Vertical Branding, Inc. (OTCBB: VBDG), click here for full investor profile, is a fast-growing consumer products company selling high quality household, beauty and personal care products at affordable prices. The Company sells directly to consumers through television, Internet and print advertising (”transactional marketing”), as well as wholesale to many of the country’s largest retailers and drugstore chains (”retail distribution”), in addition to catalog proprietors, home shopping channels and international distributors. The Company’s hottest-selling products and brands currently include MyPlace, Steam Buddy, Hercules Hook, ZorbEEZ, E-Z Foldz Step Stool and StarMaker Cosmetics. With a robust product pipeline, VBI continuously develops, or acquires exclusive rights to new and complementary products, with a goal of rolling out four to six new products per year. New product introductions and line extensions fuel the Company’s growth, while recurring sales from an ever-expanding product portfolio provide a stable base of revenues.

Some recent company highlights include:

• Current access to over 30,000 traditional retail stores including Walmart, Costco, Best Buy, CVS, Target, Bed Bath & Beyond, Staples, Office Depot and Albertsons. They anticipate growing to 40,000 by the end of 2008.

• Created a new division, Econology Advantage™, formed to identify, develop and market eco-friendly consumer products.

• The Company reported revenues of approximately $9.6 million for the quarter ended June 30, 2008, an 11.3% increase over revenues for the second quarter of fiscal year 2007.

• Vertical Branding announced on April 07, 2008 that it has received over $1 million in orders from major national retail chains for its innovative SteamBuddy™ handheld steam cleaner.

Vertical Branding differentiates itself as a consumer products company in several important ways. First, the Company utilizes an ROI-based transactional advertising strategy, generating direct response product sales as it builds product and brand awareness among prospective retail customers. Second, Vertical Branding focuses on “everyday” products that fill an unmet consumer need or (with prices generally between $9.99 and $39.99) represent a value proposition relative to other products on the market — all to the effect that products enjoy a long retail lifecycle at price points not overly susceptible to downward economic pressures. Third, Vertical Branding markets to a core 28-55 year old female consumer that it has come to understand demographically and psychologically, allowing Vertical Branding to select products and create marketing campaigns that resonate with its target audience.

Stocks in this sector trade at 2-3 times revenue. If Vertical Branding trades at 2 times expected revenues, you get a stock price of roughly $2.95. The risk at the current price is next to nothing compared with the upside. With their ever expanding and affordable product line, strong relationships with top retail stores and experienced management team, Vertical Branding is an excellent candidate for small-cap portfolios.