Dippy Foods Signs Trademark Licensing Agreement With The Hain Celestial Group and Enters New Co-Pack Agreement

Business Wire, July 16, 2002

Business Editors/Food Writers

Dippy Foods, Inc. (OTC BB:DPPI) is pleased to announce the Company has entered into a trademark license agreement with The Hain Celestial Group and its wholly owned subsidiary, Health Valley Company. The Agreement grants Dippy Foods a license to use the names "Health Valley", "Hain Kidz", and "Earth's Best" for purposes of design, manufacture, advertising, sale, and promotion of its food products to the school food service industry. The Agreement affords the company the ability to expand and further develop its line of healthier eating products. The Hain Celestial Group, Inc. is a leader in many of the top natural and organic food categories in which it markets products.

To satisfy the sales expectations of the above relationship, Dippy Foods has filed, through its wholly owned subsidiary, Americas Favorite Food Corp. (AFFC), an application for organic certification with Quality Assurance International, an accredited certifying agency of the USDA's National Organic Program.

In addition, the Company is also pleased to announce that it has entered into a new co-packing and manufacturing agreement with an award winning USDA manufacturing facility. This new co-packer will produce Dippy Foods' expanded line of new healthier products. The Company has also filed for organic certification on behalf of this co-packer to ensure the manufacturing of both organic and non-organic products across multiple categories.

Dippy Foods President, Jon Stevenson commented, "We anticipated that our new healthier product line would be well received and we were right. The response to this line of breakfast foods has been excellent and we are entering into a new co-packing agreement to keep up with the growing demand."

About Dippy Foods

Dippy Foods offers a substantial line of breakfast products including cereal, muffins and bagel sandwiches, which include variations of ham, cheese, sausage and egg and sells fresh, prepackaged, nutritious, single-serving meals to schools and other institutional food servers. 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, which 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' 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 the Company'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.