Skor Food Group Reports Q1-2007 Earnings



    Skor is now fully vertically integrated

    TORONTO, Jan. 30 /CNW/ - The Skor Food Group Inc. (TSX.V: SKF)("SKOR"), a
rapidly growing, fully integrated food service company announced financial
results for the first quarter of fiscal 2007.
    Consolidated revenue increased by 119% on a year over year basis from
$20,514,885 to $44,976,355. The revenue increase is attributed primarily to
the inclusion of revenue from the cash and carry acquisition. Net income
increased to $479,461 or $0.02 per share compared to $473,939 or $0.03 per
share the previous year. Earnings per share declined on an annual basis as a
result of a 43% increase in the weighted average number of common shares
outstanding.

    
                                           Three months ended Nov. 30
                                               2006              2005
              Revenue                    $  44,976,355     $  20,514,885
              Gross Profit               $   5,303,527     $   3,442,032
              Net earnings               $     479,461     $     473,939
              EPS (basic)                $        0.02     $        0.03
              Shares (basic)                25,703,340        17,938,757
    

    The Company is in a strong financial position with working capital of
$12 million and a debt to equity ratio of 0.09:1.
    "Skor Food Service has completed the consolidation of its plant and
operating systems and management is focused on profitably growing the business
by both acquisition and organic growth while reviewing all opportunities to
trim its operating costs," said Vince Capobianco, President and CEO.
"Furthermore, subsequent to quarter end with the acquisition announced last
week, Skor has achieved its goal of being a vertically integrated
distribution, manufacturing and retail operations company. The potential
synergies amongst the divisions will allow Skor to build revenue and grow
profits in the near term." Skor Cash and Carry is aggressively promoting its
expanded food service offering to increase revenue and margins in this
division. After completing the infrastructure requirements for the Franchise
Division SKOR is now looking to grow the Galaxie Diners concept with
additional franchisees.

    Conference Call: You are invited to attend a conference call on Wednesday
    Jan. 31, 2007 at 2:00 PM EST to review the Q1-2007 financials and receive
    a corporate update. The dial-in numbers are 416-646-3097 in Toronto, or
    Toll Free 1-800-590-1817. A replay of the call will be available for one
    week at 416-640-1917, or 1-877-289-8525, pass code, 21218207 followed
    by the number sign.

    SKOR, through its operating divisions Skor Food Service, SKOR Cash and
Carry, Skor Culinary Concepts and Skor Franchise Inc. is a fully vertically
integrated food service company, servicing customers throughout Ontario from
its 200,000 square foot warehouse and head office facility in Vaughan, Ontario
and its 11 cash and carry locations in various centers throughout Southern
Ontario. Skor distributes and sells more than 10,000 private label and name
brand, frozen foods, refrigerated products, dry goods, canned goods, paper and
plastic products, as well as confectionary and tobacco products. SKOR services
a wide range of multi location food retailers, Quick Service Restaurant
chains, day care facilities, government institutions, independent food service
operators, school boards, catering and vending operators as well as
convenience stores.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    %SEDAR: 00007944E




For further information:

For further information: Vince Capobianco, President and CEO, (905)
660-1212 ext 234, vincec@skorfoodgroup.com; John Lewis, Linear Capital Corp.,
(416) 364-2266, toll free 1-877-600-6001, jrlewis@linearcapital.com

Organization Profile

THE SKOR FOOD GROUP INC.

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