Central Canada Foods Corporation

February 24, 2005 13:25 ET

Central Canada Foods Moves To New Plant


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CENTRAL CANADA FOODS CORPORATION

TSX VENTURE SYMBOL: CDF.A

FEBRUARY 24, 2005 - 13:25 ET

Central Canada Foods Moves To New Plant

MISSISSAUGA, ONTARIO--(CCNMatthews - Feb. 24, 2005) - Central Canada
Food Corporation (TSX VENTURE:CDF.A) has moved into its Timberlea
Boulevard plant. Beginning this month, the new plant will produce
fresh-boxed pork and case ready products for the domestic and export
markets and has been approved for registration as a federal meat
establishment by the Canadian Food Inspection Agency,

"We are very pleased to meet the high standards required to be a
registered establishment," said George Michaels, Central Canada's
president. "This 23,000 sq. ft. plant will allow the CCFC to expand its
sales to both domestic and export customers, as the production capacity
will now increase three fold."

Management also estimates that that costs such as outside cold storage,
could be reduced by at least $450,000 at fiscal 2004 production levels.

CCFC and the holding company controlled by the President have agreed to
lease the plant to Central Canada on a net net net basis roughly equal
to the cost of carrying the mortgage, with an option granted to Central
Canada to acquire the plant back from the holding company at
approximately cost. Central Canada and its subsidiaries have provided
guarantees to the mortgage lender in the amount of $1.7 million for the
mortgage loan used to finance the acquisition of the plant. CCFC had
previously assigned the right to purchase this plant to the holding
company controlled by the President so as not to breach any covenants
associated with Central Canada's line of credit.

About Central Canada Foods Corporation

Central Canada Foods Corporation (CCFC) is a federally inspected, HACCP
approved, meat processing company. CCFC's products are marketed and sold
to Canadian national and regional grocery chains. CCFC also uses
international food brokers to sell its products abroad, primarily into
the Asian-Pacific market.

The Toronto Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this News
Release. This News Release may contain certain forward-looking
statements, which statements can be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"anticipate", "estimate", "predict", "plans", or "continue" or the
negative thereof or any other variations thereon or comparable
terminology referring to future events or results. Forward looking
statements are statements about the future and are inherently uncertain,
and the Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of numerous
factors, including without limitation, the need for regulatory approval,
marketing/manufacturing and partnership/strategic alliance risks, the
effect of competition, disease, uncertainty of the size and existence of
a market opportunity for the Company's products, as well as a
description of other risks and uncertainties affecting the Company and
its business, as contained in news releases and filings with the
Canadian Securities Regulatory Authorities, any of which could cause
actual results to vary materially from current results or the Company's
anticipated future results. Forward-looking statements are based on the
beliefs, opinions and expectations of the Company's management at the
time they are made, and the Company does not assume any obligation to
update its forward-looking statement if those beliefs, opinions or
expectations, or other circumstances should change.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Central Canada Food Corporation
    George Michaels
    President
    (905) 272-3133