The Inventure Group, Inc. Announces Second Quarter 2008 Results

PHOENIX, July 23, 2008 (PRIME NEWSWIRE) -- The Inventure Group, Inc.
(Nasdaq:SNAK) today reported financial results for the second quarter ended June
28, 2008. Net revenues for the second quarter of fiscal 2008 were $29.2 million,
representing an increase of 28% compared to the second quarter of fiscal 2007.
Excluding the impact of Rader Farms(r), which contributed $10.1 million of net
revenue in the quarter, the snack division revenue was $19.1 million,
representing an increase of 2.7% as compared to the snack division revenues in
the same period of last year. The positive impact of price increases as compared
to last year's second quarter, the addition of $1.2 million of net revenues from
BURGER KING(tm) snacks and the growth in Boulder Canyon(tm) Natural Foods snack
products of 38% as compared to the same period of last year were all partially
offset by continued softness in revenues from T.G.I. Friday's(r) salted snacks.

Key Financial Metrics:

* Gross profit was $5.3 million for the quarter, representing an
increase of 21% compared to $4.4 million of gross profit recognized
in the same period of last year. Key drivers include Rader
Farms(r), which contributed $1.3 million of gross profit as
compared to $0.8 million in the second quarter of last year and
the snack division where gross profit of $4.0 million for the
quarter was 11% higher and 1.5 points higher as a percentage of net
revenue than the $3.6 million of gross profit recognized in the
same period last year, primarily attributable to price increases
implemented at the beginning of the year and lower plant costs on
a per pound basis.

* Selling, general and administrative ("SG&A") expenses for the
quarter increased $0.4 million as compared to the second quarter
of fiscal 2007 but decreased as a percentage of net revenues to
13.6% as compared to 15.7% in the same period of last year. The
acquisition of Rader Farms(r), while adding some overall SG&A
costs, has allowed us to leverage our overall SG&A expenses thereby
reducing the overall costs as a percent of net revenue.

* Operating income of $1.3 million for the quarter was 74% higher and
1.2 percentage points higher as a percentage of net revenue than
the $0.8 million of operating income recognized in the second
quarter of fiscal 2007.

* Net income was $0.7 million for the quarter, or 4 cents per share,
an increase of 118% compared to $0.3 million and 1 cent per share
for the same period last year.

* Net income was $1.1 million for the first half of fiscal 2008, or
6 cents per share, an increase of 159% compared to $0.4 million and
2 cents per share in the same period last year.

* Earnings before interest, taxes, depreciation and amortization
("EBITDA") was $2.0 million for the second quarter, an increase of
51% and 1.1 percentage points as a percent of net revenue compared
to the same period last year. EBITDA for the first half of fiscal
2008 was $3.9 million, an increase of 121% and 2.6 percentage
points as a percentage of net revenue as compared to the first half
of the prior year. A table reconciling EBITDA to net income is
presented at the end of the condensed consolidated financial
statements included in this release.

* Total debt was reduced by $3.0 million as compared to year end 2007
as a result of the strong financial returns and a focus on managing
working capital.
"We are very pleased with our second quarter results," noted Terry McDaniel,
President and CEO of The Inventure Group. "We delivered another $2 million of
EBITDA in the quarter bringing the first half EBITDA to $3.9 million and
management believes that the company is on track to duplicate that result in the
second half of 2008 if the Rader Farms crop and orders from our major customers
come in as expected.

"Our three prong strategy focusing on Rader Farms(r), warehouse snacks and
Boulder Canyon(tm) kettle chips has started to pay off. Rader Farms(r) continues
to contribute significant net revenue and earnings for the Company. Net revenue
for the second quarter for Rader Farms(r) was up 19% vs. last year on a stand
alone basis.

"Our Snack business net revenues grew 2.7% in the quarter led by our kettle
chips with strong results for Boulder Canyon(tm) up 38% for the quarter and
Poore Brothers(r) up 48% partially attributable to sales to a new national drug
store chain customer. Under our warehouse snack segment, BURGER KING(tm) snacks
contributed $1.2 million in net revenue for the quarter. BURGER KING(tm) snacks
are on track to be our most successful product launch since we introduced T.G.I.
Friday's(r) Cheddar and Bacon in 2000. Based on the success of BURGER KING(tm)
snacks, Burger King Corporation has extended the license to international
markets including Mexico, South America, Latin America, Caribbean, Hong Kong,
Thailand, Taiwan and the Philippines. We are also adding Onion Rings to the
lineup which is scheduled to be launched in July."

McDaniel continued, "The main challenge for the first half has been the decline
in our T.G.I. Friday's(r) snack business which is down 20% in the first half of
the year vs. last year. However, our total pounds produced out of our Bluffton
plant where T.G.I. Friday's(r) snacks are produced is only down 6.3%, as we
continue to seek and attract private label and co-pack opportunities. We intend
to increase promotional spending on this brand to begin to address the decline
and are working with T.G.I. Friday's(r) group to extend our product offerings
into new categories and channels of distribution. We recently developed
technology at the Bluffton plant that allows us to use existing equipment to
make pellet snacks that are entirely different in appearance and taste from our
other product lines, and we believe this technology will allow us to expand our
T.G.I. Friday's(r) and BURGER KING(tm) product lines and add new brands into our
branded category of snack products.

"We also face the challenge of managing raw material cost increases in 2009. We
expect to offset cost increases through price increases, driving operational
efficiencies and growing and leveraging our asset base.

"We are pleased to announce the introduction of our new Rice & Bean based
product line produced at the Bluffton plant. The product will be sold under the
Boulder Canyon(tm) brand to private label customers in the grocery, natural and
club channels. To date we have received favorable response from the trade.

"Operations execution has improved, as plant costs per pound decreased from the
same period last year. Finally, our focus on working capital management coupled
with positive financial results allowed us to reduce overall debt by $3 million
on a year to date basis.

"In summary, our recent performance reflects significant improvement over the
last several years. Our Rader Farms(r) business is strong and growing, our
kettle chip business continues to grow at double digit rates and we believe that
our warehouse snack business will be aided by increased spending on TGI
Friday's(r), continued growth in BURGER KING(tm) and the launch of new and
innovative products."

About The Inventure Group, Inc.

With manufacturing facilities in Arizona, Indiana and Washington, The Inventure
Group is a marketer and manufacturer of Intensely Different(tm) specialty brands
in indulgent and better-for-you food categories under a variety of Company owned
or licensed brand names, including T.G.I. Friday's(r), BURGER KING(tm), Rader
Farms(r), Boulder Canyon(tm) Natural Foods, Poore Brothers(r), Tato Skins(r) and
Bob's Texas Style(r). For further information about The Inventure Group or this
release, please contact Steve Weinberger, Chief Financial Officer, at (623)
932-6200, or logon to http://www.inventuregroup.net.

The Inventure Group, Inc. logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=3283

Statements contained in this press release that are not historical facts are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Because such statements include risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward-looking statements. Factors that may cause actual
results to differ from the forward-looking statements contained in this press
release and that may affect the Company's prospects in general include, but are
not limited to, the potential need for additional financing, acquisition-related
risks, significant competition, customer acceptance of new products, dependence
upon major customers, dependence upon existing and future license agreements,
general risks related to the food products industry, and such other factors as
are described in the Company's filings with the Securities and Exchange
Commission.

THE INVENTURE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

Quarter Ended Six Months Ended
------------------------ ------------------------
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)

Net revenue $29,248,655 $22,926,095 $55,419,730 $39,905,992
Cost of revenue 23,946,832 18,564,049 45,043,172 32,447,385
----------- ----------- ----------- -----------
Gross profit 5,301,823 4,362,046 10,376,558 7,458,607
Selling, general &
administrative
expenses 3,965,677 3,595,589 7,781,332 6,503,283
----------- ----------- ----------- -----------
Operating income 1,336,146 766,457 2,595,226 955,324
Interest expense,
net 128,326 176,107 681,237 155,965
----------- ----------- ----------- -----------

Income before
income taxes 1,207,820 590,350 1,913,989 799,359
Income tax
provision 485,280 258,573 780,153 362,073
----------- ----------- ----------- -----------

Net income $ 722,540 $ 331,777 $ 1,133,837 $ 437,286
=========== =========== =========== ===========

Earnings per
common share:
--------------
Basic $ 0.04 $ 0.01 $ 0.06 $ 0.02
=========== =========== =========== ===========
Diluted $ 0.04 $ 0.01 $ 0.06 $ 0.02
=========== =========== =========== ===========
Weighted average
number of common
shares:
-----------------
Basic 18,810,260 19,302,251 18,810,827 19,302,822
=========== =========== =========== ===========
Diluted 18,810,260 19,317,893 18,810,827 19,426,747
=========== =========== =========== ===========

THE INVENTURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

June 28, Dec. 29,
2008 2007
----------- -----------
(unaudited) (unaudited)
Current assets $23,030,778 $22,572,697
Property and equipment, net 24,265,474 23,436,752
Other assets, net 14,703,992 14,681,269
----------- -----------
Total assets $62,000,244 $60,690,719
=========== ===========

Line of credit $ 5,013,320 $ 7,452,309
Other current liabilities 14,496,345 11,486,331
Long-term debt 11,847,994 12,445,383
Other long-term liabilities 1,552,159 1,574,727
----------- -----------
Total liabilities 32,909,818 32,958,750
Shareholders' equity 32,072,732 30,713,543
Treasury Stock, at cost (2,982,306) (2,981,574)
----------- -----------
Total liabilities and shareholders'
equity $62,000,244 $60,690,719
=========== ===========

THE INVENTURE GROUP, INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION
(unaudited)

Quarter Ended Six Months Ended
------------------------ ------------------------
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Reconciliation -
EBITDA (1):
Reported net
income $ 722,540 $ 331,777 $ 1,133,837 $ 437,286
Add back:
Interest, net 128,326 176,107 681,237 155,965
Add back: Income
tax expense 485,280 258,573 780,153 362,073
Add back:
Depreciation 648,083 537,005 1,339,521 819,225
Add back:
Amortization of
intangible
assets 5,685 11,737 7,580 12,711
----------- ----------- ----------- -----------
EBITDA $ 1,989,914 $ 1,315,199 $ 3,942,328 $ 1,787,260
=========== =========== =========== ===========

(1) EBITDA is presented as a supplemental performance measure and is
not intended as an alternative to net income or any other measure
calculated in accordance with generally accepted accounting
principles. Further, EBITDA may not be comparable to similarly
titled measures used by other companies.
-0-
CONTACT: The Inventure Group, Inc.
Steve Weinberger, Chief Financial Officer
(623) 932-6200
http://www.inventuregroup.net