Greetings,

The 2011-12 school year presented challenges, due to the difficult regulatory and economic climate.  Companies in the child nutrition and food service industry grappled with new USDA regulations that added complexity and uncertainty to the National School Lunch and Breakfast programs.  Enrollment among our client schools fell 3% this year as many families and communities continue to struggle during this economic slump.  And, food inflation (including milk) accelerated at double digit rates.

Despite these extraordinary circumstances, Opaa! employees rose to the challenge.  We were early adopters of the HealthierUS School Challenge initiative, which put our company and our clients in an excellent position to meet all of the requirements of the new Healthy Hunger-Free Kids Act.  The loyalty and hard work of our staff led to increases in average daily participation rates for lunch and breakfast across our company.  We were awarded contracts in several new school districts in Missouri and Kansas, and were able to retain 98% of our existing business.  Opaa!’s relentless focus on innovation, process improvement, and safety allowed us to overcome significant food cost inflation and meet all of our commitments under our fixed price contracts.  Finally, Opaa!’s leadership role in Farm to School programs and environmentally sustainable initiatives are paying great dividends to the communities that we serve.

Hard work and dedication to core values continues to help Opaa! fulfill its mission of serving more and more children a fresh, nutritious homemade meal.  Proper nutrition will in turn fuel Opaa!’s children to meet the ever growing academic challenges of an increasingly competitive world.  Success Will Feed Success!

Thank you for helping “Make Their Day.”

Kevin Short

President

Opaa! Food Management Inc.

July 26, 2012

Greetings,
In a tough economic climate when many businesses are struggling, the hard work of our staff, loyalty and dedication to our mission have made all of us proud. We welcomed several new school districts to the Opaa! family this year, and we have enhanced a number of programs aimed at improving the employee experience including enhanced training, improved incentive programs, and updated communication tools. One new initiative I'm really excited to announce is Opaa.TV-a web-based video channel that is filled with short videos from our clients, parents, students, and team members. Opaa.TV is a great new way to show others just what makes us special...check it out at www.opaa.tv.

This past school year has included several advancements in our child nutrition program, including increased participation levels, improved client financial performance and an inspired assortment of nutritional programs. We are proud to support the USDA's HealthierUS School Challenge (HUSSC) initiative, which promotes healthier school environments, and our school menus now offer an even wider array of fruits, vegetables and whole grain options.

We are also excited to be a leader in the Farm to School program, partnering with local growers to provide farm-fresh fruits and vegetables to our students. Due to the overwhelming success of last year's pilot program, Missouri-grown apples have been served during the fall of the 2010 to ALL Opaa! students. We will continue to seek out additional opportunities to provide our districts with farm-fresh products.

Thank you for helping "Make Their Day."

Kevin Short
President
Opaa! Food Management, Inc.