Net revenue for the three-month period was $23.98 million, compared with $29.41 million in the second quarter of fiscal 2001. Net revenue for the six months ended February 28, 2002, was $54.29 million, compared with $71.12 million in fiscal 2001. The decreases were primarily due to reduced sales of Northland and Seneca branded products and the sale of the company's cranberry sauce business and a manufacturing facility in June 2001. These net revenue decreases were offset by increased sales of cranberry concentrate and reduced trade spending and consumer coupons.

For the first six months of fiscal 2002, net income was $51.91 million, or $0.79 per diluted share, compared with a loss of ($1.17) million, or ($0.23) per diluted share, in the first six months of fiscal 2001. Net income in fiscal 2002 included a $50.5 million extraordinary gain, net of income taxes, or $0.77 per diluted share, on forgiveness of indebtedness resulting from the financial restructuring that took place on November 6, 2001.

John Swendrowski, Northland's Chairman and Chief Executive Officer, said, "We are making steady progress in returning the company to profitability since our financial restructuring in November, and this was the first complete quarter since the restructuring took effect. Our income from operations increased from $691,000 in the second quarter of fiscal 2001 to $748,000 in the second quarter of fiscal 2002, reflecting our continuing effort to reduce costs and gain efficiencies while maintaining a high standard of quality in our products. Our bottom-line net income went from a loss of ($1.35) million in the second quarter of 2001 to a profit of $187,000 in the second quarter of fiscal 2002. We believe our restructuring is on track given our return to profitability. We still have significant challenges ahead of us, but we are encouraged by the results of the restructuring and our national television advertising campaign, which began in November. Our interest expense dramatically decreased because of the restructuring, and we were able to put that savings back into the business to help rebuild our brands."

Northland is a vertically integrated grower, handler, processor and marketer of cranberries and value-added cranberry products. The company processes and sells Northland brand 100% juice cranberry blends, Seneca brand juice products, Northland brand fresh cranberries and other cranberry products through retail supermarkets and other distribution channels. Northland also sells cranberry and other fruit concentrates to industrial customers who manufacture juice products. Northland is the only publicly-owned, regularly-traded cranberry company in the United States, with shares traded on the Over-the-Counter Bulletin Board under the listing symbol NRCNA.
 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Company makes certain "forward-looking statements" in this press release, such as statements about future plans, goals and other events which have not yet occurred. These forward-looking statements are intended to qualify for the safe harbors from liability provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified because they include words such as the Company "believes," "anticipates," "expects" or words of similar import. Forward-looking statements include, among others, statements about actions by the Company's competitors, sufficiency of the Company's working capital, potential operational improvements and efforts to return to profitability, sales and marketing strategies, expected levels of trade and marketing spending, anticipated market share of the Company's branded products, expected levels of interest expense and net revenues, and disposition of significant litigation. These forward-looking statements involve risks and uncertainties and the actual results could differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, without limitation, risks associated with (i) the Company's ability to reinvigorate its Northland and Seneca brand names, regain lost distribution capabilities and branded products market share and generate increased levels of branded product sales; (ii) the level of cranberry inventory held by industry participants; (iii) the development, market share growth and continued consumer acceptance of the Company's branded juice products, including consumer acceptance of its "27% Solution"; (iv) the disposition of certain litigation related to the sale of the net assets of the Company's private label juice business; (v) the impact of a marketing order or lack of a marketing order of the United States Department of Agriculture relative to the 2002 crop year, as well as the cranberry purchase program adopted by the United States Congress; (vi) agricultural factors affecting the Company's crop and the crop of other North American growers; and (vii) the Company's ability to comply with the terms and conditions of, and to satisfy its responsibilities under, its new credit facilities and other debt agreements. You should consider these risks and factors and the impact they may have when you evaluate these forward-looking statements. These statements are based only on the Company's knowledge and expectations on the date of this press release. The Company disclaims any duty to update these statements or other information in this press release based on future events or circumstances.
 

         (Condensed Consolidated Statements of Operations Follow)


                       NORTHLAND CRANBERRIES, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
                               (Unaudited)

                             For the Three Months      For the Six Months
                               Ended February 28,       Ended February 28,
                                2002        2001         2002        2001
  Net revenues                $23,975     $29,405      $54,291     $71,115
  Cost of sales                16,676      22,078       37,409      53,942

  Gross profit                  7,299       7,327       16,882      17,173
  Selling, general &
   administrative expenses     (6,551)     (6,638)     (12,472)    (12,715)
  Gain on disposals of
   property & equipment            --           2           --         412

  Income from operations          748         691        4,410       4,870

  Interest expense             (1,190)     (4,818)      (4,280)     (9,503)
  Interest income                 629         682        1,279       1,376

  Income (loss) before
   income taxes and
   extraordinary item             187      (3,445)       1,409      (3,257)
  Income tax benefit               --       2,092           --       2,092

  Income (loss) before
   extraordinary item             187      (1,353)       1,409      (1,165)

  Extraordinary gain on
   forgiveness of indebtedness,
   net of $32,800 in income
   taxes                           --          --       50,499          --
  Net income (loss)              $187     $(1,353)     $51,908     $(1,165)

  Net income (loss) per
   common share:
    Basic:
      Income (loss) before
       extraordinary gain       $0.00      $(0.27)       $0.04      $(0.23)
      Extraordinary gain           --          --         1.30          --
        Net income (loss)       $0.00      $(0.27)       $1.34      $(0.23)
    Diluted:
      Income (loss) before
       extraordinary gain       $0.00      $(0.27)       $0.02      $(0.23)
      Extraordinary gain           --          --         0.77          --
        Net income (loss)       $0.00      $(0.27)       $0.79      $(0.23)
  Shares used in computing
   net income (loss) per
   common share:
    Basic                  60,952,355   5,084,773   38,796,832   5,084,773
    Diluted               100,988,773   5,084,773   65,618,885   5,084,773