XELR8 Announces Third Quarter 2006 Financial Results

Teleconference and Webcast Scheduled for this Afternoon 


DENVER, Oct. 26  /PRNewswire-FirstCall/ -- VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc. (AMEX:PRH), a provider of functional foods, beverages and nutritional supplements, today reported financial results for the three and nine months ended September 30, 2006.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20050926/FLM015LOGO)

Financial and Operational Highlights for the Three-Month Period Ended September 30, 2006 Compared to Three-Month Period Ended September 30, 2005:

  * Revenues rose 88% to $608,111 from $323,400.
  * Gross profit margin increased to 65.2% compared to 52.0%.
  * Net Loss improved 52.8%, falling to $778,944, or $0.08 loss per basic
    and diluted share, from $1,650,662, or $0.17 loss per basic and diluted
    share.
  * The net number of direct selling professionals added to the Company's
    distributor network during the third quarter was 363, increasing the
    total number of distributors to 3,085 as of September 30, 2006.



Financial Highlights for the Nine-Month Period Ended September 30, 2006 Compared to Nine-Month Period Ended September 30, 2005:

  * Revenues increased 120% to $1,724,252, rising from $783,126.
  * Gross profit improved to 63.9% -- up from 55.9%.
  * Net loss dropped 3.8% to $3,335,914, or $0.35 loss per basic and diluted
    share, from $3,467,341, or $0.4 loss per basic and diluted share.
  * For the first nine months of 2006, XELR8 has added a net total of 1,219
    new distributors to its national direct selling network.



As of September 30, 2006, XELR8 had cash of $464,127; $611,093 in total shareholders' equity; and $464,159 in working capital.

Commenting on the results, John Pougnet, Chief Executive Officer and Chief Financial Officer of XELR8 Holdings, stated, "In order to achieve deeper market penetration and promote greater sales opportunities, we have taken steps to advance the development and market introduction of a new competitive product offering -- a vitamin-packed, energizing elixir that we hope to unveil in early 2007."

Continuing, Pougnet added, "However, it is important to note that in order to fund our new product launch and support our operating costs until such time as we reach positive cash flow, XELR8 must raise additional capital.  In this regard, we continue to advance discussions with both debt and equity funding sources and hope to commit to a formal funding strategy in the next several weeks."

XELR8 will also host a teleconference the same afternoon beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments.  The conference call can be accessed via telephone by dialing toll free 1-800-366-7640 or via the Internet at http://www.xelr8.com/. For those unable to participate at that time, a replay of the webcast will be available for 90 days on http://www.xelr8.com/.

About XELR8 Holdings, Inc.

VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc., is a provider of nutritional foods and beverages designed to help enhance physical health and overall performance.  XELR8 has developed a comprehensive line of nutritional supplements and functional foods designed in systems that are easy to take, simple to understand, and conveniently fit within a lifestyle. XELR8's commitment to quality, science, and research has earned them a loyal following of over 350 world-class athletes and an elite list of endorsers, such as five-time Cy Young Award Winner Randy Johnson; Super Bowl Champions Mike Alstott, Lawyer Milloy and Head Coach Mike Shanahan; professional football superstar Cadillac Williams; Olympians Briana Scurry and Caroline Lalive; Stanley Cup Winner Blake Sloan; and PGA Tour Professional Tom Pernice, Jr.  XELR8 products are only available through independent distributors located throughout the nation.  For more information about XELR8, please visit http://www.xelr8.com/.

       VITACUBE SYSTEMS HOLDINGS, INC., d/b/a XELR8 HOLDINGS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS


                                       September 30, 2006  December 31, 2005
                                              (unaudited)
  ASSETS
  Current assets:
       Cash                                     $464,127        $2,805,021
       Short term investments                        -             110,000
       Accounts receivable, net of
        allowance for doubtful
        accounts of $12,500 and
        $5,500, respectively                       6,162             8,758
       Inventory, net of allowance
        for obsolescence of
        $107,000 and $17,000,
        respectively                             342,351           542,749
       Prepaid expenses and other
        current assets                           289,894           263,898
          Total current assets                 1,102,534         3,730,426

  Intangible assets, net                          11,487            36,219
  Property and equipment, net                    135,447            93,423

           Total assets                       $1,249,468        $3,860,068

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities:
       Accounts payable and accrued
        expenses                             $553,041.00       $440,392.00
       Deferred Revenue                        85,334.00               -

       Total Liabilities                         638,375           440,392

  Commitments and Contingencies

  SHAREHOLDERS' EQUITY:
  Preferred stock, authorized
   5,000,000 shares, $.001 par
   value, none issued or
   outstanding                                       -                 -
  Common stock, authorized
   50,000,000 shares, $.001 par
   value, 9,697,170 and 9,618,900
   issued and outstanding
   respectively                                    9,697             9,619
  Additional paid in capital                  16,518,142        15,990,889
  Accumulated (deficit)                      (15,916,746)      (12,580,832)

           Total shareholders' equity            611,093         3,419,676

           Total liabilities and
            shareholders' equity              $1,249,468        $3,860,068



        VITACUBE SYSTEMS HOLDINGS, INC. d/b/a XELR8 HOLDINGS, INC.
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
         Three and Nine Months Ended September 30, 2006 and 2005

                            For the      For the      For the      For the
                             Three        Three        Nine         Nine
                             Months       Months       Months       Months
                             Ended        Ended        Ended        Ended
                           September    September    September    September
                            30, 2006     30, 2005     30, 2006     30, 2005

  Net sales                 $608,111     $323,400   $1,724,252     $783,126
  Cost of goods sold         211,513      155,195      622,841      345,648
  Gross profit               396,598      168,205    1,101,411      437,478

  Operating expenses:
    Selling and marketing
     expenses                571,160      996,736    2,214,842    1,901,503
    General and
     administrative
     expenses                577,456      844,241    2,136,506    2,006,289
    Research and
     development expenses     20,246       24,778       64,180       43,733
    Depreciation and
     amortization             11,779        6,428       54,554       19,229
      Total operating
       expenses            1,180,641    1,872,183    4,470,082    3,970,754

  Net (loss) from
   operations               (784,043)  (1,703,978)  (3,368,671)  (3,533,276)
  Other income (expense)
    Interest income            5,099       53,316       32,757       68,776
    Interest (expense)           -            -            -         (2,841)

  Total other income
   (expense)                   5,099       53,316       32,757       65,935

  Net (loss)               $(778,944) $(1,650,662) $(3,335,914) $(3,467,341)


  Net (loss) per common
   share
      Basic and diluted net
       (loss) per share       $(0.08)      $(0.17)      $(0.35)      $(0.41)


  Weighted average
   common shares
   outstanding, basic
   and diluted             9,697,170    9,589,400    9,660,897    8,486,550


  Forward-looking Statements


This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including prospects for XELR8's distribution network. Actual results may differ from those discussed in such forward-looking statements. These forward looking statements include risks and uncertainties that include the Company's ability to attract and retain distributors; changes in demand for the Company's products; changes in the level of operating expenses; changes in general economic conditions that impact consumer behavior and spending; product supply; the availability, amount, and cost of capital for the Company; and the Company's use of such capital. More information about factors that potentially could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the year ended December 31, 2005 and all subsequent filings. Certain statements in this release regarding the Company's agreements are in accordance with the guidelines established by the Federal Trade Commission for endorsements in advertising.

   Company Contacts:

   VitaCube d/b/a XELR8 Holdings, Inc.    Elite Financial Communications
   John Pougnet, CEO & CFO                 Group, LLC
   [phone]                         Dodi Handy, President and CEO
                        407-585-1080
                                          

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DATASOURCE: XELR8 Holdings, Inc.



CONTACT:  John Pougnet, CEO & CFO, VitaCube d-b-a XELR8 Holdings, Inc.,

[phone], or ; or Dodi Handy, President and CEO,

Elite Financial Communications Group, LLC, [phone], or ,

for XELR8 Holdings, Inc.



Web site:  http://www.xelr8.com/

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