News Release

Consolidated EBITDA Improvement of Over 300 Percent

Rescheduling of the Company’s Third Quarter 2009 Earnings Conference Call

EMERYVILLE, Calif.--(BUSINESS WIRE)--Nov. 11, 2009-- Jamba, Inc. (NASDAQ:JMBA) today reported financial results for the fiscal third quarter ended October 6, 2009.

Financial and Operational Highlights

Highlights for the 12 weeks ended October 6, 2009, compared to the 12 weeks ended October 7, 2008:

• Consolidated EBITDA* increased 308% to $7.0 million from $1.7 million for 3Q08, reflecting an increase of $5.3 million.
• Store-level EBITDA* improved $2.1 million to $15.9 million from $13.8 million for 3Q08, reflecting an improvement of 15.1%.
• Total revenue for 3Q09 decreased $7.1 million to $79.0 million from $86.1 million for 3Q08, a decrease of 8.2%.
• Net income for 3Q09 of $2.8 million showed significant improvement when compared to a net loss for 3Q08 of $(12.4) million.
• Diluted earnings per share for 3Q09 of $0.04 compared to a diluted loss per share for 3Q08 of $(0.23).
• Company-owned comparable store sales for 3Q09 declined 5.3%⁽¹⁾ but reflected an 800 basis point sequential improvement over 2Q09 comparable store sales.
• 10 new franchise stores and one new company-owned store were opened during the fiscal third quarter of 2009, bringing the store count to 742 stores system-wide, of which 254 are franchise stores and 488 are company-owned stores.

"We continued to make solid progress throughout the quarter in several strategically important areas, including food, franchise development, brand licensing, cost management and operating efficiency. Our performance reflected this progress with improvement quarter over quarter in 2009 in our comparable store sales and EBITDA gains," said James D. White, president and chief executive officer, Jamba, Inc. “We achieved the gains despite the slow pace of economic recovery and continued high unemployment in California where Jamba has a concentrated store presence.”

“I am especially pleased with our food initiative,” continued Mr. White. "Food is now present with full or limited offerings in 377 stores. As an early indicator of progress, system-wide our stores with food are showing a 200-400 basis point improvement in comparable store sales over our non-food stores. We believe our future performance will be boosted by a recently launched marketing campaign, the ‘Feel Good Campaign,’ which is Jamba's most comprehensive effort ever. The ‘Feel Good Campaign’ is a multi-faceted, integrated campaign that is already driving additional traffic.”

"We opened 10 new campus locations, which gives us brand presence on over 30 college and university campuses across the nation, and one new company store in California. We also recently completed the sale of eight company stores to current franchise operators in conjunction with our goal of refranchising up to 150 Company-owned stores by the close of 2010,” concluded Mr. White.

Outlook for 2009

The Company is tracking against targeted 2009 expense goals as follows:

• Cost of sales at or below 26% of company store revenue;
• Labor costs at or below 34% of company store revenue;
• Other controllable expenses included in store operating, at or below 3.5% of company store revenue; and
• General and administrative costs at or below $35 million, before share-based compensation expense.

Outlook for 2010

The Company plans to achieve the following in 2010:

• Deliver positive comparable store sales;
• Build on Jamba's disciplined approach to expense management and cost savings including reducing G&A by 10-12 percent (excluding share-based compensation);
• Deliver consolidated EBITDA of 5-7 percent;
• Deliver store level EBITDA of 15-17 percent;
• Grow via franchise development by adding up to 50 franchise stores and expanding into one major international market;
• Execute additional licensing agreements in relevant categories; and
• Complete the refranchising initiative of up to 150 company-owned stores started in 2009.

The Company will continue to be focused on efforts to improve sales and build a sustainable business model for growth throughout 2010.

Liquidity

On October 6, 2009, the Company held $32.1 million in cash, cash equivalents, and restricted cash. The restricted cash balance was $2.7 million. The Company eliminated all debt for borrowed money with the convertible preferred stock transaction announced on June 1, 2009.

Footnotes

⁽¹⁾ Comparable store sales are calculated using sales of stores open at least thirteen full fiscal periods. Management reviews the increase or decrease in comparable store sales compared with the same period in the prior year to assess business trends and make certain business decisions.

* Use of Non-GAAP Financial Measures

The Company uses the non-GAAP financial measures of consolidated EBITDA and store-level EBITDA in its statements made in this release. The Company defines consolidated EBITDA as store-level EBITDA including general and administrative expenses. The Company believes that consolidated EBITDA is a helpful indicator of the Company’s financial performance. The Company defines store-level EBITDA, as net income (loss) from operations and other income less: (a) depreciation and amortization, (b) general and administrative expenses; (c) store pre-opening expenses; (d) trademark impairment; (e) store lease termination and closure expenses; (f) impairment of long-lived assets; (g) other operating expenses and (h) income taxes. Consolidated EBITDA and store level EBITDA are not measurements determined in accordance with GAAP and should not be considered in isolation or as an alternative to income (loss) from operations or net income (loss) as indicators of financial performance. Each non-GAAP financial measure used as presented may not be comparable to other similarly titled measures used by other companies. For a reconciliation of consolidated EBITDA to net income (loss) and store-level EBITDA to net income (loss), please see the tables at the end of this release.

Rescheduled Webcast and Conference Call Information

Due to a scheduling conflict, the Company has rescheduled its previously announced earnings conference call for tomorrow, November 12, 2009, at 5:00 p.m. ET to tomorrow, November 12^th, at 11:00 a.m. ET. Participating on the call will be James D. White, president and chief executive officer and Karen Luey, senior vice president and chief financial officer. The conference call numbers have been changed and can be accessed live over the phone by dialing (877) 941-8416 or for international callers by dialing (480) 629-9812. The conference call replay can be accessed live over the phone by dialing (800) 406-7325 or (303) 590-3030 for international callers; the pin number is 4176619. A simultaneous webcast of the call will be available by visiting the investor relations section at http://www.jambajuice.com. A replay will be available until December 3, 2009.

About Jamba, Inc.

Jamba, Inc. (NASDAQ:JMBA) 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 a leading restaurant retailer of better-for-you food and beverage offerings, including great tasting fruit smoothies, juices, and teas, hot oatmeal made with organic steel cut oats, wraps, salads, sandwiches, and California Flatbreads™, and a variety of baked goods and snacks. As of October 6, 2009, Jamba Juice had 742 locations consisting of 488 company-owned and operated stores and 254 franchise stores. For the nearest location or a complete menu, visit the Jamba Juice website at www.jambajuice.com or call 1-866-4R-FRUIT.

Forward-Looking Statements

This press release (including information incorporated or deemed incorporated by reference herein) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projects as well as the current beliefs and assumptions of our management. Words such as “outlook”, “believes”, “expects”, “appears”, “may”, “will”, “should”, “anticipates”, “plans to achieve”, or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, including estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed under the section entitled “Risk Factors” in our reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond our control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.

Source: Jamba, Inc.

For Jamba, Inc.
Don Duffy, 203-682-8200
or
Janice Duis, 510-596-0286
investors@jambajuice.com