Vertical Branding OTC BB: VBDG

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Vertical BrandingOTC BB VBDG
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Safe Harbor Statements

• Forward-looking statements
• Certain statements in this presentation may
  contain forward-looking information within the
  meaning of Rule 175 under the Securities Act of
  1933 and Rule 3b-6 under the Securities Exchange
  Act of 1934, and are subject to the Safe Harbor
  created by those rules.  Other than statements of
  historical fact, any statements included in this
  presentation, including without limitation
  statements regarding potential future plans and
  objectives of the company, are forward-looking
  statements that involve risks and uncertainties
  that could cause actual results or events to
  differ materially from those anticipated in such
  statements.  Some of these risks, uncertainties
  and other factors are described in the Companys
  periodic filings with the Securities and Exchange
  Commission (available at www.sec.gov), such as
  the companys most recent Form 10-KSB filing and
  registration statement on Form
  S-1.  Forward-looking statements reflect present
  intentions and available information only, and
  many facts, circumstances or events could arise
  in the future that might prevent the achievement
  of any objectives, or the implementation of any
  strategically significant plan(s), outlined
  herein, or that might cause the company to
  reconsider such objectives or plans.  The company
  undertakes no obligation to publicly update or
  revise any statements in this presentation
  whether as a result of new information, future
  events or otherwise.
• Non-GAAP financial measures
• This presentation contains references to adjusted
  EBITDA, a non-GAAP financial measure, which
  management believes provides better insights into
  Company performance than GAAP metrics. Please
  consult the Companys SEC filings and press
  releases for reconciliations of EBITDA with GAAP
  measures.

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Who We Are

• Vertical Branding is a consumer products company
  selling high quality household and personal care
  products at affordable prices.
• The Company sells directly to consumers through
  television, Internet and print advertising as
  well as wholesale to many of the countrys
  largest retailers and drugstore chains, catalogs,
  home shopping channels and international
  distributors.
• The Companys hottest-selling products and brands
  currently include MyPlace, SteamBuddy, Hercules
  Hook, Zorbeez, Extreme Beam and EZ-FoldZ Step
  Stool.

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What youre about to hear
What is Unique Compelling about Vertical
Branding ? All About Our Products ? Our Marketing
Sales Approach ? Management ? Financial
Information
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What is Unique Compelling about VBI

• Our Track Record demonstrated ability to
  develop and/or identify quality, yet inexpensive
  products that appeal to a core demographic and
  high success rate bringing those products to
  market
• Our Products - New product introductions through
  a robust product pipeline, as well as line
  extensions on existing and future products, fuel
  growth while recurring sales from an
  ever-expanding product portfolio provides a
  stable base of revenues
• Our Advertising Strategy - Multi-media (TV,
  Internet), ROI-based transactional advertising
  strategy that creates brand awareness and
  promotes retail sell-through while simultaneously
  generating revenues through direct response
  sales
• Continually Testing - Metric-driven testing of
  new products and marketing campaigns avoids large
  capital expenditure prior to market validation
• Strong year over year revenue growth
• Experienced, high caliber management.

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Its all about the Products

• Current Products
• ?
• Product Pipeline
• ?
• Product Development and Selection

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Current Product Overview
Vertical Brandings products make life easier
and/or more affordable by answering unique
consumer needs in innovative ways
SteamBuddyTM
Heated Ice ScraperTM
MyPlaceTM
Heated Ice Scraper
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VBI Product Pipeline
Vertical Brandings track record of success
makes us attractive to inventors and license
holders as a potential home for their products

• Develop our own proprietary products and brands
• License products from third parties
• Dozens of potential new product opportunities
  reviewed every month submitted by inventors,
  vendors, manufacturers, trade shows, etc.

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New Product Launch
Vertical Brandings track record of success
makes us attractive to inventors and license
holders as a potential home for their products
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New Product Launch
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Expertise in Product Development Selection

• Unique, top-quality, compelling value proposition
• Affordable price points (9.99 - 29.99)
• Resonate with core demographic (women 28 55)
• Potential to sell gt50 million households
• Each product gets rigorous in-house evaluation
  (financial, operational, quality assurance
  legal)

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Our Marketing and Sales Approach

• Creating and testing the campaign
• Transactional Marketing
• Retail Sales
• Deepening relationship with retailers as
  category captain and reliable source of popular
  products
• Catalog and Home Shopping Sales
• International Distribution
• Future trends and focus

Transactional Marketing Media generates revenues
on the front end while creating Brand Awareness
used to drive Retail Sales
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Creating Testing the Campaign
Transactional Marketing allows continual testing
and refinement of the marketing message and the
value proposition

• Television commercials, Internet marketing, and
  print advertising is created and tested
• Limited amount of media is purchased during
  testing phase
• Results are then analyzed, gauging response and
  profitability prior to national media rollout

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Transactional Marketing Highlights

• Simultaneously generates revenues and builds
  brands
• Transactional media net costs are a fraction of
  conventional brand/image advertising
• Immediate, lasting return on marketing investment
• Response is measurable
• Creation of a direct, lasting customer
  relationship
• Gives management sound basis for marketing
  tactics
• Enables metrics-based marketing and management

Brand advertisers now engaged in direct
marketing on TV and online PG GM Ford
TiVo Kodak Discover
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Retail Distribution Highlights

• Currently in 40,000 traditional retail outlets
• Wal-Mart, Target, Costco, CVS, Bed, Bath
  Beyond, Kohls, Rite-Aid, Best Buy, Staples,
  Walgreens, Publishers Clearinghouse, Albertsons
• Gross margins range from 38 to 50

As we continue to develop new products, our base
of retailer customers continues to grownew
retail accounts in 2008 include Staples, Office
Depot, Best Buy and Albertsons
My Place units prominently displayed at Bed Bath
Beyond
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Transactional/Retail Synergies

• Retail channel leverages prior investments in
  transactional and continuity marketing
• Retailers grant more and better display space for
  products that generate additional customer
  traffic
• Unit sales at retail are 3x - 5x better for
  products with strong transactional marketing
  track records

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Deepening Relationship with Retailers

• The acceptance of our products and our
  responsiveness has led to deepening relationships
  with many of our retail customers
• We have been named Category Captain by several
  major retail chains which gives us an opportunity
  to greatly expand our distribution to those
  stores with both our own products and third party
  products
• New product opportunities have arisen directly
  from retail buyers

The EZ-FoldZ Step Stool was brought to Vertical
Branding by a Wal-Mart buyer due to the retail
success of Hercules Hook and other products
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Category Captain VBI Partners with its Own
Retailer Customers
As category captain, VBI controls high-traffic
As Seen on TV end-cap shelf sections for
leading retailers, gains direct PoP data and new
product ideas, selects and merchandises its own
products and other manufacturers items

• Currently in 40,000 retail outlets
• Gross margins 38 to 50 --
• Retail chains are bringing VBI new product
  opportunities
• New products gain entrée with new retailers
  (e.g., Category Captain with Staples, Khols,
  Albertsons, Bealls Stop N Shop)

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Other Wholesale Channels
Vertical Brandings media exposure creates
tremendous appeal among transactional marketers
having multiple distribution channels helps fuel
our growth
Catalog ? Home Shopping Channels ? International
Distribution
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Management Team
The Companys management team has over 75 years
of combined experience, cumulative lifetime track
record of billions of dollars in sales

• Nancy Duitch Founder, Chief Executive Officer
  and Director
• Dan McCleerey Chief Financial Officer
• John Cammarano President, Retail Sales
• Chris Lipp Vice President and Corporate Counsel
• Mark Miller - Operations Consultant

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• Financial Information

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Financial Highlights

• Company grew from 8.1 million in sales in FY
  2005 to 36.3 million in FY 2007
• Certain non-recurring items and events affected
  the Companys results in the latter part of 2007
  and first part of 2008
• The Companys most recently reported results, for
  its third quarter ended 9/30/2008, represent
  three consecutive quarters of top and bottom line
  improvement and two consecutive quarters of
  positive EBITDA
• Q3 2008 revenues of 9.8 million were up 8 over
  Q3 2007 revenue of 9.1 million

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Selected Income Statement Data
Year-over-year gross margin decline reflects
larger percentage of retail distribution sales as
well as changes in product mix
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Selected Balance Sheet Items
November, 2007 RENN Capital made a 4 million
equity investment in Vertical Branding, 2
million of which was used to reduce long-term debt
Note Assets and liabilities include,
respectively, approximately 3.9 million and 2.9
million associated with commercial real estate
holding and mortgages thereon Increase in
current liabilities reflects increased revolving
line of credit borrowing, commercial real estate
second mortgage maturity in July 2009, and
subordinated debt maturity in August 2009.
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Corporate Snapshot
One possible thumbnail description of Vertical
Branding A mini- Procter Gamble
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Investment Highlights
Vertical Branding has a rare combination of
track record, sustainable and scalable business
model and deep management expertise

• Strong track record of successfully selecting
  popular products and mass-marketing them through
  multiple sales channels
• Transactional marketing strategy road-tests
  products, builds brands, optimizes retail
  channelsell-through
• Improving top and bottom line trends for 2008 on
  a sequential quarterly basis show full recovery
  from setbacks in Q4 2007
• Scalable business model leverages profits from
  successful mature products to support robust new
  product pipeline

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Vertical BrandingOTC BB VBDG
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Appendix GAAP Reconciliation
EBITDA is a non-GAAP financial measure which
management believes provides additional insight
into Company performance used in conjunction with
GAAP figures. Please consult the Companys SEC
filings and press releases for further discussion
of Company results.