Continued Cost Pressure

    11 October 2007

                              Gold Frost Limited                               

                        ("Gold Frost" or "the Company")                        

     Announces Continued Cost Pressure for Dairy Products will Impact 2007     

It has been well documented that the global dairy industry has this year been
affected by increases in the prices of primary supplies and product shortages
stemming from a series of factors including weather related problems and
reduced milk production. The effect of these factors has impacted at the same
time that worldwide consumption and demand has increased due to increased
demand in growing, emerging markets.

Gold Frost (ticker: GLF), the designer, developer and distributor of kosher
chilled, frozen and dairy food products noted this effect in its trading
statement dated August 28, 2007. Despite this backdrop, the Company reported a
strong first half performance with turnover up by 37.7% over the comparable
prior year period and gross margins robust at 46.1%.

The Company expects to publish Q3 2007 trading results in late November 2007.
Whilst the beginning of the second half of the year was more challenging than
the first half of the year, the board would expect modest growth in turnover in
Q3 over the comparable period last year. However, Gold Frost is now being
directly impacted by the global factors outlined above and the cessation of
butter and cheese export subsidies in the EU, which have led its primary
supplier, Arla Foods, to increase our purchase prices by between 50-80%,
depending on product. These unprecedented cost challenges are expected to
severely impact both our revenues and gross margins for the remainder of 2007
and in all probability, the first half of 2008, as customers adjust to
increased prices. Industry research would suggest that global dairy prices
should begin to stabilize in mid-2008, but in the interim the market conditions
will remain uncertain. The Company will continue to update the market and
review our launch of US dairy in 2008, when we believe the global manufacture
of milk will begin to offset the current steep price increases.

Enquiries:

Gold Frost Ltd                                                             
                                                                           
Zwi Williger, Chief Executive Officer +972 544 324924                      
                                                                           
Blue Oar Securities Plc               +44 207 448 4400                     
                                                                           
Rhodri Cruwys                                                              



END

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