LETTER

Thank you for your interest in Celsius, Inc. We are dedicated to bringing healthier refreshment through science and innovation. Built on core values and known for integrity we want to win through our innovation. Building trusted brands with great taste and proven functionality, our vision is be the first in the mind of consumers for each new category we create.

Consumers are increasingly aware of nutrition and its connection to their personal health but face a daily dilemma as they search for refreshment. They not only want, but are beginning to expect more from their beverages than just empty calories as evidenced by the rate of new products fortified with vitamins, fiber, minerals, etc. The sheer size of the soft drink markets proves the continued desire for refreshment. The huge growth in energy drinks, coffees and teas show the need for energy. The obesity epidemic points to the need for lower calorie alternatives. These dynamics set the stage for our first product, Celsius.

What makes Celsius so unique? Celsius is a dietary supplement that tastes like refreshing drinks such as a soda or tea and burns calories by raising the body's metabolism. Celsius is an innovative, category creating brand. Our goal - deliver the first calorie-burning beverage with the great taste and proven results, in as natural a form as possible. Celsius has gained praise for the balanced blend of specific ingredients in its formulation and also for what is NOT included. Today's consumer is demonstrating that they no longer want beverages loaded with sugar, carbs, preservatives, high fructose corn syrup, and sodium. Filled with good ingredients such as Green Tea with EGCG, Ginger, Calcium, Chromium, B Vitamins, and Vitamin C, Celsius has been rapidly embraced by consumers, distributors, and retailers.

When I reflect back on our experience developing Celsius, it is with great pride that I consider our achievements. From original product formulation and testing, trademark development, manufacturability verification - and ultimately the independent confirmation of the thermogenic effect of Celsius by multiple clinical studies from the Ohio Research Group and University of Oklahoma - through to the many awards, accolades and broad recognition that Celsius has garnered, I cannot help but think about how far we have come. Our recognition as Beverage Industry Magazine's "Best New Product - 2005", CSP Retailer Choice "Finalist 2006", and respected industry analysts DataMonitor's "Number One Food and Beverage Trend for 2007" top off more than 800 TV News Casts and a feature on the "Today" show on NBC with Matt Lauer, the Food Network and Extra, and clearly place Celsius as one of the most anticipated products of the current era.

As we continue the launch of Celsius, our company, Celsius, Inc. is laying the foundation for the future. We will continue the fun of building an exciting company but not take our commitments lightly as we work towards our vision of healthier refreshment through science and innovation.

Stephen C. Haley, CEO
Celsius, Inc.