Smart Food with a Healthy Future MARCH 17

Smart Food with a Healthy Future MARCH 17, 2006

Experienced Management Team Robert C. Harrison President & C. E. O. Ian Morrice Executive Vice President Don Paterson, C. A. Chief Financial Officer Peter C. Morrice, M. D. Scientific Advisor

Business Model • Branding “Dairy Fresh Farms™” • Developing licensing agreements for the manufacture and distribution of its innovative dairy products

“Dairy Fresh Farms. TM” Milk and Dairy Products • • Patented Process Exclusive Canadian License Milk and Cream Coming soon Ice Creams, Yogurts and Cheeses Skim Milk GMO Free Canola Oil

Product Benefits ü Tastes as good as or better than 2% milk ü Low in saturated fat ü Low in cholesterol ü Lactose-Free ü Nutritionally superior to 2% milk ü Patented Formula-enhanced with monounsaturated fat • Contributes to reduced serum cholesterol levels • Helps prevent heart disease

Dairy Fresh Farms: Optimal Fat Profile Recommended Daily Allowance 100% 2% Milk Fat Dairy Fresh MUFAs 90% 80% PUFAs 70% 60% MUFAs up to 80% 50% 40% SFAs 30% 20% 10% PUFAs approx 13% PUFAs SFAs less than 7% SFAs* MUFA - Monounsaturated fat PUFA - Polyunsaturated fat SFA - Saturated fat *Saturated fat content is below U. S. threshold (0. 5 grams per serving). This allows labelling as“no saturated fat”.

Dairy Fresh Comparison Chart *Data for 2% and 1% Milk are estimates

World Authorities on Monounsaturates and Preventive Cardiology Professionally Endorsed by… • Scott Grundy, M. D. , Ph. D Ø University of Texas SW Medical Center (Chairman of the NCEP) • Nilo Cater, M. D. Ø University of Texas S. W. Medical Center • Penny Kris-Etherton, Ph. D, R. D. Ø Penn State University (American Heart Association Advisor) • Nathan Wong, Ph. D Ø University of California, Irvine

Nutritional Labelling Has Changed 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

The Timing is Right ü High growth for foods that are lower in saturated fats and cholesterol ü License signed with Canadian Heart & Stroke Foundation for use of symbol in Canada ü 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 ü Consumer trend to milk with lower fat content or milk alternative products (i. e. Soy & Rice beverages, Lactose-Free beverages) a. Sources: Agriculture and Agri-Foods Canada: Functional Foods and Nutraceuticals Industry

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

Consumption of Milk & Cream by Province Total Litres Consumed = 2, 968 MM Province (MM Litres) Source: Canadian Dairy Commission, 2003

Product’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

Quantitative Research Dairy Fresh Technologies December, 2003

RESULTS: Purchase Intent --Top 2 Box Pre and Post Taste Test 100% 86% 80 Top Box increased from 48% to 58% Post Taste! 60 40 Top Box =Definitely will purchase Top 2 Box = Definitely/probably will purchase 20 0 Average (47%) 85 th Percentile (62%) Dairy Fresh (86%) Average = Average score across all food categories 85 th Percentile = 15% of all food categories scored at this level or above

RESULTS: Health Advantage --- Top 2 Box 100% 87% 80 60 40 20 0 Average (56%) 85 th Percentile (73%) Dairy Fresh (87%) Average = Average score across all food categories 85 th Percentile = 15% of all food categories scored at this level or above

Purchase Intent Of the 85% who expressed positive purchase interest… § Vancouver: over 8 in 10 would purchase Dairy Fresh Farms instead of the milk they currently buy. § Montreal: 7 in 10 would purchase Dairy Fresh Farms… Vancouver Purchase Instead Of Montreal Purchase In Addition To

Dairy Fresh Farm’s Milk is for Everyone!

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 Launches *93% Interested in Cheese *88% Interested in Ice Cream *Based on Consumer Feedback from Research and In-store samplings

Investment Considerations ü The right product at the right time in one of the biggest and fastest growing categories worldwide ü Exclusive Canadian license on patented process ü A strong team of experienced and committed individuals ü Solid relationships with relevant strategic partners ü Endorsements of the health benefits of “Dairy Fresh Farms” by leading North American Experts ü Outstanding results in Canadian research!

Contact Information COMPANY: Dairy Fresh Farms 413 Churchill Avenue North Ottawa, ON KIZ 5 C 7 Phone (613) 724 -2484 Fax (613) 722 -6343 www. dairyfresh. ca INVESTOR RELATIONS: ROI Group Associates, Inc. 39 Broadway, Suite 2410 New York, NY 10006 Phone (212) 495 -0200 Fax (212) 495 -0746 www. roiny. com Bob Giordano, President, x 10 rgiordano@roiny. com