Synergy Brands' (NASDAQ:SYBR) completed a $6.5 million secured financing with Lloyd I. Miller, a major shareholder and a director of Synergy Brands for its main operating subsidiary PHS Group. The financing consisted of $6.5 million in term notes to be amortized over a 10-year period at a rate of 11.25% that may be reduced to 11% under certain conditions. The agreement further included a securities purchase agreement that added 1,075,000 common shares of Synergy Brands to Mr. Miller's holdings and retired all warrants and options beneficially owned by Mr. Miller.

The Company will use the proceeds from this financing to retire higher interest debt owed by PHS Group to IIG capital. The new financing is expected to improve cash flow by $500,000 in this current fiscal year.

FORWARD LOOKING STATEMENTS

This press release and Company review and assumptions made regarding the financial figures and other information, referenced and presented, state and reflect assumptions, expectations, projections, intentions and/or beliefs about past and future events that are intended as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate to historical or current facts. They use words such as "anticipate", "estimate", "project", "forecast", "may", "will", "should", "expect", "assume", "believe" and other deviations thereof and other words of similar meaning. In particular these include, but are not limited to, statements reflecting the projected business activities and goals, revenues, earnings, profit and loss of the Company and associated costs. Any or all of the Company's forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. For a description of many of these risks and uncertainties, please refer to the Company's filings with the U.S. Securities & Exchange Commission (www.sec.gov), including Forms 10K and 10Q.