Afton Food Group: Press Release.

BURLINGTON, Ontario -- After the close of market on July 9th, 2004, Afton Food Group Ltd. (TSX VENTURE:AFF) received formal notice from its secured lenders, which include Rabobank Nederland Canadian Branch, Credit Union Central of Ontario and HEPCOE Credit Union Limited that the Company was in default of certain provisions of the lending agreement including late or deficient principal and interest payments. The default notice contained a demand for payment in the amount of $19,529,871.16 representing the balance of principal, interest, annual administration fee and amendment fee outstanding under the lending agreement.

Accompanying the notice of default and demand for payment was a "Notice of Intention to Enforce Security" also dated July 9, 2004. Under the notice of intention to enforce security, the secured lenders may exercise their rights to enforce their security after the expiry of a ten day notice period unless the outstanding amounts are paid. The notice period may be waived by the Company.

The Company is unable to repay the balance of the secured loans outstanding at this time. The Company is in the process of applying for protection under the Bankruptcy and Insolvency Act (BIA) as a response to the Notice of Default. Providing the Company's application is approved, the Company will file a subsequent application to have the BIA protection transferred to a Companies' Creditors Arrangement Act (CCAA) filing. The purpose of the Company's applications is to provide an opportunity to participate in the restructuring process so that the interests of all stakeholders are recognized.

Afton, through its subsidiaries, is a franchisor in the Quick Service Restaurant industry with locations throughout Canada operating under two principal brands, 241 Pizza(R) and Robin's Donuts(R).

This document may contain forward-looking statements, relating to the Company's operations or to the environment in which it operates, which are based on the Company's expectations, estimates, forecasts and projections. These statements are not guarantees of future performance, and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. These statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update them, to reflect new information or the occurrence of future events or circumstances.