Kaboose Reports Second Quarter Revenue Increase of 185% to $3.51 MillionTORONTO, ONTARIO – Kaboose Inc. (TSX: KAB), the largest independent family focused online media company in North America, today announced financial results for its second quarter and six months ended June 30, 2006.

Financial Highlights for the Quarter

• Revenue was $3.51 million as compared to $1.23 million in the same quarter last year, an increase of 185%. Revenue includes the contribution from TwoPeasInABucket.com as of May 11, 2006 and BabyZone.com, Inc. as of June 13, 2006;

• EBITDA (earnings before interest, taxes, depreciation, amortization and stock-based compensation) loss was $0.75 million as compared to a loss of $0.71 million in the same quarter last year; and

• Strong balance sheet as at June 30, 2006, with cash and cash equivalents totaling $15.68 million.

Financial Highlights for the Six Months

• Revenue was $5.85 million as compared to $2.03 million in the same period last year, an increase of 188%; and

• EBITDA (earnings before interest, taxes, depreciation, amortization and stock-based compensation) loss was $1.50 million as compared to a loss of $1.12 million in the same period last year.

“We are very pleased with our results for the quarter,” said Jason DeZwirek , Chairman and Chief Executive Officer of Kaboose. “We had significant growth in all facets of our business that has now been substantially enhanced with the acquisitions of BabyZone and Two Peas. In addition, with over $15 million of cash in the bank, we are very well positioned to continue to execute on potential value creating opportunities.”

Mr. DeZwirek continued, “On a pro forma basis assuming BabyZone had been acquired as of January 1st, 2006, Kaboose would have generated $5.3 million in revenue and an EBITDA loss of only approximately $60 thousand in the second quarter. In addition, for the first six months of 2006, Kaboose’s revenues would have been close to $9.3 million with an EBITDA loss of approximately $220 thousand.”

Operational Highlights for the Quarter

• Acquired BabyZone.com, the largest independent online destination focusing on pregnancy and parenting in North America ;

• Acquired substantially all of the assets of TwoPeasInABucket.com, North America ‘s largest online scrapbooking community;

• Completed a public offering of 26,570,700 shares – including an over-allotment of 3,320,700 shares – at $1.40 per share for gross proceeds of $37.2 million. Proceeds were used to acquire BabyZone.com and TwoPeasInABucket.com, with the remainder allocated for general working capital purposes;

• New first time advertising clients in the quarter included 3M, Albertsons, American Express, Hewlett-Packard, Johnson & Johnson, McDonalds, Mercedes, Merck, Microsoft, Radio Shack, Schering-Plough and Sears; and

• Appointed U.S. online and traditional media veteran, Daniel Ambrose, to the Company’s Board of Directors and Audit Committee.

“This is a very exciting time for Kaboose, as we have just completed the most significant acquisition and financing in the Company’s history,” added Mr. DeZwirek. “We have already seen tangible benefits from the BabyZone.com acquisition including cross-selling properties within our client base, expanded advertising campaigns, improved market position and extended user reach. Going forward, we expect to continue to maintain our focus on growing the business both organically and through strategic acquisitions, in order to enhance our position as the largest independent family-focused online media company in North America .”

About Kaboose Inc.

Kaboose is the largest independent, family-focused online media company in North America and one of the top-five most visited family destinations online. From pregnancy to parenting, birthday parties to scrapbooking, and entertainment to education, Kaboose has the content and applications to help parents plan and share their family life. Kaboose owns some of the world’s leading online properties targeting families, including BabyZone.com, Kaboose.com, TwoPeasInABucket.com, BirthdayInABox.com, Funschool.com and Zeeks.com. Kaboose trades on the Toronto Stock Exchange under the symbol “KAB.”

FOR FURTHER INFORMATION PLEASE CONTACT:
Jennifer Lee, Director of Corporate Communications for Kaboose Inc. at TEL: 416-593-3000 ext.294 FAX: 416-593-4658

This document may contain forward-looking statements, relating to Kaboose Inc.’s operations or to the environment in which it operates, which are based on Kaboose Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Kaboose Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Kaboose Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.