Snyder's-Lance, Inc.
Jul 28, 2006

Lance, Inc. Reports Second Quarter Net Revenue of $193 Million, Up 16% From Prior Year, and Earnings Per Diluted Share of $0.21 Excluding Special Items, and $0.20 Including Special Items

CHARLOTTE, N.C., July 28 /PRNewswire-FirstCall/ -- Lance, Inc. (Nasdaq: LNCE) today reported net revenue for the second quarter ended July 1, 2006 of $192.8 million, an increase of 16% over prior year second quarter net revenue of $166.8 million. Branded product sales were up 19%, reflecting growth from incremental Tom's business and continued strength in sales of sandwich crackers and kettle cooked potato chips. Non-branded product sales were up 10%, reflecting incremental business provided by the Tom's acquisition as well as continued momentum in other core private label products.

The Company reported second quarter net income of $6.2 million, up 9% from the prior year's second quarter net income of $5.6 million, and earnings per diluted share of $0.20 compared to $0.19 in the prior year second quarter. Second quarter net income excluding special items was $6.5 million, down $0.8 million, or 10%, from last year's second quarter net income $7.3 million excluding special items. Earnings per diluted share excluding special items in the second quarter was $0.21, compared to $0.24 per diluted share excluding special items in the prior year second quarter. Special items in the second quarter of the 2006 included employee retention payments and asset impairment charges related to the Tom's integration. Special items in the second quarter of 2005 were related to CEO severance costs.

Comments from Management

"We are pleased with our results for the quarter, reflecting the continued momentum of our key initiatives and the efforts of a well-focused team," said David V. Singer, President and Chief Executive Officer. "The integration of the Tom's acquisition is going according to plan and, although there are some remaining integration items to complete, we are confident that much of the work is behind us. We also continue to achieve growth in our core product categories, with strong results reported in salty snacks and sandwich crackers. Focused on laying the groundwork for long-term growth, our strategic supply chain restructuring is underway and is expected to help us develop and enhance operating efficiencies. As we move into the second half of 2006, we are concerned about the negative impact of rising fuel costs and other commodities. We remain focused on executing on our initiatives as well as finding ways to mitigate rising costs."

Company's Fiscal 2006 Guidance

The Company reaffirmed its full year 2006 projection for net sales of approximately $750 to $775 million, and its estimate of earnings per diluted share of approximately $0.70 to $0.75 excluding special items.

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 August 18, 2006 to stockholders of record at the close of business on August 10, 2006.

Conference Call

Lance, Inc. has scheduled a conference call discussion with investors at 9:00 a.m. eastern time on Friday, July 28, 2006 to discuss second 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 12:00 p.m. on July 28 and running through midnight August 4. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 2325546. A web-based replay of the conference call will also be available in the investor relations section of Lance's web site, http://www.lance.com.

About Lance, Inc.

Lance, Inc. manufactures and markets snack foods throughout much of the United States and portions of Canada.

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, raw material costs, food industry factors, effectiveness of sales and marketing activities, interest rate, foreign exchange rate, and credit risks, acquisition integration and divestitures are discussed in the Company's most recent Forms 10-K and 10-Q 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)

                                                   For the Quarter Ended
                                             July 1, 2006        June 25, 2005
                                               (13 Weeks)           (13 Weeks)

    Net sales and other operating revenue       $192,814            $166,768
    Cost of sales                                106,409              89,748
    Gross margin                                  86,405              77,020

    Selling, marketing and delivery               61,834              54,904
    General and administrative                    11,901              11,412
    Provisions for employees' retirement plans     1,846               1,381
    Amortization of intangibles                       61                   -
    Other, net                                       237                 (82)
    Earnings before interest and income taxes     10,526               9,405

    Interest expense, net                            828                 550
    Earnings before income taxes                   9,698               8,855
    Income taxes                                   3,539               3,219
    Net income                                    $6,159              $5,636
    Earnings per share:
         Basic                                     $0.20               $0.19
         Diluted                                   $0.20               $0.19
    Weighted average shares outstanding:
         Basic                                30,462,000          29,834,000
         Diluted                              30,935,000          30,146,000



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

                                                 July 1,         December 31,
                                                  2006               2005
    Assets:
    Cash and cash equivalents                      $1,279             $3,543
    Accounts receivable                            67,598             59,088
    Inventories                                    41,829             36,409
    Deferred income tax                            12,669             10,160
    Assets held for sale                                -              3,020
    Prepaid expenses and other                      8,933              7,405
       Total Current Assets                       132,308            119,625
    Property plant and equipment, net             201,555            186,093
    Goodwill and other intangibles, net            60,799             59,873
    Other assets                                    3,485              3,488
       Total Assets                              $398,147           $369,079

    Liabilities and Equity:
    Current portion of long-term debt             $53,791            $36,000
    Accounts payable                               27,534             20,378
    Other current liabilities                      58,214             59,672
        Total Current Liabilities                 139,539            116,050

    Long-term debt                                      -             10,215
    Other liabilities                              39,741             41,105
    Stockholders' equity                          218,867            201,709
        Total Liabilities and
         Stockholders' Equity                    $398,147           $369,079



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

                                                    For the 26 Weeks Ended
                                               July 1, 2006      June 25, 2005

    Operating Activities:
    Net income                                     $5,394            $8,906

    Depreciation and amortization                  13,388            13,889
    Loss on sale of property, net                      (4)              (47)
    Deferred income taxes                          (3,796)           (1,598)
    Changes in operating assets and liabilities    (7,894)          (14,265)
    Net cash from operating activities              7,088             6,885

    Investing Activities:
    Purchases of property and equipment           (27,198)          (15,803)
    Acquisition of business, net of cash acquired       -            (4,829)
    Proceeds from sale of property                  2,762               669
    Net cash used in investing activities         (24,436)          (19,963)

    Financing Activities:
    Dividends paid                                 (9,677)           (9,495)
    Issuance of common stock                       17,036             2,968
    Net proceeds from revolving credit facilities   7,505                 -
    Net cash from/(used in) financing activities   14,864            (6,527)

    Effect of exchange rate changes on cash           220               (56)

    Decrease in cash and cash equivalents          (2,264)          (19,661)
    Cash and cash equivalents at
     beginning of period                            3,543            41,466
    Cash and cash equivalents at end of period     $1,279           $21,805



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

    Quarter Ended July 1, 2006
                                                Pretax    Net of   Per diluted
                                                Income  Income Tax    share

    Income, including special charges:          $9,698     $6,159     $0.20

    Tom's integration related charges              568        361      0.01

    Income, excluding special charges          $10,266     $6,520     $0.21



    Quarter Ended June 25, 2005
                                                Pretax    Net of   Per diluted
                                                Income  Income Tax    share

    Income, including special charges:          $8,855     $5,636     $0.19

    CEO severance related charges                2,478      1,634      0.05

    Income, excluding special charges          $11,333     $7,270     $0.24

SOURCE Lance, Inc.



CONTACT:
Russell Allen, Director of Planning & IR
+1-704-557-8219
or


Joseph Calabrese
Financial Relations Board
+1-212-827-3772