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SPARTA FOODS ANNOUNCES SECOND QUARTER AND SIX-MONTH SALES AND EARNINGS AND NEW BUSINESS OPPORTUNITIES

SPARTA FOODS ANNOUNCES SECOND QUARTER AND SIX-MONTH SALES AND EARNINGS
 AND NEW BUSINESS OPPORTUNITIES
 ST. PAUL, Minn., June 8 /PRNewswire/ -- Sparta Foods, Inc. today announced sales and earnings for its second quarter and six-month period ending March 31, 1992.
 Sales for the three-month period increased 51 percent to $1,906,531, from $1,263,517 for the same period a year ago. Net income for the quarter was $19,556, compared with $38,032 for the second quarter of 1991.
 For the six-month period, sales grew 25 percent to $3,125,275, versus $2,495,788 for the first half of the previous year. Net income was $22,069, compared with $24,197 for the year-ago period. Plant and warehouse expenses in the second quarter of 1992 reflect associated costs not included in the same quarter of the previous year. Without these costs, net income for 1992 would have shown a slight increase for the second quarter and substantial gains for the six-month period over the same 1991 periods.
 The primary increase in sales is attributable to the acquisition of Cruz Mexican Foods, Inc., which occurred on Jan. 2, 1992. With this acquisition, the company incurred costs associated with integration of management, sales, marketing and production and these costs are reflected in the net income for the three months ended March 31, 1992. "The opportunities which Cruz brings to Sparta Foods are very exciting and will add greatly to sales and profits," said Nicholas Grammas, president of Sparta Foods.
 "Over the past four months, a number of exciting developments have occurred which will add substantially to our business," he continued.
 "Sparta was selected by a national mass merchandiser to provide Cruz Mexican food items nationally for their in-store snack bars. Crystal Farms has chosen Sparta Foods to manufacture their line of private label Mexican food products. This arrangement provides for products to be distributed on a national basis. Sparta has been licensed to produce and sell Batman tortilla chips (Bat Chips) in the seven state Upper Midwest region in connection with the movie "Batman Returns." In addition, the company is making plans to distribute its refrigerated retail Chapala tortillas throughout the state of Iowa. To meet these growing sales and production demands, Sparta has amended the lease on its facility to provide for a 10,000 square foot plant expansion which will begin construction in mid-June," said Grammas.
 Grammas continued, "Mexican food items represent the fastest growing ethnic food item in both retail and food service industries. With its two subsidiaries, La Canasta and Cruz, Sparta is well-positioned to take advantage of this demand."
 Sparta Foods, Inc. manufactures tortillas, tortilla chips, bunuelos, picante salsas and other sauces for sale and distribution to retail food stores and food service establishments, through its wholly owned subsidiaries, La Canasta of Minnesota, Inc. and Cruz Distributing, Inc. In addition, Sparta manufactures barbeque sauces which are marketed by Ken Davis Products, Inc. under the "Ken Davis" label, and manufactures tortilla chips and picante salsas under private label for others. Sparta is a publicly held corporation and trades on the over-the-counter market in Minneapolis/St. Paul.
 SPARTA FOODS, INC.
 Consolidated Statement of Operations
 (Unaudited)
 Three Months Ended Six Months Ended
 March 31, March 31,
 1992 1991 1992 1991
 Sales $1,906,531 $1,263,517 $3,125,275 $2,495,788
 Cost of Sales 1,485,107 837,921 2,377,311 1,754,090
 Gross Profit 421,424 425,596 747,964 741,698
 Selling, General
 and Administrative
 Expenses 364,528 340,396 670,848 635,361
 Operating Income 56,896 85,200 77,116 106,337
 Other Income (Expense)
 Interest Income 4,911 2,450 9,642 2,450
 Interest Expense (28,751) (24,263) (50,189) (59,235)
 (23,840) (21,813) (40,547) (56,785)
 Income Before Income
 Taxes 33,056 63,387 36,569 49,552
 Provision For Income
 Taxes 13,500 25,355 14,500 25,355
 Net Income $19,556 $38,032 $22,069 $24,197
 Net Income per
 Common Share $0.00 $0.01 $0.00 $0.00
 Weighted Average
 Number of Common
 and Common Equivalent
 Shares
 Outstanding 8,342,717 7,154,643 7,995,113 6,202,897
 -0- 6/8/92
 /CONTACT: Nicholas G. Grammas of Sparta Foods, 612-646-1888, or Melissa Quinn of Padilla Speer Beardsley, 612-871-8877, for Sparta/ CO: Sparta Foods, Inc. ST: Minnesota IN: FOD SU: ERN


KH -- MN010 -- 7951 06/08/92 12:48 EDT
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Date:Jun 8, 1992
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