LOS ANGELES, Jun 01, 2006 (BUSINESS WIRE) -- Sunset Brands, Inc. (SSBN) announced today that it has entered into a letter of intent to acquire ZOIC(R) Nutrition Drink and the license for an industry-first hybrid energy drink from LifeForce Labs, LLC, a private company. The acquisition is expected to be a combination of cash and a royalty agreement and is expected to be closed by June 30. As part of the transaction, Sunset Brands expects to form a joint venture with LifeForce Labs to co-develop new healthy food and beverage products.

"Sunset Brands is building a portfolio of better-for-you foods, and ZOIC marks our entree into the high growth functional beverage market," stated Todd Sanders, president and CEO of Sunset Brands. "Formulated by the lead developers of Gatorade(R)'s alternative markets model, ZOIC was created to satisfy the increasing consumer demand for low glycemic, low calorie, low fat and controlled carbohydrate beverage alternatives that are good tasting, functional and convenient. ZOIC complements our product lines, and we plan to leverage our distribution capabilities to roll-out ZOIC nationally on a much larger scale than its current regional scope."

ZOIC -- meaning "of or pertaining to life" -- is a protein rich beverage that is designed to fit most lifestyles as a snack alternative or meal complement for busy consumers. ZOIC is the first and only product of its kind to be "Heart Smart Certified" by The American Heart Association. It was awarded the "Healthy Heart Claim" by the Food and Drug Administration and meets all guidelines of the American Diabetes Association. Many of America's most prestigious health and wellness institutions, including Mt. Sinai Medical Center and the Cleveland Clinic, have designated ZOIC as client recommended. Each 11-ounce can of ZOIC contains 21 grams of protein, 2 net carbohydrates, 25 essential vitamins and minerals, zero cholesterol and is 99 percent fat free, 99 percent lactose free, caffeine free, and antioxidant rich.

ZOIC was developed by LifeForce Labs, which was co-founded by John Serieka and Bruce Svetz. Together Serieka and Svetz bring over 35 years' experience in sales, marketing and operations with food and beverage companies including PepsiCo, Kraft Foods and The Quaker(R) Oats Company. While at Quaker Oats, Serieka and Svetz served as lead developers of Gatorade(R)'s alternative markets model, which built Gatorade(R)'s strategically critical on-premise business channel from a regional $5 million to over $300 million nationally before being incorporated into the $2 billion PepsiCo Foodservice business. With the help of the existing infrastructure at Sunset Brands, Serieka and Svetz will continue to oversee the sales, marketing and operations of ZOIC. As noted, Sunset Brands will enter into a joint venture with LifeForce Labs to co-develop new food and beverage products on a non-exclusive basis for Sunset's commercial use.

About Sunset Brands, Inc.
Based in Los Angeles, California, Sunset Brands, Inc. is poised to become a category leader in the high-growth better foods and nutrition categories through the rapid expansion of product lines and the acquisition of appealing nutritional content, healthy, natural/organic and functional food brands. For more information on Sunset Brands, please visit www.sunsetbrands.com

About LifeForce Labs, LLC
LifeForce Labs, LLC was incorporated in January 2003 in response to the recognition that there exists a growing demand for convenient-to-use nutraceutical products. LifeForce Labs operates out of main offices in Altamonte Springs, FL, and satellite locations in: Miami, FL; Chicago, IL; and San Juan, PR via a distribution agreement with Coca-Cola Puerto Rico. LifeForce Labs, LLC entered into multiple co-marketing agreements during 2004-2005. National Partners include Dupont/Solae Protein Technologies, Inc., The American Heart Association, and McNeil Nutritionals/Splenda. ZOIC's highest grade manufacturing standards include the utilization of state of the art proprietary processes which ensure our consumers receive the most efficacious, highest quality, and unique products.

Safe Harbor
Some statements in this press release are forward looking, within the meaning of the federal securities laws, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows. Certain statements are based on our assumptions and estimates and are subject to risks and uncertainties. You can identify these forward-looking statements by the words like "strategy", "expects", "plans", "believes", "will", "estimates", "intends", "projects", "goals", "targets", and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and Sunset Brands Inc. undertakes no obligation to update such statements. For these statements, we claim the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. For further information on factors that could impact Sunset Brands Inc. and statements contained in this press release, reference should be made to Sunset Brands Inc. filings with the Securities and Exchange Commission. ( www.sec.gov.)