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VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 5, 2010) - Premium Brands Holdings Corporation (TSX:PBH), a leading producer, marketer and distributor of branded specialty food products, announced today the acquisition of a 76% interest in Toronto, ON based Maximum Seafood (Maximum). Maximum is a leading supplier of a variety of fresh and live seafood products with annual sales of approximately $56 million.

"Max D'Elia, Leo D'Elia and Tony D'Angelo, the founders of Maximum, have done an exceptional job in making Maximum one of the leading providers of fresh and live seafood to the Toronto, Ottawa and Montreal markets. Its strong market position and differentiation based business strategies combined with exceptional growth opportunities in the seafood category make this an ideal investment for us," said Mr. George Paleologou, President and CEO.

"Our existing seafood business, which has grown rapidly over the last several years to almost $30 million in annual sales, together with Maximum will create an $85 million sales platform in a product category that is benefiting from a number of consumer trends, including an increased awareness of the health benefits associated with a diet that incorporates fresh seafood, and Canada's changing ethnic mix.

"Looking forward, the expertise and resources that Maximum has in fresh and live seafood, combined with the buying and supply channel synergies created between Maximum and our other seafood initiatives, positions us very well to build a national seafood platform and to further accelerate our sales in this rapidly growing product category," added Mr. Paleologou.

"I am very excited by the opportunity to work with the Premium Brands group to take Maximum to the next stage in its development," said Mr. Max D'Elia, CEO of Maximum. "While we will continue to execute our wholesale focused business plan, we are looking forward to leveraging Premium Brands' infrastructure and product supply initiatives to drive our growth across Canada," added Mr. D'Elia.

"Our investment in Maximum, which is our first transaction in central Canada, is another example of how Premium Brands provides successful entrepreneurs with customized ownership solutions while positioning their businesses for accelerated growth through access to our operational and financial resources," said Mr. Paleologou.

The transaction is expected to be immediately accretive to both Premium Brands' earnings per share and free cash flow per share.

About Premium Brands

Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Washington State. The Company services over 25,000 customers and its family of brands include Grimm's, Harvest, McSweeney's, Bread Garden Express, Hygaard, Hempler's, Quality Fast Foods, Gloria's Best of Fresh, Harlan's, Creekside Bakehouse, Centennial Foodservice, B&C Foods, Duso's Fine Foods and Maximum Seafood.

Forward Looking Statements

This press release includes forward looking statements with respect to Premium Brands, including its business operations strategy and financial performance and condition. These statements generally can be identified by the use of forward looking words such as "may", "could", "should", "would", "will", "expect", "intend", "plan", "estimate", "project", "anticipate", "believe" or "continue", or the negative thereof or similar variations. Although management believes that the expectations reflected in such forward looking statements are reasonable and represent Premium Brands' internal expectations and belief as of July 5, 2010, such statements involve unknown risks and uncertainties beyond Premium Brands' control which may cause its actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward looking statements.

Important factors that could cause actual results to differ materially from Premium Brands' expectations include, among other things: (i) seasonal and/or weather related fluctuations in its sales; (ii) changes in consumer discretionary spending resulting from changes in economic conditions and/or general consumer confidence levels; (iii) changes in the cost of raw materials used for its products; (iv) changes in the cost of products sourced from third party manufacturers and sold through Premium Brands' proprietary distribution networks; (v) changes in Canadian income tax laws; (vi) changes in consumer preferences for food products; (vii) competition from other food manufacturers and distributors; (viii) new government regulations affecting Premium Brands' business and operations; (ix) the inability to realize anticipated tax attributes associated with its recent conversion to a corporation; (x) exposure to third party credit/contractual risk and operational risk relating to its recent conversion to a corporation; and (xi) other factors as discussed in Premium Brands' Management's Discussion and Analysis for 2009, which is filed electronically through SEDAR and are available online at [ www.sedar.com ]. It should be noted that this list of important factors affecting forward looking information may not be exhaustive.

Unless otherwise indicated, the forward looking information in this document is made as of July 5, 2010 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking information in this document.