MTY Food Group Inc.
TSX VENTURE : MTY

MTY Food Group Inc.

July 18, 2005 11:10 ET

MTY Food Group Inc.: Second Quarter Results

MONTREAL, QUEBEC--(CCNMatthews - July 18, 2005) - MTY Food Group Inc. (TSX VENTURE:MTY), franchisor and operator of over 426 quick service restaurants, and with annual system-wide sales of over $100 million, under the banners of: Tiki Ming, Sukiyaki, La Cremiere, Cultures, Thai Express, Mrs. Vanellis, Pad Thai, Veggirama, Caferama, Au Vieux Duluth Express, Carrefour Oriental, Panini Pizza Pasta, Chick 'N' Chick, Franx Supreme, Croissant + Plus, and Villa Madina, today reported its operating results for the six-month period ended May 31, 2005.

The Company is pleased to announce a net income for the six-month period ended May 31, 2005 of $1.66 million or $0.11 per share as compared to a net income of $878,597 or $0.06 per share for the same period last year, representing an outstanding increase of 89%.

For the quarter ended May 31, 2005, net income was $942,609 or $0.06 per share, as compared to $467,692 or $0.03 per share for the same period last year, representing an extraordinary increase of 102%.

The net income of $1.66 million included an amount of $164,408 for the stock option compensation for the six-month period ended May 31, 2005. There was no amount charged to the Company for the same period last year.

Total revenues for the Company increased by 27% to $8.19 million for the six-month period ended May 31, 2005 as compared to $6.45 million for the same period last year.

Revenue from franchise locations increased by 42% to $6.22 million for the six-month period ended May 31, 2005 from $4.37 million over the same period last year.

Operating income increased to $2.62 million from $1.35 representing an increase of 94% for the six-month period ended May 31, 2005 over the same period last year. The increase is primarily attributed to the acquisitions of the Thai Express and the Mrs. Vanellis chains.

The Company had, as at May 31, 2005, cash of $2.00 million, short term deposits of $2.09 million, long term deposits of $1.39 million, and marketable securities of $1.37 million, for a total of $6.86 million as compared to a total of $5.5 million as at November 30, 2004.

Management is aggressively but prudently looking for future growth opportunities for expansion in the restaurant and franchising operations.

On Behalf of the Board of Directors of

MTY Food Group Inc.

Stanley Ma, Chairman, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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