September 2, 2005

John Morrell's $100 Million Expansion Will Add 200 Jobs to Sioux Falls Operation

SIOUX FALLS, S.D. (Sept. 2, 2005)—John Morrell & Co. today announced a $100 million construction project at the company's Sioux Falls pork processing facility. The expansion is expected to add 200 new jobs when the processed foods facility is completed in the fall of 2007.

The Sioux Falls plant currently employs 3,200 workers producing a wide variety of fresh pork, ham, bacon and sausage products.

The planned 232,000-square-foot building will complement John Morrell's existing Sioux Falls facility and allow for greatly expanded processing capacity for ham, bacon and sausage products.

"We have been looking forward to this much-anticipated expansion of our Sioux Falls operation," said Joe Sebring, president of John Morrell. "This project will allow us to increase our product offering to meet growing customer demands and replace our existing sausage manufacturing complex."

"From a local economic development standpoint, this project will bring 200 additional jobs to Sioux Falls and add millions of dollars to our regional economy," Sebring said. "Sioux Falls is a great place to live and work, and we are delighted to contribute to the growth of this region."

South Dakota Governor Mike Rounds commended John Morrell for their nearly century-long investment in the South Dakota economy.

"John Morrell has been one of our state's primary employers and corporate leaders since 1909," Rounds said. "We congratulate the company and its South Dakota employees on this exciting expansion of the Sioux Falls plant."

U.S. Sen. Tim Johnson said, "This project is remarkable in its scope and scale, and I congratulate John Morrell on this endeavor. The project can be expected to provide a considerable boost to our South Dakota workforce and promises economic growth in the Sioux Falls community."

"This is a significant development for our local economy," said U.S. Sen. John Thune. "Job creation is vital to keep our economy growing and strong. I applaud John Morrell for making this significant investment in Sioux Falls."

U.S. Rep. Stephanie Herseth added, "South Dakota enjoys a wonderful quality of life and a dedicated workforce, and it is easy to see why John Morrell would choose to expand here. I am pleased that this expansion not only will result in new jobs for Sioux Falls, but also because it demonstrates John Morrell's long-term commitment to the region. This expansion also reflects the talent and dedication of the folks who already work at John Morrell."

"Smithfield Foods is proud of John Morrell and its strong focus on meeting customer demand for our products," said C. Larry Pope, Smithfield's president and chief operating officer. "The company's employees deserve special credit because their hard work and dedication in producing quality products made this investment in the community possible."

"John Morrell's major investment illustrates the company's confidence in Sioux Falls and its commitment to our economy," said Mayor Dave Munson. "John Morrell is a proven leader in our business community, and we wish them continued success." The new Sioux Falls plant will include a state-of-the-art deli-ham manufacturing system, two pre-cooked bacon lines, one pre-cooked toppings line and a replacement sausage manufacturing facility that incorporate the latest technology to enhance quality, efficiency and food safety.

John Morrell & Co., founded in 1827 in Liverpool, England, is a subsidiary of Smithfield Foods, Inc., of Smithfield, Va. John Morrell is headquartered in Cincinnati, Ohio, and has operations in Cincinnati; Great Bend, Kan.; Sioux City, Iowa; Des Moines, Iowa; San Jose, Calif.; Middlesboro, Ky.; Springdale, Ohio; and Sioux Falls, S.D. John Morrell is a broad-based supplier of fresh pork and processed meats to every segment of the market. Its products are marketed coast-to-coast under a dozen brand names, including the flagship John Morrell label. John Morrell is one of the leading producers of private-label meat products for retail chains and foodservice distributors, as well as the first meat company to establish a successful brand in the enhanced fresh pork category with the John Morrell Tender N Juicy brand.

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