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TOFUTTI Announces 2007 Results
Date:4/14/2008

CRANFORD, N.J., April 14 /PRNewswire-FirstCall/ -- TOFUTTI BRANDS INC. (Amex: TOF) issued its results for the fifty-two week period ended December 29, 2007 today.

Net sales for the fifty-two weeks ended December 29, 2007 (fiscal 2007) were $19,150,000, a decrease of $315,000, or 2%, from net sales for the fifty-two weeks ended December 30, 2006 (fiscal 2006).

The company's efforts to grow its sales in 2007 were negatively impacted by three factors. Tofutti lost a significant amount of business in the second and third quarters of 2007 when the ice cream plant that formerly produced its frozen dessert products shut down unexpectedly at the end of April 2007. The shut down caused inventory shortages of the company's frozen dessert novelties until a new production source was obtained. The company fully restocked its inventory by the middle of the fourth quarter, and the company experienced a growth in fourth quarter revenues compared to the fourth quarter of fiscal 2006. Also impacting sales was the discontinued purchase of one item that generated $400,000 in sales in 2006 by a major customer. Although the sales loss was sizeable, the impact to profitability was not significant since it was not a highly profitable item. Additionally, in view of the new frozen dessert production arrangements, the company discontinued a number of slower moving items whose continued production involved maintaining excess inventory in relationship to the sales level that these items generated.

The company's gross profit in fiscal 2007 decreased by $58,000, or 1%, due primarily to the decrease in sales while its gross profit percentage remained constant at 29% for fiscal 2007 and fiscal 2006. The gross profit percentage continues to be adversel
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SOURCE TOFUTTI BRANDS INC.
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