X0202 3 2008-03-14 0 0001331301 SMART BALANCE, INC. SMBL 0001218321 OSS CAPITAL MANAGEMENT 598 MADISON AVENUE NEW YORK NY 10022 0 0 1 0 0001430686 Schafer Brother LLC 598 MADISON AVENUE NEW YORK NY 10022 0 0 1 0 0001135943 SCHAFER OSCAR 598 MADISON AVENUE NEW YORK NY 10022 0 0 1 0 Common Stock 6482270 I See Footnotes O.S.S. Capital Management LP, a Delaware limited partnership (the "Investment Manager") serves as (i) investment manager to a Cayman Islands exempted company (the "Offshore Fund"), (ii) management company to two Delaware limited partnerships (the "Domestic Partnerships") and (iii) investment manager to a separately managed account for the benefit of a third-party (together with the Offshore Fund and the Domestic Partnerships, the "Funds") and has investment discretion with respect to securities held by the Funds. Schafer Brothers LLC, a Delaware limited liability company ("SB LLC"), serves as the general partner to the Investment Manager, and has investment discretion with respect to securities held by the Funds. Mr. Oscar S. Schafer ("Mr. Schafer") serves as the senior managing member of SB LLC and Mr. Andrew Goffe ("Mr. Goffe") serves as a managing member of SB LLC and each has investment discretion with respect to securities held by the Funds. Each of the Investment Manager, SB LLC, Mr. Schafer and Mr. Goffe disclaim beneficial ownership of all securities included in this report and this report shall not be deemed an admission that any of the Investment Manager, SB LLC, Mr. Schafer or Mr. Goffe is the beneficial owner of such securities for purposes of Section 16 or for any other purpose, extent to the extent of such person's pecuniary interest therein. /s/ Oscar S. Schafer, Senior Managing Member of Schafer Brothers LLC, the general partner of O.S.S. Capital Management 2008-03-28