Dippy Foods, Inc. (OTC Bulletin Board: DPPI) is pleased to announce it has launched its industrial recycling program at Bakersfield City Schools. Bakersfield is the largest elementary school district in the state of California and will be the site of the 30 day pilot program.

The industrial program allows school districts to collect styrene materials (Styrofoam and Dippy Foods’ trays) from all of the schools in the district at a centralized processing warehouse, where it can be treated and recycled to eventually make new trays for Dippy Foods’ line of products. The capacity of this centralized system allows recycling of 22,000 trays per hour.

The pilot program is the second phase in implementing recycling programs within California School Districts. Several school districts participated in the first phase of the program, in which Dippy Foods placed smaller standard recycling machines in each school. The success of this program lead to the implementation of the industrial program. All participants in the first pilot program have expressed interest in implementing the recycling program within their school district.

Most schools now use disposable foam trays to serve their meals on and no longer wash dishes or silverware. 80% of these trays end up in landfills. California Assembly Bill No. 939 mandates that all city municipalities recycle at least 50% of their waste starting January 2000. To date schools have been exempt from this mandate, due to their lack of funding to implement recycling programs, but the school district’s waste still adds to a cities total tonnage of waste.

In pilot studies of the recycling program, schools saw on average of an 85% reduction in waste materials. Dippy Foods retains exclusive distribution rights of this recycling process in five states including CA, WA, OR, NV, and AZ.

The Company is also pleased to announce that in anticipation of the implementation of it new production line, the Company has moved its corporate headquarters. The Company’s new address is 10554 Progress Way, Suite K, Cypress, CA 90630.

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.