SOURCE: Edgewater Foods

April 17, 2008 08:30 ET

Edgewater Revenues Increase by More Than 160% for the First Six Months of FY 2008

GAITHERSBURG, MD--(Marketwire - April 17, 2008) - Edgewater Foods International, Inc. (OTCBB: EDWT), the first fully integrated shellfish producer with the largest private marine research hatchery in Canada, today reported the Company's revenues for the first six months of its Fiscal Year ending August 31, 2008 rose to $795,000, an increase of more than160% over revenues of about $305,000 for the six months ended February 28, 2007.

For the three months ended February 29, 2008, revenues were approximately $366,000, an increase of more than 100% over revenues of $182,000 for the same period in 2007.

The Company also reported a gross loss for the three months ended February 29, 2008 of approximately $128,000, an increase of approximately $36,000 over the same period in 2007. For the six months ended February 29, 2008, gross loss was approximately $233,000, up from $160,000 for the same period in 2007. Management attributed the increase in the gross loss to the expansion and development of larger scallop crops and larger scallop yields for future years.

Cost of sales also increased due to higher processing plant and trucking costs, as the Company began to establish a larger sales effort. However, sales increased faster than the cost of goods sold, and Management expects this trend to continue throughout the 2008 fiscal year, promoting improved margins into future years.

Robert Saunders, Chairman, CEO and President of Edgewater, stated, "We are very pleased with our results for the first half of our 2008 fiscal year. The increase in our overall sales was a direct result of our new sales and marketing efforts coupled with our emphasis on infrastructure improvements, our new processing facility, and crop expansion. In the first half of this fiscal year we

--  began distribution into the Hong Kong market and expect these sales to
    increase in the upcoming fiscal quarters;
--  added new product lines to our traditional West Coast markets; and
--  introduced fresh scallop meat into high-end restaurants in Toronto and
    Montreal and frozen-on-the-half-shell product into the lucrative markets of
    the eastern United States and Canada."
    

"Moreover," Mr. Saunders added, "in late March, we received approval from the British Columbia government to convert our largest scallop farm to the off-bottom growing technique, which we expect will increase our farm capacity by 300% and add 20 million scallops to the harvest cycle. This is another important step in expanding our production and, coupled with our new processing plant and new marketing efforts, will help drive revenue increases, Company growth and shareholder value for the rest of 2008 and thereafter."

About Edgewater Foods International, Inc.

Edgewater Foods International Inc., a Nevada Corporation, is the parent company of Island Scallops Ltd. ("ISL"), a Vancouver Island aquaculture company. Established in 1989, ISL has successfully operated a scallop farming and marine hatchery business for over 18 years. ISL's facilities represent the largest private marine research hatchery and the first fully integrated shellfish producer in Canada.

Edgewater Foods is dedicated to the farming, processing and marketing of high quality, high value marine species: scallops and sablefish. Farmed Pacific scallops are unique to North America, and Edgewater is the predominant producer of live-farmed Pacific scallops.

The Pacific scallop is a hybrid developed by ISL through extensive research and development and proprietary hatchery technology that significantly increases growth yields while resisting disease. It is one of the largest scallops in the world, reaching about 15 cm in size and more than 1 pound in weight. The Company believes there is virtually no existing competition for producing this scallop. Edgewater is committed to rapidly expanding production and profits and financing aggressive growth, while maintaining quality and a healthy respect for a clean, sustainable marine environment.

Scallop farming is inherently a "green," environmentally sustainable industry. Scallops require clean water to grow and can only be harvested from clean waters. No chemicals or food are added to the environment, and cultured scallops are an organic food product. All scallop seed is produced in the Island Scallops' hatchery, so no native populations are exploited.

To learn more about Edgewater Foods International, Inc., please visit the company's Web site at http://www.edgewaterfoods.com. To receive email updates about the company and to be added to Edgewater Foods International Inc. investor lists, please sign up at www.CFSG1.com or contact Adam Brooks at abrooks@CFSG1.com.

Forward-Looking Statements

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

Pursuant to an April 1, 2008 contract, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides Edgewater Foods International, Inc. ("the Company") with consulting, business advisory, investor relations, public relations and corporate development services. Independent of CFSG1's receipt of cash compensation from the Company, CFSG1 may choose to purchase the Company's common stock and thereafter liquidate those securities at any time it deems appropriate to do so.

Contact Information

  • Contacts:

    Company Contact:
    Edgewater Foods International Inc.
    Rob Saunders
    Chairman, CEO & President
    Tel: 250-757-9811
    Fax: 250-757-8370
    Website: http://www.edgewaterfoods.com

    Tom Bostic Tel: 1-800-793-0087

    Investor Relations:
    Stanley Wunderlich
    CEO
    Consulting for Strategic Growth I
    Tel: 1-800-625-2236
    Fax: 1-646-205-7771
    Email: Email Contact
    Web site: http://www.cfsg1.com

    Media Relations:
    Daniel Stepanek
    CFSG1
    Tel: 1-646-205-7767
    Fax: 1-646-205-7771
    Email: Email Contact