Chinese Delegation Visiting Orlando To Finalize Cheese Production Agreement With Area Cheese Maker.

ORLANDO, Fla.--(BUSINESS WIRE)--Sept. 12, 1996--Pacific Foods, Inc. today announced that a group representing Huzhou Zhenyuantong Foods Mfy. (HZF), a diversified foods manufacturer based near Shanghai, China will be conducting meetings with Galaxy Foods Co. on Sept. 16 and 17.

It is contemplated that a joint venture cheese manufacturing agreement will be finalized during that time.

The joint venture would produce, sell and distribute various food products, including cheese, to major consumer markets within the People's Republic of China. The venture would be based in the city of Huzhou, within close proximity to several markets with populations numbering in the millions. Under terms of the agreement, HZF would contribute factory space, labor, distribution and sales resources, as well as set up of equipment and operations, and Galaxy Foods would provide technical and operations support for food products, product formulations, training and manufacturing expertise. Pacific Foods, the organizer and primary contributor to the venture, would provide working capital, support services and consulting.

"It is no secret that China is acquiring a taste for American foods," stated Xin Heng Niu, president of HZF. "Our goal is to produce and sell western-style foods in western-style supermarkets within China to the growing consumer market through our established distribution network. Our cheese division will concentrate on the manufacturing of lactose-free sliced cheese products developed by Galaxy Foods."

The visiting delegation consists of Xin Heng Niu, Xin Wu, chairman of the Commerce Department for Huzhou City, Bu Shao Xu, a representative to the Chinese National Congress and a senior scientist to the Ministry of Agriculture, and Lynda Xu, an international corporate consultant.

HZF manufactures ice cream, yogurt, candy, chocolate and pastries from a 47,000 square meter state of the art facility in Huzhou, China. For the reporting period January through August, 1995, HZF reported net income of $1,800,000 (U.S.) on revenues of more than $17,000,000.

Pacific Foods, based in Orlando, will be 51% owner of the joint venture. Pacific Foods identifies and develops U.S. based restaurant concepts and food products for the emerging markets within the Peoples' Republic of China. Pacific Foods utilizes technology and a proprietary international network to achieve licensing, financing and promoting of U.S. food concepts and brand names to the vast Chinese audience. For further information, or to arrange an interview with members of the delegation, please contact Thomas Tedrow at Waterford Sterling, 407/841-1350

CONTACT: Waterford Sterling Corp., Orlando

Thomas Tedrow, 407/841-1350