990316 Sandy Creek Announces Construction Plans

Crestview, FL - Sandy Creek Corporation, a commercial producer of ostrich meat, leather, and oil-based cosmetics, announced that it plans to construct a new 25,000 sq. ft. processing plant in order to expand production capacity to meet growing demand. The Company noted that its monthly ostrich meat sales increased significantly since January to restaurants and distributors throughout the United States.

SCRK reported that it has selected a construction site and is currently in negotiations with a contractor to build the new processing plant to USDA specifications. The Company hopes to begin production at the new facility by the end of calendar 1999.

Coupled with the Company's USDA-approved processing plant in Ocala, FL, Sandy Creek expects to process a total of approximately 1,000 birds per month producing approximately 80,000 pounds of meat.

“This year we already made tremendous progress by doubling the number of states we serve and beginning to ship to major distributors,” said Les Lerner, president and chief executive officer of Sandy Creek. “As we continue to enhance both our nationwide presence and industry market share, we expect our sales growth to continue at an accelerated pace and hope to achieve sales of at least 5,000 pounds of ostrich meat this month which will generate roughly $30,000 in revenues.”

The Company's meat sales efforts are focused on targeting four key markets: restaurants and restaurant chains, supermarkets and grocery chains, individual consumers, and international food distributors.

Lerner noted that the Company's ostrich farm benefits from a distinct advantage as compared to cattle ranches, with ostrich offspring producing four times the amount of meat as that produced by the offspring of cows. He noted that ostrich meat, with its unique health benefits, also has the potential to capture a significant portion of the country's red meat consumption.

Commenting on the Company's long-term growth prospects, Lerner explained that Sandy Creek has virtually unlimited potential given that a mere one percent market share of the U.S. meat industry translates into consumption of nearly 800,000 pounds of ostrich meat each day.

Sandy Creek Corporation is engaged in the commercial production of ostrich meat and various products derived from the animal's hide and oils. The Company owns and operates a fully equipped 80-acre ostrich ranch in Crestview, FL and leases a USDA-approved processing facility in Ocala, FL.

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