Q1 Report to Shareholders

I am pleased to report to you the results for our Company’s third quarter, 2009, which ended October 31, 2009, showingcontinued improvement in profitability over the previous year despite a slight sales decrease resulting from the economic challenges and increased competition.

While economic conditions continue to be weak in all of our markets, the synergies we have achieved in our buying and logistics, stringent cost controls and the strategic focus on our brands delivering savings and better service to our customers are all helping us manage these market conditions.The Group’s sales decreased slightly for the quarter by 3% over the same period last year while increasing by 6.8% year-to-date compared to the same period last year.Customer transactions have remained stable while average transactionshave decreased for the quarter compared to the same period last year.

As expected, the economy continues to impact customers’ spending habits and disposable income is down which shiftsspending to more essential items. At the same time, we have seen an increase in competition– both here at home and with customers shopping in the U.S.which, combined with the economic downturn, is impacting sales. In response to these conditions, we have implemented several initiatives to offset the resulting revenue pressures. We are looking to maximize all opportunities in our stores – with a renewed focus on product consistency,special savings on top of everyday value in our storesalong with enhanced customer service training. We have also launched a number of promotions – the biggest of which are our mega $100,000 holiday giveaway and price cuts and extraordinary values throughout each of our locations. While these initiatives obviously impact our margins, which have dropped a point in Q3 from what it was in Q1 and Q2, we think it’s very important to do what we can to help our customers through these tough economic times.

In addition to the special sales promotions, AML Foods Limited is also implementing new revenue streams in its locations to meet the demands of busy customers looking to save time and money. Our Company’s Domino’s Pizza franchise is currently researching additional locations and is preparing to launch its website for online ordering. Bonded customers in Freeport can now purchase Cost Right’s Club values at duty free prices for use in their businesses and Cost Right’s Nassau’s website for online purchases is now in beta testing for launch in 2010.

We are also very pleased to announce that we have repaid, in full, our Royal Bank debt ahead of schedule. As a result, our liquidity continues to improve as the cash flow freed up by the bank debt repayment will be usedfor the monthly preference share redemption fund.

We do expect the weakness to continue over the coming quarters and we recognize that we will have to work harder and continue to improve in the areas we control to minimize the impact of the economic downturn and increased competition. More than ever, it means focusing on the basics of our business - delivering the best value on trusted products for our customers every day and controlling costs where possible.

We thank you for your continued support and, on behalf of all of us at AML Foods Limited, we wish you a happy and safe holiday season and all the best for the New Year.

Q3, 2009 - Page 1 of 2