FOR IMMEDIATE RELEASE

FOR MORE INFORMATION CONTACT:
TERRY LUSETTI      
DIRECTOR OF INVESTOR RELATIONS
503-256-3754
WWW.YOCREAM.COM

YOCREAM FACILITY EXPANSION SETS STAGE FOR GROWTH
AND PROFITABILITY
Portland, OR, January 24, 2007 - YoCream International, Inc., (PINK SHEETS: YOCM) a leader in frozen yogurt and frozen beverage manufacturing, has completed a 14-month facility expansion project adding 21,000 square feet to its now 75,750 square foot dairy and manufacturing plant in Portland, Oregon. The major construction project connects the existing manufacturing facility to the neighboring dry warehouse and includes an additional 7,000 sq. ft. production room and support area, 10,600 sq. ft of freezer rooms, 3,400 sq. ft. refrigerated shipping dock with three truck bays, and a new quality assurance lab. Total freezer and cooler space now equals 22,000 sq. ft, capable of holding 3.5 million pounds of finished goods and ingredients. 8,000 sq. ft. of this space has blast freeze capability

“Our new energy efficient freezer rooms are maintained at minus 15 degrees Fahrenheit and hold approximately 1,500 pallets,” stated Terry Oftedal, Director of Supply Chain Operations. “We’ve already increased our direct customer shipments and significantly reduced outside freeze down, storage and handling expenses.” The Company also completed conversion of the existing freezer into refrigerated storage and workspace, effectively increasing cooler capacity by 200%. The freezers went on-line in October 2006 at the close of the Company’s fiscal year and the production room and quality assurance lab were completed in January 2007.

New filling lines will be installed in the expanded production facility to accommodate growth in both the Company’s sales as well as sales to the custom manufacturing market. “YoCream has earned a reputation for helping custom manufacturing clients maintain a competitive edge by consistently delivering the best long-term value through a combination of quality, service and innovation,” stated Matt Hanna, Director of Administration and Custom Manufacturing Sales. “The augmented production capacity improves our responsiveness to the needs of this growing segment.”

YoCream continued full manufacturing operations during the expansion project. Increased offsite freeze down and storage were required, impacting income from operations for the 2006 fiscal year. The Company generated positive sales growth of 14.7% during the same period and expects invigorated earnings in 2007.

Financing for the project was provided by internally generated funds and by the sale of $6,700,000 of 30-year State of Oregon Industrial Revenue Bonds, security for which includes an irrevocable direct pay letter of credit provided by KeyBank National Association. The Company also received an Oregon Energy Trust Efficiency Grant, an Oregon Department of Energy tax credit, a Multnomah County Regional Investment Grant, and property tax abatements arranged through Portland Development Commission. “The assistance of the State, City and County officials and the role of KeyBank were significant relative to the completion of our expansion,” CEO John Hanna stated. “It attests to the support our community and government leaders provide for worthy business projects that increase employment and promote the local economy.”

About Yocream International, Inc.
YoCream International, Inc., with headquarters and a dairy and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt. Founded in 1977, YoCream produces, markets and sells frozen yogurt, ice cream and frozen custard mixes as well as fruit and dairy smoothies and frozen beverages. The Company has 30 years experience of providing solutions to the away-from-home foodservice market: Quick serve and full service restaurants, business & industry, education, college & university, military, healthcare and convenience stores. With a proven history of providing high-quality products and solution-based customer service, YoCream International is an established food service vendor, co-packer, and industry leader poised for long-term growth. The common stock of the Company is traded on Pink Sheets® under the symbol YOCM. For more information log on to www.yocream.com.

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