Armanino Foods Reports Record Results for 2006.

Net Income Rises 24% On Sales Gain of 13%, EPS Rises 25% to 5 Cents Per Share 

HAYWARD, Calif. -- Armanino Foods of Distinction, Inc. (Pink Sheets:AMNF) today reported record sales, net income and earnings per share for 2006.

For the 12 months ending Dec. 31, 2006, sales were $16,640,568, up 13% from the $14,780,548 for the same period in 2005. Net income rose 24% from $647,973 in 2005 to $803,838 last year, resulting in a 25% gain in earnings per share, from 4 cents per share in 2005 to 5 cents per share in 2006.

"We are gratified that we continue to grow at a rate that outpaces much of the food industry. These gains came on top of a 12.5% increase in our sales in 2005 over 2004. In a two-year period, our earnings per share have grown from 2 cents per share to a nickel. This is our fourth consecutive year of growth in earnings," commented William Armanino, the company's president and CEO.

"This is particularly important because in the last quarter of 2006, we decided to invest heavily in marketing, in programs we are confident will show further results in 2007. In Quarter four 2006 we spent more than $250,000 over quarter four 2005 in increasing marketing and promotions. During the year, we hired a PR agency to support our retail products in Albertson's and other supermarket chains, improved our packaging and introduced new products into the market place as well as increasing our sales staff by 16%," Mr. Armanino continued.

While sales in the fourth quarter rose 6%, from $4,145,308 in 2005 to $4,404,217 for the same period the year before, reflecting these marketing investments, net income declined by $106,949 or 44%. In 2005, the company had reported net income for the fourth quarter of $243,798 which declined to $136,849 for the same period in 2006.

"Sales for our first two months of 2007 point to increased momentum which should yield a 2007 that shows significant gains in sales and earnings. With our current cash position, we can meet the growing demands for our products as well as meet our capital investment needs. While to date our sales have been concentrated on the West Coast, we are taking aggressive steps to open East Coast markets."

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

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