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 Selling, General and Administrative Expenses-Consolidated

     Selling, general and administrative expenses increased by $2,003 (4.9%) compared to the prior fiscal year. The increase in this category did not directly correspond to the sales decrease.

     The table below summarizes the primary expense variances:

     Selling, General and Administrative Expenses-Frozen Food Products Segment

     Selling, general and administrative expenses in the Frozen Food Products segment increased by $1,149 (7.9%) compared to the prior year. Higher fuel, healthcare and workers’ compensation costs were partially offset by lower advertising expenses when compared to the prior year.

     Selling, General and Administrative Expenses-Refrigerated and Snack Food Products Segment

     Selling, general and administrative expenses in the Refrigerated and Snack Food Segment increased $854 (3.2%) compared to the prior year. Higher fuel, healthcare and workers’ compensation costs outpaced the impact of the sales decline.

     Depreciation Expense-Consolidated

     Depreciation expense decreased by $106 (3.1%) compared to the prior year. The decrease in depreciation expense reflects lower capital expenditure levels in recent years and certain significant assets becoming fully depreciated in the 2008 fiscal year.

     Depreciation Expense-Frozen Food Products Segment

     Depreciation expense in the Frozen Food Products segment decreased by $224 (22.2%) compared to the prior year. The decrease in depreciation expense reflects lower capital expenditure levels in recent years and certain significant assets becoming fully depreciated in the 2008 fiscal year.

     Depreciation Expense-Refrigerated and Snack Food Products Segment

     Depreciation expense in the Refrigerated and Snack Food Segment decreased by $189 (7.9%) compared to the prior year. The decrease in depreciation expense reflects lower capital expenditure levels in recent years and certain significant assets becoming fully depreciated in the 2008 fiscal year.

     Income Taxes

     The effective income tax rate was (112.1)% and (56.6%) in fiscal years 2008 and 2007, respectively. In fiscal year 2008, the effective income tax rate differed from the applicable mixed statutory rate of approximately 38% primarily due to recording a full valuation allowance on the Company’s deferred tax assets of $8,615 (Refer to Note 4) and the Company’s current year claim for research and development tax credits and non-taxable life insurance. In fiscal year 2007, the effective income tax rate differed from the applicable mixed statutory rate of approximately 38% primarily due to the Company’s current year claim for research and development tax credits and non-taxable life insurance.

Fiscal Year Ended November 2, 2007 (52 weeks) Compared to Fiscal Year Ended November 3, 2006 (53 weeks)

     Net Sales-Consolidated

     Net sales in fiscal 2007 decreased $9,173 (6.8%) when compared to the prior year. After considering the additional week in fiscal 2006, a 53 week year, sales decreased $6,640 (5.0%) compared to the prior year. The primary reason for the decrease was lower unit volume (8.3%). Increased selling prices (1.9%) partially offset the unit volume decline. Promotional allowances as a percentage of consolidated sales increased 1.1% which also contributed to the net sales decrease.