Mr. Dave McAnerney reports

SUN-RYPE REPORTS Q1 2013 FINANCIAL RESULTS

Sun-Rype Products Ltd. has released its financial results for the quarter ended March 30, 2013.

Financial highlights

Sun-Rype's net sales in the first quarter of 2013 were $36.6-million compared with $39.0-million in the first quarter of 2012. The company's net income in the first quarter of 2013 was $500,000, or five cents per share, compared with net income of $1.4-million, or 13 cents per share, in the first quarter of 2012.

"The decrease in Sun-Rype's net sales in the first quarter of 2013 was due primarily to decreased branded sales as compared with the same period last year," commented Dave McAnerney, president and chief executive officer. "Gross profit decreased by $300,000 primarily related to lower net sales, production overhead costs, distribution costs, raw material costs and increased production efficiencies. Net income decreased due to lower gross profit, increased selling expenses, and a one-time charge to general and administrative expenses of approximately $600,000 on an aftertax basis."

Outlook

Despite reporting net income in 2012 and the first quarter of 2013 after incurring a net loss in 2011, the company continues to face challenges. Market data indicate that sales in the shelf-stable juice category, in which the company derives approximately 60 per cent of its net sales, have been softening. It is unclear whether these declines will continue. Strong competitive pressures experienced on branded products in 2012 and the current year are anticipated to continue. The prices of certain concentrates and apples are returning to historical averages, but price volatility is anticipated moving forward.

The company is continuing to focus on launching innovative products and broadening geographic distribution of its products to mitigate the challenges described. Increased product development and launch costs are expected in 2013, and there is no certainty that the incremental sales from these products will exceed costs.

Additional information

Management's discussion and analysis, and consolidated financial statements, and accompanying notes of Sun-Rype Products for the year ended Dec. 31, 2012, are available on SEDAR and the company's website. Additional information relating to Sun-Rype's operations can be found in the company's annual information form, filed with all applicable Canadian securities commissions and available for viewing on SEDAR and the company's website.

                                   
                    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                 (In thousands, except per share)
                                                                               For the quarters ended
                                                                       March 30, 2013  March 31, 2012

Net sales                                                                    $ 36,643        $ 39,021
Cost of sales                                                                 (29.403)        (31,527)
Gross profit                                                                    7,240           7,494
Sales and marketing (expenses)                                                 (2,811)         (2,099)
Distribution (expenses)                                                        (1,636)         (1,925)
General and administrative (expenses)                                          (1,947)         (1,291)
Results from operating activities                                                 846           2,179
Finance costs                                                                    (140)           (229)
Income before income tax                                                          706           1,950
Income tax (expense)                                                             (177)           (509)
Net income for the period                                                         529           1,441
Other comprehensive income (loss)
Foreign currency translation differences for foreign operations                    53             (14)
Total comprehensive income for the period                                         582           1,427
Basic and diluted earnings per share                                             0.05            0.13

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