Alpine Lace Brands Announces Year End 1996 Results; Company Reports 12% Increase in Sales.

MAPLEWOOD, N.J.--(BUSINESS WIRE)--Feb. 25, 1997--Alpine Lace Brands, Inc. (Nasdaq National Market: LACE), a leading marketer of nutritional cheeses and delicatessen meats, today announced net sales for the year ended December 31, 1996 increased 12% to $161.9 million, versus $145.0 million in 1995.

The Company reported net earnings of $1.9 million or $.31 per share in fiscal 1996 compared to $4.0 million or $.74 per share in fiscal 1995. Fiscal 1995 results reflect a 10.1 percent effective tax rate, due to the utilization of prior years' tax loss carry forwards. On a pro forma basis, applying a 38 percent tax rate, 1995 net earnings before extraordinary item would have been $2.7 million or $.49 per share.

The Company reported net sales for the fourth quarter ended December 31, 1996 of $38.7 million versus net sales of $41.4 million in the fourth quarter of 1995. Net earnings for the fourth quarter of 1996 were $351,000 or $.06 per share versus $782,000 or $.14 per share for the comparable period in 1995. The results for the fourth quarter of 1995 reflect an income tax benefit due to prior years' tax loss carry forwards. On a pro forma basis, applying a 38 percent tax rate, net earnings for the 1995 quarter would have been $472,000 or $.08 per share.

Commenting on the results, Carl T. Wolf, Chairman and Chief Executive Officer of Alpine Lace, said. "We are pleased with the sales growth the Company achieved in 1996, especially in light of the record high cheese prices experienced throughout the year. While the significant rise in cheese prices squeezed margins for our branded products, we were able to compensate by utilizing our commodity trading arm to take advantage of market conditions. The results show our commitment to delivering the highest quality products while maintaining the most efficient and cost-effective manufacturing operations in the industry."

Alpine Lace Brands, Inc. is a leading marketer of a full line of reduced fat and/or sodium and fat free cheeses and reduced fat and fat free delicatessen meats. Sold under the Alpine Lace(R) label, the Company's product line is carried by over 45,000 retail outlets nationwide and its reduced fat Swiss cheese is the number one selling reduced fat deli Swiss in America's supermarkets. The Company's Dakota Farms Cheese, Inc. subsidiary converts and packages warehouse and club store cheeses along with dairy case sliced cheeses. Through MCT Dairies, Inc., Alpine Lace engages in cheese and dairy product commodities trading.

Matters discussed in this news release contain forward-looking statements that involve risks and uncertainties. The Company's results may differ significantly from the results indicated by forward-looking statements. No assurances can be given that the above forward-looking statements will prove to be accurate. These and other risks related to Alpine Lace Brands' business are addressed in the Company's SEC reports, including its annual reports on Form 10- KSB and quarterly reports on form 10-QSB. -0-

                       ALPINE LACE BRANDS, INC.
                Condensed Statements of Operations

                     Three Months Ended            Year Ended
                        December 31,               December 31,
                     1996         1995          1996          1995

Net Sales        $38,662,098  $41,357,849  $161,896,522  $145,043,395

Earnings Before
 Extraordinary
 Item               $351,440     $782,412(a) $1,902,004    $3,912,028(b)

Extraordinary Item        --           --            --      $103,760

Net Earnings        $351,440     $782,412    $1,902,004    $4,015,788

Preferred Stock
 Dividends and
 Earnings
 Applicable to
 MCT Dairies, Inc.
 Option              $58,349      $39,482      $276,501      $121,513

Net Earnings
 Applicable to Common
 Shareholders       $293,091     $742,930    $1,625,503    $3,894,275

Net Earnings Per
 Share Before
 Extraordinary
 Item                   $.06         $.14(a)       $.31         $.72(b)

Net Earnings Per Share on
 Extraordinary Item       --           --            --         $.02

Net Earnings Per Share  $.06         $.14          $.31         $.74

Average Number of
 Common Shares
 Outstanding       5,209,992    5,344,567     5,239,417    5,289,275

(a) Pro forma - Applying a 38% tax rate, the fourth quarter 1995 net earnings before extraordinary item would have been $471,920 or $.08 per share. (b) Pro forma - Applying a 38% tax rate, the fiscal year 1995 net earnings before extraordinary item would have been $2,701,280 or $.49 per share.

CONTACT: Alpine Lace Brands, Inc.

Arthur Karmel, 201/378-8600

or

MWW/Strategic Communications, Inc.

Public Relations, 201/507-9500

Rob Swadosh ([e-mail])

Rich Tauberman ([e-mail])