Artisanal Brands, Inc. Announces Shareholder Debt-to-Equity Conversion

NEW YORK, Aug. 7, 2013

The outstanding loans would convert as follows, assuming the Company closes the sale of $2 million of its Series A convertible preferred stock:

• Approximately $2 million in principal amount of secured debt would be converted into 2 million convertible preferred shares.
• Approximately $1.5 million in principal amount of unsecured debt and accrued interest would be converted into common shares at the same $.30 per share conversion price of the preferred stock. 

Daniel W. Dowe, President and Chief Executive Officer of Artisanal, said, "By converting their shareholder loans into equity, these early investors in Artisanal are strengthening our capital structure and enabling the Company to fund a growth phase that will significantly expand our footprint in fine wine, liquor and specialty food stores in the tri-state region, as well as construct our first Company-owned retail location this Fall.  Additionally, these conversions will allow our long-term supporters to enjoy the potential upside that comes with increased equity ownership."

"Our team continues to work exceptionally hard at refining our plans to make the Artisanal brand into a consumer's choice for premium cheese in the retail sector," Dowe continued.  "By expanding into independently-owned retail stores, our Artisanal CheeseClock™ retail merchandising system is gaining more new accounts and higher sell-through.  Our major shareholders' commitment to our work is another vote of confidence in Artisanal's plans to create long-term value."

About Artisanal Brands, Inc.
Artisanal Brands Inc. markets Artisanal Premium Cheese's line of specialty, artisanal and farmstead cheese products, as well as other related specialty food products under its own brand, to food wholesalers and retailers, and directly to consumers through its catalogue and website, www.artisanalcheese.com. Artisanal Brands, Inc. is based in New York City and its customers include The Four Seasons, Hyatt, Neiman Marcus, The Wine Enthusiast, the American Express Wine Connoisseurs Club, as well as exclusive wine and liquor retailers in New Jersey and Connecticut.

Safe Harbor Statement:
Forward-looking statements made in this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized.  Potential risks and uncertainties include, but are not limited to, the risks described in Company filings made with the Securities and Exchange Commission. 

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, ANY SECURITIES OF THE COMPANY.