Corporate Foods Limited reports third quarter earnings.

TORONTO, Ontario--(BUSINESS WIRE)--Oct. 12, 1995--CORPORATE FOODS LTD. (TSE:CFL) Corporate Foods Limited today announced net earnings for the first three quarters of $13.9 million ($0.66 per share) compared with $14.4 million ($0.69 per share) last year. Net earnings for the third quarter were $5.1 million ($0.24 per share) compared with $6.0 million ($0.29 per share) last year.

Volume growth in the quarter resulted in a 3.7 percent increase in sales to $104.3 million. However, results were slightly below last year due to the impact of unprecedented high flour and packaging costs, reduced equity earnings and increased distribution costs related to the elimination of the Atlantic Freight Subsidy.

David H. Lees, President and C.E.O., stated that, "During the quarter a number of strategic initiatives have been undertaken to improve earnings, including the pursuit of significant new business opportunities in the United States. The remaining 40 percent of Circlet Foods was acquired and the purchase of the Tenderflake pie shell business from Maple Leaf Foods is being finalized. The Tenderflake brand will also be used in the launch of a number of new products now being introduced by Dough Delight.

A number of other initiatives are being implemented to increase efficiencies between the various Corporate Foods' businesses. I am confident that these activities will positively impact the Company's performance for both 1995 and the year beyond."

The Company declared a quarterly dividend of $0.06 per share, payable January 2, 1996, to shareholders of record, December 15, 1995. -0-

                    ($ Millions except per share amounts)
                Third Quarter Ended         36 Weeks Ended
                Sept. 9,      Sept. 3,      Sept. 9,  Sept. 3,
                  1995         1994           1995     1994

Sales             $104.3      $100.5          $302.1    $290.3
Net Earnings      $  5.1      $  6.0          $ 13.9    $ 14.4
Net Earnings
  Per Share       $ 0.24       $0.29          $ 0.66    $ 0.69

-0-

Executive Officer, Oxford Frozen Foods Limited and Ms. Sarah Everett, President and Chief Executive Officer, Bowring, joined the Board of Directors. Archibald McLean, Vice-Chairman and Chief Executive Officer, Maple Leaf Foods Inc., was appointed Chairman of the Board.

Corporate Foods Limited, which is 68 percent owned by Maple Leaf Foods Inc., is Canada's leading manufacturer and distributor of bakery products sold both under the Company's own brands and private label brands to the retail and food service industries.

CONTACT: David H. Lees

President and Chief Executive Officer

Corporate Foods Limited

[phone]

or

Kathy A. Welsh

Vice-President, Finance

and Chief Financial Officer

[phone]