YoCream Announces Second Quarter Sales Increase of 35% and Record Earnings

PORTLAND, Ore., May 27 /PRNewswire-FirstCall/ -- YOCREAM International, Inc. (Pink Sheets: YOCM) is pleased to announce record results for its six months ended April 30, 2009:

(Logo: http://www.newscom.com/cgi-bin/prnh/20011003/SFW058LOGO-b)

                                             2009          2008
                                             ----          ----

    Sales                                $21,267,000   $14,478,000

    Income from Operations                $4,796,000    $1,803,000

    Net Income                            $2,795,000    $1,009,000

    Earnings per Share                       $1.16         $0.44

YoCream's frozen yogurt sales have increased over 70% in the first half of its fiscal year. The interest in frozen yogurt remains strong and is intensifying nationwide as more and more consumers understand that the benefits of live and active yogurt cultures can be found in real frozen yogurt products and not just their cup yogurt on the retail shelf. In fact, YoCream's Original Tart(TM) frozen yogurt culture counts meet the National Yogurt Association's (NYA) criteria for refrigerated cup yogurt. All of YoCream's frozen yogurt products carry the NYA's Live and Active Cultures seal.

YoCream has seen sales surge in single-unit stores, the foundation of the frozen yogurt business, as well as in many regional chains, a number of which show potential to become strong national accounts. The Company has been well positioned to meet the demand for true frozen yogurt products. "At YoCream, we are very serious about our position in the industry," stated John Hanna, CEO. "We continue to develop frozen yogurt products with the highest counts of beneficial live and active cultures and have the plant capacity to make sure they arrive to market as demanded." As a result of higher volume and increased plant utilization, the Company is also enjoying increased margins.

Full financial results for the quarter will be released by June 15 on the Company's website: 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, frozen custard and sorbet 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
                                      (Unaudited)


                             Three Months Ended          Six Months Ended
                                   April 30,                April 30,

                               2009        2008           2009       2008

    Sales                 $12,626,710   $9,342,286   $21,268,610  $14,478,462

    Cost of goods sold      6,384,630    5,416,054    11,267,978    8,533,252

      Gross profit          6,242,080    3,926,232    10,000,632    5,945,210

    Operating costs and
     expenses
      Distribution
       expenses             1,149,728    1,139,512     1,950,911    1,815,500
      Selling, and marketing
       expenses               908,014      707,546     1,602,222    1,247,038
      General and
       administrative
       expenses               960,954      561,142     1,651,467    1,079,880

    Income from
     operations             3,223,384    1,518,032     4,796,032    1,802,792

    Other income (expenses)
      Interest income           7,559            -        16,754        1,294
      Interest expense       (119,112)    (135,696)     (232,388)    (270,294)
      Restricted stock
       compensation          (280,500)           -      (280,500)           -

    Income before income
     taxes                  2,831,331    1,382,336     4,299,898    1,533,792

    Income tax provision     (991,000)    (473,300)   (1,505,000)    (524,500)

    Net income             $1,840,331     $909,036    $2,794,898   $1,009,292

    Earnings per common
     share - basic              $0.80        $0.42         $1.22        $0.46

    Earnings per common
     share - diluted            $0.76        $0.40         $1.16        $0.44

    Shares used in
     basic earnings
      per share             2,305,418    2,174,606     2,283,814    2,176,995

    Shares used in
     diluted earnings
     per share              2,426,484    2,293,957     2,415,553    2,290,486

SOURCE YoCream International, Inc.