Synergy Brands (NASDAQ:SYBR):

Synergy Brands completed an $8 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 long-term notes to be amortized over a 10-year period at a rate of 11.75% with a balloon payment in five years. This financing supplements the $6.5 term notes previously announced in January 2007. This supplemental financing has no equity component and no shares were issued as part of this deal. This financing retired all of the Company's short-term debt and is expected to reduce financing costs by 30% in Fiscal 2007. The Company expects to report a first quarter operating profit with revenues expected to exceed $17 million. Primary revenue growth is expected to be posted from the Company's baking mix private label business, which was not in operation in the first quarter from the prior year. The full earnings report will be released on May 15, 2007.

ABOUT SYNERGY BRANDS:

Synergy Brands Inc. (SYBR or the Company) is a holding company that principally operates through a wholly owned subsidiary, PHS Group Inc. (?PHS?) in the wholesale distribution of nationally known brands and proprietary private label Groceries and Health and Beauty Aid (HBA) products. It principally focuses on the sale of nationally known brand name consumer products manufactured by major U.S. manufacturers and has begun focusing on the grocery private label market in FY 2006. The Company also owns a wholly owned subsidiary Gran Reserve Corporation that principally operates in the wholesale, retail and online sales of Premium hand made cigars and accessories.

For more information please visit www.sybr.com, for Cigar sites visit www.cigargold.com and www.cigarsaroundtheworld.com; for Salon products visit www.BeautyBuys.com; for Interline Travel visit www.perx.com .

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 1994. 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 derivations 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, non-GAAP measures of operations, 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 or 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 (ww.sec.gov) including Forms 10K and 10Q that can be found at www.sybr.com .