SOURCE: Innovative Food Holdings, Inc.

July 31, 2008 11:43 ET

Innovative Food Holdings, Inc. Announces That It Is Now Current in Its Financial Reporting Obligations and Announces Financial Results

NAPLES, FL--(Marketwire - July 31, 2008) - Innovative Food Holdings, Inc. (PINKSHEETS: IVFH) announced today that it has filed its 2007 quarterly and annual reports and its quarterly report for the first quarter of 2008. For the first quarter of 2008, the company reported slightly higher revenues compared to the same quarter in 2007, as the company began to see results from some of the initiatives we implemented to drive sales. Sales for the first quarter of 2008 were $1.603 million.

Revenues for the year ended December 31, 2007 were $6.7 million compared to $7.0 in 2006, a decline of approximately 4% which management believes is a result of a change in product mix and the introduction of the 3-day saver shipping program. Our operating costs for 2007 and for the first quarter of 2008 were impacted by high legal, accounting and auditing costs relating to the restatement of our financial statements. In addition, we incurred legal fees relating to the efforts to recover our loans to Pasta Italiana. We are currently in negotiations with Pasta Italiana to recover our loans and the current discussions include both cash payments from Pasta Italiana and a minority equity position in Pasta Italiana. However, there can be no assurances that a settlement will be reached.

In addition the company announced a realignment of its executive management team leveraging its strength and experience to maximize operational resources and that effective July 31st, 2008, Mr. Z. Zackary Ziakas stepped down from the COO position in order to further expand the company's procurement capabilities and Mr. Justin Wiernasz was named President of Innovative Food Holdings, Inc. Mr. Ziakas noted, "I am pleased to have served in the COO position for the past several years. Given the importance of procurement to IVFH, I am delighted to now focus entirely on my position as Executive VP of Procurement which will now allow me to be further involved in expanding the company's procurement activities."

Justin Wiernasz, President of Innovative Food Holdings, Inc. and Food Innovations, Inc., noted, "We continue to build our reputation for unparalleled quality and service within the gourmet foodservice industry and we continue to explore additional initiatives designed to increase sales. Our relationship with our largest customer is excellent and we believe we are seeing the results of the increased marketing we have made to targeted divisions within our largest customer. In addition, during the last several months we have upgraded our software capabilities and have automated most of our processes including the upgrading of our CRM capabilities. We believe that our continued focus on our technology and software improvement will enable us to further drive efficiency in both our sales and operations."

Sam Klepfish, the Company's CEO, noted, "We are delighted to have completed the rigorous and painstaking process of filing our financials. I believe that filing our financial statements is an important step towards expanding our visibility within the investment community. In addition, it is currently our intention to apply for an OTCBB listing, which is an additional step intended to further increase our visibility. As we look towards expanding our business, we are seeing several trends within the gourmet food industry overall that we believe could allow for expansion of Innovative Food Holdings' business model to other areas of the market. We believe that our strong core gourmet food platform and business model potentially could allow us to take advantage of several gourmet markets including retail, and both direct to consumer and partnership-based web opportunities. We will continue to approach each potential market strategically and with a goal of bottom line growth and the building of shareholder value. Finally, I would like to thank our shareholders for their patience during this past period. I look forward to further communications with the shareholder community in the months ahead."

About The Company:

Innovative Food Holdings, Inc. through its wholly owned subsidiary, Food Innovations, Inc., with a commitment to chef level extreme quality and service, provides gourmet food products to discerning chefs throughout the United States.

For information about the Company and its subsidiaries, please visit www.foodinno.com.

This release contains certain forward-looking statements and information relating to Innovative Food Holding, Inc. (the "Company") that are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this Release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, or expected. The Company does not intend to update these forward-looking statements.

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