For Tuesday May 6th, 2008

THIS JUST IN....

Smoky Market Foods, Inc. Releases Special Letter to Shareholders

Founder, Chairman, President & CEO Edward C. Feintech Discusses Stock's Recent Price Drop and Announces Focused Marketing and Operating Plans That Capitalize Upon Restaurant Industry's New Troubles From Economic Issues

APTOS, CA--(MARKET WIRE)--May 5, 2008 -- Smoky Market Foods, Inc. (OTC BB:SMKY.OB - News); A Letter From Edward C. Feintech, Chairman and CEO:

As the largest single shareholder in SMKY (through my cash-invested ownership in Smoky Systems), I have been deeply and directly affected by the recent, steady drop in SMKY's stock price these past weeks amidst a large amount of selling. I am sure that for other SMKY shareholders, seeing the value of your equity position in SMKY drop so dramatically has been of deep concern as well. The purpose of this letter is to provide an explanation as to what I believe is happening with our stock and to announce a change in our marketing and operating strategy, which I believe creates a positive opportunity for SMKY and its potential business partners out of the recent decline in the performance of the restaurant industry.

Relative to SMKY stock, I believe that the price of our stock has declined during the past weeks, and especially this past week, primarily because of our efforts to secure financing to pursue our business plan. Our need to raise capital has been referenced in our recent filings and is well known in the investment community. It is normal for the market price of a company's common stock to decline when it is seeking capital, in part because of anticipated dilution. In addition, with an early stage company seeking a substantial amount of capital, it is common for prospective investors, or those otherwise aware of possible transactions, to begin taking steps -- primarily short selling -- in order to push down the price of the company's common stock. Since any financing will be based upon the market price of the company's common stock, if a prospective institutional investor or group of investors can take steps to put downward pressure on the stock price, this will reduce the price they will pay in any financing or create other opportunities for profit if the stock price bounces back.

With a company, such as SMKY, that is pre-revenue and has low trading volume, an institution or group working together can severely harm the company's stock price by continuing to sell tens of thousands of shares, even if they don't own the stock they are selling. Such efforts dramatically affect the price of a company's stock, without any reference to the future potential of the company. I am optimistic that this recent downturn in our stock price will be temporary and that the future of our company, and our stock price, remains bright.

Relative to our marketing and operating plan, I am announcing a revised marketing and operating strategy focused less on building a number of independent restaurant-stores in the short term and more on installing stations and kiosks in existing locations in order to create immediate-term revenue for us and our business partners.

In just the time since SMKY became public, due to severe economic turns with rising fuel costs, rising food costs, lower consumer spending, and rising employee costs for wages and workman's comp, the restaurant industry has entered a well-publicized downturn. Indeed, most regional and national chains are reporting drops in customer counts, revenue, and profits and for the near and longer term forecast, the trend is not expected to end. This turn of events creates a problem for our plan to open a large number of restaurants in the near term.

However, I believe the restaurant industry's dilemma represents an opportunity for SMKY in that it makes our foodservice menu system concepts and our 35s/f and 70s/f stations, and 150s/f self-contained kiosks, potentially attractive to existing restaurants and other venues in need of more income. We are seeking to enter into agreements to install the foodservice stations and kiosks inside chain venues (restaurants, delis, juice stores, convenience stores, retail venues, etc.) and operate them as lease departments, by which we pay the host venue a fixed amount of space rent against a percentage of sales in exchange for the space in which to set up our station or kiosk. This represents an opportunity for the host venue to obtain incremental revenue without additional cost. SMKY will benefit by being able to get its products and brand in front of customers on a large scale basis, without significant per-venue up front costs.

As we are able to obtain financing, our marketing and operating plan is to position SMKY to grow revenue aggressively, but with much less debt and fixed operating expense exposure. We will intensify our focus on generating revenue through a multi-channel distribution which includes stations and kiosks, and our packaged retail and Internet operations. We will continue to open some Smoky Market restaurant-stores, but in reduced numbers and in strategic locations throughout the country for the purpose of menu product testing and system training for Franship(TM) operators of the stations and kiosks. Our retail merchandising and Internet operations for sales of packaged foods continues to be a significant distribution channel for us to develop, as consumers travel less to restaurants and purchase more quality prepared foods for in-home consumption.

About Smoky Market Foods™

Smoky Market Foods™—It’s been a long time com’n, but well worth the wait!

The unique quality of Smoky Market® brand foods has been developed over the course of Eddie Feintech’s long career in smoked food cook‚n, which began back in 1977 with the opening of his first “Rib Joint” barbecue restaurant in Des Moines, Iowa. Eddie’s wood-burning ovens would authentically and very uniquely Smoke-Bake™ meat and fish using freshly cut hickory timber to impart natural and penetrating smoky flavor. The small brick and iron ovens would yield about 700 pounds of tantalizing smoky meats every 12 hours in fresh preparation for each day’s business...

Many years of costly development were required to get the smoking technology of his restaurant “smokers” approved by the USDA for commercial mass production of meat and fish. The little brick and iron smoker design has now evolved into a huge stainless steel, wood-burning oven system capable of producing over 15,000 pounds per day of precisely the same quality of smoked foods that had made his restaurant enterprise so successful.

Our unique line of delectable Smoke-Baked™ cuisine is produced in a large USDA-inspected processing facility located in Webster City, Iowa, the heart of the Mid-West! Watch for the openings of Smoky Market restaurant-stores, kiosks, and our new web site for Internet ordering.

Our Smoke-Baking™ Process is Unique…

The key factor of Smoky Market® quality and real smoky goodness is the burning of freshly cut hickory timber (and other woods) as the principal heating source of our smoker-ovens. For it is the intensity of the smoke-heat vapor from the firebox that delicately Smoke-Bakes™ our meats and fish to specific degrees of doneness that allows them to be “fully cooked”, yet retain enough moisture to be heated and served in minutes as freshly prepared food.

From our wood-burning ovens to the dining tables of Americans nationwide, the authentic quality of Smoky Market® brand foods is 100% guaranteed to be the most natural and wholesome, and authentic of any smoked food on the market. No additives (sugar, water, MSG, liquid smoke, high sodium) or preservative solutions are injected into our raw meat and fish to make up for weight lost in the smoking process or to create artificial smoky flavor, and only garlic and other natural herbs and spices are applied as seasoning.

You’ll know you’re about to enjoy real wood-smoked cook‚n when you open the vacuum-sealed packages of product and the tantalizing aroma of sweet hickory smoke permeates your kitchen. Such genuine goodness can only be created by the gift of true hickory and apple timber, and we’re planting two trees for every tree we harvest...

Smoky Market Retail:

Selected items of Smoky Market Foods™ are to be offered in fine supermarkets...

Using only this attractive, custom-designed Point-of-Sale Merchandiser for display of our selected items to be offered, we intend to form our marketing affiliations with fine supermarkets across the country that will partner with us for the required space.

Smoky Market Foods™ are highly unique, premium quality prepared food products and will not be sold in every supermarket or placed in large freezer case sections. Our Point-of-Sale Merchandisers will display a selected mix of items that will provide customers with a limited choice of meats and fish, and our famous Smoke-Baked™ Beans and sauces so that we may introduce them to our tantalizing taste sensation.

Company Essentials: