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ARDEN INTERNATIONAL KITCHENS ANNOUNCES MANAGEMENT AGREEMENT

 ARDEN INTERNATIONAL KITCHENS ANNOUNCES MANAGEMENT AGREEMENT
 LAKEVILLE, Minn., July 14 /PRNewswire/ -- Arden International Kitchens, Inc. (NASDAQ: AIKI), today announced that an agreement had been reached with Texas Tom's of Tulare, Calif., whereby Arden would take over management of the financially troubled food producer on a short-term basis with an option to purchase the firm if certain contingencies are met. Texas Tom's is a small, closely held corporation with projected annual sales of $800,000. Their major products are burritos, enchiladas and other related Mexican items.
 R. Stephen Tanner, chairman and president of Arden International Kitchens, explained that there were several positive factors which convinced Arden to make this move. "From a marketing standpoint, Texas Tom's business provides a logical extension to our own line of frozen Mexican entrees and its addition will give us an opportunity to expand our existing business into a whole new market on the west coast.
 "Their 17,000 square foot manufacturing facility and its equipment is in excellent shape but severely under-utilized at this time. By possibly shifting the production of some of our products to this facility we might achieve maximum efficiency at both locations.
 "The other major advantage to this agreement is that it provides us with flexibility," Tanner said. "Because the economy does not seem to be rebounding as quickly as we anticipated, it is now apparent that 1992 sales increases for our company are going to be in the 0-5 percent range rather than the 10-15 percent we were originally forecasting. The added production space of the Texas Tom's facility would give us a transition to the expanded production capability our previously announced auxiliary plant in South Dakota would provide. The success of the Texas Tom's venture will delay our planned plant expansion, hopefully into a time period when general economic conditions are more favorable to that type of commitment."
 Arden International Kitchens, Inc., headquartered in Lakeville, produces and markets frozen prepared food entrees, components and sauces for the foodservice industry nationally. The company's stock is traded on the NASDAQ system under the symbol AIKI.
 -0- 7/14/92
 /CONTACT: Brian E. MacKenzie of Arden International Kitchens, 612-469-2000/
 (AIKI) CO: Arden International Kitchens, Inc.; Texas Tom's ST: Minnesota, California IN: FOD SU: TNM


KH -- MN002 -- 8954 07/14/92 09:01 EDT
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Publication:PR Newswire
Date:Jul 14, 1992
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