SSM

Premium Brands Holdings Corporation (TSX:PBH), a leading producer, marketer and
distributor of branded specialty food products, announced today the acquisition
of Vancouver, BC based South Seas Meats Ltd. ("SSM") for approximately $2.1
million.


SSM is a leading distributor of specialty meats, including a wide range of Halal
and other ethnic foods, to restaurants, hotels and specialty butcher shops in
the Greater Vancouver area. Its annual sales are approximately $10.0 million.


"This transaction is consistent with our strategy of using bolt-on acquisitions
to strengthen our differentiated distribution networks and expand our portfolio
of specialty food products," said George Paleologou, President and CEO.


"I am also pleased to welcome Mr. Ahsan Razak, the founder and operator of SSM,
to our management team. He has done a remarkable job in establishing SSM as a
high quality supplier of specialty meats to the ethnic foods segment of
Vancouver's foodservice and specialty retail markets. His experience, knowledge
and expertise will be very valuable as we continue to execute our ethnic foods
initiatives," added Mr. Paleologou.


"Looking forward, we expect to generate significant synergies from this
transaction by providing SSM access to our global procurement initiatives,
information system technologies and financial resources and by leveraging SSM's
ethnic foods expertise to expand the product offerings of our other distribution
networks," stated Mr. Paleologou.


The Company expects the SSM transaction to generate approximately $0.5 million
in incremental EBITDA in 2010 with its annualized EBITDA run rate rising to
approximately $0.8 million by the end of the year. Correspondingly, the
transaction is projected to be accretive to the Company's 2010 earnings and free
cash flow.


The purchase price, which is subject to adjustment if SSM's net working capital
position at closing is above or below $1.3 million, consisted of a $0.4 million
non-interest bearing note due three years after closing, the issuance of 14,618
Premium Brands common shares, the assumption of $0.4 million in funded debt and
cash.


About Premium Brands

Premium Brands owns a broad range of leading branded specialty food businesses
with manufacturing and distribution facilities located in British Columbia,
Alberta, Saskatchewan, Manitoba and Washington State. In addition, it owns
proprietary food distribution and wholesale networks through which it sells both
its own products and those of third parties to approximately 25,000 customers.
Premium Brands' family of brands includes Grimm's, Harvest, McSweeney's, Bread
Garden Express, Hygaard, Hempler's, Quality Fast Foods, Gloria's Best of Fresh,
Harlan's, Creekside Bakehouse, Centennial Foodservice and B&C Foods.


Forward Looking Statements

This press release includes forward looking statements with respect to Premium
Brands, 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 Premium Brands' internal expectations and belief as of January 22,
2010, such statements involve unknown risks and uncertainties beyond Premium
Brands' 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.


Important factors that could cause actual results to differ materially from
Premium Brands' expectations include, among other things: (i) seasonal and/or
weather related fluctuations in its 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 for its products; (iv) changes in the cost of products sourced from third
party manufacturers and sold through Premium Brands' proprietary distribution
networks; (v) changes in Canadian income tax laws; (vi) changes in consumer
preferences for food products; (vii) competition from other food manufacturers
and distributors; (viii) new government regulations affecting Premium Brands'
business and operations; (ix) the inability to realize anticipated tax
attributes associated with its recent conversion to a corporation; (x) exposure
to third party credit/contractual risk and operational risk relating to its
recent conversion to a corporation; and (xi) other factors as discussed in
Premium Brands Income Fund's Annual Information Form for 2008 and Premium Brands
Holdings Corporation's Management's Discussion and Analysis for the third
quarter of 2009, both of which are filed electronically through SEDAR and are
available online at www.sedar.com. It should be noted that this list of
important factors affecting forward looking information may not be exhaustive.


Unless otherwise indicated, the forward looking information in this document is
made as of January 22, 2010 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.

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