Dippy Foods Improving the Eating Habits of California's School Children

Business Wire, Dec 10, 2001

Business Editors/Health & Food Writers

CYPRESS, Calif.--(BUSINESS WIRE)--Dec. 10, 2001

Dippy Foods, Inc. (OTC BB: DPPI) - through their wholly owned subsidiary, Americas Favorite Food Corp. (AFFC) and affiliates, is pleased to announce that in response to California Senate Bill No. 19, relating to pupil health, Dippy Foods is expanding its line of breakfast products to offer to school districts throughout the State. Bill No. 19 was designed to significantly improve the eating habit of California's school children and increase the nutritional standards of the foods provided in schools.

Dippy Foods offers a substantial line of breakfast products including cereal, muffins and bagel sandwiches, which include variations of ham, cheese, sausage and egg. Dippy Foods' breakfast lines are made with the finest ingredients, contain less than 30% fat and meet all the dietary requirements set out by the USDA and California Bill No. 19. Dippy Foods recently forged a relationship with a large manufacturer of natural and organic foods. The company is a leader in many of the top natural food categories and has more than 3,700 all natural, organic products.

Dippy Foods has provided children in more than 50 California schools with breakfast. Since introducing the breakfast line, the company has added a number of new school districts to its client roster, including Palm Springs, which recently placed an order of 18,750 units after a successful district wide test. Dippy Foods anticipates that with the implementation of Bill No. 19, their new health oriented breakfast meals will continue to be a growing part of the company's product line and a substantial factor in the company's revenue growth.

Childhood obesity has become an epidemic in the United States and is a primary factor in type two diabetes and other long-term health problems. While poor diet has been found to adversely influence the ability to learn and decrease motivation and attentiveness, healthy food has been proven to have a positive impact on academic achievements. Recent research shows that children who eat breakfast perform better on standardized achievement tests and have fewer behavior problems in school.

Dippy Foods President, Jon Stevenson commented, "Our relationship with the new natural food supplier expands our breakfast offerings and provides school districts with a variety of value added products." Stevenson further stated, "Bill No. 19 provides us with an excellent opportunity to add many new schools to our program as they look for new ways to provide kids with a healthier start to the day. Nationwide, more than 7.5 million kids participate in the National Breakfast Program each day, and starting them off with a healthy meal is what Dippy Foods is all about".

About Dippy Foods

Dippy Foods, Inc. produces and sells fresh, prepackaged, nutritious, single-serving meals to schools and other institutional food servers. Dippy Foods' line of breakfast and luncheon products, address the issues facing the 94,000 schools serving free or USDA subsidized meals breakfasts and lunches to over 34 million children daily as part of the National School Breakfast and Lunch Program. These individually, pre-packaged meals require no preparation, refrigeration or heating and are served in individual recyclable serving trays. For more information, visit Dippy's web site at www.dippyfoods.com.

For more information, please call Phil Gurat toll Free at (888) 536-7901 or visit www.dippyfoods.com.

Certain statements in this press release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements express or implied by the forward looking statement. Factors that impact such forward looking statements include, among others, the ability of the Company to attract business, risks of competition, and price and margin trends.