Patties Foods : Sale of the Creative Gourmet Brand (Link)

ASX Announcement (00012219.DOC;1)

Patties Food ABN 62 007 Operations 161-169 Prince Bairnsdale VIC	s Ltd 157 182 Corporate Office s Highway Chifley Business Park 3875 Level 2, 1 Joseph Avenue
PO Box 409 Bairnsdale VIC Phone: Admin Fax: Sales Fax: [e-mail] www.patties.co	Mentone VIC 3194 3875 PO Box 115 03 5150 1800 Dingley VIC 3172 03 5152 1135 Phone: [phone] 03 5152 1054 Fax : [phone] .au [e-mail] m.au www.patties.com.au

7 December 2015

Announcements Officer ASX Limited

South Rialto Tower 525 Collins Street

MELBOURNE VIC 3000

Sale of the Creative Gourmet brand

Patties Foods Ltd (ASX:PFL) announces that it has signed a sale agreement in respect of its Creative Gourmet frozen fruit business to Entyce Food Ingredients Pty Ltd (Entyce) subject to a number of customary conditions.

PFL acquired the Creative Gourmet business in 2007 and has been delivering a range of market-leading frozen berry products to supermarkets ever since.

PFL Chairman Mr Mark Smith stated that: 'The sale of the Creative Gourmet frozen fruit business forms part of PFL's refreshed Strategic Growth Roadmap, which is aimed at delivering profitable growth for shareholders through a strong focus on our core savoury and sweet pastry business, which represents over 90% of our company's sales and EBIT'.

The Board has decided to exit the frozen fruit category and concentrate on the core business, which remains the savoury and sweet pastry products business and the management of iconic food brands such as FOUR'N TWENTY, Patties, Herbert Adam's and Nanna's.

Following the sale of the Creative Gourmet Frozen Fruit business, PFL will also undertake a managed exit of the Nanna's brand of frozen fruit products sold in supermarkets, and the Chef's Pride foodservice brand of frozen fruit products sold to distributors. PFL will work with all retailers and distributors on a program to exit the frozen fruit category entirely during early 2016.

The Nanna's brand will continue to focus its efforts on the sweet dessert pastry and apple pie market that it is traditionally so well known for. The Chef's Pride brand will continue to focus its efforts on providing ingredient based solutions to the food service industry.

While specific terms of the sale of the Creative Gourmet frozen fruit business are undisclosed, the sale is expected to generate $1.8m in proceeds and to have an immaterial profit effect on the FY2016 result.

Patties Foods will work with Entyce to ensure a smooth and successful business transition of the Creative Gourmet product range over the coming months.

The transaction is expected to be completed by the end of December 2015, subject to a number of customary conditions being met.

Yours faithfully

PATTIES FOODS LTD

Mark G Smith Chairman