SOURCE: Tootie Pie Company, Inc.

November 14, 2008 17:08 ET

Tootie Pie Company Second Quarter Revenues Jump 49%

Gross Margin 62%; Gross Profit $161,994

BOERNE, TX--(Marketwire - November 14, 2008) - Tootie Pie Company, Inc. (OTCBB: TOOT), a premium baker and seller of high-quality, handmade pies, announced the results of their operations for the three months ending September 30, 2008.

Tootie Pie Company revenues increased to $262,225 as compared to $176,080 for the quarter September 30, 2007. The result is a 49% increase in revenues between the two reporting periods. The increase from the prior year period was primarily attributable to the increase in revenues generated from pie sales to existing distributor customers, as well as customers in recently opened markets.

Don Merrill, Tootie Pie Company's President & CEO, commented, "I am pleased with how well our revenues continue to grow during these off season months. Now we turn our attention to the upcoming holiday selling season. In order to assure maximum exposure for our brand, and position Tootie Pie for success in this important season, we invested significant additional resources in sales promotion programs. We launched cross promotions with premium brands like Blue Bell Ice Cream; participated in several special events like the Sharp Major League Baseball All-Star Game Party in New York City; launched our first ever web-based marketing campaign, targeting online customers; purchased local television time, targeting our key demographics in both our retail and corporate sales channels; and have done so again heading into the holidays. We increased our wholesale marketing efforts in several new markets by adding key high profile distributor food shows and strong sales representation. I think we have done everything reasonably possible to plan for success in this upcoming holiday selling season."

Gross profit increased to $161,994, as compared to $61,849 for the quarter ended Sept. 30, 2007. As a result, our gross margin after depreciation was 62% of net sales for the quarter ended Sept. 30, 2008. The net loss before non-cash items was $208,610 for the quarter ended September 30, 2008 compared to a net loss before non-cash items of $135,626 for the quarter ended September 30, 2007. Non-cash items include depreciation, amortization and non-cash stock compensation expense.

Tootie Pie Company bakes and sells high-quality, handmade pies through three basic sales channels: retail, corporate and wholesale. Retail sales are driven by individual consumers across the country through the Company's website: tootiepieco.com; orders via telephone and in-store sales. Corporate sales provide unique corporate gifts for businesses looking to show appreciation to their clients and employees during the holidays or throughout the year. Wholesale is made up of regional and national broad-line foodservice distributors who purchase pies and then resell them to restaurants, high-end retail grocery stores, hotels, coffee shops and caterers. The Tootie Pie Company, Inc. is a public company whose stock is traded on the NASDAQ OTC markets under the symbol: "TOOT." For additional information, or to receive emails from us, please visit 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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