Afton Food Group Ltd.: Press Release.

BURLINGTON, Ontario -- On July 16th, Afton Food Group Ltd. (TSX VENTURE: AFF) announced the Company's restructuring would be proceeding under the Companies Creditors Arrangement Act (Canada) (the "CCAA"). The initial CCAA order was set to expire on August 15th, 2004. The Company appeared before the Court on August 13th, seeking an extension to the initial order and the Court's approval to the Company's restructuring plan.

Today, the Court approved the extension of the Company's restructuring under CCAA to October 13, 2004. During this time period, the Company will continue its efforts to strengthen the franchise system and reduce operating costs. In addition, the Court approved the engagement of a merchant banking firm to assist with the selection of Investors that are able to aid in the recapitalization of the Company's balance sheet. The Company's application was supported by their senior lenders, who include Rabobank Nederland Canadian Branch, Credit Union Central of Ontario and HEPCOE Credit Union Limited that the Company.

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.