New World Brands Completes Sale of IP Gear Subsidiary to Germany's TELES Group, and Becomes Exclusive North American Distributor

  
    
  
  
    
      New World Brands, Inc. (OTCBB:NWBD) today announced that as of 
      July 27 New World Brands has closed the previously announced sale of its 
      IP Gear, Ltd. subsidiary, an Israel-based VoIP R&D company, to 
      Berlin-based TELES AG (TLI).
    
    
      The stock purchase agreement provides for an initial cash payment to New 
      World Brands, plus contingent earn-out payable over four years based 
      upon achievement of financial targets. In addition, TELES has agreed to 
      provide New World Brands a line of credit facility structured over four 
      years.
    
    
      In conjunction with the sale of its IP Gear, Ltd. subsidiary, IP Gear 
      has become the exclusive North American distributor of both TELES and IP 
      Gear products. TELES has agreed to provide New World Brands certain 
      marketing subsidies, and an equipment purchase credit line, in support 
      of the New World Brands distributorship.
    
    
      The sale and purchase of IP Gear, Ltd. has an effective date of July 1, 
      2007 for accounting purposes. For more information regarding the sale of 
      IP Gear, Ltd. and the related TELES – IP Gear 
      distribution agreement please see New World Brands’ 
      Current Report on Form 8-K filed with the SEC on August 1, 2007, also 
      available on the New World Brands website at www.ipgear.net.
    
    
      About New World Brands
    
    
      New World Brands (dba IP Gear) is a value-added reseller (VAR) of 
      telecommunications equipment to SME customers in North America, Europe 
      and developing regions. It is also a provider of direct call routing 
      services. For more information, please visit our website at www.ipgear.net.
    
    
      About TELES Communication Systems
    
    
      TELES Communication Systems is a leading provider of equipment, 
      solutions and services to fixed, fixed-mobile convergence and 
      Next-Generation-Network (NGN) service providers. With millions of voice 
      ports deployed worldwide, TELES has been at the forefront of telecom 
      innovations for over two decades. In fact we have been hard at work 
      developing VoIP products since 1996. Today we are showing the way 
      forward in the growing NGN/IMS arena. The TELES product portfolio allows 
      you to realize your IMS future: from VoIP access devices and media 
      gateways to softswitches, next generation infrastructure implementation 
      to value-added services network enhancement – 
      we’ve got it covered.
    
    
      Safe Harbor
    
    
      We caution readers that this Report contains “forward-looking 
      statements” within the meaning of the Private 
      Securities Litigation Reform Act of 1995. Forward-looking statements, 
      written, oral or otherwise, are based on the Company’s 
      current expectations or beliefs rather than historical facts concerning 
      future events, and they are indicated by words or phrases such as (but 
      not limited to) “anticipate,” 
      “could,” “may,” 
      “might,” “potential,” 
      “predict,” “should,” 
      “estimate,” “expect,” 
      “project,” “believe,” 
      “think,” “intend,” 
      “plan,” “envision,” 
      “continue,” “intend,” 
      “target,” “contemplate,” 
      or “will” and 
      similar words or phrases or comparable terminology. Forward-looking 
      statements in this release also include statements about business and 
      economic trends. Many factors may cause our actual results to differ 
      materially from those described in forward-looking statements, including 
      without limitation those described under “Certain 
      Risk Factors” in our Annual Report on Form 
      10-KSB, as filed with the SEC on April 17, 2007, and specifically 
      including the risk that management’s 
      assumptions and analysis of the potential market for existing and new 
      products, and our competitive position in that market, prove untrue, and 
      the risk that management will not be able to successfully address 
      changing market conditions.
    
    
      New World Brands, Inc. and TELES AG also disclaim any duty to comment 
      upon or correct information that may be contained in reports published 
      by the investment community.