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     Net Sales-Frozen Food Products Segment

     Net sales in the Frozen Food Products segment decreased $1,405 (2.8%) compared to the prior year. After considering the additional week in fiscal 2006, sales decreased $446 (0.9%). Unit volume decreases of 5.4% were partially offset by unit price increases of 4.5%. Promotional allowances were higher compared to the prior year which also contributed to the slight net sales decline.

     Net Sales-Refrigerated and Snack Food Products Segment

     Net sales in the Refrigerated and Snack Food Products segment decreased $7,768 (9.3%) compared to the prior year. After considering the additional week in fiscal 2006, sales decreased $6,194 (7.6%). Unit volume decreased 9.3% in fiscal 2007. The impact of price increases was negligible. Promotional allowances were higher compared to the prior year which also contributed to the sales decline.

     Cost of Products Sold-Consolidated

     Cost of products sold decreased $4,007 (4.7%) compared to the prior year primarily due to lower unit sales volumes.

     Cost of Products Sold–Frozen Food Products Segment

     Cost of products sold in the Frozen Food Products segment increased $146 (0.5%) compared to the prior year. Higher flour commodity costs in fiscal 2007 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 $4,605 (8.0%) compared to the prior year. Lower unit volumes partially offset by higher meat commodity costs in fiscal 2007 were the primary factors causing this change.

     Gross Margin-Consolidated

     The gross margin before depreciation decreased from 36.6% to 35.1%, in fiscal 2007, primarily due to higher flour and meat commodity costs when compared to the prior fiscal year. Higher promotional allowances also reduced net selling prices contributing to the gross margin decline.

     Gross Margin–Frozen Food Products Segment

     The gross margin before depreciation decreased from 40.9% to 38.9%, in fiscal 2007, primarily due to higher flour commodity costs when compared to the prior fiscal year. Higher promotional allowances also reduced net selling prices contributing to the gross margin decline. Increased selling prices were insufficient to overcome increased commodity costs.

     Gross Margin–Refrigerated and Snack Food Products Segment

     The gross margin before depreciation decreased from 31.2% to 30.3%, in fiscal 2007, primarily due to higher meat commodity costs and lower unit volumes when compared to the prior fiscal year. The impact of price increases was negligible. Promotional allowances were higher compared to the prior year which also contributed to the slight gross margin decline.

     Selling, General and Administrative Expenses-Consolidated

     Selling, general and administrative expenses decreased $2,714 (6.2%) when compared to the prior year. After considering the additional week in fiscal 2006, average weekly expenses were lower compared to the prior year. Within this category costs for advertising and outsourced computer network security and support outpaced sales growth. Offsetting these increases were lower employee benefit expenses (pension, healthcare, workers’ compensation and vacation pay), increased gains on life insurance policies and reduced staff costs related to computer network outsourcing.

     Selling, General and Administrative Expenses-Frozen Food Products Segment

     Selling, general and administrative expenses in the Frozen Food Products segment increased by $382 (2.7%) compared to the prior year. Higher advertising costs were partially offset by lower employee benefit expenses when compared to the prior year.