Milling & Baking News - March 27, 2007 - 12

AIPC amends credit facility,
retires $10 million of debt
KANSAS CITY - American Italian
Pasta Co. and its lenders have agreed to
an amendment to the company's credit
facility that will give the Kansas Citybased pasta maker until Dec. 31, 2007, to
file fiscal 2005 and fiscal 2006 financial
statements, with no increased interest
charges through that date. Under the
previous facility, AIPC would have been
required to file the statements by March
31 or face increased interest charges of
two percentage points per year.
AIPC also announced it has used a
portion of its excess liquidity to retire
$10 million of debt, reducing gross
debt to $244.3 million from $254.3 million. Following the debt retirement,
AIPC has liquidity resources of $43
million and outstanding debt net of
cash of $229 million.
"The amendment to our credit facility, reflecting the strength of our
business and our solid relationship
with our lenders, allows us to remain
focused on business execution and the
completion of our restatement process," said Jim Fogarty, chief executive
officer. "We continue to be pleased

with our liquidity as evidenced by our
voluntary prepayment of debt and
look forward to availing ourselves of a
lower interest rate upon completion of
our financial statement filings."
Last month, AIPC provided an update
on certain financials for the first quarter
of fiscal 2007. Net revenues in the period
ended Dec. 30, 2006, totaled $94 million,
up narrowly from $93.7 million in the
first quarter of fiscal 2006.
AIPC recently changed the way it
reports revenues regarding certain promotional expenses and now treats them

as a reduction in revenue as opposed to
selling and marketing expenses on the
company's statement of operations.
Overall volume decreased 3% in the
quarter, compared with the first quarter of 2006.
Excluding liquidation sales of
$10,000 and $700,000 in the first quarter of fiscal years 2007 and 2006, respectively, revenue increased 1% and
volume decreased 2% in the first quarter of fiscal 2007.
For the first quarter of fiscal 2007,
AIPC had total liquidity resources of
$50.5 million, consisting of cash on
hand of $22.8 million and $27.7 million available under the company's
$30 million revolving credit facility. MBN

AIPC expands pasta offerings for food service
KANSAS CITY - American Italian Pasta Co. has introduced three dry pasta brands
for food service customers in Ravarino & Freschi (R&F), Heartland Pasta, and Montalcino Pasta.
R&F, a St. Louis pasta brand, will serve as AIPC's marquee line of authentic Italian-style pasta for food service. The R&F brand has more than 40 traditional pasta
shapes and sizes, which complement a range of sauces and culinary applications.
Heartland Pasta, already offered at retail, comes in four nutritionally enhanced
varieties: Heartland Whole Wheat, Heartland Whole Grain, Heartland Naturals
(organic) and Heartland Plus with ALA Omega-3. The Montalcino Pasta is being
extended to AIPC's value-oriented food service customers. MBN

Philadelphia Macaroni Co. expands
presence with purchase of Pasta USA
PHILADELPHIA - Philadelphia Macaroni Co., a fifth generation grain-based food
processing company, has acquired Pasta
USA, a manufacturer of dry pasta products located in Spokane, Wash. Pasta USA
markets products under its own labels,
Italian Chef and Betty Baker retail pasta,
and Earth & Life organic pasta. In addition
the company produces boxed and packaged items as well as macaroni and cheese
products for the private label and food
service industry.
According to Philadelphia Macaroni,
the addition of Pasta USA should help
broaden product distribution across the
United States.
"Pasta USA's 53,000-square-foot production facility will be a tremendous asset to our expanding national customer
focus," said Luke Marano Jr., president of
Philadelphia Macaroni Co.
In addition to Pasta USA, Philadelphia
Macaroni owns Conte Luna Foods and
Minot Milling.
The company's main industrial pasta division, Conte Luna Foods operates manufacturing facilities in Warminster, Pa., and
Grand Forks, N.D. Conte Luna Foods and
bakingbusiness.com / world-grain.com

Pasta USA compete in the industrial ingredient marketplace with instant noodles,
specialty shapes, long goods, and Individually Quick Frozen pasta.
"The companies' strengths include research and development and the flexibil-

ity to produce unique products for retail,
private label, food service, and industrial
food partners throughout the world,"
Philadelphia Macaroni said.
Located in Minot, N.D., Minot Milling processes premium durum and hard
red spring wheat flour for the pasta and
bread industries. The company produces
more than 8,000 cwts of durum and 6,000
cwts of hard red spring wheat daily. MBN

Sara Lee to sell pies directly to in-store
bakeries beginning April 1
DOWNERS GROVE, ILL. - Beginning
April 1, Sara Lee In-Store Bakery will sell pies directly
to in-store bakeries
nationwide. The company had served
the segment indirectly for many
years.
"Going direct
to our in-store
bakery customers
demonstrates
our
commitment to enhancing the existing customer partnerships we have in other categories,"

said Mike Knowles, chief marketing officer, Sara Lee In-Store Bakery. "Now,
retailers across the country can
buy great-tasting pies directly
from Sara Lee for their
in-store bakeries."
Mr. Knowles said
Sara Lee also would
benefit from the
addition of Kevin
Schwab, who was
named vice-president
of in-store solutions. Mr.
Schwab will help build and
lead Sara Lee's dedicated in-store
bakeries sales and marketing team. MBN
Milling & Baking News

March 27, 2007 / 13

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Milling & Baking News - March 27, 2007

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