000207 IBP Completes Bond Offering

Dakota Dunes, SD - IBP, Inc. announced the closing of $300 million of Senior Notes. The ten year notes will bear interest at a rate of 7.95% and will mature on February 1, 2010.

The offering was led by joint book running managers Donaldson, Lufkin & Jenrette Securities Corporation and Solomon Smith Barney and co-manager Banc of America Securities LLC.

Larry Shipley, Chief Financial Officer, noted “that due to the enthusiastic response from the investment community, we were able to increase the offering size up to $300 million.” The proceeds from the offering will be used for general corporate purposes and to repay existing indebtedness.

In December 1999, both Standard & Poor's and Moody's Investors Service, respectively, confirmed the single -A- minus and A3 senior unsecured credit ratings of IBP, inc.

IBP is the world's leading producer of high quality fresh beef and pork, and supplies premium, fully prepared meats and other consumer- ready foods for the retail and foodservice industries. The company employs more than 45,000 people.

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