YoCream Announces First Quarter Sales Increase of 68.2% and Record Earnings

PORTLAND, Ore., Feb. 24 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Pink Sheets: YOCM) is pleased to announce record results for its first quarter ended January 31, 2009:

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                                                      2009           2008

    Sales                                         $8,642,000     $5,136,000

    Income from Operations                        $1,573,000       $285,000

    Net Income                                      $955,000       $100,000

    Earnings per Share                                 $0.40          $0.04

"The Company took significant risks and incurred related debt with its costly plant expansion completed in 2007," stated Doug Caudell, Chief Financial Officer. "Were it not for assuming the risks, it would not have been possible to strategically meet the increased demand for our products and experience these positive results that directly relate to sales volume."

YoCream continues to grow sales in its core products. Management anticipates positive results in its frozen yogurt and frozen beverage business to continue based on current trends. Full financial results for the quarter will be released by March 15 on the Company's website: http://www.yocream.com.

YoCream International, Inc. (YOCM), with headquarters and a dairy and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt, desserts and beverages. Founded in 1977, YoCream produces, markets and sells its signature frozen yogurt, tart frozen yogurt, ice cream and frozen custard mixes under the YoCream brand. YoCream's frozen beverage product lines include Fruitquake(TM) frozen drinks and smoothies for blender, bar drinks and lemonades or ice teas as well as Jolly Rancher(TM), Bubble Yum(TM), Twizzlers(TM), Ice Breakers(TM) and Jarritos(TM) frozen beverages for frozen carbonated and uncarbonated machine dispensing.

                         YOCREAM INTERNATIONAL, INC.
                             STATEMENTS OF INCOME

             For the three months ended January 31, 2009 and 2008
                                 (Unaudited)

                                                      2009           2008

    Sales                                         $8,641,900     $5,136,176

    Cost of goods sold                             4,883,348      3,117,198

        Gross profit                               3,758,552      2,018,978

    Operating costs and expenses
      Distribution expenses                          801,183        675,988
      Selling and marketing expenses                 694,208        539,492
      General and administrative expenses            690,513        518,738

        Income from operations                     1,572,648        284,760

    Other income (expense)
      Interest income                                  9,195          1,294
      Interest expense                              (113,276)      (134,598)

    Income before income taxes                     1,468,567        151,456

    Income tax provision                            (514,000)       (51,200)

        Net income                                  $954,567       $100,256

    Earnings per common share - basic                  $0.42          $0.05

    Earnings per common share - diluted                $0.40          $0.04

    Shares used in basic earnings per share        2,262,210      2,174,606

    Shares used in diluted earnings per share      2,404,622      2,282,237

SOURCE YoCream International, Inc.