Cal-Maine Foods, Inc. To Purchase Georgia Egg Operation

Business Wire, April 3, 1997

JACKSON, Miss.--(BUSINESS WIRE)--April 3, 1997--Cal-Maine Foods, Inc. (NNM:CALM) today announced that it has reached agreement to purchase all of the operating assets of Southern Empire Egg Farm, Inc., of Shady Dale, Georgia. Terms of the transaction, which is expected to close on April 9, 1997, were not disclosed.

Southern Empire has approximately 1.3 million laying hens and has been a major producer and marketer of quality shell eggs for over 40 years. Its customers include major chain stores and institutional accounts in Georgia, South Carolina, and surrounding states. Southern Empire is a modern, in-line production and processing facility. The company grows replacement pullets and manufactures feed for its operation at nearby company-owned pullet farm and feed mill facilities. In 1996, Southern Empire had revenues of approximately $20 million.

Fred Adams, Jr., CEO of Cal-Maine Foods, stated, "This acquisition is a continuation of Cal-Maine's ongoing efforts to acquire quality shell egg producers within Cal-Maine's distribution system to better serve our customers. We are pleased to have an opportunity to purchase this fine company, and look forward to working with the good customers and employees of Southern Empire Egg Farm."

It is anticipated that key employees of Southern Empire will become employees of Cal-Maine.

Cal-Maine Foods recently reported net sales of $223.8 million for the first nine months of fiscal 1997, compared with net sales of $210.8 million for the first nine months of fiscal 1996. Its year-to-date net income was $14.0 million, or $1.17 per share, compared with $7.9 million, or $.68 per share, for the same period a year ago.

Cal-Maine Foods, Inc. is primarily engaged in the production, cleaning, grading, packing and sale of fresh shell eggs and the manufacture and sale of egg products. The Company, which is headquartered in Jackson, Mississippi, currently is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs and egg products in approximately 26 states across the southwestern, southeastern, midwestern and mid-Atlantic regions of the United States.

CONTACT: Cal-Maine Foods Inc., Jackson

Fred Adams, Jr., 601/948-6813