FERRARA FOOD COMPANY, INC. TO BUILD NEW $2.5 MILLION BAKERY FOR WHOLLY-OWNED LA TORINESE USA SUBSIDIARY. FERRARA FOOD COMPANY, INC. ACQUIRES EXCLUSIVE DISTRIBUTION OF EUROPA FOODS LTD.

NEW BRUNSWICK, NJ--(BUSINESS WIRE)--Dec. 13, 1995--Ferrara Food Company, Inc. (Symbol FRRF), announces a new wholly-owned subsidiary, La Torinese USA, which will produce traditional Italian baked products, including panettone, pizza crusts and focaccia, at a new 22,000 square foot bakery in East Brunswick, NJ. Ferrara has entered into an agreement with La Torinese, SpA of Torino, Italy for all the technology, equipment and "know how" to produce the products identically as they are produced in Italy. Ferrara Food has been importing these baked goods from Torinese for 12 years.

Construction of the new $2.5 million plant near Ferrara's headquarters is scheduled to begin in January 1996 with manufacturing of the products to begin in May 1996. The facility initially will have the capability of adding well over $5 million of annual sales to Ferrara Food through La Torinese USA subsidiary.

"The new bakery will allow us to serve both the U.S. and Canadian markets delivering fresh panettone, pizza crusts and focaccia on a year-round basis under both the La Torinese and Ferrara labels," said Eugene Marfuggi, president of Ferrara Food, adding "the market for panettone, pizza crusts and focaccia in the U.S. has been growing significantly for the past several years." Bakers and engineers from La Torinese in Torino, Italy will be relocating to East Brunswick, NJ to oversee production and ensure the new facility provides the same quality as in Italy.

Separately, Ferrara Food Company announced an arrangement with Europa Foods Ltd. of North Hills, NY to market, warehouse, and distribute Europa Foods' many lines of specialty gourmet imported foods through a new wholly-owned subsidiary, Europa Foods. Annual sales are estimated at $3 million.

Europa Foods' wide range of imported food products will broaden Ferrara Food's line of specialty Italian food products. Europa Foods' diverse array of products include sea salt from France; glazed fruit from Australia; jams, preserves and organic oatmeal from Scotland; plus Billington's unrefined sugar from the island of Mauritius. The sugar and organic oatmeal lines will serve as an entree for Ferrara into the natural foods marketplace.

"The combination of Europa with Ferrara will expand the imported foods offerings to customers and both companies will benefit from reduced costs, especially freight costs," said Philip Marfuggi, executive vice president of Ferrara Food Company. "Europa Foods will continue to manage the importation of its product lines and will continue to look for new products from the new North Hills office," according to Leon Wechsler, president of Europa Foods LTd. which was founded in 1961 by Leon Wechsler and Kenneth Berger.

The actions announced today are expected to significantly increase the size of Ferrara Food's sales and earnings. Ferrara Food Company is a publically held company that trades over-the-counter, under the symbol FRRF, and also on the Boston Stock Exchange, under the symbol FER.

Ferrara Food Company, Inc. imports, manufactures and distributes a full line of specialty food products under the Ferrara, Mona Lisa, La Florentine, and Giuseppe Cocco labels. Through its wholly-owned subsidiary, AM Candies, it manufactures fine chocolates under the trade name Zipf's. In 1994 Ferrara acquired A&C Bakery, the largest specialty bakery in the Southeast. A&C bakes a full line of Italian, Jewish, and Cuban breads.

CONTACT: Steve Gaynes

MALLORY FACTOR INC.

212/242-0000

-OR-

Philip Marfuggi

FERRARA FOOD COMPANY, INC.

908/651-7600