Dixie Lee International Industries, Inc. Acquires the Assets of Dixie Lee, the Franchisor of Over 100 Chicken and Fish Stores in

  
    
  
  
    
      Dixie Lee International Industries, Inc. (Pinksheets:DLII), a growing 
      master franchisor with more then 100 restaurants and over 40 years of 
      continuous operations, announced today that it has acquired the assets 
      of several “Dixie Lee” 
      related private Canadian corporations and Dixie Lee Food Systems (USA), 
      Inc., a privately held New York corporation.
    
    
      The acquisition is final and the Company is now the master franchisor of 
      over 100 Dixie Lee restaurants strategically positioned, primarily in 
      Eastern Canada, with stores from coast to coast. The transaction was 
      undertaken with the specific aim of expanding the Company’s 
      presence, as well as to develop an even greater franchisee network.
    
    
      The Canadian company began operations in 1964 and has been successfully 
      operating for over 43 years with chicken, fish and ribs as the signature 
      food items.
    
    
      Dixie Lee has three concepts designed to meet the consumers' demand for 
      fast, quality, economical meals. The Dixie Lee family restaurants range 
      from 1800 to 2500 square feet. The take-out with convenience seating 
      units typically range from 1500 to 2000 square feet. The take-out 
      dedicated units range from 800 to 1000 square feet.
    
    
      Joe Murano, Dixie Lee CEO, said, "this is an important benchmark in the 
      growth of our company. Our acquisition is complete and the quotation of 
      Dixie Lee International Industries' common stock on the public market 
      puts us in an excellent position to gain additional exposure for our 
      company and for our projects as we move to execute our strategic 
      development plan. Our goal is to enhance shareholder value and we 
      believe the best way to achieve this is simply by enhancing Dixie Lee's 
      strengths."
    
    
      For Information, please contact Robert Adams at [e-mail].
    
    
      About Dixie Lee
    
    
      Dixie Lee was founded in Belleville, Ontario and has been in operation, 
      initially marketed as supplementary food items to existing restaurants, 
      since 1964. Dixie Lee grew from 8 stores, in 1979, to more than 35 
      stores in Ontario by 1987. In 1988 Dixie Lee began selling franchises 
      and has expanded to over 70 franchised outlets from coast to coast.
    
    
      Dixie Lee International Industries, Inc. acquired Dixie Lee Food Systems 
      (U.S.A.) Ltd., the parent company that owns and operates over 100 
      stores, and is now pursuing expansion into the United States and foreign 
      markets with its “Dixie Lee Diner” 
      ™. All locations provide high quality food 
      products at economical prices with a strong emphasis on fast, friendly 
      service.
    
    
      This press release includes forward-looking statements and 
      projections, made in reliance on the safe harbor provisions of the 
      Private Securities Litigation Reform Act of 1995. The company has made 
      every reasonable effort to ensure that the information and assumptions 
      on which these statements and projections are based are current, 
      reasonable, and complete. However, a variety of factors could cause 
      actual results to differ materially from the projections, anticipated 
      results or other expectations expressed in this release. For a brief 
      discussion of the risks and uncertainties that may affect our business 
      and future operating results, please refer to Form 10-K and Form 10-Q’s 
      and the filings which are on file with the SEC and the subsequent 
      filings to be filed with the SEC. Statements contained in this press release 
      that are not based upon current or historical fact are forward-looking 
      in nature. Such forward-looking statements reflect the current views of 
      management with respect to future events and are subject to certain 
      risks, uncertainties and assumptions. Should one or more of these risks 
      or uncertainties materialize or should underlying assumptions prove 
      incorrect, actual results may vary materially from those described 
      herein as anticipated, believed, estimated or expected, or described 
      pursuant to similar expressions.