Aurora Foods' First Quarter Performance Improvement Driven By Strong Growth in Leading Brands

St. Louis, MO - April 23, 2001 - Aurora Foods Inc. (NYSE: AOR), a leading producer and marketer of premium branded food products such as Duncan Hines® and Mrs. Paul's®, today announced improved operating performance for its first quarter ended March 31, 2001. Aurora made significant advances on its strategy to increase sales of key products, reduce costs, and enhance marketing support for its core brands.

Driven by top-line revenue increases in many brands and continued cost improvements, EBITDA grew 21.8% to $35.0 million during the first quarter 2001 compared to adjusted EBITDA* of $28.8 million in the year ago quarter.

While Aurora's net sales for the first quarter rose just 0.6% to $283.6 million versus the same period a year ago, the Company's two largest businesses -- Duncan Hines Baking Mixes and Frozen Seafood -- posted net sales growth of 12.0% and 14.5%, respectively, compared to the first quarter 2000. Both the Van de Kamp® and Mrs. Paul's seafood brands had a strong Lent, and Duncan Hines showed strong growth in four out of five product categories. Excluding frozen Lender's® bagels, a business where consumption has lagged, Aurora's net sales would have risen 3.1% and total unit volume would have increased 5.4% compared to the same period a year ago.

Aurora also announced that its cost effectiveness program is producing the expected results. The Company's marketing spending per case during the first quarter was almost 8% lower than a year ago, even though volume was above year ago levels. Aurora also has redirected more of its spending to the consumer. First quarter advertising as a percentage of consumer spending more than doubled compared to the same period a year ago. Cost of goods sold per case has also improved 4.1% compared to a year ago, which is significant given the size of the Company's brand volumes.

"We are very pleased with our continued performance improvement," said James T. Smith, President and Chief Executive Officer of Aurora Foods. "We are confident that our business plan -- which emphasizes increased sales, reduced costs and enhanced marketing support -- is gaining traction and will deliver long-term value."

Mr. Smith continued, "We are seeing continued momentum with nine of our 16 business categories in our last four week share period showing absolute dollar consumption growth versus the year ago period." He also noted that Aurora expects to launch seven new products in the next three months.

The Company reported a narrower loss in the first quarter 2001 of $7.8 million or $0.11 per share compared to the net loss of $28.6 million or $0.43 per share in the year ago period. Excluding the non-recurring after-tax charge of $12.2 million for a change in an accounting principle, the net loss for the first quarter 2000 was $16.4 million. On this basis, Aurora's first quarter 2001 net loss represents an improvement of over 50%.

The Company also reported that first quarter 2001 results were free of special charges. Inventories and receivables in the first quarter declined $11.6 million and $24.2 million, respectively, from year-end 2000 levels. Aurora reiterated that it expects full year EBITDA to be in the $175 million to $180 million range, a 15% to 18% year-over-year improvement.

*Adjusted EBITDA for 2000 is defined as EBITDA plus other financial, legal, and accounting expenses, transition expenses, and the cumulative effect of a change in accounting.