May 23, 2009

Pilgrim's Pride Corporation announced that it has completed the sale of its chicken complex in Farmerville, La., to Foster Farms for approximately US$72.3 million.

The final sale price was adjusted for associated inventory and other reimbursements. The Farmerville complex includes a processing facility, a cook plant, two hatcheries, a feed mill and a protein conversion plant.

Separately, Pilgrim's Pride announced that it had fully repaid its US$450 million debtor-in-possession financing facility as of May 15, 2009. As such, the proceeds of the Farmerville sale will be held in a cash collateral account and used for general corporate operating purposes as needed.

Pilgrim's Pride Corporation employs approximately 47,000 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico and Mexico. The company's primary distribution is through retailers and foodservice distributors.