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Dixie Lee International and PSA Sign Exclusive Agreement to Market the Dixie Lee Diner Franchise in the U.S.

Dixie Lee International Industries, Inc. (PINKSHEETS: DLII), parent company of the 40-year-old "Dixie Lee" brand name, with more than 80 franchised restaurants open, announced today that it has entered into an exclusive agreement with Paul Stewart Associates, Inc. (PSA) to market the Dixie Lee Diner Franchises. The terms of the agreement were not disclosed.

"We are proud that Dixie Lee International Industries has selected us to be their partner in the United States. Dixie Lee will benefit from PSA's over 30 years of experience and knowledge of the franchise marketplace and will further strengthen our growing Dixie Lee Diner franchise program," said Paul Stewart, President of PSA, one of the oldest franchise consulting and marketing firms in the country.

According to PSA, franchised restaurants in the U.S. generated sales exceeding $180 Billion in 2006.

"We are pleased to have Paul Stewart Associates as our franchising partner, given their national marketing focus, their food concept branding, and the successful track record they have established in marketing and launching food franchises both regionally and nationally," said Joe Murano, Dixie Lee International CEO and President. "This agreement enables us to expand our innovative concept development and food offerings and to continue to build the tradition of the Dixie Lee brand into the United States. Besides, the name sounds as good as our new logo, "Nothin' could be finer than the Dixie Lee Diner."

About Dixie Lee

The Dixie Lee brand name started with the opening of the first Dixie Lee Chicken & Seafood restaurant in 1964 in Belleville, Ontario Canada. Building on an old Louisiana chicken recipe, the Dixie Lee name has grown to include subsidiary and affiliated companies accounting for more than 80 branded restaurants open and more than 20 in development. Dixie Lee restaurant concepts include full service, fast casual and take-out. Dixie Lee International Industries, Inc. (PINKSHEETS: DLII) is currently developing its newest franchised concept, the classic "Dixie Lee Diner," a 60 to 80 seat stainless steel diner reminiscent of the nostalgic 1940s and 1950s family diners featuring breakfast, lunch and dinner. Dixie Lee International Industries, Inc. is expanding through both corporate-owned and franchised restaurant development throughout North America and abroad.

www.dixieleeusa.com

About Paul Stewart Associates, Inc. (PSA)

PSA has assisted over 300 companies with their franchise expansion plans over the past 30 years. More recently, in the past 12 years, PSA has helped its clients generate over $500 Million in franchising revenues. Mr. Stewart has also been a consultant to the U.S. Small Business Administration (SBA) for over 25 years. PSA specializes in franchise consulting, packaging, marketing and finance in the U.S.A. and internationally.

Forward-looking statements in this release are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, and uncertainties and actual results could differ from those discussed. This material is information only and is not an offer or solicitation to buy or sell the securities.