Smithfield Foods, Inc. Anticipates Lower Third Quarter Earnings

Market Wire, 20050229

Smithfield Foods, Inc. (NYSE:SFD), today issued the following statement:

The adverse impact of the severe flooding experienced in North Carolina last autumn combined with sharply lower margins in fresh pork versus last year will result in lower earnings for the Company in its fiscal third quarter. Results for the third quarter are expected to approximate the more normal level of earnings achieved in fiscal 1998, a year without record low hog prices.

The Meat Processing Group's profitability, while sharply below last year's level, will be offset to some degree by profitability at the Hog Production Group, where results are substantially better than last year. On an overall basis, the Company expects results to again demonstrate the benefits of our strategy of vertical integration.

We continue to be optimistic about the future, particularly as we move into the fourth quarter and fiscal 2001 when we expect to have the full benefit of the Murphy Family Farms acquisition.

DESCRIPTION OF COMPANY

Smithfield Foods is the largest vertically integrated producer and marketer of fresh pork and processed meats in the United States. The Company's brands include Smithfield Lean Generation, Smithfield Premium, Gwaltney, John Morrell, Patrick Cudahy, Schneiders, Krakus, Lykes, Esskay, Kretschmar, Valleydale, Jamestown, Dinner Bell, Sunnyland, ReaLean, Patrick's Pride, Great, Tobin's First Prize, Peyton's, Rodeo, IQM, Curly's, Ember Farms and others.

In addition, the Company has operating subsidiaries in Canada, France and Poland and participates in joint ventures in both Brazil and Mexico. The French subsidiaries produce and sell processed meats while the Canadian and Polish subsidiaries have slaughter operations and sell fresh pork, processed meat and other related food products. The joint ventures are involved in all aspects of the pork business including hog production and slaughter as well as the sale of fresh and processed meats.

FORWARD LOOKING INFORMATION

This news release may contain "forward-looking" information within the meaning of the federal securities laws. The forward-looking information may include statements concerning the Company's outlook for the future, as well as other statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. The forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. The risks and uncertainties include availability and prices of live hogs and raw materials, product pricing, the competitive environment and related market conditions, operating efficiencies, access to capital and actions of domestic and foreign governments.