Snyder's-Lance, Inc.
Apr 25, 2008

Lance, Inc. Reports 2008 First Quarter Net Revenue of $198 Million, an Increase of 8.5% over First Quarter 2007; First Quarter 2008 Earnings of $0.02 Per Share Impacted by Continued Ingredient Cost Pressure

CHARLOTTE, N.C., April 25 /PRNewswire-FirstCall/ -- Lance, Inc. (Nasdaq: LNCE) today reported net revenue for the first quarter ended March 29, 2008 of $198.0 million, an increase of 8.5% over its prior year net revenue of $182.4 million.

The Company's branded product sales, which represented 62% of total Company sales in the quarter, grew approximately 5%, driven by double digit growth in Lance branded home-pack sandwich crackers and Cape Cod branded potato chips, partially offset by the continued decline in certain trade channels that the Company deemphasized as part of its focused growth strategy.

The Company's non-branded business, which represented 38% of total Company sales in the quarter, increased approximately 14% compared to the prior year, driven by continued volume growth from existing and new customers, new product introductions and higher selling prices.

The acquisition of premium cookie manufacturer Brent & Sam's on March 14, 2008 had no material impact on the Company's consolidated first quarter net revenue or net income.

Lance realized first quarter 2008 net income from continuing operations of $0.6 million, or $0.02 per diluted share, compared to first quarter 2007 net income from continuing operations of $5.9 million, or $0.19 per diluted share.

Net income in the first quarter of 2008 as compared to the first quarter of 2007 was adversely impacted by an approximate $13 million pre-tax increase in the cost of ingredients, primarily flour and vegetable oils. As previously reported, the Company initiated price increases to its customers in early 2008 aimed at offsetting these rising costs; however, during the first quarter, and subsequent to the price increases, the cost of these key ingredients continued to escalate, leading to a marked decline in operating profit.

Comments from Management

"As anticipated, the escalating cost of flour and vegetable oils significantly reduced our first quarter profitability," commented Dave Singer, President and Chief Executive Officer. "We have executed additional pricing actions that will take effect during the second quarter. Our ingredient costs will be somewhat higher in the 2008 second quarter than in the first quarter, and based on our outlook for ingredient costs and our assessment of the competitive situation, we will continue to consider further pricing actions as the year progresses. Our first quarter sales volume was strong despite the initial round of price increases, which is encouraging. We remain cautious in our near-term outlook until we see additional data and evaluate the impact on volume following our planned second quarter price increases."

Mr. Singer added, "Although the higher cost of ingredients led to significant margin pressure in the first quarter, our underlying performance has remained solid relative to initiatives focused on enhancing supply chain and DSD efficiencies. During the quarter we continued to lower our supply chain costs and increase the leverage of our DSD network with higher sales per route. As previously stated, we are confident that our operating margins will rebound in the second half of this year, as pricing is aligned with ingredient costs and we continue to execute on our key operational initiatives."

Company Revises Revenue Estimate for 2008

Based on its assessment of the current pricing environment and the addition of revenue related to the acquisition of Brent & Sam's for the remainder of the year, the Company raised its 2008 full year net sales estimate to a range of $805 to $835 million. Previously, on February 14, 2008, the Company had provided a full year net sales estimate range of $790 to $820 million.

Due to the continued volatility of ingredient costs, the Company reaffirmed its previous estimate for full year earnings per diluted share of $0.70 to $0.80. The Company believes that its earnings per share will be heavily weighted toward the second half of 2008 due to the timing of price increases needed to offset ingredient costs.

Dividend Declared

The Company also announced the declaration of a regular quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on May 20, 2008 to stockholders of record at the close of business on May 12, 2008.

Conference Call

Lance, Inc. has scheduled a conference call and presentation with investors at 9:00 am eastern time on Friday, April 25, 2008 to discuss first quarter financial results. To participate in the conference call, the dial-in number is (800) 789-3681 for U.S. callers, or (706) 634-1425 for international callers. The access code is "LANCE." A continuous telephone replay of the call will be available beginning at 12:00 pm on April 25th and running through May 2nd at midnight. The replay telephone number is (800) 642-1687 for U.S. callers, or (706) 645-9291 for international callers. The replay access code is 41863980. Investors may also access a web-based replay of the conference call at Lance's web site, www.lance.com.

The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of Lance Inc.'s website www.lance.com. In addition, the slide presentation will be available to download and print approximately 30 minutes before the webcast at Lance's Investor Relations home page.

About Lance, Inc.

Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout much of the United States and other parts of North America. The Company's products include sandwich crackers and cookies, potato chips, crackers, cookies, other snacks, sugar wafers, nuts, restaurant style crackers and candy. Lance has manufacturing facilities in North Carolina, Iowa, Georgia, Massachusetts, Texas, Florida, Arkansas and Ontario, Canada. Products are sold under the Lance, Cape Cod, Tom's and Brent & Sam's brand names along with a number of private label and third party brands. The Company's products are distributed through a direct-store-delivery system of approximately 1,400 sales routes, a network of independent distributors and direct shipments to customer locations. Products are distributed widely through grocery and mass merchant stores, convenience stores, food service outlets and other channels.

This news release contains statements which may be forward looking within the meaning of applicable securities laws. The statements may include projections regarding future earnings and results which are based upon the Company's current expectations and assumptions, which are subject to a number of risks and uncertainties. Factors that could cause actual results to differ, including price competition and industry consolidation, increases in prices or availability of ingredients, product price increases impact on total revenue, risks from large customers, changes in consumer preferences, implementation of a new information system, product recalls or safety concerns, food industry and regulatory factors, acquisition and divestiture risks, ability to execute strategic initiatives, interest rate, foreign exchange rate and credit risks and natural disasters or catastrophic events are discussed in the Company's most recent Form 10-K filed with the Securities and Exchange Commission.


                                 LANCE, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (in thousands, except share and per-share amounts)
                                 (unaudited)

                                                         Quarter Ended
                                               March 29, 2008   March 31, 2007

    Net sales                                       $197,968       $182,426
    Cost of sales                                    123,460        102,976
    Gross margin                                      74,508         79,450

    Selling, general and administrative               72,857         69,616
    Other income, net                                     (4)           (90)
    Income from continuing operations
     before interest and taxes                         1,655          9,924

    Interest expense, net                                606            604
    Income tax expense                                   404          3,448
    Net income from continuing operations               $645         $5,872

    Income from discontinued operations                    -            537
    Income tax expense                                     -            199
    Net income from discontinued operations                -            338
      Net Income                                        $645         $6,210

    Basic earnings per share:
      From continuing operations                      $ 0.02          $0.19
      From discontinued operations                         -           0.01
    Basic earnings per share                          $ 0.02          $0.20
    Weighted average shares outstanding - basic   31,103,000     30,805,000

    Diluted earnings per share:
    From continuing operations                        $ 0.02          $0.19
    From discontinued operations                           -           0.01

    Diluted earnings per share                        $ 0.02          $0.20
    Weighted average shares outstanding -
     diluted                                      31,608,000     31,131,000



                                 LANCE, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)

                                              March 29, 2008 December 29, 2007
    Assets:
    Cash and cash equivalents                         $1,156         $8,647
    Accounts receivable, net                          73,843         64,081
    Inventories                                       40,319         38,659
    Other current assets                              23,901         21,702
      Total Current Assets                           139,219        133,089
    Fixed Assets, net                                205,371        205,075
    Goodwill and other intangibles, net               87,318         69,127
    Other noncurrent assets                            5,742          5,712
      Total Assets                                  $437,650       $413,003

    Liabilities and Equity:
    Accounts payable                                 $32,518         21,169
    Other current liabilities                         48,220         53,468
      Total Current Liabilities                       80,738         74,637

    Long-term debt                                    74,703         50,000
    Other liabilities                                 41,740         41,269
    Stockholders' equity                             240,469        247,097
    Total Liabilities and Stockholders' Equity      $437,650       $413,003



                                 LANCE, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                                (in thousands)
                                 (unaudited)

                                                        Quarter Ended
                                              March 29, 2008    March 31, 2007

    Operating Activities:
    Net income                                          $645         $6,210
    Depreciation and amortization                      7,925          6,981
    Stock-based compensation expense                   1,003            876
    Loss/(gain) on sale of fixed assets                  102           (140)
    Changes in other operating assets and
     liabilities                                      (3,738)        (5,916)
    Net cash flow from operating activities            5,937          8,011

    Investing Activities:
    Purchases of fixed assets                         (7,057)        (7,073)
    Proceeds from sale of fixed assets                   230            802

    Business acquisitions net of cash acquired       (24,123)             -
    Net cash used in investing activities            (30,950)        (6,271)

    Financing Activities:
    Dividends paid                                    (5,019)        (4,935)
    Issuances of common stock                             70            829
    Proceeds from long-term debt                      24,000              -
    Repayments of debt from business acquisitions     (1,495)             -
    Net cash from/(used in) financing activities      17,556         (4,106)

    Effect of exchange rate changes on cash              (34)           108

    Decrease in cash and cash equivalents             (7,491)        (2,258)
    Cash and cash equivalents at beginning of
     period                                            8,647          5,504
    Cash and cash equivalents at end of period        $1,156         $3,246

SOURCE Lance, Inc.

CONTACT:
Russell Allen
Director - Planning & IR
+1-704-557-8219
or Joe Calabrese
Financial Relations Board
+1-212-827-3772
both of Lance, Inc.