Ginger Beef Corporation

Ginger Beef Corporation

May 30, 2006 18:43 ET

Ginger Beef Corporation Reports First Quarter Activities and Developments

CALGARY, ALBERTA--(CCNMatthews - May 30, 2006) -

To Our Shareholders

Ginger Beef Corporation (the "Corporation") (TSX VENTURE:GB) is pleased to report to you the activities of the Company for the first quarter ending March 31, 2006.

Financial Highlights

- Revenues were $1,675,738 for this quarter compared to $1,740,648 for the same period in 2005 for a decrease of 3.7%.

- Gross margins were $337,971 or 20% for this quarter compared to the $386,907 or 22% for the same period in 2005.

- Total expenses increased to $323,437 for this quarter compared to $310,678 for the same period in 2005 for a 4.1% increase.

- Net earnings for the period were $15,809 compared to $45,987 for the same period in 2005.

- Basic and fully diluted earnings per share for the period was $0.001 per share.

First Quarter Activities and Development

Faced with tough market conditions, revenues for the Corporation declined 3.7% in this quarter to $1,675,738 from $1,740,648 for the same period in 2005. The main challenge in this quarter was trying to maximize its production capacity while dealing with the provincial-wide labour shortage and higher wage demands in Alberta. As a result, the company had to streamline its existing product line and delay the introduction of its new Asian-inspired ready meals originally planned for the convenience store market. Furthermore, plans to offset these obstacles by increasing automation in labour-intensive production areas were affected by supply chain and equipment delays. However, the company managed to maintain gross margins at 20% despite these setbacks that were also compounded by higher energy and raw material costs.

Net earnings for the quarter were $15,809 compared to $45,987 for the same period in 2005. "With the labour shortage that affected most companies in Alberta and supplier delays in delivering equipment to automate our production process in this quarter, we were forced to push back the introduction of our new product line. Once we get all the planned equipment in place, it will provide us with much needed flexibility to improve our production capacity, lower our costs, and the ability to grow our revenues by introducing more new exciting products to the marketplace. These are some of the growing pains as we transition from a very labour-intensive processing system to a more efficient higher volume automated production operation. We are gearing up to have everything in place for our busier third and fourth quarters when demand for our ready meals is highest.", says Stanley Leung, President and CEO.

All Ginger Beef products follow the highest quality and safety standards established by the Canadian Food Inspection Agency and use only meat inspected by this Agency.

About Ginger Beef Corporation

Ginger Beef Corporation is a food company based in Calgary, Alberta. It is a public company listed on the TSX Venture Exchange. Through two wholly owned subsidiaries, Ginger Beef Express Ltd. and Ginger Beef Choice Ltd., Ginger Beef franchises a number of take out/delivery service restaurants in Alberta and produces a number of frozen or ready to serve deli Chinese food products. The Corporation's manufacturing facility is certified and licensed by the Canadian Food Inspection Agency as a federally regulated plant and therefore, all products manufactured can be shipped to all provinces and territories in Canada.

This press release contains forward-looking statements that involve risks, which may cause actual results to differ materially from the statements made, and accordingly may be deemed to be forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are made as of the date hereof, and the Corporation disclaims any intention and has no obligation or responsibility to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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