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Premium Brands Holdings Corporation Announces Commissioning of a New Seafood Processing Facility and the Purchase of a Seafood Processing Business

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/24/13 -- Premium Brands Holdings Corporation (TSX:PBH), a leading producer, marketer and distributor of branded specialty food products, announced today the commissioning of a new seafood processing facility in Richmond, BC. The new facility will operate under the C2C Premium Seafood brand name.

The Company also announced today the purchase of certain segments of the business of Harbour Marine Products Inc., namely its salmon and high grade tuna sushi processing businesses, for $1.35 million. Harbour Marine is a Vancouver based seafood processor currently in receivership.

"The purchased Harbour Marine businesses, which generate annual sales of approximately $10.0 million, and the associated assets and skilled employees will be moved to our new Richmond seafood processing facility. This will not only provide the new facility with immediate critical mass but will also position us as one of the leading processors of sushi grade tuna on the west coast of Canada and the U.S. In addition, it will provide our Centennial Foodservice distribution business with proprietary access to very high quality tuna and wild salmon products," said Mr. George Paleologou, President and CEO.

"The completion of our new seafood processing facility and the purchase of the salmon and tuna processing businesses from Harbour Marine are key steps in the evolution of our national seafood platform. This platform, which has grown from under $20.0 million in sales in 2007 to projected sales of $142.0 million in 2013, is now in the unique position of being able to offer large retailers and restaurant chains with national programs for live, fresh and frozen seafood.

"Looking forward, we are very excited about increasing our presence in this fast growing and exciting segment of the food space," added Mr. Paleologou.

About Premium Brands

Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada and Washington State. The Company services over 26,000 customers and its family of brands and businesses include Grimm's, Harvest, McSweeney's, Bread Garden Go, Hygaard, Hempler's, Quality Fast Foods, Gloria's Best of Fresh, Direct Plus, National Direct-to-Store Distribution (NDSD), Harlan Fairbanks, Creekside Bakehouse, Centennial Foodservice, B&C Foods, Shahir, Duso's, Maximum Seafood, SK Food Group, OvenPride, Hub City Fisheries, Audrey's, Deli Chef and Piller's.

Forward Looking Statements

This press release contains forward looking statements with respect to the Company, including its business operations, strategy and financial performance and condition. These statements generally can be identified by the use of forward looking words such as "may", "could", "should", "would", "will", "expect", "intend", "plan", "estimate", "project", "anticipate", "believe" or "continue", or the negative thereof or similar variations.

Although management believes that the expectations reflected in such forward looking statements are reasonable and represent the Company's internal expectations and belief as of January 24, 2013, such statements involve unknown risks and uncertainties beyond the Company's control which may cause its actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward looking statements.

Factors that could cause actual results to differ materially from the Company's expectations include, among other things: (i) seasonal and/or weather related fluctuations in the Company's sales; (ii) changes in consumer discretionary spending resulting from changes in economic conditions and/or general consumer confidence levels; (iii) changes in the cost of raw materials used in the production of the Company's products; (iv) changes in the cost of products sourced from third party manufacturers and sold through the Company's proprietary distribution networks; (v) risks associated with the Company's conversion from a publicly traded income trust to a publicly traded corporation, including related changes in Canada's income tax laws; (vi) changes in the Company's relationships with its larger customers; (vii) potential liabilities and expenses resulting from defects in the Company's products; (viii) changes in consumer food product preferences; (ix) competition from other food manufacturers and distributors; (x) execution risk associated with the Company's growth initiatives; (xi) risks associated with the Company's business acquisition strategies; and (xii) new government regulations affecting the Company's business and operations. Details on these risk factors as well as other factors can be found in the Company's 2011 MD&A, which is filed electronically through SEDAR and is available online at www.sedar.com.

Unless otherwise indicated, the forward looking information in this document is made as of January 24, 2013 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking information in this document.

Contacts:
Premium Brands Holdings Corporation
George Paleologou
President and CEO
(604) 656-3100

Premium Brands Holdings Corporation
Will Kalutycz
CFO
(604) 656-3100
www.premiumbrandsholdings.com

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