Healthy Snacks with Powerful Profit Potential

Whittier, CA- Pop N Go (OTCBB: POPN), based in California, is focused on the rapidly growing “better for you” segment of the $60 billion vending and snack food service market. Its current flagship product is its own award-winning, patented hot air popcorn vending machine which it manufactures and operates in revenue sharing agreements. In addition, the Company owns a popcorn flavoring product called Flixstix, has a firm letter of intent to acquire 51% of Microwave Roasters, a producer of unique microwave snacks using patented technologies, and intends to introduce its second vending product, a hot nuts vender called Go Nuts, in the fourth quarter of 2005. After completing three years of R&D and field testing Pop N Go is preparing to enter an explosive growth period.

Popcorn: Market Appeal
One of the world’s oldest snacks, dating back about 6,000 years, popcorn is consumed at the rate of 68 quarts per family per year in the USA – that’s 17.3 billion quarts a year – a $1.5 billion market on its own. With wide appeal, it’s perfect for today’s increasingly health conscious on-the-go consumer: it’s a source of fiber, has no artificial ingredients and is low in calories.

Pop N Go’s unique marketing position allows it to take advantage of the enormous vending and snack food service market with a tried and proven vender that delivers one of the most popular snacks of all time.

Pop N Go’s completely self-contained vender occupies a 24” x 24” space, and can fill a 46 ounce cup on demand with fresh, hot popcorn for each customer while allowing the customer to watch the popping process. Pop N Go’s colorful exhibit includes a moving color LED display, neon lights, and big windows through which the popping process can be viewed. The combination of freshly cooked popcorn and a highly visible and entertaining display makes it attractive in diverse retail environments such as schools, hospitals, supermarkets, convenience stores, bowling alleys, bars, military bases, shopping malls and gas stations, to name a few.

Pop N Go has created a revenue sharing program which allows it to retain ownership while attracting involvement from traditional vending machine operators, food service marketing companies, school systems etc. which can deliver a large number of sites and in some cases service the machines. Therefore, the Company anticipates a rapid rollout of its product. There is considerable national momentum in the US school system to require healthy snacks by law. School and hospital administrations will appreciate the combination of providing a nutritious snack with obtaining an added source of revenue for their institutions. Vending machine and food service operators can add a completely new product to their existing line, adding profit with no additional capital investment.

Originally, the business model was to simply manufacture and sell the Pop N Go venders. Consequently, there are 800 machines installed throughout the world, in the USA, Canada, Greece, Cyprus, Poland, Mexico, France, Australia, New Zealand, Israel and Hong Kong. The Company has now modified its business model to retain ownership and capture future revenue streams as superior cash flow and profits reside in the ongoing operation of the Pop N Go venders. This is a well-tested and well-accepted system which can give revenue partners confidence in rapid expansion.

At this time, the popcorn vender costs about $2000 to manufacture. In a typical revenue sharing contract, 15% of the income goes for product, 20 – 25% to service, 20% to commission, and Pop N Go retains 40%. At $1 per serving, estimates are that each machine will produce $500 per month of which Pop N Go retains $200. This results in a projected 10 month payback of capital for each unit. Additional revenues may be gained from the sale of advertising on the machine panels, the bright LED display and the cups.

Flixstix, Microwave Roasters and Go Nuts
Pop N Go has acquired Branax LLC, which has developed and markets Flixstix, the first mass-produced packets of popcorn flavorings in individual servings. Building on the major snack food trends of individualized servings and explosion of flavors, the Flixstix handy slim tube package holds flavorings in popcorn salt, cool ranch, white cheddar, Jalapeno, cinnamon & sugar, sour cream & onion, chocolate and caramel. A large home-consumption microwave popcorn manufacturer, which is interested in a marketing alliance with Pop N Go, has completed a successful co-branding market test with Flixstix promoting the sale of their product. 100,000 units were sold! Their microwave popcorn is the number 2 brand in the US - in 2000, it sold 85 million units with 100% grocery store penetration. The home popcorn market is a $245 million segment. The manufacturer has a strong interest in Flixstix, which has the potential to reach hundreds of millions of popcorn consumers.

Acquiring 51% of Microwave Roasters will boost Pop N Go’s cash flow with microwavable snacks. The secret of its success is “in the bag”, which allows contents to puff into a fresh, tasty and almost fat-free snack. Current products include MicrOrings, an onion-ring snack, Micro Bak'n, a bacon flavored chipMicrOrings, and Micro Rinds , microwave pork rinds . The pork rinds are not cooked in fat and contain less than one gram of fat per bag unlike the usual non-microwave product which contains 25 grams of fat. One of the largest mass merchandisers in the US, one of the largest drug store chains in the US and a major distributor of snack foods and confectionery products in Canada have agreed to begin marketing Microwave Roasters’ products. These products are 65% less expensive than the products with which they compete in a multi-billion market at retail. For instance, Frito Lay’s Funyuns typically sell for $0.99 a bag. The bag contains 32-33 rings, 17.5 grams of fat and 350 calories. A tower box of MicrOrings contains three bags, each of which contains 38-40 rings, less than one gram of fat, and 86 calories. The three bags retail for $1–1.19. There is 35% gross margin on a typical bag.

Go Nuts is a hot nuts snack vender similar to the popcorn vender. Raw nuts can last for long periods of time, but roasted nuts in bags go stale and rancid quickly. To be introduced in the fourth quarter of 2005, Go Nuts will serve an appealing, competitively priced snack that is hot, fresh and nutritious.

Bottom Line
Pending completion of financing for which the Company has commitments, Pop N Go projects it will achieve $6 million in gross sales in calendar 2005, $16 million in 2006 and $32 million in 2007. The Company has plans for additional revenue streams. The potential exists for any one of the Company’s product lines to take off more rapidly than estimated. Pop N Go is in negotiations with multiple vending machine operators for the popcorn vender; the major manufacturer of microwave popcorn has completed its marketing tests of Flixstix; and the very large retailers which are completing the trial runs of MicrOrings and Micro Bak’n products are speaking very favorably of the products.

Pop N Go is on the brink of an explosive growth period in markets which easily capture the imagination of the consuming and investing public.

OTCBB: POPN
122,479,060 shares outstanding
www.popngo.com

Contact: SmallCap Corporate Partners Inc: (250) 380-2274
info@smallcap.ca * www.smallcap.ca

Readers are advised that this is a company-sponsored report and is classified as an advertisement. It is issued solely for advertising and informational purposes and is not to be construed as investment advice nor an offer to sell or a solicitation to buy securities. The reader should verify all claims and conduct independent due diligence before investing in any securities mentioned. Investing in securities is speculative and carries a high degree of risk. SmallCap Corporate Partners, client companies and their officers and employees may buy or sell shares of client companies from time to time. The Company provides all information contained in this publication. SmallCap Corporate Partners and any affiliates make no implied or express warranties on the information provided. For complete disclosure, go to http://www.smallcap.ca/SmallCapDisclosure.htm

About Pop N Go, Inc.
Pop N Go produces a unique hot air popcorn machine, capable of delivering single servings of fresh hot popcorn, which meets the demands of today's market. The company's self-contained equipment produces fresh popcorn for each customer while allowing the customer to watch the entire popping process. Pop N Go's machine is sized to fit almost anywhere (2’x2’), and can be used as a stand-alone vending machine or in a manual mode for traditional foodservice applications. Pop N Go's FlixStix Division produces the only single serving popcorn flavoring, which expands Pop N Go's brand into the home consumption market. More information about Pop N Go popcorn machines can be found at www.PopnGo.com.

Safe Harbor under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission. Nothing in this press release shall be construed as an offer to buy or sell any securities herein.

Return to top

Home | Products | Popcorn Machines | News | Investors | Contact Us | Locations