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MEETING NOTES OF INFORMAL MEETING OF SHAREHOLDERS 
OF ARMANINO FOODS OF DISTINCTION, INC.
July 27, 2006, 10:00 a.m.

Mr. Pera read aloud the Press Release of the Company of July 27, 2006 that had been released to the public earlier in the morning.

Mr. Armanino reminded shareholders that promotional expenses are deducted from gross sales to arrive at net sales.   Revenues announced are net sales.

Mr. Armanino discussed the Company’s retail product segment, new customers, new employees, and new products.  The Company’s current focus is on building sales to existing customers.

In response to questions, Mr. Armanino discussed the Company’s organic products and plans for launching these products, and the Company’s strategies for special uses/applications of the products for the customer.  Stronger emphasis will take place in Q1 of 2007

In response to questions, Mr. Armanino confirmed that the Company’s retail products are sold in most Northern California high-end independent supermarkets.

In response to questions, Mr. Armanino confirmed that the Company did not presently intend to pursue retail sales through “big box” or “warehouse type” stores.

In response to questions, Mr. Pera confirmed that the Company has taken advantage of favorable tax law changes regarding research and development tax credits which have lowered the Company’s effective tax  rate.

In response to questions, Mr. Armanino and Mr. Pera responded that the Company is carefully considering how to respond to higher costs for certain ingredients and fuel costs.

In response to questions, Mr. Armanino explained the long lead times necessary to sell into larger industrial accounts and chain stores due to centralization of buying and formulation of the Company’s products.

In response to questions, Mr. Armanino discussed the Company sales team, 35 brokers and 400 distributors, including the Company’s relationship with DOT Foods as its master distributor.

In response to questions, Mr. Armanino confirmed that the Company generally does not have long term written contracts with its customers, unless the Company manufacturer products specifically for the customer under a proprietary formula of the customer.

In response to questions, Mr. Armanino discussed the retail industries’ practice of requiring “slotting” fees.

In response to questions, Mr. Armanino discussed the Company’s success in “cutting” its products against competitors.

In response to questions, Mr. Armanino stated that the Company has no current plans to manufacture home meal replacement products, but rather will continue to provide ingredients to customers who may manufacture such products. 

In response to questions, Mr. Armanino discussed the Company’s relationship with its suppliers, principally its basil and cheese supplier, and that such relationships are good.

In response to questions, Mr. Armanino discussed the Company’s international sales successes in Japan and strategies to sell is products into other countries.

In response to questions, Mr. Pera stated that Company’s research and development costs are approximately $200,000 per year.

In response to questions, Mr. Armanino stated that the Company has no present plans to change the formulation of its meatball products to lower its fat and sodium content.

The meeting was adjourned at approximately 11:30 a.m.