Dreamerz(TM) Foods Closes on Series B Funding

SAN FRANCISCO, June 5 /PRNewswire/ -- Dreamerz Foods, a California-based natural foods company that champions the importance of healthy sleep and stress reduction by creating great-tasting, all-natural and efficacious products, announced today that it has secured $10 million in series B funding. The financing included Physic Ventures, Dean Foods Company and Fonterra Co-operative Group Ltd. Original investors Burrill & Company, Great Spirit Ventures, Prolog Ventures, and Unilever Ventures also participated in the financing.

"Dreamerz Foods represents one of the most scientifically-advanced functional food businesses to come to market. The Company's products address a very important need-and do it in a way that is both enjoyable and efficacious," said William Rosenzweig, a managing director of Physic Ventures, the lead investor in the Dreamerz financing. "Consumer adoption of products that combine health benefits, great taste, and functional effectiveness are growing rapidly as entrepreneurial stage companies pave the way for new brands into large markets."

The financing builds on the strong momentum Dreamerz has experienced since its retail launch in April 2007 with a line of all natural dessert beverages that promote relaxation and restful sleep. The Dreamerz product line delivers clinically proven active ingredients that support healthy sleep and a balanced lifestyle. Leading the company is Amanda Steele, Dreamerz Foods' founder and chief executive officer. A food industry veteran, Steele developed her expertise in the beverage division of Nestle USA, leading innovation and launching new brands including Nescafe Frothe and Nescafe Ice Java.

"Dreamerz' enthusiastic reception in the marketplace -- and the significant amount of funding it has attracted -- is a testament to the company's breakthrough product line and growth potential," said Ilya Nykin, a managing director of Prolog Ventures and chairman of the company's board of directors. "Dreamerz is an excellent example of a new breed of companies that apply life science solutions to the art of creating successful consumer wellness products, a sector in which we are investing a meaningful share of our capital."

"Millions of Americans are sleep-deprived, but have not found solutions that fit with their desire to lead a healthy lifestyle," said Steele. "This support from our investors will enable us to scale up to meet the growing demand for products like Dreamerz that deliver real efficacy for relaxation and sleep in a delicious, natural form that can be enjoyed every day without fear of addiction or after-effects."

Dreamerz Foods is one of four companies launched by Brand New Brands, an innovation accelerator dedicated to improving and enhancing Americans' lives through the creation of next-generation healthful foods and beverages. Brand New Brands' investors -- Burrill & Company, Great Spirit Ventures, Prolog Ventures and Unilever Ventures -- participated in the company's initial launch.

"Dreamerz Foods and all Brand New Brands companies fit the emerging landscape for food and beverage -- as tools for wellness as well as nourishment," said Pete Mattson, Co-Founder of Brand New Brands and Chairman of Mattson and Company, the creative partner in the development of the Brand New Brands portfolio. "They present a model for all new food companies moving forward."

Dreamerz is available in chocolate s'nores(TM) (milk chocolate), vanilla van winkle(TM) (French vanilla) and creme de la REM(TM) (dark chocolate mint) flavors. Dreamerz is a dietary supplement in the form of a rich-tasting dairy beverage that is only 100 calories per serving, all natural, low in fat and a good source of calcium. The Dreamerz beverage line is currently available at select Long's Drugs and at Hi Health, Mollie Stone's, Mothers and online at http://dreamerzfoods.com/shop.

According to the National Institutes of Health, more than 70 million Americans suffer from symptoms of insomnia. Direct costs of insomnia, such as treatment and health-care services, are estimated at nearly $14 billion. Indirect costs, from factors such as work loss and accidents resulting from sleep deprivation, add an estimated $28 billion each year. Sleep deprivation is linked to physical and emotional health issues, including obesity, heart disease, depression and poor mental performance.

About Dreamerz Foods

Dreamerz Foods Inc. champions the importance of healthy sleep and stress reduction by creating great-tasting, all-natural and efficacious products. At Dreamerz, we believe that a good night's sleep means a better day so that you can enjoy energy, creativity and passion for life. Now a stand-alone company, Dreamerz was founded as a unit of Brand New Brands, a food and beverage incubator led by successful innovators William Rosenzweig (co-founder of Republic of Tea and Physic Ventures) and Pete Mattson (founder of the Mattson Group). To learn more about Dreamerz Foods, please visit http://www.dreamerzfoods.com/

About Physic Ventures

Based in San Francisco, Physic Ventures invests in science-driven, consumer-facing health, wellness and sustainable living companies. Physic specializes in working with exceptional teams to help them achieve rapid scale and impact by bringing breakthrough products, services and technologies to market. Physic was formed in early 2007 through the evolution of Great Spirit Ventures and the spin-out of Unilever Technology Ventures. Website: http://www.physicventures.com/

About Dean Foods

Dean Foods Company is one of the leading food and beverage companies in the United States. Its Dairy Group division is the largest processor and distributor of milk and other dairy products in the country, with products sold under more than 50 familiar local and regional brands and a wide array of private labels. The Company's WhiteWave Foods subsidiary markets and sells a variety of well-known dairy and dairy-related products, such as Silk(R) soymilk, Horizon Organic(R) milk and other dairy products and International Delight(R) coffee creamers. WhiteWave Foods' Rachel's Organic(R) brand is the largest organic milk brand and third largest organic yogurt brand in the United Kingdom. Website: http://www.deanfoods.com/

About Fonterra Co-operative Group Ltd.

Fonterra Co-operative Group Ltd. is a leading multinational dairy company, owned by 11,600 New Zealand dairy farmers. As the world's largest exporter of dairy products, they export 95% of their production. Their global supply chain encompasses shareholders' farms in New Zealand through to customers and consumers in 140 countries. Collecting over 13 billion litres of milk a year, they manufacture and market over 2 million tonnes of dairy products annually, making them the world's leader in large-scale milk procurement, processing, and management. Their ingredients business is the largest dairy ingredients operation in the world, manufacturing and marketing more than 1,000 ingredient products to the international food industry under the NZMP(R) brand. Fonterra Brands, their consumer business, has some of the world's best-known dairy brands, including Anchor(R), Anlene(R), Anmum(R), Tip Top(R), Fresh 'n Fruity(R) and Mainland(R). Website: http://www.fonterra.com/

About Burrill & Company

Burrill & Company is a life sciences merchant bank, focused exclusively on companies involved in biotechnology, pharmaceuticals, diagnostics, human healthcare and related medical technologies, wellness and nutraceuticals, agricultural technologies, and industrial biotechnology (biomaterials/bioprocesses). Burrill & Company has over $500mm under management in its family of venture capital funds, and has one of the premier strategic advisory and partnering practices in the life sciences. Website: http://www.burrillandco.com/

About Great Spirit Ventures

Great Spirit Ventures (GSV) is an early-stage venture capital fund committed to enhancing the growth of exceptional companies in the branded consumer products, health care, and biotechnology industries. Launched in 2003, GSV is the wholly-owned venture development capability of the A.M. Todd Group, a 135 year-old firm specializing in food flavors, ingredients and specialty agriculture. A.M. Todd's research and development capabilities augment GSV's private equity expertise to provide portfolio companies with the capital, knowledge, network and services necessary for success. Website: http://www.greatspiritventures.com/

About Prolog Ventures

Prolog Ventures is a venture capital firm specializing in life science investing. Since its launch in 2001, Prolog has financed more than 20 companies, most of them early-stage. The firm is managed by a team of professionals with extensive experience as both investors and entrepreneurs. Prolog invests in traditional healthcare fields as well as emerging areas, such as wellness, plant science, and bioenergy. For more information, visit http://www.prologventures.com/.