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SMALL FRY AND KRAK-O-POP CALL OFF ACQUISITION

Small Fry Snack Foods Ltd. of Kitchener, Ont. has decided not to purchase Quebec-based Krak-O-Pop Inc. The original deal was announced in early April and was subject to definitive documentation and necessary approvals. The two companies were unable to complete the transaction to their satisfaction. Small Fry operates primarily in Ontario, Quebec and the four Atlantic provinces. Its products are sold under private label and the company's own brand names including: Humpty Dumpty, Extreme, New Waves, Doodles, Mexitos and Party Mix. Advertising for Small Fry is done by Black Rock Marketing of Toronto. Krak-O-Pop sells snack foods under its own name, as well as under private labels. Its products are sold mainly through mass merchandisers such as Zellers, Wal Mart and Kmart. The company does not promote its products through advertising.

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