Armanino Foods Reports 6% Sales Gain for Third Quarter.

HAYWARD, Calif. -- Armanino Foods of Distinction, Inc. (Pink Sheets:AMNF) today reported that sales of its products in the third quarter of 2006 grew by 6% when compared with the prior year, but fully-diluted earnings per share remained at 1 cent per share.

Third quarter 2006 sales were $4,125,947, up from $3,883,935 in the same period a year ago. Net income slightly decreased from $177,969 in 2005 to $162,166 this year. Fully diluted earnings per share for both the third quarters of 2005 and 2006 were 1 cent per share.

For the nine months ending Sept. 30, 2006, AMNF reported sales of $12,236,351, up 15% from the $10,635,240 in the same period a year ago. Net income in those periods rose 65% to $666,989 this year from $403,875. Net income for the nine months was 4 cents per share, versus 2 cents in the same period the year before.

"We are gratified by our third quarter 2006 results," said William Armanino, the company's president and CEO. "If it hadn't been because we were measuring 2006 earnings against an exceptional quarter a year ago, when we made a one-time, high margin sale of $600,000 to a single customer, we would have enjoyed not just a sales gain in 2006, but also a corresponding improvement in our profit picture."

"That notwithstanding," he continued, "our sales have been up 15% through the first nine months of 2006, our net income is up by 65% in this period, and our earnings per share have doubled. We remain confident that the full year 2006 will be a record one for both sales and earnings."

Armanino is an international food company that manufactures and markets frozen basil pesto sauce and numerous other sauces such as Cilantro, Dried Tomato Garlic, Roasted Red Bell Pepper, Southwest Chipotle, Artichoke, Mushroom, Alfredo and organic sauces which are in the development stage, filled pasta products, meatballs, cooked poultry products, garlic spreads and Focaccia to the food service, industrial, institutional industry.

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