Performance Food Group Reports 25% Increase in First Quarter Net EPS

Business Wire, May 8, 2007

* Net EPS increased 25% versus prior year quarter to $0.20 per share diluted

* Net earnings increased 21% versus prior year quarter to $6.9 million

* Street sales increased approximately 9% over prior year quarter

RICHMOND, Va. -- Performance Food Group (Nasdaq/NGS:PFGC) announced results today for the first quarter ended March 31, 2007.

"We are pleased with the results of our first quarter. Our strong earnings and street sales improvements during the quarter reflect the solid progress that Performance Food Group has made in our core productivity and growth initiatives," commented Steve Spinner, president and chief executive officer. "Our commitment to our growth strategies has positively impacted our quarterly results and will continue to build the foundation for PFG's long-term margin growth."

First Quarter Financial Highlights:

* Consolidated net sales in the first quarter were approximately $1.5 billion, an increase of approximately 4%, compared to the prior year quarter. Inflation was approximately 3% for the quarter.

* Net earnings in the first quarter amounted to approximately $6.9 million, which was an increase of 21% compared to the same quarter in the previous year.

* Net earnings per share in the first quarter increased approximately 25% to $0.20 per share diluted, compared to $0.16 per share diluted in the prior year quarter.

"In our customized segment, net sales increased approximately 2% in the first quarter as compared to the same period in the prior year reflective of current industry trends," added Mr. Spinner. "As we previously stated, we anticipate the rollout of additional business in the third and fourth quarters. As a result, we expect to incur start up costs in both the second and third quarters of this year."

"In the broadline segment, our higher margin street sales increased approximately 9% in the quarter versus the same prior year period. Overall net sales in broadline increased approximately 5% in the first quarter compared to the same prior year period, primarily due to an increase in street sales offset by the exit of certain multi-unit business in the first quarter of 2006. We are particularly pleased with the results of our expanded broadline street sales force in continuing to improve our mix of higher margin street sales. We anticipate continued enhancements in productivity from this sales team throughout the year."

Mr. Spinner concluded, "Performance Food Group remains committed to moving forward with our current initiatives that we believe will drive solid long-term returns for our shareholders. Our balance sheet remains exceptionally strong with virtually no debt, which excludes $130 million of interests in accounts receivable sold under an accounts receivable purchase facility. Free cash flow was approximately $8.8 million for the quarter, compared to free cash flow of approximately $1.4 million in the prior year quarter. As previously disclosed, we do expect net earnings per share for the second quarter of 2007 to be relatively flat and in the range of $0.32 to $0.36 per share diluted, based on the current economic environment, current business trends, and a strong second quarter of 2006. Net earnings for the full year are anticipated to be in the range of $1.34 to $1.42 per share diluted."

Performance Food Group markets and distributes more than 68,000 national and private label food and food-related products to over 41,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. For more information on Performance Food Group, visit www.pfgc.com.

Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and are based on current expectations and management's estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include, but are not limited to, general economic conditions, including consumer spending trends; the Company's ability to achieve projected operational efficiencies and increase sales, particularly higher margin street sales; the Company's ability to add new customers, particularly in its customized segment; the relatively low margins and economic sensitivity of the foodservice business; the Company's reliance on major customers; the ability to identify and successfully complete acquisitions of other foodservice distributors; the Company's ability to successfully develop, produce and market new products and management of the Company's planned growth, all as detailed from time to time in the reports filed by the Company with the Securities and Exchange Commission.

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Total assets by reportable segment and a reconciliation to the condensed consolidated balance sheets were as follows:

                              >                 >  Mar. 31, 2007

Dec. 30, 2006




Broadline                     >                 >      $ 891,957

$ 901,752




Customized                    >                 >        252,765

261,975




Corporate & Intersegment  >                 >        249,865

196,048




Total Assets                  >                 >    $ 1,394,587

$ 1,359,775
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