N@N

Innovative Food Holdings Announces Record First Quarter Results

_{//business-finance.news-articles.net/content/201 .. ings-announces-record-first-quarter-results.html}
^{Published in Business and Finance on Thursday, May 13th 2010 at 6:10 GMT by Market Wire}  

NAPLES, FL--(Marketwire - May 13, 2010) - Innovative Food Holdings, Inc. (OTCBB: [ IVFH ]), a marketer and purveyor of the finest premium gourmet food products to professional chefs throughout the United States and to the premium gourmet consumer market, announced today that sales for the first quarter of 2010 increased by over 44% compared to sales for the first quarter a year ago.

First Quarter Results:

Revenues increased to $2,307,961 which is a significant increase of $707,286,or over 44%, compared to revenues of $1,600,675 in the first quarter of 2009.

Operating Profit includes expenses associated with "change in the fair value of options liability," which is a non-cash stock option revaluation expense, resulting from the company's higher stock price and under GAAP rules is included in SG&A expenses. This can result in either a non cash gain or expense added to the company's operating results and is dependent on a valuation associated with the company's stock price at the close of the quarter. The non cash options valuation expense required to be recorded as an SG&A expense under GAAP for the 1^st quarter of 2010 was $84,360.

Operating profit without the non cash options valuations expense was $81,230 (EBITOV) which is a significant improvement of over 200% compared to the operating profit of $26,420 (without the non cash options valuations gain) in the first quarter of 2009. (The operating profit recorded for the first quarter of 2009 was $113, 845 which includes a gain of $87,425 associated with change in the fair value of options liability in 2009.)

Operating Cash Flow increased to $74,548 which is a significant improvement of over $108,000 in additional operating cash flow compared to operating cash flow in the first quarter of 2009.

In addition, on a separate note, based on discussions and spot checks with our gulf seafood sources and other seafood sources, at this time, the company does not believe that the oil spill on the gulf coast will have any material effect on our operations.

Operating Highlights for the quarter included:

• Record Operating Cash Flow
• Record First Quarter Revenues

• 44% year over year quarterly revenue growth

• Strong Operating Results

• Launch of our premium gourmet website [ www.forthegourmet.com ]

The CEO of Innovative Food Holdings, Inc. Mr. Sam Klepfish said, "We are truly pleased by the extremely strong revenue growth of over $700,000 experienced in the first quarter, our improved revenue mix in the first quarter and by our operating results. In addition, we are especially proud of the record cash generated in the first quarter by Innovative Food Holdings. We believe we continue to solidify our position as a leader in the premium gourmet industry. Our offerings, driven by our technology driven gourmet platform, continue to gain acceptance in the gourmet and luxury market and we continue to focus on aggressively growing our existing businesses."

Mr. Klepfish continued, "Furthermore, we continue to pursue and evaluate new business opportunities including potential synergistic outside ventures and strategic, synergistic acquisition and investment opportunities which could leverage our existing infrastructure and position in the premium gourmet marketplace. We are in discussions with several potential partners and in discussions regarding potential new business opportunities with several entities and we will provide updates when feasible from a business prospective. Although there are no assurances that any transaction or relationship will be consummated from these discussions."

About Innovative Food Holdings

Innovative Food Holdings, Inc., through its wholly owned subsidiaries, is in the business of marketing and selling high quality gourmet food through it's technology driven gourmet food platform.

Food Innovations, Inc., in partnership with one of the largest Foodservice distributors in the Unites States, provides over 3,000 of the highest quality gourmet food products to professional chefs throughout the United States. To learn more, visit the Food Innovations website at [ www.foodinno.com ]. Food Innovations is a wholly owned subsidiary of Innovative Food Holdings, Inc.

For The Gourmet, Inc., through its website, [ www.forthegourmet.com ] and through additional sales channels, provides the highest quality premium gourmet food products to the retail consumer market. For The Gourmet is a wholly owned subsidiary of Innovative Food Holdings, Inc.

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the "Company") that are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as should, could, anticipated, believed, intended, potentially or expected. The Company does not intend to update these forward-looking statements.