Coastal Foods Commences Sam's Clubs Orders.

HOUSTON--(BUSINESS WIRE)--June 30, 1997--Coastal Foods, Inc. (NASDAQ:BB: XPIE) announced that it has begun shipping several bakery products to Sam's Clubs, a subsidiary of Wal-Mart, under the brand label, "Miss Kitty's."

In making the announcement, Cecil Ferguson, Coastal's President and Chief Executive Officer, said that first orders of the Company's 6 oz. "Giant" orange-flavored muffins; one ounce blueberry and orange-flavored mini-muffins; and individually-served brownies have been shipped and are now in more than 175 Sam's Club outlets throughout the Middle West, Southeast and Southwest regions.

A second order is being processed and shipped with product due on store shelves following the July Fourth holiday weekend, Ferguson said.

"The first two orders total more than $500,000, and while it is difficult to annualize the revenue flow from this customer, we expect that our products will be well accepted by Sam's Club customers on a national basis," he said.

Coastal Foods, Inc. is a specialty baking company providing a variety of products to such national brand name marketers as Campbell Soup, KFC, Pepperidge Farm, Albertson's, and Shoney's. -0- This release is available on the KCSA Public Relations website at www.kcsa.com

CONTACT: Coastal Foods, Inc.

Cecil Ferguson

713/987-8985

or

KCSA

Leslie A. Schupak/Joseph A. Mansi

212/682-6300, ext. 207/205