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Armanino Foods Reports
Best Earnings for Any Quarter
In Its History

Second Quarter Net Income Up 64% Over 2005; 
EPS for 6 Months Rises From a Penny to 3 Cents

HAYWARD, CA, July 27, 2006 --- Armanino Foods of Distinction, Inc. (Pink Sheets Symbol: AMNF) today reported the most profitable quarter in its history with net income for the second quarter of 2006 up 64 percent over the same quarter a year ago.  Building on a strong first quarter, this translated through the first six months of the year to a 123 percent gain over 2005.

“Last year, we invested heavily in building our sales force,” said William Armanino, the company’s chairman and CEO.  “Now we’re seeing the return on that investment, with profit gains in every segment of our business.”

“In addition,” he added,  “we offered a number of promotions to our food service customers and their favorable response to this boosted that sector’s sales.”

For the three months ending June 30th, 2006, sales rose 21 percent from $3,622,038 last year to $4,378,386. For the same period, net income rose 64 percent from $202,897 in 2005 to $332,467 this year. Earnings per fully diluted share were 2 cents this year, versus a penny in 2005.

For the first six months of 2006, sales rose 20 percent from $6,751,305 to $8,110,403.  Net income was up 123 percent, from $225,906 to $ $504,823. Fully diluted EPS rose from a penny in 2005 to 3 cents this year.

Mr. Armanino said net income rose more sharply than sales because of improved profit margins and favorable tax treatments. In May, Armanino Foods announced its products are now available to shoppers in 1,000 Albertson’s supermarkets in Western states.  “It’s still too early to tell what impact being in the Albertson’s market will have on our performance, but we are confident it will help us continue our growth pattern,” Mr. Armanino said. He noted that during the spring, Armanino Foods was also able to increase the range of products it offered in 240 Safeway stores in Northern California , where the Company previously offered only a limited number of products, but the full impact of that has likewise yet to be felt.

“We’re encouraged,” he continued, “by the fact that our sales growth is coming from both sides of our business --- retail sales to shoppers and food service sales to restaurants and institutions.”

Armanino is an international food company that manufactures and markets frozen Basil pesto sauce and numerous other sauces such as Cilantro, Dried Tomato Garlic, Roasted Red Bell Pepper, Southwest Chipotle, Artichoke, Mushroom, Alfredo and organic sauces, filled pasta products, meatballs, cooked poultry products, garlic spreads and focaccia to the food service, industrial, institutional industry. 

Second Quarter Financial Results

Armanino Foods is listed under the stock symbol AMNF.PK.  

For further information, please contact:
Don Rosendale
Don Rosendale & Partners
DonPR1@AOL.COM, 845.373.9017  

This press release contains forward-looking statements within the meaning of U.S. securities laws. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. The Company assumes no obligation to update the information included in this press release.