Smart Food with a Healthy Future MARCH 17, 2006. Experienced Management Team Robert C. Harrison President & C.E.O. Don Paterson, C.A. Chief Financial.

Smart Food with a Healthy Smart Food with a Healthy FutureFuture

MARCH 17, 2006

Experienced Management TeamExperienced Management Team

Robert C. Harrison President & C.E.O.

Don Paterson, C.A.Chief Financial Officer

Peter C. Morrice, M.D.

Scientific Advisor

Ian MorriceExecutive Vice President

Business ModelBusiness Model

• Branding “Dairy Fresh Farms™”

• Developing licensing agreements for the manufacture and distribution of its innovative dairy products

““Dairy Fresh FarmsDairy Fresh FarmsTMTM” ” Milk and Dairy ProductsMilk and Dairy Products

Skim Milk

• Patented Process • Exclusive Canadian License• Milk and Cream• Coming soon

GMO Free Canola Oil

Ice Creams, Yogurts and Cheeses

Product BenefitsProduct Benefits

Tastes as good as or better than 2% milk Low in saturated fat Low in cholesterol Lactose-Free Nutritionally superior to 2% milk Patented Formula-enhanced with

monounsaturated fat

• Contributes to reduced serum cholesterol levels• Helps prevent heart disease

Dairy Fresh Farms: Optimal Fat Dairy Fresh Farms: Optimal Fat ProfileProfile

SFAs*

PUFAs

MUFAs

Dairy Fresh

SFAs

PUFAs

MUFAs

2% Milk Fat

Recommended Daily Allowance

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SFAs less than 7%

PUFAs approx 13%

MUFAs up to 80%

*Saturated fat content is below U.S. threshold(0.5 grams per serving). This allows labelling as“no saturated fat”.

MUFA - Monounsaturated fat PUFA - Polyunsaturated fat SFA - Saturated fat

Dairy Fresh Comparison Dairy Fresh Comparison Chart Chart

COMPARISONS *2% Milk *1% Milk Dairy Fresh

Serving Size 1 cup (240 ml)

Calories (energy) 129 108 90

Protein (grams) 8.6 8.5 7

Fat (grams) 5 2.7 2.5

Carbohydrates (grams) 12 12 10

Cholesterol (mg) 30 15 5

FAT

Saturated 3.3 1.7 0.3

Polyunsaturated 0.2 0.1 0.6

Omega 6 0 0 0.4

Omega 3 0 0 0.2

Monounsaturated 1.5 0.8 1.5

*Data for 2% and 1% Milk are estimates

World Authorities on Monounsaturates World Authorities on Monounsaturates and Preventive Cardiologyand Preventive Cardiology

• Scott Grundy, M.D., PhD University of Texas SW Medical Center (Chairman of the

NCEP)

• Nilo Cater, M.D. University of Texas S.W. Medical Center

• Penny Kris-Etherton, PhD, R.D. Penn State University (American Heart Association Advisor)

• Nathan Wong, PhD University of California, Irvine

Professionally Endorsed by…

January 1, 2003

“A Healthy Diet, Low in Saturated

and Trans Fats may Reduce the

Risk of Heart Disease”Source: Health Canada: Canadian Food & Health Inspection Agency

Nutritional Labelling Has Nutritional Labelling Has ChangedChanged

The Timing is The Timing is RightRight

a. Sources: Agriculture and Agri-Foods Canada: Functional Foods and Nutraceuticals Industry

World market growth in natural health & functional food productsa

• Increasing consumer understanding of the link between diet and disease

• Aging populations• Advances in food technology and nutrition research

Consumer trend to milk with lower fat content or milk alternative products (i.e. Soy & Rice beverages, Lactose-Free beverages)

High growth for foods that are lower in saturated fats and cholesterol

License signed with Canadian Heart & Stroke Foundation for use of symbol in Canada

Canadian Dairy IndustryCanadian Dairy Industry

Sources: Statistics Canada, Calculation done by the Dairy Section, Agriculture and Agri-Food Canada, Dairy Fresh and Harbinger Research estimates

Industrial Milk,

$6,572

Cream,$433

Milk,$4,484Fluid Milk,

$4,917

Yogurt, $920

Butter, $460

All Other, $657 Ice

Cream, $2,629

Hard Cheese $1,906

2004 Canadian Dairy Market BreakdownTotal Market Size = $11.5 Billion

(in CD$ millions)

42%58%

91%

9%

10%

40%

29%

14%

7%

Consumption of Milk & Cream by Consumption of Milk & Cream by ProvinceProvince

12.3%

11.6%

6.5%

38.7%

22.5%

8.4%

Maritimes (249)Quebec (669)Ontario (1,149)Man/Sask (192)Alberta (345)B.C. (365)

Total Litres Consumed = 2,968MM

Province (MM Litres)

Source: Canadian Dairy Commission, 2003

Product’s OriginsProduct’s Origins

• Licensed in early 90’s• Marketed under brand

“Farmer’s Best”

• Obtained the Australia Heart Foundation’s Approval - “Tick” logo is on “Farmer’s Best” package

• Grew the fluid milk category by 3.8% while achieving a 4.5% market share

• Priced at a 25% premium vs. regular milk

Dairy Fresh TechnologiesDecember, 2003

Quantitative Research

RESULTS: Purchase Intent ---RESULTS: Purchase Intent ---Top 2 Box Pre Top 2 Box Pre andand Post Taste Post Taste

TestTest100%

80

60

40

0

20

Average(47%)

85th Percentile(62%)

Average = Average score across all food categories85th Percentile = 15% of all food categories scored at this level or above

Top Box increased from 48%

to 58% Post

Taste!

Dairy Fresh (86%)

86%

Top Box =Definitely will purchaseTop 2 Box = Definitely/probably will purchase

RESULTS: Health Advantage --- Top RESULTS: Health Advantage --- Top 2 Box2 Box

100%

80

60

40

0

20

Average(56%)

85th Percentile(73%)

Average = Average score across all food categories85th Percentile = 15% of all food categories scored at this level or above

Dairy Fresh (87%)

87%

Purchase IntentPurchase Intent

Vancouver: over 8 in 10 would purchase Dairy Fresh Farms instead of the milk they currently buy.

17%

83%

Purchase Instead Of

PurchaseIn Addition To

Vancouver

30%

70%

Montreal: 7 in 10 would purchase Dairy Fresh Farms…

Montreal

Of the 85% who expressed positive purchase interest…

Dairy Fresh Farm’s Milk is for Dairy Fresh Farm’s Milk is for Everyone!Everyone!

4%

50%

71%

92%

90%

98%

89%

92%

13%

58%

82%

89%

89%

91%

97%

98%

Only for people with heart health issues

I would drink this product more frequently than the milk Icurrently drink

Is worth paying a little more for

For people like me

For the whole family

For everyday consumption

For people who want the taste of milk without the badfats

For people looking for a healthier alternative

VancouverMontreal

What Did They Like?What Did They Like?

• Three quarters thought the taste was better than expected

• Graphics of pouring glass of milk was a clear winner

• Low in cholesterol, low fat and lactose-free all important

Dairy Fresh Product LaunchesDairy Fresh Product Launches

*93% Interested in Cheese *88% Interested in Ice Cream

*Based on Consumer Feedback from Research and In-store samplings

Investment ConsiderationsInvestment Considerations

The right product at the right time in one of the biggest and fastest growing categories worldwide

Exclusive Canadian license on patented process

A strong team of experienced and committed individuals

Solid relationships with relevant strategic partners

Endorsements of the health benefits of “Dairy Fresh Farms” by leading North American Experts

Outstanding results in Canadian research!

COMPANY:Dairy Fresh Farms

413 Churchill Avenue NorthOttawa, ON KIZ5C7

Phone (613) 724-2484Fax (613) 722-6343

www.dairyfresh.ca

INVESTOR RELATIONS:ROI Group Associates, Inc.39 Broadway, Suite 2410

New York, NY 10006Phone (212) 495-0200

Fax (212) 495-0746www.roiny.com

Bob Giordano, President, [email protected]

Contact InformationContact Information