XELR8 Holdings, Inc. Reports First Quarter Results

Revenues More than Doubled on Comparable Quarter-Over-Quarter Basis; Revenues Increased 21% on a Sequential Quarter-Over-Quarter Basis



DENVER, May 10  /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 first quarter results for the three months ended March 31, 2006.

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

Financial and Operational Highlights for the Three-Month Period Ended March 31, 2006:

  * Revenues more than doubled, rising 127% to $538,960 from $237,056.  On a
    sequential quarter over quarter basis, revenues increased 21% from
    $444,677 reported for the three months ended December 31, 2005.
  * Net Losses were $1,549,322, or $0.16 basic and diluted loss per share,
    an increase from net losses of $773,193, or $0.12 basic and diluted loss
    per share reported for the same period in 2005.
  * As of March 31, 2006, XELR8 had cash and short term investments of $1.72
    million; $2.05 million in total shareholders' equity; and $1.86 million
    in working capital.



"With notable revenue growth achieved in the first quarter, XELR8 remains squarely focused on perpetuating the fundamental progress we've put in motion and working towards our ultimate goal of achieving sustained profitability. Although our net losses continue to weigh on us, XELR8's growth prospects are indeed promising, due largely to the enthusiasm of our growing national direct selling network, now numbering more than 2,400 as of April 30, 2006; increasing popularity of and demand for our nutritious products; the expertise of our employees and management team; and the loyal support of our shareholders.  Through successful execution of our business plan, centered on expanding our direct selling network to over 6500 distributors within 12-18 months, we remain confident that XELR8 has the necessary drive, commitment and strategy in place to accomplish our ambitious financial objectives," noted Earnest Mathis, Chairman and CEO of XELR8 Holdings.

XELR8 will also host a teleconference and webcast this 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 1-800-257-2182 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

                                          March 31, 2006  December 31, 2005

  ASSETS
  Current assets:
     Cash                                     $1,606,627         $2,805,021
     Short term investments                      110,000            110,000
     Accounts receivable, net of
      allowance for doubtful accounts
      of $6,500 and $5,500, respectively           7,012              8,758
     Inventory, net of allowance for
      obsolescence of 74,500 and $17,000,
      respectively                               467,776            542,749
     Prepaid expenses and other current
      assets                                     297,260            279,502
        Total current assets                   2,488,675          3,746,030

  Intangible assets, net                          35,385             36,219
  Property and equipment, net                    158,453             93,423
           Total assets                       $2,682,513         $3,875,672

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities:
     Accounts payable and accrued
      expenses                                  $632,290           $455,996
     Total liabilities                           632,290            455,996

  Commitments and Contingency
  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, 9,663,345
   and 9,618,900 issued and outstanding
   respectively                                    9,663              9,619
  Additional paid in capital                  16,170,713         15,990,889
  Accumulated (deficit)                      (14,130,153)       (12,580,832)
           Total shareholders' equity          2,050,223          3,419,676
           Total liabilities and
            shareholders' equity              $2,682,513         $3,875,672



        VITACUBE SYSTEMS HOLDINGS, INC. d/b/a XELR8 HOLDINGS, INC.
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                Three Months Ended March 31, 2006 and 2005

                                                   2006             2005

  Net sales                                      $538,960         $237,056
  Cost of goods sold                              245,379           84,560
  Gross profit                                    293,581          152,496
  Operating expenses:
          Selling and marketing expenses        1,025,138          426,848
          General and administrative expenses     803,813          482,041
          Research and development expenses        24,570            8,662
          Depreciation and amortization             7,650            6,612
              Total operating expenses          1,861,171          924,163

  Net (loss) from operations                   (1,567,590)        (771,667)
  Other income (expense)
          Interest income                          18,268              115
          Interest (expense)                          -             (1,641)
              Total other income (expense)         18,268           (1,526)
  Net (loss)                                  $(1,549,322)       $(773,193)
  Net (loss) per common share
          Basic and diluted net (loss)
          per share                                $(0.16)          $(0.12)
  Weighted average common shares
          outstanding, basic and diluted        9,620,898        6,534,043



  Company Contacts:  VitaCube d/b/a XELR8 Holdings, Inc.
                     Earnest Mathis, CEO
                     [phone], x228
                     

                     Elite Financial Communications Group, LLC
                     Dodi Handy, President and CEO
                     407-585-1080
                     

  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. 

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DATASOURCE: XELR8 Holdings, Inc.



CONTACT:  VitaCube d/b/a XELR8 Holdings, Inc., Earnest Mathis, CEO,

[phone], x228, ; Elite Financial Communications

Group, LLC, Dodi Handy, President and CEO, [phone], 



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

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