August 16, 2005

Patrick Cudahy's $13.5 Million Expansion Will Add 140 Jobs to Sioux Center Operation

SIOUX CENTER, Iowa (Aug. 16, 2005)—Patrick Cudahy, Inc. today announced a $13.5 million expansion of its Golden Crisp Premium Foods facility in Sioux Center that is expected to add 140 new jobs when the facility is completed in January 2006.

The Golden Crisp plant currently employs 210 workers producing fully-cooked microwave bacon.

Golden Crisp's expansion will accommodate three new microwave bacon lines. The expansion will double the Sioux Center facility's processing capabilities. The project includes a new $1.25 million waste water treatment facility.

"This much-needed expansion of our Sioux Center plant will allow us to increase production of our microwave bacon line to keep up with growing customer demand for our product," said Bill Otis, president and chief operating officer of Patrick Cudahy. "Fully-cooked bacon is one of the fastest-growing products in our industry.

"This is good news for the local economy because this project will significantly increase the size of our workforce in Sioux Center," Otis said. "We're delighted to be part of the Sioux Center community, and it's very satisfying to be able to make more jobs available for our neighbors."

"Smithfield Foods is very proud of Patrick Cudahy's aggressive efforts to expand its operations to meet customer needs, and to create new jobs for the Sioux Center area in the process," said C. Larry Pope, Smithfield's president and chief operating officer. Smithfield Foods is the parent company of Patrick Cudahy, headquartered in Cudahy, Wis. "We also salute the hard work and dedication of Golden Crisp's employees, who made this investment in the community possible," Pope said.

"Smithfield also is proud of its presence in Iowa and its contributions to the state's economy," said Pope. "We have 3,884 employees in the state who last year had a payroll of $116 million. With our acquisition of Farmland Foods and strong internal growth, in just the last three years we have added 1,787 employees and $54 million to our Iowa payroll," he said.

"We are pleased that Golden Crisp and Patrick Cudahy are making a significant investment in their Sioux Center operation because this project greatly benefits our community's economic well-being," said Mayor Denny Walstra. "Golden Crisp has been a good corporate citizen, and we look forward to the company's continued success."

Patrick Cudahy, Inc., established in 1888, is a broad-based supplier of high-quality, branded processed meats to the retail and foodservice markets. Its specialties include salami, pepperoni, other dry sausage products, ham and bacon. The company employs 2,290 people and distributes throughout the United States and the world. Patrick Cudahy is considered "Home of Sweet Apple Wood Smoke Flavor®." Headquartered in Cudahy, Wis., Patrick Cudahy has been a part of the Smithfield Foods family since 1984.

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