Apple Rush Co. and Garden Distributing Consolidate Operations and Cut Costs

The Apple Rush Co., Inc. (APRU) announced that it has recently completed a series of cost cutting measures implemented over the last 4 months. These measures addressed three major areas of the companies� operations.

The first phase was directed at reducing both its salaried and non-salaried employee workforce by 15%, as well a reduction in all salaried employees compensation. The second was the consolidation of both the Apple Rush Corporate office and Garden�s distribution facility into a new single location housing both operations. Third was the development of a new distribution paradigm that changed Garden�s delivery system into a Just-In-Time inventory and distribution operation.

The net effect of the implemented changes will save the Company over $200,000 in employee wages, $170,000 in the consolidation of both facilities and an estimated $225,000 in reduced inventory costs. Apple Rush forecasts a total combined annualized savings of $595,000.

The Company acknowledges that the third phase of change will temporarily reduce some of Garden�s gross profit margin as it moves to implement this new distribution paradigm shift. However it does anticipate that, with continued improvement and refinement, this new hybrid operation should eventually create a system yielding a better return on investment well into the future. Garden is also in the process of paring down some of the less profitable items it has been distributing. The Company also has established new priorities to redirect its focus on increasing the store door distribution of Organic Apple Rush products within the Chicago Metro area.

Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.

Apple Rush (PK) (USOTC:APRU)
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