Lawrence Bates, President and CEO of Sun-Rype Products Ltd., announces that Sun-Rype's earnings for the second quarter are $1.1 million, or $0.11 per share, on sales of $23.2 million. This compares to earnings of $1.0 million, or $0.10 per share, on sales of $24.7 million for the second quarter of 1999. For the six months, earnings are $2.3 million on sales of $48.8 million, compared to earnings of $2.0 million on sales of $49.2 million for the same period last year.
"Sales are down slightly from the same period last year due mainly to lower apple juice sales, a consequence of a reduced availability of process grade apples", Bates says. "Lower selling, general and administration costs, as well as lower amortization costs, helped offset the effect of lower sales for the quarter."

"We are pleased with our earnings to date, having successfully managed through the 'short' process grade apple crop from last autumn," Bates says. "As we move forward, the industry outlook is for more favourable volume and pricing for the 2000 process grade apple crop."

"Moving into our third quarter, Sun-Rype will be launching a major consumer advertising campaign in central and eastern Canada, which focuses on our Fruit to Go 100% all natural fruit snacks and Energy to Go 100% all natural fruit bars", says Bates. "Distribution and market penetration of these products has increased over the past six months and will be further supported by our advertising campaign which will remind consumers of the convenience and health attributes of these products."

On a governance note, the company will not proceed with the plan of arrangement contemplated at this year's Annual General Meeting. The benefits do not justify the costs to proceed at this time. The plan of arrangement had dealt with monetizing the value of the holdings of unlocated shareholders.

"In summary," Bates says, "we're off to a good start to the year 2000 and are looking forward to the new apple crop and our major consumer advertising campaign in eastern and central Canada."

Sun-Rype Products Ltd. is a national apple-based food and beverage company headquartered in Kelowna, BC. Sun-Rype manufactures and markets a wide variety of products including the flagship Blue Label Apple Juice, fruit juice blends, Fruit to Go 100% all natural fruit snacks and Energy to Go 100% all natural fruit bars. Beverage products are sold primarily in Western Canada and food products are sold throughout Canada.

Consolidated Interim Statements of Earnings and Retained Earnings
(In thousands of dollars except per share amounts)

For the three months For the six months
ended June 30 ended June 30
2000 1999 2000 1999
(restated) (restated)
Net sales $ 23,227 $ 24,666 $ 48,806 $ 49,154
Cost of sales 14,309 14,861 30,216 29,943
Gross profit 8,918 9,805 18,590 19,211

Selling, general and
administrative expenses 6,257 6,668 12,983 13,241
Depreciation and amortization 710 1,057 1,565 2,077
Interest expense 137 124 199 274
Other (99) 143 (99) 143
Earnings before income taxes 1,913 1,813 3,942 3,476

Income taxes 809 780 1,684 1,489
Net earnings 1,104 1,033 2,258 1,987

Retained earnings (deficit),
beginning of period 1,246 (2,616) 92 (3,570)

Retained earnings (deficit),
end of period $ 2,350 $ (1,583) $ 2,350 $ (1,583)

Earnings per share
Basic $ 0.11 $ 0.10 $ 0.23 $ 0.20
Fully diluted 0.11 0.10 0.22 0.19