Release Details

PITTSBURG, Texas, July 24 /PRNewswire-FirstCall/ -- Pilgrim's Pride Corporation (Pink Sheets: PGPDQ) today announced plans to idle its chicken processing plant in Athens, Ala., and one of its two plants in Athens, Ga., within 60-75 days as part of its continuing effort to improve capacity utilization and reduce costs.

Production from the Athens, Ala., plant will be consolidated into two other Pilgrim's Pride complexes, bringing those facilities to full capacity. The hatchery in Moulton, Ala., the feed mill in Falkville, Ala., and other live production operations associated with the Athens plant will continue to operate.

Approximately 640 employees who work at the Athens, Ala., processing plant will be affected by the plant idling. Pilgrim's Pride expects to be able to offer positions at other facilities to many of these employees. The company will provide transition programs to employees who are not retained in order to assist them in securing new employment, filing for unemployment and obtaining other applicable benefits.

Production from the company's Athens, Ga., plant on Oneta St. will be consolidated at the neighboring Barber St. plant as well as at several other company complexes in north Georgia, bringing those facilities to full capacity. The live production operations, including hatcheries and feed mills, will continue to operate. Pilgrim's Pride expects to be able to offer positions to most of the approximately 330 employees at the Oneta St. location by the time the plant is idled. The company will provide transition programs to any employees who are not retained after the consolidation.

The company does not expect any significant reduction in the number of Pilgrim's Pride contract growers in either Athens, Ala., or Athens, Ga., as a direct result of idling these plants. Most growers will be transitioned to supplying other complexes.

Since production from these two plants will be consolidated into other complexes, the idling of these two facilities will not result in any decrease in the company's overall production or in any change in product mix. There will be no disruption in the supply of product to Pilgrim's Pride's customers. The company said it would consider restarting the two plants in the future should market conditions justify it.

"As we work to restructure Pilgrim's Pride as a market-driven company, we must continue to look for ways to reduce our costs and operate more efficiently," said Don Jackson, president and chief executive officer. "A key component of that effort is improving our capacity utilization through plant consolidation and other operational changes. While the decision to idle a plant and eliminate jobs is always painful - and we regret that it is necessary - it is absolutely critical to the future of Pilgrim's Pride that we make better use of our assets. We are taking these actions now to protect the jobs of our 41,000 employees and 4,500 growers so that we can emerge from Chapter 11 as a stronger, more efficient company."

As previously announced, the Company filed voluntary Chapter 11 petitions on December 1, 2008. The Chapter 11 cases are being jointly administered under case number 08-45664. The Company's operations in Mexico and certain operations in the United States were not included in the filing and continue to operate as usual outside of the Chapter 11 process.

Additional information about the restructuring is available at the Company's website www.pilgrimspride.com or via the Company's restructuring information line at (888) 830-4659.

About Pilgrim's Pride

Pilgrim's Pride Corporation employs approximately 41,000 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. For more information, please visit http://www.pilgrimspride.com.

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management, including expectations as to the reorganization of the Company's business and finances to resolve its operational and liquidity issues, expectations to emerge from Chapter 11 proceedings stronger and more competitive, the sufficiency of liquidity to be provided by the debtor-in-possession financing facility, anticipated authorizations being requested of the Bankruptcy Court, and expectations as to the ability to make post-petition payments, are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: the Company's ability to obtain court approval with respect to its motions in the Chapter 11 proceedings; the ability of the Company and its subsidiaries to prosecute, develop and consummate one or more plans of reorganization with respect to the Chapter 11 proceedings; risks associated with third-party motions in the Chapter 11 proceedings, which may interfere with the Company's ability to develop and consummate one or more plans of reorganization; the potential adverse effects of the Chapter 11 proceedings on the Company's liquidity or results of operations; matters affecting the poultry industry generally; continued compliance with conditions for funding under the debtor-in-possession financing facility; the ability to execute the Company's business and restructuring plan to achieve desired cost savings and additional capital to improve liquidity; future pricing for feed ingredients and the Company's products; additional outbreaks of avian influenza or other diseases, either in the Company's flocks or elsewhere, affecting the Company's ability to conduct its operations and/or demand for its poultry products; contamination of the Company's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources, particularly in light of the Company's substantial leverage; restrictions imposed by, and as a result of, the Company's substantial leverage; changes in laws or regulations affecting the Company's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause the Company to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of the Company's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact

Cameron Bruett
Communications
Phone: +1 970.506.7801 | Email: cameron.bruett@jbssa.com