DIXIE BRANDS INC. SIGNS LANDMARK INTERNATIONAL EXPANSION AGREEMENT TO BRING CANNABIS AND CBD PRODUCTS DOWN UNDER

DENVER and SYDNEY, Australia, Nov. 14, 2015 (GLOBE NEWSWIRE) -- Following its recent expansion announcements within the states of Oregon and Arizona, Dixie Brands, Inc. (Dixie), a leader in emerging cannabinoid extraction and wellness platforms, has signed a landmark agreement with Australia's Cann Group Limited (CANN Group) to bring a full line of Dixie-branded CBD topicals and cosmetics to Australian and New Zealand markets in early 2016.

Separately, the two companies have also signed a licensing agreement to bring Dixie Elixirs & Edibles full line of THC-infused edibles, topicals and tinctures, to Australia's and New Zealand's rapidly emerging medicinal cannabis markets (subject to local government legislation). This groundbreaking partnership was announced at a press conference yesterday during The National Marijuana Business Conference in Las Vegas, where Dixie is exhibiting. Dixie's CEO, Tripp Keber, also provided a keynote address to a record crowd.

Dixie Elixirs and Edibles in Australia

In October 2015, the Australian Federal and State governments announced medicinal cannabis reforms which provided recommendations for a framework to allow safe access to medicinal cannabis for suffering patients for the first time. As the first American cannabis company to announce its intent to serve patients in Australia, through CANN Group, Dixie will bring its industry defining best-practices in compliance, consistency, reliability, integrity and quality to Australia's emerging medicinal cannabis market. Although legislation has yet to be finalized, Dixie and CANN Group are well situated to offer a range of products to the market based on government requirements. Production and sales will commence as soon as all applicable laws are established and compliance has been met.

Concurrently, New Zealand is on a similar path to Australia with respect to medicinal cannabis reforms, thus allowing CANN Group to explore and realize the potential market for Dixie products in this territory.

Dixie Branded Health and Beauty Line

Clinical research has demonstrated that cannabinoids have anti-aging properties and are rich in antioxidants, as confirmed by the journal of the Federation of American Societies for Experimental Biology. Those same cannabinoids will be at the heart of formulations created by the CANN Group, an evolution from CANN Group's expertise and research in the formulation and sales of health and beauty products in Australia. Both companies intend for initial beauty and skincare products to be available for retail sales in early 2016, pending all approvals.These products, which contain no THC, will feature Dixie influenced packaging design as well as the Dixie brand mark/logo. The series of products produced by CANN Group will be available only in Australia and New Zealand, as Dixie's brand mark in the US is strictly reserved for its THC-infused line of products.

"With today's announcement, Dixie Brands Inc. makes history as the first U.S. cannabis company to expand into Australia and New Zealand," said Tripp Keber, CEO of Dixie Brands, Inc. "Equally as important, it is historic for Dixie in that this is our first international expansion. We have great confidence that the team at CANN Group will capture a significant share of the CBD health and beauty market in Australia and New Zealand, with products that live up to the quality that Dixie brands promise to deliver. And of course, we also look forward to serving the medicinal cannabis patient with our suite of safe, reliable and consistent Dixie Elixirs and Edibles Products as soon as Australian and New Zealand legislation allows. We are so proud, and humbled, to have found the caliber of partner we have in CANN Group and we look forward to working with them to make Dixie a household name in Australia, New Zealand and beyond."

CANN Group Founder and CEO Michael Murchison explains, "Dixie is, without doubt, the premier infused cannabis brand in the US market. CANN Group has worked with Tripp, Chuck and all the Dixie team for nearly two years to realize our common vision of bringing an amazing range of Dixie branded products to the Australian and New Zealand markets."

"We are very proud and honored to be Dixie's partner in our region, and look forward to launching these products for sale in our markets when government legislation permits."

ABOUT DIXIE BRANDS, INC.

Located in Denver, Colorado, Dixie Brands, Inc., (Dixie) through its affiliates across the country, has been formulating and producing award-winning THC and CBD-infused products since 2009. What began as a single flagship product, the Dixie Elixir (a THC-infused soda), has now expanded to over 30 different products across over 100 SKUs, representing the industry's finest edibles, tinctures, topicals and connoisseur grade extractions. In addition, Dixie Brands launched two new CBD product lines: Aceso, is a suite of "hemp 2.0" products designed to provide general wellness and relief from minor aches and pains as well as mild-anxiety. Therabis is a pet supplement formulated by an experienced veterinarian and designed to provide pets, and their owners, with relief for itching, mild-anxiety and greater joint mobility. To find out more about Dixie's innovative products, or about how Dixie is building the future of cannabis, please visit us at http://www.dixiebrands.com.

ABOUT CANN GROUP LIMITED

The CANN Group Limited (CANN Group) is an Australian based unlisted public company, with experienced Board members, an Executive Management team with US cannabis industry qualifications, experience and relationships. The CANN Group is a member of the US National Cannabis Industry Association and their grow staff have undertaken extensive NCIA training, seminars, technical symposiums & accreditation. CANN Group has employees with California Government-issued Medicinal Marijuana certification cards and have developed relationships that include product distribution rights and contracts within the US market.

The CANN Group is positioned to be a 'first mover' in the Australian and New Zealand markets when medicinal cannabis legalization develops in those territories. As such, the CANN Group has created a manufacturing and technology structure of subsidiary companies that can import, cultivate and process cannabinoid-based products for markets when and where cannabis is legalized for medicinal uses. For more information, please visit www.canngroup.com.au.

CONTACT
Joe Hodas
Dixie Brands, Chief Marketing Officer
jhodas@dixiebrands.com
+1 303-827-6972