SOURCE: Innovative Food Holdings, Inc.

November 11, 2008 09:34 ET

Innovative Food Holdings Announces Third Quarter Financial Results: 15% Revenue Growth From Third Quarter 2007, Strong Increases in End-User Customer Base

NAPLES, FL--(Marketwire - November 11, 2008) - Innovative Food Holdings, Inc. (OTCBB: IVFH), a provider of the highest quality gourmet food products to Professional chefs throughout the United States, today announced its third quarter financial results for the quarter ending Sept 30, 2008.

Innovative Food Holdings reported total revenues of $1.79 million for the third quarter of fiscal year 2008, an increase of 15% from the $1.55 million in revenues for the third quarter of 2007.

"We believe that our third quarter performance is indicative of our strong business strategy and demonstrates our increasing momentum," said Sam Klepfish, CEO of Innovative Food Holdings. "The company performed exceptionally well as we continue to focus on leveraging our unique product line and expand our value added offerings. Furthermore, we are very pleased by the expansion of our end-user customer base, increasing our potential for higher revenues in the future."

Quarter Highlights

--  Increased end-user customer base by approximately 25% compared to the
    same quarter last year.
--  Increased sales by approximately 15% as compared to the same quarter
    last year.
--  Managed gross margins of approximately  20% -- despite fuel-increased
    shipping costs and price increases by our suppliers.
--  Selling General and Administrative Expenses decreased to 25% of sales
    vs. 29% for the same quarter in 2007.

Innovative Food Holdings' additional Highlights

--  Initiated the design and build out of a customized e-commerce
    solution. This initiative represents a new potential source of revenues for
    the company.
--  Signed extension agreement with major broadline food distributor.
--  Expanded line of organic and sustainable "green" product offerings.
--  Launched direct chat feature on website to allow
    interaction between customers and our chef advisors online.
--  End-user customer orders included several notable large restaurant and
    hotel chains, as well as several smaller regional restaurant groups.
--  Requested and submitted bids on several large National and Regional
    restaurants chains.
--  Commenced trading on the OTC Bulletin Board
--  Settled lawsuit with Pasta Italiana. Under terms of the agreement
    Innovative Food Holdings is to receive $4,500, monthly over the next three
    years, as well as 10% ownership of Pasta Italiana. Pasta Italiana is a
    gourmet pasta manufacturer with approximately $3.3 million in sales in 2007

To learn more, please visit our website at

Innovative Food Holdings, Inc. provides the highest quality gourmet food products to professional chefs throughout the United States. To learn more, visit Food Innovations Inc. website at

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, 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, looking forward, or expected. The Company does not intend to update these forward-looking statements.

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