Terrace Holdings In Exclusive Manufacturing Arrangement with ALR Holding Corp

Business Wire, July 1, 1998

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--July 1, 1998--

Joint Agreement With ALR Holding Corp. Revenues Estimated at $10-$15 Million

Terrace Holdings Inc. (NASDAQ:THIS) and ALR Holding Corp., Palm Beach, Fla., announced today an exclusive arrangement whereby Terrace Holdings will provide home meal replacements and other food service products to ALR Holding Corp.

Terrace Holdings said the arrangement should results in revenues estimated at $10-$15 million. Privately owned, ALR is a large supplier of food products to airlines, food clubs, retail establishments and the military.

ALR operates three divisions: Sky Foods, which distributes food products to the airline industry; Chef Arnes' Classics, creates and distributes home meal replacement programs to club stores and the military; and Multi Sales, which distributes a variety of products to the military.

The company, through its pending acquisition of Banner Beef & Seafood subsidiary, will begin a roll out of a home meal replacement program for ALR's customers immediately.

In announcing the arrangement, Jon Lasko, Chief Operating Officer of Terrace Holdings, said, "The agreement to provide ALR with home meal replacement programs and other products is a major component in our growth strategy to become the leader in the distribution of perishable foods and value-added processing."

ALR's Chief Executive Officer, Arne Rotne II, said, "We are pleased to be working with Terrace Holdings to provide us with a home meal replacement program and other products. Terrace has gained a reputation for producing high quality, ready to use, value-added fresh food products to its customers. Terrace's expertise, strengthened by its proposed acquisition of Banner Beef & Seafood, will guarantee an expansion of our relationship."

Terrace Holdings Inc. is a South Florida leader in distribution and processing of produce, dairy, frozen and other perishable commodities.

Except for historical information, this press release contains certain forward looking statements that involve risk and uncertainties which may cause results to differ materially from the statements made. Such factors include, but are not limited to, changing market conditions, the establishment of new corporate alliances, the impact of competitive products and pricing and other risks detailed from time to time by the company or in its filings with the U.S. Securities and Exchange Commission.

This release is available on the KCSA Worldwide website at www.kcsa.com.

   CONTACT: Terrace Holdings Inc., Fort Lauderdale
             Jon Lasko, 954/917-7272
                    or
             KCSA Worldwide, New York
             Paul Holm / Joseph A. Mansi
             212/682-6300, ext. 201/205