“This filing will give us the opportunity to complete sale of the business to a buyer that is committed to the long-term health and stability of the company,” stated Eric W. Ek, chief executive officer, Custom Food Products Inc. “There will be no disruption in our production and distribution to existing clients, and we are extremely bullish about our future. We have the complete support of our lenders, customers, and vendors and are committed to customers, preserving the livelihood of our employees, and enhancing the value of our business.”

The company’s management and board will remain intact during the proceeding. Custom Food has the full and continued support of its secured lenders who have agreed to continue funding the company through the proceeding. Furthermore, Contrarian has submitted a proposal to acquire the assets of the company.

During its years of operation, Custom Food has focused its efforts on its core business, improving sales, and expanding its research and development activities. During the fiscal years 2002 through 2006, Custom Food realized positive Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) ranging from approximately $9.5 million to approximately $12.5 million.

One key component to the company’s success was its establishment of a new, modern production facility in Carson, California, which allowed Custom Food to immediately increase its production capacity, further expand its capacity incrementally over time, and ensure the highest level of food safety in the industry. This facility is the perfect companion to the company’s east coast plant in Owingsville, Kentucky

For more than 24 years, Custom Food and its predecessors have been leaders and innovators in developing, manufacturing, and marketing pre-cooked meat, poultry, and pork products. These products are sold primarily to manufacturers of branded and private-label packaged foods. Custom Foods’ manufactured beef products are used by national restaurant chains, and its custom-formulated meat and poultry fillings are used by leading frozen hand-held entrée companies nationwide. Each day, Custom Food receives and processes thousands of pounds of raw meat and poultry for delivery to its customers. Custom Food operates a state-of-the-art production and distribution facility recently opened in Carson, California and a second production and distribution facility in Owingsville, Kentucky.

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Contact:
Seth Jacobson
JCI
310-317-1966
310-592-3900
seth@jcipr.com