Sysco Food Services of Northern New England to Acquire Reed Distributors Inc

Business Wire, April 7, 2003

Business Editors

HOUSTON--(BUSINESS WIRE)--April 7, 2003

Sysco Food Services of Northern New England announced today it has signed a purchase agreement to acquire the assets of Reed Distributors Inc., a distributor of paper and chemical products to foodservice operators in the northern New England market area. The purchase is expected to close May 2, 2003.

Located in Lewiston, Maine, Reed Distributors generated approximately $18 million in sales for calendar year 2002 and employs approximately 50 people. Reed has been servicing its customers for 31 years and is the leading distributor of paper and chemical products within the state of Maine. The company will be overseen by Sysco Food Services of Northern New England and will continue to operate from its current facility in Lewiston.

Richard A. Giles, president of Sysco Food Services of Northern New England, said, "SYSCO continually seeks acquisitions to enhance our product offerings to customers and Reed Distributors fits well within this strategy. We pride ourselves in providing 'one-stop shopping' solutions for our customers. They can purchase not only food products, but also the ancillary supplies needed to prepare and clean up after serving meals."

John Campbell, owner and president of Reed Distributors, said, "By joining SYSCO, we can access many more customers who can benefit from our wide range of paper and chemical products. Our companies share a common commitment to customer service and we are excited to be aligned with the nation's leading foodservice distributor."

SYSCO, the largest foodservice marketing and distribution organization in North America, generated sales of $24.7 billion for calendar year 2002. The company's 146 distribution locations in the United States and Canada provide food and related products and services to approximately 415,000 restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. For more information visit the company's home page at www.sysco.com.

Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding the timing and expected benefits of the acquisition of Reed Distributors Inc. These statements are based on management's current expectations and estimates; actual results may differ materially due to certain risks and uncertainties. For example, the timing of the acquisition and the ability of the acquired business and SYSCO to achieve expected results may be affected by successful completion of the acquisition, competitive price pressures, availability of supplies, work stoppages, severe weather, successful integration of the acquired operations by the Company, conditions in the economy, industry growth and internal factors, such as the ability to control expenses. For a discussion of additional factors affecting the Company, see the Company's Annual Report on Form 10-K for the fiscal year ended June 29, 2002 as filed with the Securities and Exchange Commission.