Ascendia Brands Announces Earnings for Fiscal 2006; Projects Continued Revenue Growth for Fiscal 2007.

LAWRENCEVILLE, N.J. -- Ascendia Brands, Inc. (AMEX:ASB) today issued interim financial results for the fiscal year ended February 28, 2006. As announced on June 13, 2006, Ascendia expects to publish its audited financial statements not later than June 30, 2006.

For the year ended February 28, 2006, Ascendia recorded consolidated gross profits of $5.4 million, on net sales of $79.6 million. The consolidated net loss for the year totaled $12.8 million, including aggregate one-time transaction costs of $5.0 million associated with the May 2005 merger between the Company (formerly known as Cenuco, Inc.) and Hermes Acquisition Co. I LLC  (the parent company of the former Lander health and beauty care business), as well as the November 2005 acquisition of certain brands and brand-related assets from Playtex Products, Inc. and related financing costs.

For the current fiscal year, which ends February 28, 2007, Ascendia projects net sales revenues of approximately $115 million and $27 million in gross profit. The company also expects that its strategic focus on higher margin products, including the brands acquired from Playtex Products, Inc. in November 2005 and the expansion of its successful Lander essentials(TM) premium value line, will contribute to continued margin growth in the current year.

Joseph A. Falsetti, President and Chief Executive Officer of Ascendia, commented:

"The preliminary results for 2006, and in particular the fourth quarter, reflect Ascendia's focus on branded premium value products, consistent with our strategic objective to de-emphasize less profitable private label and extreme value businesses. We begin our 2007 fiscal year with a clear vision toward improving revenue and EBIDTA on a quarterly comparative basis. We now have a significantly stronger platform upon which to build -- both for continued organic growth and to accommodate select acquisitions that complement our existing product offerings, and offer attractive synergies across SG&A."

Selected financial data are shown below:

Ascendia Brands, Inc. and Subsidiaries
       Interim Consolidated Statement of Operations (Unaudited)

    (The following financial statements for the year ended
February 28, 2006 are unaudited and subject to possible change
depending upon the outcome of a pending revaluation of the Cenuco
wireless division assets, as of the May 2005 merger. We believe any
reduction in the valuation of those assets results, coupled with any
impairment that may be recorded for the fourth quarter of fiscal 2006
against the goodwill established in the merger, will total
approximately $14.5 million in the aggregate. The results shown
below do not include any impairment charge.)

                                                      For the period
                                                      From April 25,
                                                            2003
                              For the year ended      (inception) to
                          ---------------------------
                          February 28,  February 28,   February 29,
                               2006          2005           2004
                          ------------- ------------- ---------------

Net sales                 $ 79,562,219  $ 69,860,802  $   55,046,015
Cost of sales               74,208,510    62,369,597      48,243,281
                          ------------- ------------- ---------------

Gross Profit                 5,353,709     7,491,205       6,802,734

Total operating expenses    15,694,805    10,247,201       7,997,689

Loss from operations       (10,341,096)   (2,755,996)     (1,194,955)


Net loss                  $(12,827,871) $ (3,988,762) $   (1,718,835)
                          ============= ============= ===============

About Ascendia Brands

Ascendia Brands, Inc. is a leader in the value and premium value segments of the health and beauty care products sector. In November 2005, Ascendia expanded its range of product offerings through the acquisition of a series of brands, including Baby Magic(R), Binaca(R), Mr. Bubble(R) and Ogilvie(R). The company is headquartered in Lawrenceville, New Jersey, and operates two manufacturing facilities, in Binghamton, New York, and Toronto, Canada.

Visit us on the web at http://www.ascendiabrands.com

Forward Looking Statements

Certain statements contained herein may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, 21E of the Exchange Act of 1934 and/or the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, statements regarding the anticipated publication date of its audited financial statements for the year ended February 28, 2006, impairment that may be recorded for the fourth quarter of fiscal 2006 against the goodwill established in the merger, financial results for the year ended February 28, 2006, business plans, future regulatory environment and approval and, the Company's ability to comply with the rules and policies of independent regulatory agencies. Although the Company believes the statements contained herein to be accurate as of the date they were made, it can give no assurance that such expectations will prove to be correct. The Company undertakes no obligation to update these forward-looking statements.