Snyder's-Lance, Inc.
Nov 1, 2007

Lance, Inc. 2007 Third Quarter Net Revenue Increases 5% to $198 Million; Reports $0.24 Diluted EPS from Continuing Operations;

Lowers Full Year Earnings Estimate on Expectation of Higher Commodity Costs

CHARLOTTE, N.C., Nov. 1 /PRNewswire-FirstCall/ -- Lance, Inc. (Nasdaq: LNCE) today reported net revenue from continuing operations for the third quarter ended September 29, 2007 of $198.1 million, an increase of 5% compared with prior year third quarter net revenue from continuing operations of $188.6 million. The Company reported third quarter 2007 net income from continuing operations of $7.6 million, or $0.24 per diluted share, compared to third quarter 2006 net income from continuing operations, excluding special items, of $7.7 million, or $0.25 per diluted share. Special items in the third quarter of 2006 were related to the integration of the Tom's acquisition. Including these special items, third quarter 2006 net income from continuing operations was $7.4 million, or $0.24 per diluted share.

Net revenue from continuing operations for the nine months ended September 29, 2007 was $577.5 million, an increase of 4% compared with the same period in the prior year. For the first nine months of 2007, net income from continuing operations was $22.7 million, or $0.72 per diluted share, compared to net income from continuing operations, excluding special items, of $14.2 million, or $0.46 per diluted share, in the first nine months of the prior year. Special items in the first nine months of 2006 were related to the integration of the Tom's acquisition. Including these special items, net income from continuing operations for the first nine months of 2006 was $12.4 million, or $0.40 per diluted share.

During the third quarter of 2007, Lance successfully completed the previously announced exit of its Company-owned vending business, which has been reported as a discontinued operation. The Company reported a net loss of $0.1 million from its discontinued vending business in the third quarter of 2007, and net income of less than $0.1 million for the first nine months of 2007.

Comments from Management

Dave Singer, President and Chief Executive Officer, commented, "Overall third quarter sales increased 5%, with 4% growth in branded sales and 6% growth in non-branded sales. In addition to our solid top-line growth, we realized meaningful progress on our key operating initiatives resulting in lower delivery costs and higher manufacturing efficiencies. Unfortunately, the benefits of higher sales and operational improvements were offset by a sharp escalation in commodity costs, particularly flour, driven by the unprecedented trend in the price of wheat. Commodity costs in the third quarter of 2007 were higher than in the second quarter of this year, resulting in lower operating margins."

Mr. Singer added, "In response to the increase in commodity costs, we have developed pricing actions that will be implemented and take effect later in the fourth quarter of 2007 and in the first half of 2008. However, our gross margin will be impacted considerably during the fourth quarter of 2007, reflecting the lag between increases in commodity prices and the effective date of price increases to our customers, and resulting in our revised earnings estimate for the year."

Mr. Singer said, "Although the unprecedented commodity pressure is masking the solid profit margin improvements that we posted through the first half of 2007, our underlying performance has remained very solid relative to cost efficiencies in the supply chain and DSD areas of our business. The infrastructure improvements continue to generate benefits and have offset some of the rapid increases in commodities to date. We are confident that our operating margins will rebound once all required pricing actions are taken, and we remain focused on growing our revenues and delivering against our efficiency initiatives that will drive sustainable margin enhancement for the long-term."

Revised 2007 Estimates

Based upon the changing outlook for commodity costs in the fourth quarter, the Company revised its full year 2007 estimates for earnings per diluted share from continuing operations to a range of $0.76 to $0.80. Previously, the Company had provided a full year earnings per diluted share estimate of $0.86 to $0.92. The Company also narrowed its net sales estimate to a range of $760 to $770 million. Previously, the Company had provided a full year net sales estimate of $750 to $775 million.

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 November 20, 2007 to stockholders of record at the close of business on November 12, 2007.

Conference Call

Lance, Inc. has scheduled a conference call discussion with investors at 5:00 pm eastern time on Thursday, November 1, 2007 to discuss third quarter financial results. To participate in the call, the dial-in numbers are (800) 789-3681 for U.S. callers and (706) 634-1425 for international callers. The access code is "LANCE." A continuous replay of the call will be available beginning at 8:00 pm on November 1 and running through midnight November 9, 2007. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 19248543. A web-based replay of the conference call will also be available in the investor relations section of Lance's web site, www.lance.com.

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, restaurant style crackers, potato chips, tortilla chips, cookies, sugar wafers, nuts, candy and other snacks. Lance has manufacturing facilities in North Carolina, Georgia, Florida, Texas, Iowa, Massachusetts and Ontario, Canada. Products are sold under the Lance, Cape Cod and Tom'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 1,500 sales routes, a network of independent distributors and direct shipments to customer locations. Products are distributed widely through grocery stores, convenience stores, mass merchants, 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, industry consolidation, changes in consumer preferences, product recalls, safety concerns, natural disasters, catastrophic events, raw material costs, food industry and regulatory factors, risks from large customers, interest rate, foreign exchange rate, and credit risks, acquisition integration and divestitures are discussed in the Company's most recent Form 10-K filed with the Securities and Exchange Commission.

This press release presents measures not derived in accordance with generally accepted accounting principles ("GAAP"). Such measures should not be considered substitutes for any measures derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliation of these non-GAAP measures to the most nearly comparable GAAP measures, if applicable, is presented in the attached pages.




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

                                                     Quarter Ended
                                       September 29, 2007  September 30, 2006

    Revenue                                   $198,052            $188,628
    Cost of sales                              115,692             106,768
    Gross margin                                82,360              81,860

    Selling, marketing and delivery             58,985              60,571
    General and administrative                  11,268               9,296
    Other expense/(income), net                    522                (243)
    Income from continuing operations
     before interest and taxes                  11,585              12,236

    Interest expense, net                          550                 901
    Income tax expense                           3,448               3,940
    Net income from continuing operations       $7,587              $7,395

    (Loss)/income from discontinued
     operations                                   (146)                129
    Income tax (benefit)/expense                   (54)                 45
    Net (loss)/income from discontinued
     operations                                    (92)                 84
       Net Income                               $7,495              $7,479

    Basic earnings per share:
       From continuing operations                $0.24               $0.24
       From discontinued operations               0.00                0.00
    Basic earnings per share                     $0.24               $0.24
    Weighted average shares outstanding
     - basic                                31,034,000          30,716,000

    Diluted earnings per share:
       From continuing operations                $0.24               $0.24
       From discontinued operations               0.00                0.00
    Diluted earnings per share                   $0.24               $0.24
    Weighted average shares outstanding
     - diluted                              31,693,000          31,154,000



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

                                                  Nine Months Ended
                                       September 29, 2007  September 30, 2006

    Revenue                                   $577,515            $557,714
    Cost of sales                              328,104             317,294
    Gross margin                               249,411             240,420

    Selling, marketing and delivery            175,328             185,901
    General and administrative                  36,008              32,525
    Other expense, net                           1,405                 436
    Income from continuing operations
     before interest and taxes                  36,670              21,558

    Interest expense, net                        1,768               2,398
    Income tax expense                          12,174               6,795
    Net income from continuing operations      $22,728             $12,365

    Income from discontinued operations             45                 797
    Income tax expense                              16                 289
    Net income from discontinued operations         29                 508
       Net Income                              $22,757             $12,873

    Basic earnings per share:
       From continuing operations                $0.74               $0.41
       From discontinued operations               0.00                0.01
    Basic earnings per share                     $0.74               $0.42
    Weighted average shares outstanding
      - basic                               30,921,000          30,370,000

    Diluted earnings per share:
       From continuing operations                $0.72               $0.40
       From discontinued operations               0.00                0.02
    Diluted earnings per share                   $0.72               $0.42
    Weighted average shares outstanding
      - diluted                             31,506,000          30,803,000



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

                                       September 29, 2007   December 30, 2006
    Assets:
    Cash and cash equivalents                  $14,313              $5,504
    Accounts receivable, net                    68,845              61,690
    Inventories                                 38,729              36,838
    Deferred income tax asset                    9,697               8,811
    Assets held for sale                           505               6,552
    Prepaid expenses and other
     current assets                              9,739               6,298
       Total Current Assets                    141,828             125,693
    Property plant and equipment, net          202,152             193,009
    Goodwill and other intangibles, net         68,432              62,300
    Other assets                                 6,752               4,450
       Total Assets                           $419,164            $385,452

    Liabilities and Equity:
    Accounts payable                           $22,057              18,194
    Other current liabilities                   54,492              53,426
       Total Current Liabilities                76,549              71,620

    Long-term debt                              50,000              50,000
    Other liabilities                           43,364              41,432
    Stockholders' equity                       249,251             222,400
    Total Liabilities and Stockholders'
     Equity                                   $419,164            $385,452



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

                                                   Nine Months Ended
                                       September 29, 2007  September 30, 2006

    Operating Activities:
    Net income                                 $22,757             $12,873
    Depreciation and amortization               21,839              20,096
    Equity-based compensation expense            2,680               1,762
    Gain/(loss) on disposition of
     property, net                                (839)                 69
    Changes in operating assets and
     liabilities                                (3,991)            (15,751)
    Net cash flow from operating
     activities                                 42,446              19,049

    Investing Activities:
    Purchases of property and
     equipment                                 (28,299)            (34,678)
    Proceeds from sale of property               6,895               3,382
    Purchase of investment                      (2,090)                  -
    Net cash used in investing
     activities                                (23,494)            (31,296)

    Financing Activities:
    Dividends paid                             (14,878)            (14,617)
    Issuances of common stock                    4,600              17,862
    Net proceeds from revolving credit
     facilities                                      -               8,396
    Net cash (used in)/from financing
     activities                                (10,278)             11,641

    Effect of exchange rate changes
     on cash                                       135                 253

    Increase/(decrease) in cash and
     cash equivalents                            8,809                (353)
    Cash and cash equivalents at
     beginning of period                         5,504               3,543
    Cash and cash equivalents at
     end of period                             $14,313              $3,190



                                 LANCE, INC.
                     RECONCILIATION OF NON-GAAP MEASURES
                   (in thousands, except per-share amounts)
                                 (unaudited)


    Third Quarter Ended September 30, 2006
                                                Net of            Per diluted
                                                  Tax                share

    Net Income from continuing operations       $7,395               $0.24

       Tom's integration related charges           333                0.01

    Income from continuing operations,
     excluding special charges                  $7,728               $0.25



    Nine Months Ended September 30, 2006
                                                Net of            Per diluted
                                                  Tax                share

    Net Income from continuing operations      $12,365               $0.40

       Tom's integration related charges         1,794                0.06

    Income from continuing operations,
     excluding special charges                 $14,159               $0.46

SOURCE Lance, Inc.



CONTACT:
Russell Allen
Director of Planning & IR, Lance, Inc.


+1-704-557-8219
or
Joe Calabrese
Financial Relations Board
+1-212-827-3772
for Lance, Inc.