International Yogurt Reports First Quarter Revenues Up 35%

     PORTLAND, Ore., March 4 /PRNewswire/ -- International Yogurt Company,
(NASDAQ:YOCM) Portland manufacturer and wholesaler of YOCREAM(R) frozen
desserts and smoothies, reported another record quarter with sales of
$2,177,866 for the three months ending January 31, 1999, up 35% compared to
the corresponding quarter in 1998. The Company attributed the growth to
YOCREAM(R) Smoothie sales and successful penetration of YOCREAM(R) frozen
yogurt into convenience stores.
     For the first time in its history the Company enjoyed profits during the
winter quarter. Income from operations was $90,747 compared to a loss of
$29,330 in the comparable quarter last year. Net income was $49,503 compared
to a loss of $54,427 a year ago. Net income was impacted by a provision for
income taxes compared to no tax provision in the comparable quarter.
     Douglas Caudell, Chief Financial Officer, explained that this is the first
period in which the Company has made a provision for income taxes. This tax
provision will reduce the deferred tax asset established in prior years. As
of the end of fiscal 1998, the Company had recognized substantially all of the
deferred tax benefit of its net operating loss carryforwards, resulting in the
need for the current tax provision. The Company expects to utilize these past
net operating losses to reduce taxable income over the next several years;
that is, even though a tax expense must now be recognized in the financial
statements, it is not expected that cash expenditures for income taxes will be
required.
     Management believes that as a result of the change in circumstances
regarding income taxes, income from operations will be a better indicator of
comparative improvement in operating results than net income.
     Mr. Caudell also stated that the branding of YOCREAM(R) has been on the
increase throughout the country due to in-store branding with several chain
accounts, such as Blimpie International's Smoothie Islands. Mr. Caudell
indicated that the Company expects to announce other significant contracts
involving branded YOCREAM(R) products in the near future.

1st Quarter, January 31,                  1999                   1998 
Revenues                            $2,177,866             $1,613,935
Income (Loss) Before Taxes              68,503               (54,428)
Provision for Income Taxes            (19,000)                     --
Net Income (Loss)                      $49,503              ($54,428)
Net Income (Loss) Per Share               $.02                 ($.02) 


SOURCE International Yogurt Company
For more information, contact Terry Lusetti, Director of Investor Relations EMAIL or 1-800-YOCREAM