Smart Balance Completes Public Warrants Redemption

PARAMUS, N.J., Dec. 19 /PRNewswire-FirstCall/ -- Smart Balance Inc. (NasdaqGM: SMBL) announced today that it has completed the redemption of all of the Company's outstanding public warrants to purchase common stock. Virtually all of the 12.8 million public warrants were exercised, providing the Company in excess of $76 million in cash. The Company plans to use the majority of the funds to reduce its debt. With the redemption of the public warrants, the Company now has a total of 43.1 million shares of common stock issued and outstanding.

"We continue to make excellent progress in reshaping our capital structure," commented Robert S. Gluck, vice chairman and CFO. "The funds provided by the redemption of the warrants will allow the Company to reduce debt and improve financial flexibility in order to invest more in the growth initiatives of the Smart Balance platform."

About Smart Balance Inc.

Smart Balance Inc. (NasdaqGM: SMBL) is committed to providing superior tasting heart healthier alternatives in every category it enters by avoiding trans fats naturally, balancing fats and/or reducing saturated fats, total fat and cholesterol. The company's products include Smart Balance(R) Buttery Spreads, Milk, Butter Blend Sticks, Cream Cheese, Peanut Butter, Microwave Popcorn, Cooking Oil, Mayonnaise, Non-Stick Cooking Spray and Cheese. Smart Balance Inc. is one of the five fastest growing food companies in the United States, according to Nielsen sales figures. For more information about products and the Smart Balance(TM) Food Plan, visit http://www.smartbalance.com.

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about Smart Balance, Inc. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Smart Balance, Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward- looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changing interpretations of generally accepted accounting principles; continued compliance with government regulations; legislation or regulatory environments; requirements or changes adversely affecting the businesses in which we are engaged; demand for the products and services that we provide; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in Smart Balance's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Smart Balance assumes no obligation to update the information contained in this press release.

Smart Balance Inc.

CONTACT: Liz Feldman, +1-443-683-0917, lfeldman@hillmanpr.com , or Nicole
Atkinson, +1-443-683-0922, natkinson@hillmanpr.com , both of Sandy Hillman
Communications, for Smart Balance, Inc.; Investors, John Mintz of Smart
Balance, Inc., +1-201-568-9300, ext. 127, investor@smartbalance.com

Web site: http://www.smartbalance.com/