Joint Venture Agreement

    23 October 2007

                              Gold Frost Limited                               

                        ("Gold Frost" or "the Company")                        

 Announces Signing of Heads of Agreement to enter into a Joint Venture with a  
                  Global Kosher Dairy Distributor in Denmark                   

Gold Frost (LSE:GLF.L), the designer, developer and distributor of kosher
chilled and frozen dairy food products today announced that it has signed a
binding term sheet with the owners of a manufacturer and global distributor of
kosher dairy products ("Distributor"), based in Denmark, to form a new joint
company ("NewCo"). Gold Frost would hold a 51% interest in NewCo with the
owners of the Distributor holding the remaining interest. The transaction is
subject to completion of legal, financial and business due diligence and final
Gold Frost board approval and is scheduled to be concluded by early 2008. There
is no guarantee that the transaction will complete.

The Distributor is a global distributor of both kosher and non-kosher dairy
food products. Among its products are a variety of non kosher and kosher dairy
products such as blue cheese, edam, gouda, havarti and feta cheeses packaged
for industrial, wholesale and retail distribution. Under the terms of the
binding term sheet, all of the present and future kosher activities of the
Distributor and all the future export activities of Gold Frost are to be
executed under the new entity.

As part of the transaction, the Distributor will transfer to NewCo US$200,000
as well as 35 customers from 15 countries worldwide, including a US import
licence, which is expected to generate US$4.3 million in revenues for the
Distributor in 2007. NewCo would be granted the exclusive right to use the
Distributor's trademarked brand name in sales and marketing of kosher products.
The Distributor would retain the right to use its trademarked brand name for
non-kosher dairy products. It is intended that, ultimately, NewCo would seek to
broaden its penetration into the kosher European and North American markets.

In consideration for the 51% interest in NewCo, Gold Frost will pay at
completion US$400,000 to the Distributor. In addition, Gold Frost will inject
into NewCo, after the publication of NewCo's 2008 audited financial statements,
a capital equivalent of three times NewCos' net profit after taxes from its
first four quarters of operation, not to exceed US$150,000, multiplied by 51%.

Mr. Zwi Williger CEO of Gold Frost commented, "We believe that this is an
excellent opportunity for Gold Frost to expand its international reach and
increase market penetration.

In addition, G. Willi Food International Ltd., 75.68% shareholder in Gold
Frost, yesterday announced the acquisition of a Russian non kosher dairy
distributor. Following the completion of that transaction, G. Willi Food
International Ltd intends make the distribution channel into Russia available
to Gold Frost for its kosher products.

Combined, these transactions will strengthen our ability to source unique
kosher dairy products and broaden the distribution platform for our premium
brand of products worldwide. Our goal remains unchanged - to be the premiere
global manufacturer and distributor of innovative dairy kosher foods
worldwide."

Disclaimer:

Except for historical information contained herein, the matters set forth in
this release are forward-looking statements that are dependent on certain risks
and uncertainties, including such factors, among others, as market acceptance,
market demand, pricing, competition, changing economic conditions and other
risk factors including but not limited to those previously publicly disclosed
by the Company as relating to it and its business.

Enquiries:

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



END
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