The Company periodically evaluates the value of tax-loss carry-forward credits on its financial statements as required by Generally Accepted Accounting Principles. In 2008, the Company increased the value of the tax-loss carry-forward credits which increased net income in 2008 and stockholders equity at December 31, 2008 by $525,000. Based on increased profitability in 2009 and potential future profitability, the Company again increased the value of the tax-loss carry-forward credits which increased net income in 2009 and stockholders equity at December 31, 2009 by $139,000. Due to the tax credit adjustments, the Company had net income of $698,358 or $0.253 per share in 2009 compared to net income of $1,030,387 or $0.374 per share in 2008.

Revenue for the fourth quarter of 2009 was $640,039 compared to $641,731 during the same period in 2008.

Food Technology Service, Inc. CEO Dr. Richard Hunter said “I am pleased by our increased profitability despite the loss of a large customer that was purchased and moved to Texas early in 2009. The fact that annual and fourth quarter revenues were nearly identical between 2009 and 2008 is an indication that the Company has replaced much of that business.” “We continue to generate over $1,000,000 per year in cash flow and retired nearly $630,000 in debt during 2009. This negates all stock conversion rights held on that debt and we are debt-free.”

Food Technology Service, Inc. provides irradiation services for food items, medical products and consumer goods to enhance the safety of those products. The Company is certified to ISO 13485:2003 standards for radiation sterilization services for medical devices.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.

For More Information:

Contact: Richard G. Hunter Ph.D., President/CEO
Food Technology Service, Inc.
(863) 425-0039
www.ftsi.us

The Company periodically evaluates existing tax-loss carry-forward credits and has concluded that future taxable income will allow realization of a larger portion of that deferred asset. Accordingly, $281,000 of the reserve has been reversed as a credit to income taxes during 2009. To facilitate comparison to the same period in 2008, profit for the third quarter of 2009 and the first three quarters of 2009 is being expressed as net income (with increased tax credit benefit) and income before taxes (without increased tax credit benefit).

The Company had net income (with increased tax credit benefit) during the third quarter of 2009 of $343,491 and income before taxes (without increased tax credit benefit) during the third quarter of 2009 of $62,491. These figures compare to $186,859 during the third quarter of 2008 and represent a decrease in income before taxes of about 66 percent and an increase in net income of about 84 percent. For the first three quarters of 2009, the Company had income before taxes of $410,289 and net income of $621,289. This compares to net income of $393,187 for the first three quarters of 2008. Revenues and income before taxes for the first three quarters of 2009 were comparable to those realized for the first three quarters of 2008, as were earnings per share. Net income for the first three quarters of 2009 increased approximately 58% over the same period in 2008. Earnings per share for the first three quarters of 2009 were $0.251 compared to $0.143 for the same period in 2008.

During the third quarter of 2009, the Company made a payment of $200,000 for debt owed to MDS Nordion. This reduced the Company’s total debt at the end of the third quarter of 2009 to $447,565. The Company has made further debt payment of $225,000 during the fourth quarter of 2009.

Food Technology Service, Inc. provides irradiation services for medical products, food items and consumer goods to enhance the safety of those products. The Company is certified to ISO 13485:2003 standards for the provision of radiation sterilization services for medical devices.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.

For More Information:

Contact: Richard G. Hunter Ph.D., President/CEO
Food Technology Service, Inc.
(863) 425-0039
www.ftsi.us

The Company’s statement of operations reflects non-cash deferred income tax expense of $104,500 for the second quarter of 2010, and $190,100 for the first half of 2010. Prior to December 31, 2009, the Company presented income tax expense with a corresponding benefit as management continued to reduce its valuation allowance for the deferred tax asset. For reporting periods after December 31, 2009, management discontinued reducing the valuation allowance resulting in a non-cash expense for income taxes. This resulted in net income during the second quarter of 2010 of $173,124 versus $165,296 during the second quarter of 2009, and net income of $315,115 during the first half of 2010 verses $347,798 during the same period of 2009.

Included in revenue for the second quarter and first half of 2009 is a settlement fee of $85,229 relating to the termination of a warehouse lease with a large customer that was purchased and moved in April, 2009. Without the settlement fee, revenue from operations for the second quarter and first half of 2009 would have been $567,495 and $1,242,325 respectively.

Food Technology Service, Inc. CEO Dr. Richard Hunter said “Our second quarter, 2010 results demonstrate that we have more than replaced revenue lost when a large customer was bought and moved and that the replacement revenue is more profitable. I am pleased by the speed at which we replaced this revenue and the continued growth of the Company.”

Food Technology Service, Inc. provides irradiation services for medical products, food items and consumer goods to enhance the safety of those products. The Company is certified to ISO 13485:2003 standards for the provision of radiation sterilization services for medical devices.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.

For More Information:

Contact: Richard G. Hunter Ph D., President/CEO
Food Technology Service, Inc.
(863) 425-0039
www.ftsi.us

The Company’ statement of operations reflects non-cash deferred income tax expense for the three months ended March 31, 2010 in the amount of $85,600.  In past reporting periods, the Company had presented income tax expense with a corresponding benefit as management continued to reduce its valuation allowance for the deferred tax asset.  For the three months ended March 31, 2010, management did not reduce the valuation allowance resulting in the non-cash expense for income taxes.  This resulted in net income during the first quarter of 2010 of $141,991 versus net income of $181,872 during the first quarter of 2009.

Food Technology Service, Inc. CEO Dr. Richard Hunter said “I am pleased by our ability to replace revenue lost when a large customer was bought and moved.  The replacement revenue is more profitable which is reflected in higher earnings before taxes.”

Food Technology Service, Inc. provides irradiation services for medical products, food items and consumer goods to enhance the safety of those products.  The company is certified to ISO 13485:2003 standards for the provision of radiation sterilization services for medical devices.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.

For More Information:

Contact: Richard G. Hunter Ph D., President/CEO

Food Technology Service, Inc.
(863) 425-0039
www.ftsi.us

Food Technology Service, Inc. CEO Dr. Richard Hunter said “I am pleased by our growth in revenues and earnings as well as our repayment of debt. During the third quarter of 2008, the Company paid the remaining balance of approximately $239,000 on a loan for a new warehouse completed in November, 2006 and also made a payment of $50,000 for debt owed to MDS Nordion.” “These two actions reduced the Company’s total debt from approximately $1,060,000 to approximately $770,000” said Hunter.

Food Technology Service, Inc. provides irradiation services for medical products, food items and consumer goods to enhance the safety of those products. The Company is certified to ISO 13485:2003 standards for the provision of radiation sterilization services for medical devices.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.

For More Information:
Contact: Richard G. Hunter Ph.D., President/CEO
Food Technology Service, Inc.
(863) 425-0039

Food Technology Service, Inc. CEO Dr. Richard Hunter said, “I am pleased by our performance this year. In addition to strong revenue growth, the Company paid the remaining balance of $200,000 on a loan during the third quarter. That loan was for Cobalt installed in January, 2007.” 

Food Technology Service, Inc. provides irradiation services for medical products, food items and consumer goods to enhance the safety of those products. The company is certified to ISO 13485:2003 standards for the provision of radiation sterilization services for medical devices. 

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements. 

Food Technology Service, Inc., MulberryRichard G. Hunter Ph D., President/CEO, 863-425-0039