SAN FRANCISCO, CA, August 19, 2008 – Demeter Group, an investment bank focused on high-growth brands in the food, beverage and beauty industries, served as exclusive strategic and financial advisor to GU Sports on the Company’s recent recapitalization. GU Sports is the leading producer of the endurance sports nutrition products GU Energy Gel™ ("GU"), an energy food product in gel form, and GU2O Sports Drink™ ("GU2O"), hydration electrolyte drink in dry powder form designed to be mixed with water.

The recapitalization transitions majority ownership of the company to President Brian Vaughan from his father and company founder Dr. William Vaughan. GU Sports launched in 1991 with GU, a revolutionary product that provides a more effective nutritional method for keeping athletes fueled during intense activity. In June, GU Sports introduced Roctane Ultra Endurance Energy Gel™ ("Roctane"), a premium energy gel that amplifies GU’s original recipe, adding new ingredients to boost performance.

The equity capital was provided by Adventure Funds, an Oregon-based private equity fund founded by Tal Johnson, who was previously CEO of Tazo Tea throughout much of the company’s growth. Tazo Tea was acquired in 1999 by Starbucks.

"Demeter Group provided valuable assistance in enabling us to reach our immediate management and financial goals, as well as helping us to identify an equity partner whose experience, we anticipate, will greatly benefit our business as we move forward," said Brian Vaughan. "As a result, we can continue to focus our resources on serving the nutritional needs of athletes from around the world."

"Advising GU Sports and bringing its recapitalization to fruition, including bringing on board a world class investor like Tal Johnson and Adventure Funds, has been a highly satisfying experience," said Jeff Menashe, Demeter Group CEO. "GU Sports is a company that bristles with excitement and energy, and despite the complexities involved, we achieved results that benefited all parties, enabled Brian Vaughn and his team to reach their objectives, and helped to enhance the Company’s growth opportunities."