Sepp's Gourmet Foods Ltd.
TSX : SGO

Sepp's Gourmet Foods Ltd.

August 16, 2006 12:14 ET

Sepp's Enters Into US Joint Venture

SURREY, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2006) - Sepp's Gourmet Foods Ltd. (TSX:SGO) (the "Company") announces that it has an agreement in principle to form a joint venture to manufacture frozen waffles, pancakes and French toast in a manufacturing facility located in Oklahoma. The joint venture partner will be Advance Food Company, Inc. ("Advance"), an Oklahoma based manufacturer and marketer of value-added food products.

Mr. Tom Poole, president and CEO of Sepp's said: "We are very pleased to be partnering with Advance - a company with a successful track record and stellar reputation. Having a production facility in the United States will help overcome two of the biggest challenges Sepp's has faced over the past two years: the appreciation of the Canadian dollar against the US dollar, and escalating freight charges due to increased energy costs."

Sepp's reports that with the addition of the Oklahoma location it will have three manufacturing facilities in key locations in North America: British Columbia to service the West coast of North America, Ontario to service Northeast North America, and now Oklahoma to service the US south. The Company expects the Oklahoma facility to be operational by October this year.

Mr. Greg Allen, President of Advance, said: "We are excited to be partnering with Sepp's in this joint venture. Sepp's brings strong operational expertise in frozen breakfast products to the joint venture and coupled with our national distribution network, we have high expectations for the new company."

Sepp's Gourmet Foods Ltd. (www.seppsfoods.com) is a producer and marketer of specialty prepared foods for the retail grocery and food service sectors in North and South America, and Southeast Asia. Sepp's is a publicly traded company traded on The TSX under the symbol SGO.

Advance Food Company, Inc. (www.advf.com) is a manufacturer and marketer of value-added food products for distribution throughout the broadline foodservice channel.

This release may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.


The Toronto Stock Exchange has not reviewed nor has accepted the responsibility for the accuracy and adequacy of this news release.

Contact Information

  • Sepp's Gourmet Foods Ltd.
    Tom Poole
    President
    (604) 535-5457
    or
    Sepp's Gourmet Foods Ltd.
    Jim Pratt
    Chief Financial Officer
    (604) 574-2166
    www.seppsfoods.com
    or
    Advance Food Company, Inc.
    Tom Carlson
    Heat & Serve General Manager
    (405) 775-8602
    www.advf.com