Kahiki Foods (OTC: KSCI) announced record sales yesterday for its second quarter ended September 30, 2001. Sales were $2,131,910 compared to last year’s $1,090,328, an increase of 95.5%. The company reported net income of $151,721 compared to last year’s loss of ($66,610). Earnings per share were $0.1034 versus ($0.1361) for the previous year’s second quarter.

Sales for the first half ended September 30, 2001 were $3,899,956 compared to last year’s $2,085,955, an increase of 87.0%. Net income was $142,036 compared to last year’s loss of ($155,761). Earnings per share for the first six months were $0.0968 versus last year’s ($0.3184).

Michael Tsao, president and CEO of the company, stated that the improved sales performance was due to solid growth of its membership club and supermarket accounts west of the Mississippi River. In addition, earnings improvement was attributed to better line efficiencies and cost reduction programs.

Tsao cautioned that the third quarter is likely to show negative growth due the downturn in economic activity, massive layoffs that are affecting consumer spending, and the September 11 terrorist attacks. The company expects to see solid growth for fourth quarter because of several new product launches and new accounts that the company will begin supplying in January.

Kahiki Foods, based in Columbus, Ohio, is a manufacturer of authentic Asian-Pacific frozen foods. The company markets entrees, egg rolls, appetizers, meal components, and Pacific Rim sauces to retail supermarkets, foodservice operators, membership warehouse clubs, convenience stores, and military commissaries in the United States and internationally. Kahiki had operated one of the top Polynesian theme restaurants in the world prior to its closing on August 26, 2000.

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, or other factors which may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.