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Results of Operations (in thousands except percentages)

Fiscal Year Ended October 31, 2008 (52 weeks) Compared to Fiscal Year Ended November 2, 2007 (52 weeks)

     Net Sales-Consolidated

     Net sales in fiscal 2008 decreased $4,101 (3.3%) when compared to the prior year. The primary reason for the decrease was lower unit volume (7.7%). Increased selling prices (3.5%) partially offset the unit volume decline. Promotional allowances as a percentage of consolidated sales decreased 0.1% which helped to partially offset the net sales decrease.

     Net Sales-Frozen Food Products Segment

     Net sales in the Frozen Food Products segment increased $3,467 (7.0%) compared to the prior year. This increase includes initial sales of shelf-stable sandwiches to the military of $1,191. Unit volume decreases of 2.9% were offset by unit price increases of 6.3%. Promotional allowances were unchanged compared to the prior year.

     Net Sales-Refrigerated and Snack Food Products Segment

     Net sales in the Refrigerated and Snack Food Products segment decreased $7,568 (10.0%) compared to the prior year. Unit volume decreased 11.8% in fiscal 2008. The impact of price increases was negligible. Promotional allowances were unchanged compared to the prior year.

     Cost of Products Sold-Consolidated

     Cost of products sold decreased $803 (1.0%) compared to the prior year primarily due to lower unit sales volume. Higher commodity costs partially offset the impact of the unit volume decrease.

     Cost of Products Sold–Frozen Food Products Segment

     Cost of products sold in the Frozen Food Products segment increased $4,821 (16.0%) compared to the prior year. Record high flour commodity costs in fiscal 2008 were the primary contributing factor causing this increase.

     Cost of Products Sold–Refrigerated and Snack Food Products Segment

     Cost of products sold in the Refrigerated and Snack Food Products segment decreased $5,971 (11.3%) compared to the prior year. Lower unit volumes partially offset by higher meat commodity costs in fiscal 2008 were the primary factors causing this change.

     Gross Margin-Consolidated

     The gross margin before depreciation decreased from 35.1% to 33.6%, in fiscal 2008, primarily due to higher flour and meat commodity costs when compared to the prior fiscal year. Promotional allowances remained essentially unchanged as a percentage of consolidated sales and had no measurable impact on the gross margin.

     Gross Margin–Frozen Food Products Segment

     The gross margin before depreciation decreased from 38.9% to 33.8%, in fiscal 2008, primarily due to record high flour commodity costs when compared to the prior fiscal year. Promotional allowances remained unchanged as a percentage of sales. Increased selling prices were insufficient to overcome increased commodity costs over the course of the fiscal year.

     Gross Margin–Refrigerated and Snack Food Products Segment

     The gross margin before depreciation increased from 30.3% to 31.3%, in fiscal 2008, primarily due to increased in-house production of previously outsourced items offset by higher meat commodity costs and lower unit volumes when compared to the prior fiscal year. The impact of price increases was negligible.