December 1, 2006

Pilgrim's Pride gains the upper hand and extends Gold Kist offer

The second largest chicken processor in the US, Pilgrim's Pride is extending its offer to purchase Gold Kist shares until December 27, 2006, after announcing about 67 percent of Gold Kist's outstanding shares have been tendered and not withdrawn.

Gold Kist, the third largest chicken processor in the has been urging its stockholders not to sell their shares to Pilgrim's Pride who is eager for a takeover.

Pilgrim's Pride is very pleased that such a significant majority of outstanding Gold Kist shares have been tendered into the offer, said O.B. Goolsby, Jr., Pilgrim's Pride president and chief executive officer.

The strong response is a clear indication that Gold Kist stockholders recognise the compelling value of the offer and want Gold Kist's board of directors to waive its takeover defenses, Goolsby said. 

Both Pilgrim's Pride and Gold Kist stockholders rightfully expect the Gold Kist directors to listen to the owners of the company and work with Pilgrim's Pride to complete this transaction quickly, Goolsby said.

Pilgrim's Pride also announced that it has extended its tender offer to purchase all of the outstanding shares of Gold Kist common stock for US$20.00 per share in cash until December 27, 2006, unless further extended.

Gold Kist maintains that Pilgrim's US$20-a-share offer does not reflect the full strategic value of Gold Kist and is not in the best interest of stockholders.