Newsletter

July 8, 2006

Volume VII, Issue 54

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To OTC Journal Members:

Sub-Urban Brands (OTC BB: SUUB); Already Expanding Vertically

Right out of the gates, SUUB has been a surprisingly strong win. Perhaps the news flow from the company, along with the recent success of the J Crew IPO on the NYSE set the stage for a big short term win.

Perhaps investors recognize the power of viral marketing to the "Mash" generation- the prolific consumers in the 16 to 24 age group that simply has to have everything that is cool, hip, hip-hop, urban, and controversial. What better name than "WhiteBoy" to spark a little controversy, dialogue, and publicity.

I have a very good feeling about this idea. It's not tangible- just an instinct. PhD Dick Geist, in his four common characteristics of Successful Microcap investors, describes the factor as: "Experience--a good intuitive feel for products and services that will impact society."

I got my first clue from my 22 year old daughter. The company sent me a few samples of the White Boy line- a couple of hats, some t shirts, and a women's terry suit. She snatched it out of the box faster than a striking cobra, put it on, and promptly declared it was the "coolest" casual outfit she had. That was my first clue.

The second clue was even more telling. My wife asked if the name "WhiteBoy" wouldn't be a little politically incorrect. My answer - DUH!!!- that's what the company is going for. That's what the kids want. They want the controversy- they want to be controversial and noticed.

Since publishing our first edition on the company, the stock has done exceeding well for what is otherwise a generally fairly quiet and bleak time of year. The stock closed at $.35 when we first published post close, opened just above $.40 the next morning, and has since seen a high of nearly $.65. In short- an 86% gain from the closing price when first featured- a 51% gain from the opening price the next morning. Not bad for a hot, boring summer's week.

Friday after the close, SUUB was out with news it would be expanding its product line beyond the high end boutique market, and introducing a line geared towards the high end department store market with lower price points. They are already expanding vertically.

The new line is called Mash Culture Lab(TM), and will feature the company's Rooster logo. They will migrate away from the "White Boy" slogan, and focus this line on the "Get Cocky" theme to match the rooster.

The company states: "Whiteboy will remain one of our high-end, cutting-edge brands for early retail industry adopters and fashion trendsetters, while Mash Culture Lab(TM) will appeal to a broader consumer segment, with a commensurate potential increase in the revenue-generating market base."

I would expect SUUB to start announcing POs from major department store chains on a limited basis to start with, expanding in scope as the line becomes "viral".

Since the stock has traded so well, we can now start to look at some guidelines for participating. As it stands today, the stock has provided a nice little 38.2% retracement from the peak five days ago, suggesting it is currently a buy.

For those who have more of a trading mentality and are concerned about preservation of capital, an SSL at $.44 is suggested. This means, if you are a trader and believe in stop losses, simply sell it if it trades down to $.44 or less.

It's a little too early to project a technical upside on this one, but my instincts tell me $1 is probably a good target for the Fall.

Look for more ink in the Pop Culture press on this one as more and more trend setting stars are seen wearing their apparel. If they end up with a "hot" brand, the upside here could be akin to True Religion (NASDAQ" TRLG).

Here is the complete text of Friday's press release for your review:

Press Release Source: Sub-Urban Brands, Inc.

Sub-Urban Launches New Mash Culture Lab(TM) Apparel Line, Accelerating Multi-Brand Strategy to Capitalize on High-Revenue Demographics

Friday July 7, 4:01 pm ET

Mash Culture Lab(TM) Brand Developed in Response to National Retailers' Demand to Target Mainstream Markets

LOS ANGELES--(BUSINESS WIRE)--July 7, 2006--Sub-Urban Brands, Inc. (OTCBB:SUUB - News), a multi-brand apparel company pursuing high-margin revenue growth in the global fashion industry, has announced the launch of its latest clothing line, Mash Culture Lab(TM), in response to increased demand from highly interested national retailers seeking to drive revenues in the largest segments of the youth consumer public. Mash Culture Lab(TM) is the latest clothing line to be launched under Sub-Urban's core strategy to create a diversified brand portfolio, aimed at maximizing revenue potential and mitigating risk, while maintaining strong brand appeal for each consumer base.

As the newest brand in the Sub-Urban portfolio, Mash Culture Lab(TM) retains the cutting-edge design and appeal of Sub-Urban's WHITEBOY® brand including the signature rooster logo, yet targets an even broader market share.

"Mash Culture Lab(TM) was created in response to the global youth movement known as Mash Culture. We believe our new brand will give us high visibility and recognition to capture a substantial portion of this emerging marketplace," said Joseph Shortal, Chief Executive Officer of Sub-Urban Brands. "Whiteboy will remain one of our high-end, cutting-edge brands for early retail industry adopters and fashion trendsetters, while Mash Culture Lab(TM) will appeal to a broader consumer segment, with a commensurate potential increase in the revenue-generating market base."

Mash Culture Lab(TM) is a brand concept derived from today's most significant cultural youth movement. According to Wired Magazine, an influential periodical of current culture, Mash Culture is the result of a multitude of technological innovations that allow today's youth to combine previously disparate cultural movements like Hip Hop and Rock to create unique sounds, videos, automobiles and even customized clothing. Sub-Urban has positioned Mash Culture Lab(TM) on the cutting-edge of that movement, as it executes yet another strategic initiative that targets mainstream youth.

Sub-Urban's diversified multi-brand strategy allows the Company to target both niche and mainstream markets without diluting brand equity. For example, Fred Segal, a cutting-edge boutique retailer, will continue to carry the more edgy Whiteboy brand to maintain credibility with fashion trendsetters, while Mash Culture Lab(TM) will appeal to major national department store retailers that attract the larger mainstream customer base.

Through its various brands, Sub-Urban primarily targets the age 13-29 youth consumer demographic group, which comprises an estimated 40 million-plus consumers in the U.S. alone. The Company is committed to generating high-volume sales by addressing this multibillion-dollar youth market with hip styles inspired by urban, surf and music culture.

Sub-Urban's provocative brands have been engineered from the start to generate consumer buzz and to maximize sales. The Company's brands have been widely featured in high-profile fashion magazines, online publications and news media. The Company is committed to aggressive appreciation through organic and acquisitioned growth, including the purchase of additional trademarked apparel and accessory lines.

About Sub-Urban Brands

Sub-Urban Brands, Inc. is a multi-brand company which designs and markets cutting-edge lifestyle apparel that targets the rapidly-growing multibillion-dollar youth consumer marketplace. The Company pursues robust revenue-generating opportunities within multi-tiered retail markets that leverage multiple brands and market segments to create financial success. Sub-Urban is committed to further expansion and increased shareholder value through both the internal development of intellectual property and acquisition of additional brands, as well as to the establishment of new international marketing alliances that will reinforce its recurring and non-recurring revenue streams. Inspired by the energy and vigor of youth, urban and music culture, Sub-Urban is initially focused on creating a family of non-competing brands for its key target consumer, an estimated 40 million 15-29 year olds. Sub-Urban's current portfolio of trademarked apparel and accessory brands includes WHITEBOY® for Men, WHITEBOY® for Juniors and BLACK JESUS® streetwear apparel and PYT styles for younger girls. Consistent with the company's high growth strategies, the Company will be actively marketing these brand offerings to Japan, Canada, Australia and 25 European countries. For additional information, please visit www.suburbanbrandsinc.com. For more investor oriented information about Sub-Urban, visit http://www.trilogy-capital.com/tcp/sub-urban/. For current stock price quotes and news, visit http://www.trilogy-capital.com/tcp/sub-urban/quote.html. To view an Investor Fact Sheet, visit http://www.trilogy-capital.com/tcp/sub-urban/factsheet.html.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5183892

Contact:

Media and Public Relations
Sub-Urban Brands, Inc.
Caroline Rothwell, 323-781-2276
or
Financial Communications
Trilogy Capital Partners
Paul Karon, 800-592-6067
paul@trilogy-capital.com

Source: Sub-Urban Brands, Inc.

Comments in the BLOG

The only new BLOG posting this week relates to the Health Sciences (OTC BB: HESG) disaster. At long last, the company has finally brought in a new CEO to hopefully turn the ship in the right direction. Stuart Gold, apparently a veteran founder of a big win in the tea industry, has agreed to take over this bag of hammers. At this point, the company will either be reborn with new hope, or it will simply go down the toilet. My major concern is the lack of capital- according to their last SEC filing they are basically broke. I would imagine there is a plan in place, but I want to learn what it is before expressing any opinions about the possibility of the stock being a buy for any but the most adventurous of investors. For expanded information, check the current BLOG on HESG.

In addition, those who are following the HyperDynamics (AMEX: HDY) saga know I recently sold the rest of my shares after learning of the debt deal they did with Cornell Capital. In the early stages, the conversion feature of the debt is not death spiral material, but a default on the monthly payment would turn into a death spiral. In the shorter term, I believe this debt deal will act as a ceiling on the stock in the $2.20 to $2.25 range.

At this point in time, I have simply chosen to be on the sidelines, waiting for the company to deliver something tangible. A wise man once said ideas are plentiful, capital is scarce. There is a very lively dialogue going on in the comment section of that particular BLOG entry- worth a read if you want to learn both sides of the story.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.

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