Food Technology Service, Inc. Reports Earnings.

MULBERRY, Fla. -- Food Technology Service, Inc. (NASDAQ:VIFL) today announced financial results for the year ending December 31, 2006.

The Company is now reflecting the value of tax-loss carry-forward credits on its financial statements. To the extent that future revenues are anticipated to allow their use, these credits represent an asset of the Company. Past revenues have not warranted designating these credits as an asset. However, Management now believes a portion of these credits will be used. The value of these credits was estimated at $650,000 and will be adjusted quarterly based on actual profits. Assigning a value to these credits increased net income after taxes in 2006 and stockholders equity at December 31, 2006 by $650,000.

Food Technology Service, Inc. had revenue of $1,771,914 in 2006. This is an increase of 4% over 2005 revenue of $1,703,556. Discounting the impact of valuing the tax-loss carry-forward credits, the Company had net income before taxes of $88,667 in 2006 compared to a net income before taxes of $138,849 in 2005. This is a decrease of about 36% and was largely due to the costs of the reverse stock split completed on July 3, 2006 and the valuing of stock options granted in 2006. These options have been issued to Company employees and Board members and resulted in increased expenses in 2006 of $21,693.

Food Technology Service, Inc. CEO Dr. Richard Hunter said, "Beginning in 2005, the Company has made a number of improvements intended to attract additional medical customers. Due to the longer processing times required for medical products, these efforts were somewhat constrained during 2006 by a lack of Cobalt. During the first quarter of 2007 the Company purchased additional Cobalt which is intended to resolve this constraint. Management believes this will significantly increase revenues from medical sterilization."

Food Technology Service, Inc. provides irradiation services for food items, medical products and consumer goods to enhance the safety of those products. The Company is certified to ISO 13485:2003 standards for the provision of radiation sterilization services for medical devices.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.