SOURCE: Tootie Pie Company, Inc.

July 01, 2008 08:05 ET

Tootie Pie Company Annual Revenues Grow 132%

Gross Margins Improve to 64%

BOERNE, TX--(Marketwire - July 1, 2008) - The Tootie Pie Company, Inc. (OTCBB: TOOT), a premium baker and seller of high-quality, handmade pies, announced today that revenues for the twelve months ended March 31, 2008 increased 132% to $1,420,495 as compared to $611,495 for the twelve months ended March 31, 2007.

Don Merrill, Tootie Pie Company's President & CEO, commented, "Fiscal year 2008 was a very big year for us. We took the Company public, raising close to $1,500,000 through the exercise of warrants, while expanding our shareholder base significantly. We opened new wholesale markets and went deeper in existing markets. Our retail/corporate customer base grew dramatically, contributing to the success of our overall marketing and brand-building plan. Our sales grew triple digits in every quarter, as well as for the year, and we saw our first ever quarterly net profit, in 2008."

Gross margin after depreciation was 64% of net sales for the twelve-month period ended March 31, 2008 compared to 47% for the twelve-month period ended March 31, 2007, a 17 percentage point improvement.

During the 2008 fiscal year, we also reported our first ever net profit of $171,474 for the quarter ending Dec. 31, 2007.

"Our margins continued to improve, as did our operating efficiencies. We also absorbed significant cash and non-cash expenses related to taking the Company public. When you consider that we achieved these many milestones in only our second full year of operations, I think it is quite extraordinary. Fiscal year 2009 is off to a great start and we expect to continue to achieve new milestones as we expand the 'Tootie Pie' brand into new markets throughout the United States," said Merrill.

The net loss before non-cash items was $332,990 for the twelve months ended March 31, 2008, as compared to a net loss before non-cash items of $298,079 for the period ended March 31, 2007. The net loss adjusted for non-cash items for the twelve months ended March 31, 2008 was $533,497, as compared to an adjusted for non-cash items, net loss for the period ended March 31, 2007 of $447,897. Non-cash items include depreciation, amortization and non-cash stock compensation expense.

Net income before non-cash items is not a term defined by generally accepted accounting principles, or GAAP, and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP.

Tootie Pie Company bakes and sells high-quality, handmade pies through three basic sales channels: retail, corporate and wholesale. The retail segment serves individual consumers through in-store sales, orders via telephone and internet on the Company's website. The corporate segment serves businesses that purchase pies as a way to promote their company through client and employee appreciation programs. The wholesale segment is made up of regional and national broadline foodservice distributors who purchase pies and then resell them to their customers. Tootie Pie Company is a public company traded on the NASDAQ OTC market under the symbol "TOOT." For additional information, or to receive correspondence from us, please visit www.tootiepieco.com

Forward-Looking Statements

This press release may contain forward-looking statements. The words "believe," "expect," "should," "intend," "estimate," and "projects," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company's current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's filings, which are on file with the U.S. Securities and Exchange Commission (SEC).

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