Synergy Brands' PHS Group and Federated Group, Announce Sales and Marketing Agreement.

SYOSSET, N.Y. -- Synergy Brands, Inc. (Nasdaq:SYBR) today announced that Federated Group, a premier sales and marketing company in the grocery, foodservice, drug and convenience store business, and The PHS Group, have entered into a sales and marketing agreement for the distribution of Federated's proprietary brand "Better Valu" to PHS Group customers in its geographical distribution areas. PHS believes that this additional price penetrating program which offers acceptable quality, will aid PHS Group's efforts continue to offer it's customer base variety and price impact.

David LaPlante, President and CEO, Federated Group, recently stated: "We look forward to the addition of The PHS Group to our family of participating members. We are certain we offer the program to enhance and drive the customer penetrating growth that PHS Group seeks in it's long term business plan."

Federated Group, which employs 200 personnel with offices across the United States, is an innovative food concept company located in Arlington Heights, Illinois, that provides customized brokerage and account management and logistics services to retail and wholesale customers plus customized private brand solutions through their proprietary brands.

About Synergy Brands

Synergy Brands, Inc. is a holding company that operates in the wholesale and Internet distribution of consumer goods as well as the retail distribution of premium cigars in the U.S. and Canada. It principally focuses on the sale of nationally known brand name consumer products manufactured by major U.S. manufacturers. The consumer products are concentrated within the Grocery and Health & Beauty Aids (HBA) industries, salon products, designer luxury goods and premium cigars.

FORWARD LOOKING STATEMENTS

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