Record Domestic Sales with Growth of Nearly 80%; Adds Beverage Industry Veterans Hal Kravitz to BOD, Vanessa Walker as Executive Vice President, Sales and Marketing and Jon McKillop as National Director of Sales, Fitness Channel

BOCA RATON, FL / ACCESSWIRE / May 11, 2016 / Celsius Holdings, Inc., (OTCQX: CELH) the creator and marketer of Celsius®, the world's first negative calorie drink, backed by clinical science, today reported financial results for the three month period ended March 31, 2016.

First Quarter 2016 Highlights:

Revenue of $3.7 million compared to $4.7 million in the year ago quarter Domestic revenue increased 79% to $2.7 million, up from $1.5 million in the year ago quarter International sales decreased $(2.1) million as a result of Swedish distribution partners transition to new ownership, normalized sales volumes expected to return in the second quarter of 2016. Domestic retail sales increased over 100%. Excluding sales to new customers 7-Eleven and Sunoco which started in the back half Q1, retail sales grew over 50% Gross profit margin of 41.3% compared to 39.6% in the year ago quarter Non-GAAP Adjusted EBITDA* Loss of ($886,000) compared to a profit of $559,000 in the year ago quarter Net loss of $(1.3) million compared to net income of $213,000 in the year ago quarter The Company's common stock was approved for listing on the OTCQX® Best Market, commencing with the opening of trading on Monday, January 11, 2016 The Company announced the acceleration of its national expansion with the addition of five new Regional Sales Manager in key territories across the U.S. Celsius announced approval for distribution into two major convenience chains with more than 8,000 stores nationwide. Appointed Vanessa Walker to the role of Executive Vice President of Sales and Marketing. Walker brings more than 22 years of experience in the retail and beverage industry. She brings a wealth of relationships and is an executive leader with a proven track record of establishing and growing brands and particular expertise in the beverage industry. Most recently, she served as Executive Vice President of Sales and Marketing at NBC Corp where she led all aspects of building the La Croix brand to the number one sparkling water in the U.S.

Subsequent to Quarter End:

Appointed Jon McKillop to the role of National Director of Sales, Fitness Channel. McKillop has more than fifteen years of experience leading sales initiatives for the non-alcoholic beverage and the consumer packaged goods sector of some of the nations' largest brands. Most recently, he served as Director of Sales for the American Body Building (A.B.B.) brand at Glanbia Performance Nutrition, where he led the commercial efforts of the organization's longest standing beverage brand in North America. Appointed Hal Kravitz to the Board of Directors. Having spent over 30 years as an officer and leader at Coca-Cola, Kravitz brings extensive experience in revenue growth management including business strategy and planning, pricing strategy, knowledge and insights, channel and marketing operations, and beverage category management.

"The investments we have made in sales and marketing programs to increase brand awareness and expand distribution channels drove strong domestic growth of nearly 80% during the first quarter," said Gerry David, Chief Executive Officer. "Our expanded network enables increased product availability in high-traffic convenience store locations, Grocery, Specialty, health clubs and through premier online retailers to meet consumer demand and drive increased volume and expand our gross margins. The first quarter of 2016 was a quarter of significant investments in both domestic personnel and preparation for accelerated global expansion."

Three Months Ended March 31, 2016 Compared to Three Months Ended March 31, 2015

Revenue

Revenue for the three months ended March 31, 2016 and March 31, 2015 was approximately $3.7 million and $4.7 million, respectively, or a decrease of 21%. This decrease was driven by a 68% decrease in international revenue from the Company's Swedish distribution partner which was partially offset by the 79% growth in domestic sales associated with growth in domestic retail accounts of 103%, health and fitness accounts of 16% and internet retailers of 43% from the same period in 2015.

"Our international sales continued to be negatively impacted by the recent acquisition of our Swedish distribution partner and its transition to the new ownership," commented John Fieldly, Chief Financial Officer of Celsius. "The company recently met with the new CEO of our distributor and have confidence coming away from this meeting that we will move toward normalized levels by the end of the second quarter of 2016. Our partner recognizes the value of our product as the No. 1 selling fitness drink and the No. 2 selling energy drink in Sweden and anticipates launching Celsius to the Finland market, where they are based, by the end of the second quarter of 2016."

Gross profit was approximately $1.5 million, or 41.3% of revenue, in the three months ended March 31, 2016 compared to $1.8 million, or 39.6% of revenue, for the same period in 2015. The Company continues to focus on improving and maintaining gross profit margins.

Operating expenses

Sales and marketing expenses for the three months ended March 31, 2016 and March 31, 2015 were $1.8 million and $899,000, respectively. The increase was due primarily to increases in investments in marketing programs of $483,000 and increases in human resource investments of $407,000. General and administrative expenses for the three months ended March 31, 2016 and March 31, 2015 were $875,000 and $562,000, respectively. This increase was mainly due to increases in stock-based compensation, human resources, travel and professional fees.

Other expense

Total other expense decreased to approximately $57,000 for the three months ended March 31, 2016, down from $132,000 for the same three-month period in 2015 as a result of lower interest expense associated with a lower outstanding debt balance.

Liquidity and Capital Resources

As of March 31, 2016, the company had cash of $9.2 million compared to $10.1 million as of December 31, 2015. The company had working capital of $12.2 million and $13.2 million as of March 31, 2016 and December 31, 2015, respectively.

Cash used in operations during the three months ended March 31, 2016 totaled $887,000. The company incurred a net loss available to common stockholders of $1.3 million during the three months ended March 31, 2016, increasing the accumulated deficit to $51.2 million as of March 31, 2016.

Conference Call

Management will host a conference call today, Wednesday, May 11, 2016 at 4:30 pm ET to discuss the results with the investment community.

To participate in the conference call, please call one of the following telephone numbers at least 10 minutes before the start of the call:

US: 877-709-8150
International: 201-689-8354

An audio replay of the call will be available on the Company's website at http://celsius.com/press-releases/.

Disclosures can be found on the Company's online disclosure portal at: http://www.otcmarkets.com/stock/CELH/filings

About Celsius Holdings, Inc.

Celsius Holdings Inc. (OTCQX: CELH) is a global nutritional science based company, founded in April 2004. Celsius® negative calorie drink is available in the form of ready to drink and powder formulas powered by MetaPlus?, a proprietary blend of quality ingredients including Green Tea with EGCG, Ginger, Taurine, Gaurana, and B and C vitamins. Backed by multiple published university studies, drinking Celsius before exercise has been proven to help burn more body fat, burn 100 calories and more per serving and provide healthy energy.

Celsius comes in seven delicious flavors, carbonated and non-carbonated, and also in powder stick formulas that can be mixed with water. Celsius has no preservatives, no aspartame, no high fructose corn syrup, no artificial flavors or colors and is very low in sodium. The Celsius line of products is vegan certified, Gluten Free, and sugar free. The first university study was conducted in 2005, and additional studies from the University of Oklahoma were conducted over the next five years. All studies were published in peer reviewed journals and validated the unique benefits Celsius provides to the consumer.

For more information, please visit www.celsius.com.

Forward-Looking Statements

This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.

Celsius Holdings, Inc.
Reconciliation of Non-GAAP Financial Measure

*We report financial results in accordance with accounting principles generally accepted in the United States ("GAAP"), but believe that disclosure of adjusted EBITDA, a non-GAAP financial measure, may provide users with additional insights into operating performance.

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Investor Relations:

Hayden IR
Brett Maas (646) 536-7331
brett@haydenir.com

or

Cameron Donahue
(651) 653-1854
cameron@haydenir.com

SOURCE: Celsius Holdings, Inc.