Skor Food Group corporate update

    Positioning for profitable growth

    TORONTO, Oct. 2 /CNW/ - The Skor Food Group Inc. (TSX.V: SKF)("SKOR"), a
vertically integrated food service distributor, wholesaler and manufacturer is
pleased to provide a corporate update on activities since its Q3 financial
report for the period ended May 31, 2008.
    Skor operates three divisions - Skor Food Service, Skor Cash & Carry and
Skor Culinary Concepts. The Company is profitable with annual revenue of
approximately $160 million. The revenue contribution per division is 50% food
service, 42% cash and carry and 8% culinary.
    The Food Service division distributes food service items to the food
service industry in Ontario. This division is the core business that has and
continues to provide consistent profitability for the Company. Food Service is
moderately sheltered from the current economic downturn because of its solid
foundation in institutional business together with a focus on the quick
service restaurant markets. Management continues to refine operations and
systems to increase profitability.
    The Wholesale Cash and Carry division serves the independent convenience
and small grocery trade. This division continues to feel the pressure from a
competitive retailing environment and the challenges to obtain new high value
customer relationships. Management has vigorously reduced operating costs and
is committed to improve overall performance by dealing with non-performing
locations prior to year end. Management will continue to develop and implement
sales strategies to improve gross margins throughout the chain.
    Skor Culinary manufactures and distributes fresh ready to eat sandwiches
and meals. The division was active in the fourth quarter purchasing two
companies and integrating both companies into existing operations. The
consolidation of all manufacturing into one facility has resulted in
substantial savings and improved gross margins. This division now has revenues
of over $15 million and is generating management's expected operating margins.
Management anticipates that the culinary division will contribute positively
to earnings commencing in its current quarter, Q1, 2009.
    "The food business is a consumer staple and therefore a pretty good place
to be in this economic downturn," said Vince Capobianco, President and CEO
Skor Food Group. "Our focus is on profitable revenue growth, cost containment
and building our brand."

    SKOR, through its operating divisions Skor Food Service, Skor Culinary
Concepts and Skor Cash and Carry, is a vertically integrated, full service,
wholesale food supplier to the food service and retail industries. SKOR serves
a wide range of multi location food service establishments, Quick Service
Restaurant chains, day care facilities, government institutions, independent
food service operators, independent grocery stores as well as vending
operators and convenience stores in Ontario.

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

    This news release contains forward-looking statements that involve risks
and uncertainties, which may cause actual results to differ materially from
the statements made. Potentially, many factors could cause actual results to
vary materially from those described herein as intended, planned, anticipated
or expected. The Skor Food Group Inc. does not intend and does not assume any
obligation to update these forward-looking statements.

    %SEDAR: 00007944E

For further information:

For further information: Vince Capobianco, President and CEO, (905)
660-1212 ext 234,; John Lewis, Linear Capital Corp.,
(416) 364-2266,

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