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Jamba, Inc. Reports Financial Results For The First Fiscal Quarter Ended May 1, 2007

Revenue Up 22% On Company Store Comparable Sales Growth Of 4.2%

EMERYVILLE, Calif.--(BUSINESS WIRE)--Jamba, Inc. (NASDAQ:JMBA;) today reported financial results for the fiscal first quarter ended May 1, 2007.

The Company's GAAP-financial statements include the results of its wholly owned subsidiary, Jamba Juice Company, for the 16 weeks ended May 1, 2007. In addition, the Company is providing supplemental pro forma results of operations for the 16 weeks ended May 1, 2007 that reflect the current period effect of certain purchase accounting adjustments related to its acquisition of Jamba Juice Company in November 2006 and adjustments related to the adoption of SFAS 123(R), Share-Based Payment, to give relevant comparative financial results with the similar prior year period.*

Highlights of the Company's fiscal first quarter ended May 1, 2007:

* Record revenue of $89.4 million

* The record first quarter openings of 17 company-owned and 9 franchise new stores; including the first company-owned store in Oregon and three new company-owned stores in Florida.

* Comparable store sales increased 4.2% for company-owned stores and 2.9% for franchise stores

"Our drive to accelerate Jamba's brand presence as a public company is off to a great start with the opening of a record 26 new stores in the first quarter. We are making the investments necessary to support the execution of our growth strategy, including the implementation of key business initiatives that we expect will drive new and existing store sales," said Paul Clayton, Chief Executive Officer of the Company.

"We are also excited about the developments in our new product pipeline. Our expanded 'All-Fruit' smoothie platform was launched at the end of the quarter and it includes two new All-Fruit smoothies, Peach Perfection and Pomegranate Paradise, which have been particularly well received by our customers and one of our most successful launches ever. We have a number of test platforms that will occur throughout the balance of the year designed to introduce our brand to new users, drive customer frequency and expand day-parts," concluded Mr. Clayton.

The Company's Financial Results for the First Fiscal Quarter Ended May 1, 2007

Following the completion of the acquisition of Jamba Juice Company by the Company on November 29, 2006 and the subsequent name change of the Company from Services Acquisition Corp. International ("SACI") to Jamba, Inc., the Company changed its fiscal year reporting period. The Company now operates on a fiscal 16-12-12-12 week operating calendar year ending on the Tuesday closest to December 31st of each year. The Company's second fiscal quarter will be a 12-week operating period ending on July 24, 2007. Additionally, 2007 will be a transition year to the new fiscal calendar and, as a result, the fourth quarter of fiscal '07 will be an 11-week operating period.

In the first fiscal quarter, 26 new stores were opened, 17 of which were company-owned. Also, during the quarter, the Company acquired 10 franchise stores in central California.

Revenue was $89.4 million and is primarily attributable to smoothie and juice sales.

Cost of sales was $23.6 million, or 27.3% of company-owned store revenue.

Labor costs were $28.9 million, or 33.5% of company-owned store revenue.

Occupancy costs were $11.0 million, or 12.7% of company-owned store revenue.

Store operating expense was $11.1 million, or 12.8% of company-owned store revenue. Store operating expense includes all costs to operate the store, including costs for advertising and marketing.

General and administrative expenses were $15.0 million, or 16.8% of total revenue. General and administrative expenses include stock-based compensation expenses as a result of the Company's adoption of SFAS No. 123(R), increased costs associated with being a public company, including audit and legal fees, consulting fees, and investments in personnel and infrastructure.

Store pre-opening expenses were $1.2 million, or 1.3% of total revenue, attributable to opening 17 company-operated stores were opened in the first quarter.

Other operating expenses were $1.6 million, or 1.8% of total revenue. These costs include a $0.6 million effect of a purchase accounting adjustment relating to jambacard redemptions in the 19 week period ended May 1, 2007.

For the fiscal first quarter ended May 1, 2007, the Company reported net income of $11.9 million, or $0.20 per fully diluted share, which includes a pre-tax non-cash gain of $15.2 million, or $0.26 per fully diluted share, related to the change in the fair value of derivative liabilities. The derivative liability relates to warrants issued in the 2005 initial public offering of SACI.

The Company's Pro Forma Results for the First Fiscal Quarter Ended May 1, 2007 compared to Pro Forma Results from the Prior Year Period*

To provide a more meaningful comparison of operating results from the first fiscal quarter to the operating results of the same period a year ago, the Company has provided the following discussion of pro forma financial results for the period ended May 1, 2007 as compared to the same period ended May 1, 2006. These pro forma adjustments for 2007 are a result of certain purchase accounting adjustments related to the Company's acquisition of Jamba Juice Company in November 2006 and the effects of the adoption of FAS 123(R) in fiscal 2006. The pro forma results for the prior year period include the results of operations of Jamba Juice Company as though the acquisition had occurred as of the beginning of fiscal 2006.

Revenue increased 22% to $89.4 million from $73.5 million in the prior year period. The growth in revenue was primarily attributable to revenue from new stores and the effects of positive comparable store sales in the quarter.

Company-owned store comparable store sales were 4.2% compared to negative (3.5%) in the prior year period. Franchise store comparable store sales were 2.9% compared to 1.4% in the prior year period.*

Costs of sales increased to $23.6 million, or 27.3% of company-owned store revenue, as compared with 25.4% in the prior year period. Costs were negatively impacted by the January fruit freeze that destroyed a significant percentage of the California orange crop. There was also higher frozen fruit costs associated with strawberries and blueberries in the quarter.

Labor costs increased to $28.9 million, or 33.5% of company-owned store revenue, as compared with 33.0% in the prior year period. The higher costs were driven by a company-wide initiative of foundational training that aims to develop an internal pipeline of team member talent to support our accelerated growth plans. This new project was initiated during the first quarter of this fiscal year. Wage increases across the State of California also contributed to the higher labor costs.

Occupancy costs increased to $10.5 million, or 12.2% of company-owned store revenue, as compared with 12.6% in the year ago period. The higher costs were primarily due to the 72 new company-owned stores opened between May 2, 2006 and May 1, 2007.

Store operating expense increased to $11.1 million, or 12.8% of company-owned store revenue, as compared with 12.1% in the prior year period. The higher costs were driven primarily by increased investment in marketing costs during the quarter.

Store level operating income increased $296,000, or 3.7%, on $15.6 million higher revenue. Income was negatively affected by increased cost of sales, labor costs and occupancy costs.

General and administrative expenses increased to $13.9 million, or 15.5% of total revenue, compared to 13.5% in the prior year period. On a comparable period basis, the Company incurred approximately $1.5 million in increased costs associated with being a public company including higher legal and audit fees, consulting fees and the investments in personnel and infrastructure that are being implemented to aid in the Company's growth plans.

Store pre-opening expenses increased to $1.2 million, or 1.3% of total revenue, compared to 0.6% from the prior year period. This increase is a direct result of more store openings as well as the preparation for a greater number of new store openings in the upcoming quarters. In the first fiscal quarter of 2007, the Company opened 17 new company-owned stores as compared to six in the prior year period.

Other expenses increased to $1.0 million, or 1.1% of total, as compared to 0.4% in the prior year period. The increase in other expense is primarily due to a decrease in breakage income recorded on our jambacards.

Capital Resources
On May 1, 2007, the Company had cash and cash equivalents of $66.6 million. The Company also had a $35 million line of credit, which it terminated May 1, 2007. The Company intends to use its available cash resources to invest in its core business, primarily through building out new locations or upgrading existing locations and other new business opportunities related to its core business. The Company may also use its available cash resources to make additional acquisitions of franchisees' stores.

Conference Call

Steve Berrard, Chairman, Paul Clayton, CEO and Don Breen, CFO of the Company will conduct an earnings conference call to discuss first quarter financial results on June 11, 2007 at 5:00 p.m. ET. The call can be accessed live over the phone by dialing 800-811-8824 or for international callers by dialing 913-981-4903. A simultaneous webcast of the call will be available by visiting http://www.jambajuice.com. A replay will be available at 8:00 p.m. ET and can be accessed by dialing 888-203-1112 or 719-457-0820 for international callers; the pin number is 8201614. The replay will be available until June 25, 2007.

About Jamba, Inc.
Jamba, Inc. is a holding company and through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE ® stores. Founded in 1990, JAMBA JUICE is the category-defining leader in healthy blended beverages, juices, and good-for-you snacks. Today, JAMBA JUICE has more than 630 stores, of which more than 400 are company-owned and operated. For the nearest location or a complete menu including new All Fruit™ smoothies, please call: 1-866-4R-FRUIT or visit the JAMBA JUICE website at http://www.jambajuice.com.

Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this release include those related to revenue growth and expectations regarding store openings, market development and commodity and other costs. Such forward-looking statements, based upon the current beliefs and expectations of Jamba, Inc.'s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: demand for the products and services that Jamba, Inc. provides; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Jamba, Inc. is engaged; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in the Company's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.

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