TORONTO, ONTARIO--(Marketwire - May 29, 2012) - Xylitol Canada Inc. ("Xylitol Canada", or the "Company") (TSXV:XYL) today announces that it has released its financial and operating results for the three months ended March 31, 2012. Highlights of the results include:

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-- For the three months ended March 31, 2012, sales increased by 80% to

$907,426, compared to the three months ended March 31, 2011;

-- For the three months ended March 31, 2012, gross profit increased by 78%

to $325,746, compared to the three months ended March 31, 2011.

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The Company continues to see quarter to quarter revenue growth. The growth is attributed to the Xyla(TM) brand of North American xylitol and Xyla(TM) products becoming more available throughout North America into many major grocery chains and Natural grocers.

The Company continues to raise awareness of its Xyla(TM) North American brand of xylitol and Xyla(TM) products, which are all sweetened with the highest quality Xyla(TM) xylitol. The Company's products do not use any artificial sweeteners and are all sugar free or no added sugar without forfeiting flavor or taste. The Company has recently launched five new Xyla(TM) condiments, including a no sugar added ketchup, which are great for children, diabetics or just sugar free living.

The full text of the Company's audited consolidated financial statements and related management's discussion and analysis can be found under its profile at: www.sedar.com.

About Xylitol Canada Inc.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.