Trading Statement

    16 January 2008

                              Gold Frost Limited                               

                        ("Gold Frost" or "the Company")                        

                               Trading Statement                               

In its announcements of 28 August 2007, 11 October 2007 and 30 November 2007,
Gold Frost (ticker: GLF), the designer, developer and distributor of kosher
chilled, frozen and dairy food products, documented the increasingly negative
impact that significant global price increases in the raw materials for its
products was having on its business.

In its latest statement of 30 November, the Company noted that it continued to
experience cost pressures due to weather related problems, reduced milk
production, cessation of EU dairy export subsidies at the same time that
consumption and demand for dairy had increased in growing emerging markets and
that these factors had negatively impacted its near term sales and gross
margins on products.

This challenging environment persisted throughout the remainder of 2007 and
continues today. In the fourth quarter of 2007, the Company endeavoured to
leverage its infrastructure and to manage its costs to mitigate the effects of
the difficult trading environment referred to above. Early indications suggest
that revenues for Q4 of 2007 increased compared to Q4 of 2006; however, the
expected gross and net profit of Q4 of 2007 were negatively impacted as a
result of it. As a result, the Company expects that its gross and net profit
for the year ended 31 December 2007 will be below expectations.

Outlook

In 2007 the Company increased its product prices to its customers in response
to dairy input price increases but was unable to pass on the full cost of the
price increases it experienced to its customers. The outlook for 2008 remains
uncertain. Global diary prices have yet to stabilise and the Board is unable to
predict when or if this will happen in 2008. The Board does not consider that
there is scope for further price increases to its customers at present but
continues to monitor the situation carefully.

Enquiries:

Gold Frost Ltd

Zwi Williger, Chief Executive Officer [phone]

Blue Oar Securities Plc [phone]

Rhodri Cruwys/Matthew Marchant



END