January 7, 2004

Brazil's Perdigao To Convert Broiler Hatcheries To Embrex's Inovoject(R) Vaccination System

Embrex, Inc., yesterday announced it has signed a leasing agreement with Perdigao S.A., the second largest broiler chicken producer in Brazil, in permitting Perdigao to convert all broiler hatcheries as well as one breeder hatchery from manual chick inoculation to Embrex's automated Inovoject(R) vaccination system over the next six months.

"Perdigao is a very innovative poultry producer and we look forward to working closely with them to automate the inoculation process in its hatcheries," said Brian Hrudka, Embrex's Vice President, Latin America and Vice President, Global Marketing. "This contract was supported by results from comprehensive commercial trials run in their hatcheries proving the benefits that the Inovoject(R) system could bring to their operations. With the Inovoject(R) systems, the efficiency of Perdigao's hatcheries, especially the new state-of-the-art hatchery in Rio Verde, will rival the efficiency of any hatchery in the world."

Benefits of the Inovoject(R) system include:

• Early protection against disease
  
  
• Reduced chick stress because post-hatch chick handling is reduced
  
  
• Precise, uniform injection of eggs
  
  
• Reduced contamination because needles are individually sanitized after

each injection

• Easy system maintenance and repair due to its modular design
  
  
• 24/7 customer service and support from Embrex professionals both in the hatchery and via telephone 

"Brazil represents one of the most successful poultry producing nations in the world and high quality production has been a major factor in Brazil's tremendous growth in broiler exports, especially to Europe. Perdigao is a leader in Brazil's long tradition of adopting modern, state-of-the-art technologies and its acceptance of the Inovoject(R) system has been a careful and steady process that is important for both our companies," said Randall L. Marcuson, President and Chief Executive Officer of Embrex. "With the addition of Perdigao, we now have nearly a dozen customers in Brazil and we look forward to further adoption of the Inovoject(R) system by the innovative producers operating there."

Brazil is the second largest industrialized broiler producing country in the world producing approximately 3 billion broiler birds annually.

About Embrex

Embrex, Inc., The In Ovo Company(SM), headquartered in Research Triangle Park, NC, is an international agricultural biotechnology company engaged in the development of innovative in ovo (in the egg) solutions that meet the needs of today's global poultry industry. The company's unique integration of several scientific and engineering disciplines enables it to be the leading provider of in ovo, value-added solutions with its automated injection and detection devices as well as its select vaccines.

About Perdigao

Perdigao is one of the largest food companies in Latin America and one of the principal meat processors in the world, with estimated gross revenues of 4.3 billion Reals in 2003. Its core business is refrigerated and frozen products, with production focused on poultry and hog slaughter, the processing of poultry and hog derivatives and ready-to-eat pasta (pizzas, lasagnas, pies, among others) and vegetable dishes. The Company competes for domestic market leadership in all these segments. With more than 28,000 employees, Perdigao exports to more than 80 countries. In 2004, the Company will complete 70 years of operation.