Net loss for Q410 was $(12.2) million, compared to net loss of $(11.4) million for Q409. Included in the Q410 loss were charges of $2.3 million related to impairment of long lived assets and store lease termination and closure costs compared to $1.9 million for the same costs in Q409.

Total revenue for Q410 decreased to $42.1 million from $50.6 million for Q409, a decrease of $8.5 million, due to the decrease in Company-owned stores primarily attributable to the refranchising initiative.

Diluted loss per share was $(0.21) per share for Q410 compared to diluted loss per share of $(0.23) for Q409.

Company-owned comparable store sales⁽²⁾ for Q410 improved to 0.2% from (5.3%) for Q409, reflecting a 550 basis point improvement over this same period last year.

11 franchise stores were opened during Q410.

Net loss for fiscal 2010 was $(16.7) million compared to net loss of $(23.9) million for fiscal 2009. Included in the fiscal 2010 loss were charges of $7.0 million related to impairment of long lived assets and store lease termination and closure costs compared to $13.9 million for the same costs in fiscal 2009.

Total revenue for fiscal 2010 decreased 12.9% to $262.7 million from $301.6 million for fiscal 2009, a decrease of $38.9 million, due to the decrease in Company-owned stores primarily attributable to the refranchising initiative.

Diluted loss per share was $(0.35) per share for fiscal 2010 compared to diluted loss per share of $(0.48) for fiscal 2009.

Company-owned comparable store sales⁽²⁾ reflected sequential improvement in six of the last seven quarters, improving 800 basis points to (2.3%) from (10.3%) for fiscal 2009.

30 new franchise stores and one new Company-owned store were opened during fiscal 2010, bringing total store count to 743 stores system-wide, of which 392 are franchise stores and 351 are Company-owned stores.

Number of Company-owned stores refranchised

Refranchising proceeds, pre-tax

Impairment related to refranchise transaction, included in Impairment of long lived assets

Refranchising (gain) loss, pre-tax, included in Other operating, net

Decrease in Company stores revenue

Increase in Franchise and other revenue

Decrease in Total revenue

Increase/(Decrease) in Store-level EBITDA (adjusted) ⁽³⁾

Increase in Franchise and other revenue

Decrease in General and administrative Expense

Increase/(Decrease) in Loss from Operations

Major programs that strengthened the Company’s business model included the expansion of its beverage and food menu offerings across all dayparts, specifically the introduction of seasonally relevant limited time offerings, such as its new Superfruit and Probiotic Fruit and Yogurt smoothies; a hot beverage platform, featuring hot coffee, tea latte’s, hot chocolate and organic artisan teas from Mighty Leaf™, all or a portion of which are now available in more than 384 locations; the expansion of food offerings, including testing of new snack items and baked goods to more than 300 locations; the expansion of its renowned oatmeal platform to over 650 locations; the launch of a new breakfast daypart platform in select California markets; and the launch of a new specialty frozen yogurt platform called Whirl’ns™ Frozen Yogurt for the evening daypart

The Company made significant progress in the transition to a more franchise-oriented organization, expanding the Jamba brand into 23 states total with the opening of a new store in Louisiana and with the refranchising of 105 Company-owned stores as part of our refranchising initiative. The Company signed agreements to open franchise stores in three new markets including New Orleans, Boston, and Indiana and expects to expand into Connecticut in early April 2011. The Company also signed its first major international development agreement with SPC Group in South Korea. SPC Group opened their first franchise store on January 31, 2011 in the Incheon International Airport.

At the end of fiscal 2010, the Company had entered into nine licensing agreements and licensees had commercialized four consumer packaged goods product lines. In particular, Jamba-branded frozen novelties, manufactured under license by Oregon Ice Cream, and the At-Home Smoothie Kits, manufactured under license by Inventure Foods, were collectively in

over 10,000 points of distribution by the close of fiscal 2010. In February 2011, Nestle USA launched its all-natural fruit-based energy drinks in the Northeast, and the Company expects the remaining four product lines to be in retail distribution by end of the second quarter 2011, including product lines developed through agreements with One Natural Experience (O.N.E.) for coconut water fruit juice beverages, with Zola for functional daily Brazilian superfruit shots, with Johnvince Foods for all-natural boosted trail mixes and with Sundia Corporation for functionally boosted fruit cups.

Deliver positive comparable store sales⁽²⁾ of 2-4%;

Deliver Operating Profit⁽⁴⁾ margin of 18-20%;

Develop 50-70 locations in traditional, non-traditional, and express formats;

General and administrative expenses, in dollars, (excluding litigation charges and other one-time expenses) consistent with 2010 levels.

The Company uses the non-GAAP financial measure of Store Level EBITDA (adjusted) in its statements made

in this release, which is helpful when used: as an indicator of the Company’s operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of items not directly resulting from our Company-owned store operations; for planning purposes, including the preparation of our internal operating budget; and as a measurement in assessing the performance of existing store operating income and comparative operating performance. Store Level EBITDA (adjusted) is equal to net loss, less: (a) gain from derivative liabilities; (b) interest income; (c) interest expense; (d) income taxes; (e) depreciation and amortization; (f) impairment of long-lived assets (g) other operating, net; (h) franchise and other revenue; and (i) general and administrative expenses.

ASSETS

Current assets:

Cash and cash equivalents

Restricted cash

Receivables, net of allowances of $200 and $116

Inventories

Prepaid and refundable income taxes

Prepaid rent

Assets held for sale

Prepaid expenses and other current assets

Total current assets

Property, fixtures and equipment, net

Trademarks and other intangible assets, net

Restricted cash

Deferred income taxes

Other long-term assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

Accrued compensation and benefits

Workers’ compensation and health insurance reserves

Accrued jambacard liability

Other accrued expenses

Total current liabilities

Long-term workers’ compensation and health insurance reserves

Deferred rent and other long-term liabilities

Total liabilities

Commitments and contingencies

Series B redeemable preferred stock, $.001 par value, 304,348 shares authorized; 197,485 and 304,348 shares issued and outstanding at December 28, 2010 and December 29, 2009, respectively

Stockholders’ equity:

Common stock, $0.001 par value, 150,000,000 shares authorized; 63,734,961 and 52,712,528 shares issued and outstanding at December 28, 2010 and December 29, 2009, respectively

Additional paid-in-capital

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

Revenue:

Company stores

Franchise and other revenue

Total revenue

Costs and operating expenses:

Cost of sales

Labor

Occupancy

Store operating

Depreciation and amortization

General and administrative

Store pre-opening

Impairment of long-lived assets

Store lease termination and closure

Trademark and goodwill impairment

Other operating, net

Total costs and operating expenses

Loss from operations

Other (expense), income net:

Gain from derivative liabilities

Interest income

Interest expense

Total other expense, net

Loss before income taxes

Income tax benefit (expense)

Net loss

Preferred stock dividends and deemed dividends

Net loss attributable to common stockholders

Weighted-average shares used in computation of (loss) earnings per share:

Basic

Diluted

Loss per share:

Basic

Diluted

Number of units refranchised

Refranchising proceeds, pre-tax

Impairment related to refranchise transactions

Refranchising gain (loss) loss, pre-tax, included in other operating, net

Decrease in store sales

Increase in Franchise and other revenue

Decrease in Total revenue

Increase/(Decrease) in store level EBITDA (adjusted)

Increase in Franchise and other revenue

Decrease in General and administrative expense

(Increase)/Decrease in Loss from operations

Reconciliation of General and administrative expense to

General and administrative expense, adjusted

General and administrative expense

Non-recurring legal and settlement fees

Non-recurring personnel structuring fees

General and administrative expense, adjusted