CORPORATE PROFILE

Perfect Fry Corporation is a publicly-traded company headquartered in Calgary , Alberta , Canada . Its common shares are listed for trading on the TSX Venture Exchange under the symbol PNM.

Founded in 1985, the Company manufactures and markets state-of-the-art counter-top deep fryers and accessories. Perfect Fry’s markets now reach around the world and across all aspects of the popular and lucrative fast food industry, from snack bars, food kiosks, sport & recreation outlets, concession stands and convenience stores. Our end user is any vendor, in any outlet, in any part of the world, selling tasty, quality deep fried foods.

The Perfect Fryer is hallmarked by several characteristics which, collectively, make it the leading unit of its kind in the fast food industry. It is highly efficient, compact and requires no external ventilation system. It incorporates the most advanced built-in air filtration and fire prevention systems in the industry. Sales of the Perfect Fryer and its complementary products continue to grow steadily in North and South America , Europe , Australia , Asia and the Middle East .

The two key factors driving Perfect Fry’s ongoing successful market penetration are its growing international network of independent distributors and dealers and the support they receive from the Company’s infrastructure. Our marketing, sales and promotion efforts are innovative, proactive and continuously refined to deliver maximum support to clients.

Perfect Fry offers investors these attractive benefits for equity growth:

• An effective, experienced management team dedicated to growing the Company and building value.
• A creative and multi-disciplined team of employees who are encouraged to think outside the box.
• A strong financial structure marked by ready access to capital to finance growth, high credit rating, little debt and sophisticated financial reporting and inventory tracking systems.

• A commitment to customer service that is second to none in the industry.

• State-of-the-art, patented products serving strong consumer demand which are continuously updated through research and development.

• An ever-growing global distribution network supported by food industry alliances, incentive programs and our own marketing and sales infrastructure.

• A reputation for leadership and corporate integrity that has resulted in the Company becoming an advisor to government and insurance companies on product standards and testing.

2006 HIGHLIGHTS

• The development of the new PFA RapidFry™, recently introduced at the National Restaurant Association of the USA (NRA) Show in May 2006 is a direct result of the past six years of engineering work. The PFA RapidFry™ is the first odorless, ventless and automated counter-top deep frying system with robotic entry and delivery of food product. This fully-enclosed deep frying system is capable of producing up to 100 pounds of fries in a single hour while it requires only 17 inches by 24 inches of counter-space. The PFA RapidFry™ boasts up to 7200 watts of power, the most of any countertop ventless single basket deep fryer, while it’s fully-automated, front-loading, front-dispensing design makes it the most compact deep fryer of its kind

• The PFA RapidFry™ was selected and has received the 2006 Kitchen Innovations Award, presented by the NRA Restaurant, Hotel-Motel Show, in recognition to Perfect Fry’s commitment to innovation and superior development activities.

• In Fiscal 2006, Perfect Fry Corporation completed another successful year, with net earnings of $280,283 (3 cents per share), compared with net earnings in Fiscal 2005 of $341,775 (4 cents per share) and Fiscal 2004 of $353,946 (4 cents per share).

• Revenue in Fiscal 2006 increased to $4.26 million, the highest ever recorded. This compares with the previous recorded revenue of$3.85 million in 2005, $3.44 million in 2004 and $3.69 million in 2003.

• The negative shift in currency exchange rates between Canadian and US dollars adversely affected revenue and net earnings for the fourth consecutive year. Exchange rates declined by an average of 6.8% from last year. The USA is Perfect Fry’s largest single market, accounted for approximately two-thirds of revenue.

• Relocation to the new facility occurred in January 2004. It continues to be a very motivational experience for our team to be in our own facilities. The recent real estate boom in Calgary has resulted in the building value adding significantly to the net worth of the company.

• The Company continued its aggressive sales and support initiatives by strengthening existing relationships and creating new ones in various food industry sectors.

• Perfect Fry again demonstrated its ongoing commitment by further development of its international markets.