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Dairy Fresh Farms Announces Results of ``New Generation Milk'' Test Market Launch in Western Canada

Posted on: Tuesday, 8 November 2005, 09:00 CST

205 Safeway Stores Perform In-Store Demonstrations Over a Ten-Month Period, Resulting in a Conversion to Purchase Rate Increase from 17% to 47%

Dairy Fresh Farms (DYFR.PK) www.dairyfresh.ca, the Canadian-based corporation that has developed a unique, patented dairy process for the North American consumer by combining skim milk with canola oil to produce a milk beverage that is nutritionally equivalent to 2% regular milk, announced today the results of the Company's 10-month test market launch in 205 Safeway Stores across Western Canada.

Dairy Fresh Farms kicked off the test market launch on January 15, 2005, to coincide with the introduction of two of its "New Generation Milks": Lactose Free (1 Liter) and Omega-3 (2 Liter). Geographically, the test market launch spread out over 2000 miles, covering four Canadian Provinces, which included five major cities with populations ranging from one to four million people.

In store demonstrations were conducted, and educational materials were distributed, to both promote the products and simultaneously educate the public. With over 300,000 milk samples tasted, the conversion to purchase rate climbed from 17% in January, 2005 to 47% in October, 2005.

Robert Harrison, President and CEO of Dairy Fresh Farms was extremely enthusiastic and said, "This is a huge increase and we believe it clearly indicates that consumers liked both the taste and health benefits of our 'New Generation Milk'."

Mr. Harrison continued, "Dairy Fresh Farm's performance during this 10-month test market launch has been on target with our business model projections. Our business model closely follows the actual results of the Australian market, and the in-depth independent market research Camelford Graham Research conducted in Vancouver and Montreal on behalf of Dairy Fresh Farms in December, 2003."

Due to the great success of this test market launch, requests from many of the 300,000 individuals who sampled Dairy Fresh Farms milk, and with the continued support of Safeway Stores and Lucerne Dairy, Dairy Fresh Farms intends to introduce two more SKU's: Lactose Free (2 Liter) and Omega-3 (1 Liter), to go along with the 1L Lactose Free and 2L Omega-3 SKU's already being offered at these stores.

Additionally, based on consumer feedback regarding the products' labeling, Dairy Fresh Farms has made several design changes to the graphics on their milk cartons. The new designs, according to early comments, "jump off the shelf visually," and allow consumers to clearly distinguish between the Lactose Free and Omega-3 milks.

"It doesn't stop there," Mr. Harrison exclaimed. "Whole Foods, the well-known purveyor of fine health food has begun its own launch of Dairy Fresh Farms 'New Generation Milks' in its first Vancouver store."

About Dairy Fresh Farms

Dairy Fresh Technologies Ltd., and its brand Dairy Fresh Farms(TM), is a Canadian-based corporation established to develop a unique, patented dairy process for the North American consumer. This process starts by taking regular whole milk and then skimming off the saturated fat. It then adds 1% naturally sourced monounsaturated fat from GM0 Free canola oil, along with four other all natural ingredients, to produce a milk beverage that is nutritionally equivalent to 2% regular milk that has both a desirable taste and texture while offering additional health benefits. Canola oil was chosen as the fat substitute because it contains a very low level of saturated fatty acids while adding a relatively high level of monounsaturated and Omega-3 fatty acids as well as vitamin E and K, all without compromising the taste. Additionally, canola oil also complements the 'mouth feel' of a much higher fat level milk product without adding cholesterol to the drinker's diet. Dairy Fresh milk has been available for purchase since January 2005 in approximately 205 Safeway stores located throughout Western Canada, and management hopes to make this product available in virtually every major retailer throughout Canada by the Summer of 2006. The company went public in February, 2005 as a result of a reverse merger.

For further information on Dairy Fresh Farms, please visit www.dairyfresh.ca

The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of business risks, external factors and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events, or otherwise.

Source: Business Wire

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