B&D Food Corp. ("B&D") has signed a non-binding LOI for the acquisition of a well known coffee and powdered milk producer in the South of Brazil and its major factory renovation is expected to be completed this summer NEW YORK, July 18 /PRNewswire-FirstCall/ -- B&D(R) Food Corp. (OTC:BDFC.OB) (BULLETIN BOARD: BDFC.OB) , operating in the food and beverage industry, specializes in the trading, roasting and distribution of top quality Arabica coffee. This week B&D announced the signing of a non-binding Letter of Intent for the acquisition of Leite Canaan and Geskan, which are specialty coffee and powdered milk subsidiaries. In midst of the various coffee and beverages producers and distributors, B&D has managed to position itself in a unique place in the Brazilian coffee market. B&D's founders began trading quality soft commodities over 30 years ago from all of Brazil to overseas costumers worldwide. Today, B&D has evolved into a potential full capacity producer and distributor of various top grade coffee and related products. B&D Brief History BDFC, the manufacturing subsidiary of B&D, originally incorporated under the name Eastco Corp. do Brazil Ltda. In 1995, BDFC acquired its first production facility located in Cruzeiro, Sao Paulo. This factory was leased to an outside producer in January 2003 until April 2005 when BDFC assumed control of production. The factory is unique in being one of a few in all Brazil that is capable of producing massive quantities of instant coffee in its various forms: soluble, spray-dried or agglomerated as well as ground and roasted espressos. Additional products that could be produced are instant teas, cappuccino and chocolate beverages. Since BDFC resumed control of the factory, BDFC has sold four successful brand names of instant and roasted coffee in South Brazil and has opened new markets opened in Russia. Recently, B&D has suspended production while it conducts a total renovation of its factory that is expected to be completed this summer, which will render the factory into a state-of-the-art facility. During this renovation period, B&D's management has sought out new lucrative endeavors worldwide that compliment its mission of becoming a major participant of the world coffee market. B&D's first intended acquisition, Leite Canaan Inc. and Geskan, has now entered its final phase with a LOI signed and audits to be completed soon. These two acquisitions, although being of smaller income, compliment B&D's existing operation: Leite -- Powdered milk -- The factory has the ability to process 200 000 liters/day of raw milk = 16,800kg/day of powdered milk. -- The powdered milk is used in all cappuccino and 3-in-1 drinks that B&D intends to produce. -- Powdered milk prices are rising worldwide due to a shortage in raw milk supply and increasing demand. Geskan -- Specialty coffees -- Demand for specialty, high quality coffees is rising worldwide. The introduction of coffee franchises all over the U.S., Eastern and Western Europe and developing countries has raised the public's awareness to various kinds of top grade roasted coffee. -- Brazil, the world's largest producer of the finer Arabica coffee beans, has the ability to create rich blends of various bean types and send them to consumers worldwide. -- Geskan already markets successful brands of espressos and other roasted and ground coffees that are on shelves throughout south Brazil. The decision to acquire Leite Canaan and Geskan was generated from B&D's desire to place itself in a firm position in Brazil's southern markets while introducing new worldwide clients to its growing production capabilities. The location of both factories in the states of Rio de Janeiro and Sao Paulo has several advantages: -- These states are the economical, fashion and cultural capitals of Brazil. The result of successfully launching a brand in these states is excellent recognition in all of South Brazil. -- Both companies are located relatively close to the coffee producing state of Minas Gerais, allowing low transportation fees from farm to factory. -- Both factories are a three-hour drive from Brazil's largest harbors: Rio de Janeiro and Santos, allowing low transportation fees from factory to port. When it acquires Leite Canaan and Geskan, B&D will have a large distribution system covering most of South Brazil. These lines will soon combine B&D brands with Canaan's existing brands and expose new markets to top quality products. This acquisition is one in a line of potential acquisitions yet to come. B&D has strategically chosen companies worldwide, that upon assuming control, B&D will be able to grow both horizontally and vertically across the world coffee market. B&D is in crucial points of negotiation with these companies. The moves put into play by B&D may result, in the very near future, in a significant rise of the company's production quantities turning B&D into a Major Player in the coffee industry in a short time. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," 'confident' and similar statements. Among other things, expectations about the Brazilian coffee and food market and quotations from management in this announcement contain forward-looking statements. Statements that are not historical facts, including statements about B&D Food Corp's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those contained in any forward- looking statements. Further information regarding these and other risks is included in our annual report on Form 10KSB and other documents filed with the Securities and Exchange Commission. All information provided in this press release is as of July 18, 2007 and B&D Food Corp. undertakes no duty to update such information, except as required under applicable law. Want to know more about B&D, Brazilian coffee or soft commodity investments? Come visit our website: http://www.bdfcorp.com/ (an updated web site is coming soon). Contact: BDFC Brazil Alimentos Rua Luis Coelho 223 8th floor Sao PauloSP 01309-901 Brazil Tel: 5511-67644433 Fax: 5511-67644430 DATASOURCE: B&D Food Corp. CONTACT: BDFC Brazil Alimentos, Phone, 5511-67644433, Fax, 5511-67644430, http://www.info@bdfcorp.com/ Web site: http://www.bdfcorp.com/

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