PREMIUM STANDARD FARMS

Premium Standard Farms was founded in 1988 with the goal of creating a standardized system to produce premium pork. Today, that goal is a reality. Premium Standard Farms is one of the largest pork producers in the country with roughly 212,000 sows in production in Missouri, North Carolina and Texas, and a state of the art processing facility in Milan, Mo., and Clinton, N.C. The company was the first in the industry to pursue full vertical integration. On December 21, 1989 the first Premium St... andard Farms litter of seven gilts and four barrows was born at 7:00 a.m. on the Wiles Farm just outside Princeton, Missouri. By 1991, investment partners were in place, and the company began to grow rapidly, completing construction on production units for 80,000 sows and a processing plant by September of 1994. The company also began expansion in Texas in 1994, acquiring the former National Hog Farms of Texas in June of that year. Additional growth and expansion in Texas was underway in 1995 when the commodity markets experienced unprecedented volatility, forcing a change in strategy and a capital restructuring. By 1996 with the restructuring complete, the Company was on the road to becoming a leader in the industry. In May 1998, Premium Standard Farms merged with Continental Grain Company's (now ContiGroup Companies, Inc.) north Missouri swine operation adding an additional 25,000 sows of production to the existing 80,000 sow Missouri herd. This merger added to the Company's strength, and set the stage for the future. On June 30, 2000 Premium Standard Farms signed an agreement with the Lundy Packing Company to purchase its processing and production operations. It was also announced that Premium Standard Farms would purchase Contigroup's Carolina Farms operations. By August 25, the purchase was complete and both groups are now part of the Premium Standard Farms team. Premium Standard Farms is recognized as an industry leader in food safety, environmental stewardship and worker safety. The company's commitment to quality was recognized in December 1998 when Premium Standard Farms became the first pork producer/processor to earn Process Verified (PVP) accreditation from the United States Department of Agriculture. Today, Premium Standard Farms markets consistent high quality pork to discriminating domestic retailers, further processors, food service providers and export customers in more than 20 countries around the world.More