A message from the ChairmanAt the AGM in November 2009 I informed you that the primary strategic focus of your board and management is to substantially increase earnings by concentrating on the fundamentals of the business.

The underlying NPAT of $8.5m for the first half of FY10 and the February 2010 profit guidance of an underlying annual NPAT for FY10 within the range of $15.5m – $17.5m indicate that the above strategy is unleashing the underlying earning capacity of the business.

I look forward to announcing the financial results for the year ending 30 June 2010 in late August 2010.

Chris Riordan, Chairman

A word from the Managing DirectorIt’s pleasing to report that the business strategies being implemented by the leadership team are delivering positive results.

The company’s improved performance is reflected in strong sales growth, improved market shares and increased category growth.

We plan to continue that improvement with some exciting new product developments, and a continued focus on increasing our manufacturing efficiencies.

As the country’s biggest producer of meat pies, we are pleased to be involved with the Federal Government’s deliberations on Country of Origin Labeling standards, and the proposed changes to beef import rules.

We are proud to support the Australian beef industry, and intend to only use quality cuts of 100% Australian beef in our branded beef products. So consumers can be sure that with our market leading products, they’re getting the real deal.

As proof, look out for our exciting new Four’N Twenty Legendary Angus product, which contains 100% Certified Australian Angus Beef – the tenderest, juiciest, tastiest beef in the business.

This is the biggest new product launch from Four’N Twenty since the hugely successful Traveller meat pie, and we are confident it will be a big hit with consumers.

Greg Bourke, Managing Director

Shareholder ‘sCalendarProjected Dates

23rd August 2010....Final Results FY10

15th September 2010....Final Dividend FY10

Date to be advised....AGM 2010

18th March 2011....Interim Dividend FY11

MAY 2010

A MessAge froM the ChAirMAn

A word froM the Md

AppointMent of heAd of sAles, tiM peters

100% AustrAliAn Beef

lAunCh of four’n twentY legendArY Angus Beef pie

opening of fruit pACking line

Appointment of Head of Sales, Tim PetersThe new Head of Sales, Tim Peters, commenced duties in January, bringing together the Sales function of both the In-Home and Out-of-Home channels.

Mr Peters’ previous position was with Fonterra Australia in Western Australia as General Manager Sales & Marketing WA. Before that he had three years as National Sales Manager Australia with Fonterra, based in Melbourne.

“Tim brings to Patties a strong track record in FMCG sales and marketing leadership,” said Mr Greg Bourke, Managing Director of Patties Foods.

“Tim has particular expertise in developing multi-channel sales strategies including retail, route and foodservice. He understands the importance of an integrated approach to sales and marketing. I look forward to Tim driving continued growth of Patties Foods brands in both In-Home and Out-of-Home channels,” Mr Bourke said.

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As a proudly Australian food manufacturer, Patties Foods uses only quality cuts of 100% Australian Beef in our branded beef products.

Managing Director Greg Bourke says there’s been a lot of public questioning of the meat content in meat pies since recent debate on the lifting of import bans on overseas meat.

“Consumers have the right to know what’s in a pie, and where it comes from.

“Patties Foods is one of the nation’s biggest users of red meat, accounting for about 35,000 cattle each year. We only use quality cuts. We don’t use imported meat in our brands, and have no intention of ever doing so”, Mr Bourke said.

To highlight its commitment to the Australian beef industry, and dispel myths about meat pies, Patties Foods has launched a webvideo – “A message to the pie lovers of Australia”:

www.patties.com.au

Meat & Livestock Australia spokesperson Belinda Roseby welcomed Patties Foods’ commitment to the local beef industry.

“The move by the iconic Aussie meat pie brand to commit to Australian beef and tell the story behind their products is testament to the excellent reputation of the Australian beef industry, Ms Roseby said.

Launch of Four’N Twenty Legendary Angus Beef PiePatties Foods has launched a new meat pie, the Four’N Twenty Legendary Angus Beef Pie, made from 100% Certified Australian Angus Beef.

General Manager Marketing, Mark Connolly, says the Four’N Twenty Legendary Angus Beef Pie is the biggest new product launched by Patties Foods since the extremely successful Four’N Twenty Traveller.

“This 100% Angus Beef pie takes the great Australian taste of Four’N Twenty to a new level. This is a very exciting new product for Patties Foods, and we are confident it will be a big hit with consumers.

“The new Four’N Twenty Legendary Angus Beef Pie heads a long list of innovative new products launched by Patties Foods this year, including the new Nanna’s Premium Tarts range, and the Mr Men Little Miss pack of petite party pies

from Patties,” Mr Connolly said.

CEO of Certified Australian Angus Beef, Phil Morley, applauded the new Four’N Twenty Legendary Angus Beef Pie as another great product using Australia’s best beef.

“It’s great to see 2 Aussie legends getting together – Certified Australian Angus Beef, and Four’N Twenty”, Mr Morley said.

Patties Foods new Head of Sales, Tim Peters, said that the success of recent new product developments across the whole range of brands gave the Sales Teams some great new products to work with.

“Knockout new products such as the Nanna’s Premium Tarts, and the Four’N Twenty Legendary Angus Beef range will play a big part in helping us drive category growth”, Mr Peters said.

Opening of Fruit Packing LineThe new Fruit Packing Line at Patties Foods state-of-the-art production facility at Bairnsdale will be officially opened in June 2010.

Built at a cost of $1.1 million, the line will pack frozen fruit and berry products for Patties Foods brands Creative Gourmet and Chefs Pride.

Patties Foods moved the operation from Silverwater in NSW to harness the economies of scale and synergies at its Bairnsdale production facility.

The move created another 30 jobs at the Bairnsdale plant, giving a significant boost to the local economy.

Managing Director, Mr Greg Bourke, said the relocation would result in significant ongoing cost savings.

“This has been a seamless relocation, allowing us to maximize performance at our Bairnsdale site, and I’d like to congratulate all involved for such a successful project”, Mr Bourke said.

100% Australian Beef

Greg Bourke and AFL legends launch Legendary Angus.

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