New Sun Nutrition, Inc. Announces $25 Million Series A Preferred Investment Round Led by Oak Investment Partners

11/06/07 New Sun Nutrition, Inc., a developer and distributor of healthy beverages and nutritional supplements, announced that it received $25 million in a Series A Preferred financing round led by Oak Investment Partners. Radar Partners and Thomas Weisel, chairman and chief executive officer, Thomas Weisel Partners, are also participants in the funding round which provides significant growth capital to the entrepreneurial beverage company to aggressively expand national retail distribution of its FRS product line.

The FRS product line is unique in the energy beverage category because of its use of a special blend of vitamins and antioxidants. New Sun believes that this healthier approach represents a significant opportunity in the $4.9 billion energy beverage category, which was up 56% in 2006 in North America according to Beverage Digest. Founded in 2004 with funding from private investors, including the former CEO and co-founder of Balance Bar, the company has grown the FRS business leveraging its online presence at http://www.frs.com into multi-channel distribution that also includes grocery, nutritional, convenience, drug and cycling retailers. The company also recently announced that champion cyclist and cancer survivor Lance Armstrong joined the board of directors and is serving as a FRS product spokesperson.

In conjunction with the Series A round, Fred Harman, managing partner at Oak Investment Partners, and Richard Rosenblatt, chairman and chief executive officer of Demand Media, Inc., and former chairman of MySpace will join the company's board of directors.

"Our mission is to make a new generation of healthy energy products based upon the FRS formula available to consumers to help them perform better while at work, at home or involved in sporting and recreational activities," commented Maigread Eichten, president and chief executive officer of New Sun Nutrition. "This capital infusion, combined with the depth of experience our new investors and Board of Directors will contribute, is a winning formula that will drive the retail and online success of our FRS product line."

"We think New Sun Nutrition and its FRS product line are at an inflection point in growth as the beverage market is on the verge of a mass substitution of current soft drink and so-called energy drinks, and Oak is excited to provide the growth capital and company assistance to ensure the company is a big success, for both consumers and shareholders," said Fred Harman. "The product is truly a unique energy drink that addresses a strong and growing consumer preference for healthier beverages that are lower in caffeine and calories and FRS is poised to be a leader in this category."

"New Sun Nutrition is a great example of a cutting edge company that is using e-commerce and viral marketing techniques to synergistically build a successful business and use those techniques as a catalyst to drive retail distribution and consumer pull," said Richard Rosenblatt. "This innovative strategy helps reduce the costs of building a national brand as well as building a loyal consumer base even before the product hits many retail shelves."