Armanino Foods of Distinction, Inc. Repurchases Common Stock in Private Transaction.

Business Editors/Food Writers

HAYWARD, Calif.--(BUSINESS WIRE)--May 16, 2000

Armanino Foods of Distinction, Inc. (Nasdaq:ARMF) announced today that it has repurchased 220,000 shares of its common stock in a private transaction with LKCM Investment Partnership. As a result of the transaction, the Company will have 1,557,581 shares outstanding.

William J. Armanino, President and CEO, stated "During the 2 1/2 years prior to this transaction the Company has repurchased and retired 475,506 of its shares for a total of $2,161,181. This additional block transaction of 220,000 shares for a total of $1,320,000 demonstrates the board's continued belief that the Company's common stock is undervalued and that there are few uses for our capital better than an investment in our own Company." Armanino continued, "The Company's balance sheet remains strong with $1.8 million in cash and cash equivalents and a current ratio of over 5.8 to 1 and quick ratio of almost 3.9 to 1. We believe this repurchase will allow our shareholders to leverage to a greater extent our future earnings stream, which we believe will continue to grow."

"The unique opportunity to purchase this large block was based on LKCM Investment Partnership decision to redirect its resources out of the micro-cap market in which Armanino Foods is categorized," Armanino stated. J. Bryan King, a director of Armanino Foods and an affiliate of LKCM Investment Partnership, echoed "LKCM's decision to liquidate its position in Armanino is not a reflection of LKCM's view of Armanino's future; rather, it is merely a refocusing of its portfolio allocation. I am retaining my personal investment and stock options in Armanino."

Armanino Foods of Distinction, Inc. is an international authentic Italian food company that manufactures and markets an array of frozen pestos and sauces, filled pasta products, sauced entrees, meatballs and foccacia to the retail, food service, club stores, and institutional food industry segments.

This press release contains forward looking statements within the meaning of U.S. securities laws, including statements regarding the Company's goals and growth prospects. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including general economic conditions, fluctuations in customer demand, competitive factors such as pricing pressures on existing products, and the timing and market acceptance of new product introductions, the Company's ability to achieve manufacturing efficiencies necessary for profitable sales at current pricing, and the risk factors listed from time-to-time in the Company's annual and quarterly SEC reports. The Company assumes no obligation to update the information included in this press release.