NXRA Nextera Enterprises Inc (CE)

Nextera Enterprises, Inc. (OTCBB:NXRA) today announced the status of certain financial covenants related to the senior secured credit agreement, as amended in November 2007, of its wholly-owned subsidiary, Woodridge Labs, Inc. The November 2007 amendment to its senior secured credit agreement includes financial covenants related to minimum purchase orders, minimum consolidated earnings before interest, taxes, depreciation and amortization (�EBITDA�), maximum corporate overhead and maximum consolidated capital expenditures. The minimum purchase order financial covenant required the aggregate amount of all firm purchase orders received and accepted by Woodridge Labs for all new product launches for the periods of October 1, 2007 through January 31, 2008 and October 1, 2007 through February 29, 2008 to be greater than $4.85 million and $5.0 million, respectively. The Company was in compliance with this financial covenant for both periods. The maximum corporate overhead financial covenant limited aggregate overhead expenses of Nextera Enterprises to $312,500 for the fiscal quarter ending December 31, 2007. The Company was in compliance with this financial covenant. The maximum consolidated capital expenditures financial covenant limits the aggregate amount of the consolidated capital expenditures of the Company to $250,000 per fiscal year. The Company was in compliance with this financial covenant for fiscal 2007. The minimum consolidated EBITDA financial covenant requires consolidated EBITDA of Woodridge Labs for the trailing thirteen-month period ending January 31, 2008 to be greater than $850,000. The Company was not in compliance with this financial covenant. This non-compliance with the minimum consolidated EBITDA financial covenant constitutes an event of default under the senior secured credit agreement, under which $14.65 million in borrowings is currently outstanding. The Company is currently seeking a waiver or amendment of the senior secured credit agreement with respect to this event of default, but there can be no assurances that the Company will be able to obtain a waiver or an amendment. Unless waived, an event of default would permit the lender to exercise its remedies under the senior secured credit agreement, including declaring all outstanding debt under the senior secured credit agreement to be immediately due and payable. An acceleration of the outstanding amounts under the senior secured credit agreement would have a material adverse effect on the Company�s liquidity and financial condition. Although the Company anticipates that the lender will agree to waive this default, such actions cannot be assured. About Nextera Enterprises, Inc. Nextera Enterprises Inc. operates through its wholly-owned subsidiary, Woodridge Labs, Inc. Woodridge Labs is an independent developer and marketer of branded consumer products that offer simple, effective solutions to niche personal care needs. More information can be found at www.nextera.com and www.woodridgelab.com. Forward-Looking Statements This release contains forward-looking statements that involve risks and uncertainties. Important factors that could affect these forward-looking statements are detailed under �Item 1A.Risk Factors� and elsewhere in filings with the Securities and Exchange Commission made from time to time by Nextera, including, but not limited to: its Annual Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission on April 17, 2007; recent quarterly reports on Form 10-Q; and other current reports on Form 8-K, and include the risk that the Company may not obtain a waiver or amendment from the lender under the senior secured credit agreement. All forward-looking statements included in this news release should be considered in the context of these risk factors. Nextera undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements.