Comparable Quarter-Over-Quarter Basis; Revenues Increased 21% on a Sequential Quarter-Over-Quarter Basis DENVER, May 10 /PRNewswire-FirstCall/ -- VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc. (AMEX:PRH), a provider of functional foods, beverages and nutritional supplements, today reported first quarter results for the three months ended March 31, 2006. (Logo: http://www.newscom.com/cgi-bin/prnh/20050926/FLM015LOGO ) Financial and Operational Highlights for the Three-Month Period Ended March 31, 2006: * Revenues more than doubled, rising 127% to $538,960 from $237,056. On a sequential quarter over quarter basis, revenues increased 21% from $444,677 reported for the three months ended December 31, 2005. * Net Losses were $1,549,322, or $0.16 basic and diluted loss per share, an increase from net losses of $773,193, or $0.12 basic and diluted loss per share reported for the same period in 2005. * As of March 31, 2006, XELR8 had cash and short term investments of $1.72 million; $2.05 million in total shareholders' equity; and $1.86 million in working capital. "With notable revenue growth achieved in the first quarter, XELR8 remains squarely focused on perpetuating the fundamental progress we've put in motion and working towards our ultimate goal of achieving sustained profitability. Although our net losses continue to weigh on us, XELR8's growth prospects are indeed promising, due largely to the enthusiasm of our growing national direct selling network, now numbering more than 2,400 as of April 30, 2006; increasing popularity of and demand for our nutritious products; the expertise of our employees and management team; and the loyal support of our shareholders. Through successful execution of our business plan, centered on expanding our direct selling network to over 6500 distributors within 12-18 months, we remain confident that XELR8 has the necessary drive, commitment and strategy in place to accomplish our ambitious financial objectives," noted Earnest Mathis, Chairman and CEO of XELR8 Holdings. XELR8 will also host a teleconference and webcast this afternoon beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-800-257-2182 or via the Internet at http://www.xelr8.com/ . For those unable to participate at that time, a replay of the webcast will be available for 90 days on http://www.xelr8.com/ . About XELR8 Holdings, Inc. VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc., is a provider of nutritional foods and beverages designed to help enhance physical health and overall performance. XELR8 has developed a comprehensive line of nutritional supplements and functional foods designed in systems that are easy to take, simple to understand, and conveniently fit within a lifestyle. XELR8's commitment to quality, science, and research has earned them a loyal following of over 350 world-class athletes and an elite list of endorsers, such as five-time Cy Young Award Winner Randy Johnson; Super Bowl Champions Mike Alstott, Lawyer Milloy and Head Coach Mike Shanahan; professional football superstar Cadillac Williams; Olympians Briana Scurry and Caroline Lalive; Stanley Cup Winner Blake Sloan; and PGA Tour Professional Tom Pernice, Jr. XELR8 products are only available through independent distributors located throughout the nation. For more information about XELR8, please visit http://www.xelr8.com/ . VITACUBE SYSTEMS HOLDINGS, INC., d/b/a XELR8 HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2006 December 31, 2005 ASSETS Current assets: Cash $1,606,627 $2,805,021 Short term investments 110,000 110,000 Accounts receivable, net of allowance for doubtful accounts of $6,500 and $5,500, respectively 7,012 8,758 Inventory, net of allowance for obsolescence of 74,500 and $17,000, respectively 467,776 542,749 Prepaid expenses and other current assets 297,260 279,502 Total current assets 2,488,675 3,746,030 Intangible assets, net 35,385 36,219 Property and equipment, net 158,453 93,423 Total assets $2,682,513 $3,875,672 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $632,290 $455,996 Total liabilities 632,290 455,996 Commitments and Contingency SHAREHOLDERS' EQUITY: Preferred stock, authorized 5,000,000 shares, $.001 par value, none issued or outstanding - - Common stock, authorized 50,000,000 shares, $.001 par value, 9,663,345 and 9,618,900 issued and outstanding respectively 9,663 9,619 Additional paid in capital 16,170,713 15,990,889 Accumulated (deficit) (14,130,153) (12,580,832) Total shareholders' equity 2,050,223 3,419,676 Total liabilities and shareholders' equity $2,682,513 $3,875,672 VITACUBE SYSTEMS HOLDINGS, INC. d/b/a XELR8 HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 2006 and 2005 2006 2005 Net sales $538,960 $237,056 Cost of goods sold 245,379 84,560 Gross profit 293,581 152,496 Operating expenses: Selling and marketing expenses 1,025,138 426,848 General and administrative expenses 803,813 482,041 Research and development expenses 24,570 8,662 Depreciation and amortization 7,650 6,612 Total operating expenses 1,861,171 924,163 Net (loss) from operations (1,567,590) (771,667) Other income (expense) Interest income 18,268 115 Interest (expense) - (1,641) Total other income (expense) 18,268 (1,526) Net (loss) $(1,549,322) $(773,193) Net (loss) per common share Basic and diluted net (loss) per share $(0.16) $(0.12) Weighted average common shares outstanding, basic and diluted 9,620,898 6,534,043 Company Contacts: VitaCube d/b/a XELR8 Holdings, Inc. Earnest Mathis, CEO (303) 316-8577, x228 Elite Financial Communications Group, LLC Dodi Handy, President and CEO 407-585-1080 Forward-looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including prospects for XELR8's distribution network. Actual results may differ from those discussed in such forward-looking statements. These forward looking statements include risks and uncertainties that include the Company's ability to attract and retain distributors; changes in demand for the Company's products; changes in the level of operating expenses; changes in general economic conditions that impact consumer behavior and spending; product supply; the availability, amount, and cost of capital for the Company; and the Company's use of such capital. More information about factors that potentially could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the year ended December 31, 2005 and all subsequent filings. Certain statements in this release regarding the Company's agreements are in accordance with the guidelines established by the Federal Trade Commission for endorsements in advertising. http://www.newscom.com/cgi-bin/prnh/20050926/FLM015LOGO http://photoarchive.ap.org/ DATASOURCE: XELR8 Holdings, Inc. CONTACT: VitaCube d/b/a XELR8 Holdings, Inc., Earnest Mathis, CEO, +1-303-316-8577, x228, ; Elite Financial Communications Group, LLC, Dodi Handy, President and CEO, +1-407-585-1080, Web site: http://www.xelr8.com/

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