Dippy Foods, Inc. (OTC Bulletin Board: DPPI) is pleased to announce that it has agreed in principal to enter into a joint venture with California based US Foods International to form a new food services company to integrate and expand both companies' operations in the food services industry.

Food manufacturing operations, sales and marketing, and domestic and international distribution of manufactured and co-branded food products by both partner companies will be vertically integrated through this newly formed company.

In addition to manufacturing and distributing its own brands, the new company will also increase its product offerings through co-branding of products as well as securing exclusive agreements to market and sell other regional and nationally branded food products. This will greatly enhance the company's product lines and services and also allow for consolidation of products through its distribution channels.

The manufactured food products will include a line of Mexican products, breakfast items, frozen items, frozen entrees, shelf stable and other food products consistent with the new company's sales and marketing strategies.

Sales and marketing efforts will be significantly enhanced through this joint venture alliance by building on the distribution strength of US Foods International, which is currently a sales and marketing, and logistics partner to U.S. military troops. Currently US Foods International and its JV partner sell more than $30 million U.S. annually into these channels.

Through this new partnership Dippy Foods will be able to expand its existing customer base beyond its current school business into new channels including military sales, as well as domestic and international food service sales.

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 luncheon products called "Dippers," 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 about Dippy Foods' products, 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 contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements