Cuisine Solutions Sales up 30.9% for Fiscal Year 2005; Upscale, Fully-Cooked, Frozen Food Manufacturer Reports a Profitable Year.

ALEXANDRIA, Va. -- Cuisine Solutions, Inc. (AMEX:FZN) files its SEC 10K today for the fiscal year ending June 25, 2005. "We continue to focus on the Company vision of creating a premium frozen food category in which we are the leader," states CEO Stanislas Vilgrain. "We believe that we showed this year that Cuisine Solutions can be both profitable and high growth in this new business category. Our focus for fiscal 2006 will be to continue the growth and profitability, and also to work to increase consumer awareness of premium frozen food." Cuisine Solutions reported growth in all five of its sales channels.

NET SALES

Net sales by region for fiscal year 2005, 2004 and 2003 are as follows:

----------------------------------------------------------------------
                                   Year Ended                 % Change
------------------------------------------------------------- --------
                                                                2005
                        June 25,     June 26,     June 28,       vs
                          2005         2004         2003        2004
------------------------------------------------------------- --------
US                    $29,843,000  $21,641,000  $15,698,000     37.9%
------------------------------------------------------------- --------
France                $16,403,000  $13,694,000  $10,928,000     19.8%
------------------------------------------------------------- --------
Total Net Sales       $46,246,000  $35,335,000  $26,626,000     30.9%
============================================================= ========

Fiscal year 2005 revenue of $46,246,000 reflects a consolidated sales increase of 30.9% from fiscal year 2004 revenue of $35,335,000. Revenue for fiscal year 2003 was $26,626,000. The increase in sales in fiscal year 2005 was attributable to a 37.9% increase in US sales and a 19.8% increase in sales from France compared to fiscal year 2004. The increases in sales are mostly due to the sales volume increase of 19.5% and 20.1% in fiscal year 2005 and 2004, respectively, while sales prices increased by 9.4% and 10.8% for the respective periods. All five sales channels in the US grew in revenue in fiscal year 2005 as well as three of the four sales channels in France

The Company's sales of high-quality foods are sold to airlines, retail supermarkets, hotel and convention center restaurants and banquets, passenger rail lines and harbor cruise lines restaurants, restaurant chains, and the US military. In fiscal year 2005, US sales accounted for 64.5% of total revenue compared to 61.2 % and 59.0% of total revenue in fiscal year 2004 and 2003, respectively, while France accounted for 35.5% in fiscal year 2005 and 38.8% and 41.0% in fiscal 2004 and 2003 respectively after eliminating inter-company sales.

Net sales by sales channel for fiscal year 2005, 2004 and 2003 are as follows:

Year Ended               % Change
                       -------------------------------------- --------
                                                                2005
                         June 25,     June 26,     June 28,      vs
                           2005         2004         2003       2004
                       -------------------------------------- --------
Foodservice            $14,776,000  $11,052,000   $8,591,000     33.7%
On Board Services       13,053,000   11,614,000    9,886,000     12.4%
Retail                  10,162,000    9,991,000    6,413,000      1.7%
Military                 6,222,000    1,047,000      904,000    494.3%
National Restaurant
 Chains / New Business   2,033,000    1,631,000      832,000     24.6%
                       -------------------------------------- --------
Total                  $46,246,000  $35,335,000  $26,626,000     30.9%
                       ====================================== ========

The Company's net sales increased by 30.9% to $46,246,000 in fiscal year 2005 as compared to $35,335,000 in fiscal 2004 and from $26,626,000 in fiscal 2003 due to the improved economy and the successful implementation of new Cuisine Solutions sales strategies resulting in higher demand and sales of the products. The current year sales increases were experienced in all Cuisine Solutions sales channels and were driven by the improving economy, particularly in the US, increased sales to the US military of $5,175,000 and greater consumer awareness and demand for high quality, fully cooked products. Fiscal year 2005 On Board Services and Foodservices sales increased by 12.4% and 33.7%, respectively. Military sales increased by 494.3%, while the Retail channel and National Restaurant Chains channel sales grew by 1.7% and 24.6% respectively during fiscal 2005.

Cuisine Solutions USA's fiscal year 2005, 2004 and 2003 sales by sales channel are as follows:

Year Ended               %Change
                       -------------------------------------- --------
                                                                2005
                         June 25,     June 26,     June 28,      vs
                           2005         2004         2003       2004
                       -------------------------------------- --------
Food Service            $6,198,000   $5,842,000   $4,425,000     6.1%
On Board Services       10,866,000    9,558,000    8,224,000    13.7%
Retail                   4,580,000    3,595,000    1,399,000    27.4%
Military                 6,222,000    1,047,000      904,000   494.3%
National Restaurant
 Chains                  1,977,000    1,599,000      746,000    23.6%
                       -------------------------------------- --------
Total                  $29,843,000  $21,641,000  $15,698,000    37.9%
                       ====================================== ========

Net sales grew by 37.9% in the US in fiscal year 2005 as compared to fiscal year 2004. This is primarily due to increased product demand in all sales channels and particularly sales to the US military's field feeding programs for meals for the troops overseas. Also, retail had strong growth of 27.4% compared to fiscal 2004 primarily resulting from growth in the Cuisine Solutions branded package goods to warehouse retailers. A more diversified sales focus on each of the channels and the improvement in the US economy was very important to the growth in the US.

Cuisine Solutions France's fiscal year 2005, 2004 and 2003 sales by sales channel are as follows:

Year Ended               %Change
                       -------------------------------------- --------
                                                                2005
                         June 25,     June 26,     June 28,      vs
                           2005         2004         2003       2004
                       -------------------------------------- --------
Food Service            $8,578,000   $5,210,000   $4,166,000    64.6%
On Board Services        2,187,000    2,056,000    1,662,000     6.4%
Retail                   5,582,000    6,396,000    5,014,000  (12.7%)
New Business                56,000       32,000       86,000    75.0%
                       -------------------------------------- --------
Total                  $16,403,000  $13,694,000  $10,928,000    19.8%
                       ====================================== ========

Net sales grew by 19.6% in the France in fiscal year 2005 as compared to fiscal year 2004 due primarily to the 64.6% increase in sales in Foodservice channel and the stability of On Board Service channel. The Foodservice channel sales increased by $3,368,000 to $8,578,000 in fiscal year 2005 from $5,210,000 in fiscal year 2004 due to the increased sales of the Company's products to existing customers and the development of business with some larger hotel properties. The On Board Services channel sales remained stable and grew 6.4% in fiscal 2005 to $2,187,000 compared to the $2,056,000 in fiscal year 2004 as airlines in Europe continued their recovery. The retail sales decreased $814,000 to $5,582,000 in fiscal year 2005, compared to the $6,396,000 in fiscal year 2004, largely due to the management's decision to the phasing-out of low margin private label items.

GROSS MARGIN

A comparison of net sales, gross margin and gross margin percentages for fiscal year 2005, 2004 and 2003 follows:

----------------------------------------------------------------------
                                              Year Ended
----------------------------------------------------------------------
                                  June 25,     June 26,     June 28,
                                    2005         2004         2003
----------------------------------------------------------------------
Net Sales                       $46,246,000  $35,335,000  $26,626,000
----------------------------------------------------------------------
Gross margin                    $12,283,000   $8,530,000   $5,410,000
----------------------------------------------------------------------
Gross margin percentage                26.6%        24.1%        20.3%
----------------------------------------------------------------------
Earnings (Loss) from continuing
 operations                      $1,886,000    $(343,000) $(3,359,000)
----------------------------------------------------------------------
Net earnings (loss)              $1,709,000  $(1,004,000) $(4,092,000)
----------------------------------------------------------------------

Gross margin increased 44.0% in fiscal year 2005 compared to fiscal year 2004 due primarily to significantly higher sales, increased production efficiencies, and better control over procurement costs. Gross margin as a percent of sales increased to 26.6% for fiscal 2005 compared to 24.1% in fiscal 2004, and 20.3% in fiscal 2003. Cuisine Solutions has developed new sales channels in the US over the past few years to include military and retail accounts and meals for passenger rail lines, and has seen relatively consistent results in its French subsidiary. Gross margin as a percentage of sales should continue to increase as sales continue to increase as more fixed costs are being absorbed.

NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS

A comparison of earnings (loss) from continuing operations for fiscal year 2005, 2004 and 2003 is as follows:

----------------------------------------------------------------------
                                              Year Ended
----------------------------------------------------------------------
                                    June 25,    June 26,    June 28,
                                      2005        2004        2003
----------------------------------------------------------------------
Earnings (Loss) from continuing
 operations                        $1,886,000  $(343,000) $(3,359,000)
----------------------------------------------------------------------

The company reported earnings from continuing operations of $1,886,000 for fiscal year 2005, or a 650% increase, compared to the loss from continuing operations of $343,000 from fiscal year 2004. Loss from continuing operations in fiscal year 2003 was $3,359,000. The increase in earnings from continuing operations was primarily driven by a 30.8% increase in sales and lower cost of goods sold due to manpower and production efficiencies and lower raw material cost.

The discontinued operations in Norway had reported a $177,000 loss for the fiscal year 2005 as compared to a loss of $661,000 in fiscal 2004. The loss in fiscal 2005 includes a gain on disposal of equipment of $577,000, and the loss of $644,000 associated with the discontinued operations.

NET EARNINGS (LOSS)

A comparison of net earnings (loss) for fiscal year 2005, 2004 and 2003 is as follows:

----------------------------------------------------------------------
                                              Year Ended
----------------------------------------------------------------------
                                  June 25,     June 26,     June 28,
                                    2005         2004         2003
----------------------------------------------------------------------
Net earnings (loss)              $1,709,000  $(1,004,000) $(4,092,000)
----------------------------------------------------------------------

The company reported net earnings of $1,709,000 for fiscal year 2005, or a 270% increase, compared to the net loss of $1,004,000 from fiscal year 2004. Net loss in fiscal year 2003 was $4,092,000. The increase in earnings was primarily driven by a 30.9% increase in sales and lower cost of goods sold due to manpower and production efficiencies and lower raw material cost.

Net earnings (loss) by regions are as follows:

----------------------------------------------------------------------
                                              Year Ended
----------------------------------------------------------------------
                                  June 25,     June 26,     June 28,
                                    2005         2004         2003
----------------------------------------------------------------------
USA                              $1,677,000    $(702,000) $(3,498,000)
----------------------------------------------------------------------
France                             $372,000     $359,000     $139,000
----------------------------------------------------------------------
Norway (discontinued operations)  $(340,000)   $(661,000)   $(733,000)
----------------------------------------------------------------------
Total Net Income (loss)          $1,709,000  $(1,004,000) $(4,092,000)
======================================================================

Cuisine Solutions US increased its net earnings in fiscal year 2005 by $2,379,000 or 338.9% from a net loss of $702,000 in fiscal year 2004 to $1,677,000 in fiscal year 2005. This increase in net earnings in the US is due primarily to a 37.9% increase in sales, strong growth in Military and Retail channels, and a 60.4% increase in gross margin. US losses in fiscal year 2003 were $3,498,000.

Cuisine Solutions France had its sixth consecutive profitable year since the acquisition by Cuisine Solutions in 1999, increasing profits in fiscal year 2005 by $13,000, or 3.6%, to $372,000 from fiscal year 2004. Profits in France in fiscal year 2004 and 2003 were $359,000 and $139,000 respectively. In spite of the lackluster economy during the last three years in Europe, the French subsidiary reported profitable results and double-digit growth in the Foodservice channel in France. Management also credits the ongoing impact of labor cost in the foodservice industry in France for the increase in demand for Cuisine Solutions products to the Foodservice channel as well as aggressive cost control for the delivery of a positive net income in France.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements reflect the intent, belief or current expectations of the company and members of the management team. Investors can identify these forward-looking statements by use of words such as "expects," "believes," "will," "continues," "goals" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. The Company cannot guarantee that any forward-looking statement will be realized, although it believes that it has been prudent in its plans and assumptions. Achievement of future results is subject to risks, uncertainties, and the possibility of inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, or projected. The Company does not undertake to update any forward-looking statement that it may make from time to time.