Gourmet Group, Inc. (OTCBB:GOUG) today reported financial results for its third quarter 2001, ended March 31, 2001, and commented on its business outlook and related corporate matters.

GOUG reported an unaudited basic per share operating loss of $.003 (or a total of $93,812), compared to a per share operating loss of $.012 (or a total loss of $277,894) for the comparable three month period ended March 31, 2000.

GOUG also reported an increase in net sales of over 38% for such quarter (from $1,406,711 to $1,947.276), as well as an increase in gross profit percentage (over 3/4 of 1%) and a decrease (over 5.5%) in selling, general, and administrative costs.

Fredrick Schulman, Chairman and CEO of Gourmet Group, said: "The March quarter always represents a challenge to management, with expected seasoned softness in sales, together with anticipated increase in marketing and other overhead costs. The results of our third quarter show that our strategic initiatives to reduce negative results in this quarter are having meaningful impact."

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                  GOURMET GROUP, INC., AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS
                                             June 30,      March 31,
                                               2000          2001
                                           ------------  ------------
                                                          (Unaudited)
                            ASSETS

CURRENT ASSETS:
   Cash and cash equivalents               $    73,629    $    73,464
   Trade accounts receivable, net              777,494        955,543
   Receivable from majority stockholder          1,459         74,230
   Inventories, net                            546,788        615,542
   Prepaid expenses and other current
    assets                                     151,634        147,506
                                           ------------  ------------
                      Total current assets   1,551,004      1,866,285

PROPERTY AND EQUIPMENT, net                  1,801,481      1,700,677

GOODWILL, net                                2,798,800      2,680,124

OTHER ASSETS, net                              457,816        445,201
                                           ------------  ------------
                      Total assets         $ 6,609,101    $ 6,692,287

                 LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
   Accounts payable                        $   353,904    $   676,055
   Accrued expenses                            303,412        334,608
   Notes payable and current maturities
   (See Note 3)                                139,033      3,811,973
                                           ------------  ------------

                Total current liabilities      796,349      4,822,636

LONG-TERM DEBT, less current portion         3,624,433          4,000

OTHER LONG-TERM LIABILITIES                    164,549        104,078

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
   Common stock; $.001 par value;
    50,000,000 shares authorized;
    24,012,420 and 28,527,393 shares
    issued and outstanding, respectively        24,012         28,527
   Additional paid-in capital                3,348,563      3,402,639
   Accumulated deficit                      (1,348,805)    (1,669,593)
                                           ------------  ------------
                Total stockholders' equity   2,023,770      1,761,573
                                           ------------  ------------
                Total liabilities and
                stockholders' equity       $ 6,609,101    $ 6,692,287

GOURMET GROUP, INC., AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)

                       Three Months Ended        Nine Months Ended
                             March 31                March 31
                             --------                --------
                       2000         2001         2000         2001
                       ----         ----         ----         ----
NET SALES           $1,406,711   $1,947,276   $5,356,247   $6,191,671

COST OF SALES        1,055,951    1,447,065    3,681,896    4,301,713
                    ----------   ----------   ----------   ----------
GROSS PROFIT           350,760      500,211    1,674,351    1,889,958

SELLING, GENERAL AND
  ADMINISTRATIVE       628,654      594,023    1,979,930    1,872,390
                    ----------   ----------   ----------   ----------
INCOME/(LOSS) FROM
OPERATIONS          $ (277,894)  $  (93,812)    (305,579)      17,568
                    ----------   ----------   ----------   ----------
OTHER INCOME
 (EXPENSES):
   Interest expense   (111,708)    (122,342)    (338,828)    (384,596)
   Accretion of
    value of put
    warrants            (2,548)     (13,257)      (4,338)     (31,494)
   Other, net           16,669       55,406       27,673       77,734
                    ----------   ----------   ----------   ----------
                       (97,587)     (80,193)    (315,493)    (338,356)
                    ----------   ----------   ----------   ----------
NET INCOME/(LOSS)   $ (375,481)  $ (174,005)  $ (621,072)  $ (320,788)
                    ==========   ==========   ==========   ==========
INCOME/(LOSS) PER
SHARE - BASIC         $ (0.016)    $ (0.006)    $ (0.032)    $ (0.012)
                    ==========   ==========   ==========   ==========
AVERAGE SHARES
OUTSTANDING - BASIC 23,612,098   28,527,393   19,688,801   27,262,409
                    ==========   ==========   ==========   ==========

Jardine Foods (www.jardinefoods.com) is the operating subsidiary of Gourmet Group, Inc. Jardine Foods, a 21 year-old company, is one of the foremost manufacturers of gourmet Texas - style foods (salsas, barbecue sauces, dips, condiments, pasta sauces, queso's, chili mix and seasonings, hot sauces, marinades, spicy snacks, salad dressings, relishes, mustards, beverage mixes, jellies and preserves, gift boxes and gift baskets), distributing through various channels, including supermarkets, gourmet and gift stores, mail order catalogue, internet sales through www.jardinefoods.com, private label for other gourmet food retailers, institutional sales (including the largest theme amusement park in the country), and sales to international distributors. Jardine's manufactures over 300 different products under various names including D.L. Jardine's Special Edition, Buckaroo, Shotgun Willie's, Dixie Dan's, Sontava!, W.B. William's, D.L. Jardino's, 7-J Ranch, and Simple Times.

Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements. Such forward-looking statements are necessary estimates reflecting the best judgment of the party making such statements based upon current information and involve a number of risks and uncertainties. Forward-looking statements contained in this press release or in other public statements of the parties should be considered in light of those factors. There can be no assurances that such factors or other factors will affect the accuracy of such forward-looking statements.