Smart Balance Announces 2008 First-Quart...(27938186 -- Gross p...),Health

Gross profit 22,827,553 --

Operating expenses:

Marketing 7,225,344 --

Selling 5,056,418 --

General and administrative 8,583,697 --

Formation and operating costs -- 672,873

Total operating expenses 20,865,459 672,873

Operating income (loss) 1,962,094 (672,873)

Other income (expense):

Interest income 251,360 1,078,207

Interest expense (3,231,721) --

Loss on derivative liability -- (7,784,112)

Other (expense), net (944,000) --

Total other income (expense) (3,924,361) (6,705,905)

(Loss) before income taxes (1,962,267) (7,378,778)

Provision (benefit) for income taxes (784,907) 148,183

Net (loss) $(1,177,360) $(7,526,961)

(Loss) per share:

Basic $(0.02) $(0.52)

Diluted $(0.02) $(0.52)

Weighted average shares outstanding:

Basic 62,196,988 14,355,945

Diluted 62,196,988 14,355,945

Smart Balance, Inc.

Operating Basis Results(1)

(in 000's) Three Months Three Months

Ended Ended

March 31, 2008 March 31, 2007

Net Sale
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