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000649 Limousin Cattle Franchising Launched to Meet Beef Demand

June 19, 2000

Oklahoma City, OK - Express Services Inc., the owner of Express Ranches and current international franchisor of Express Personnel Services staffing firms, is broadening its franchising efforts. Express Ranches, based in Yukon, Okla., is expanding to offer global franchising of its Limousin cattle operations.

“Our type of franchising has never been tried in the cattle business,” said Funk, Express Ranches president, who plans to open 20 to 25 franchises in the United States and hundreds around the world in the foreseeable future.

Funk announced the appointment of Louis deNeuville, the most current past president of the International Limousin Society, to direct the international marketing campaign. deNeuville previously served more than 30 years as president of the French Limousin Society.

“Basically, we're going to target franchise prospects in countries who will be interested in distributing our genetics,” said Funk.

deNeuville is currently in China “to discuss franchising with government and private sector contacts,” Funk said.

“The amount of meat being consumed by China's 1.2-billion people is increasing rapidly,” Funk said. “It should be a good market for us for many years to come.”

Funk will employ some of the same strategies he used to build his company, Express Personnel Services in Oklahoma City, into a global network of 400 franchises. The human resource company's Russian franchise, Ancor, has become Russia's largest private sector employment service.

With 2,000 registered head of Limousin and 1,000 head of Angus cattle, Funk's ranch is the third largest registered seed stock producer of its breeds in the United States. In the six years since its founding, Express Ranches has acquired a reputation for genetic excellence and high quality beef production.

“Other countries can raise their own cattle, of course,” Funk said, “but the best Limousin genetics available are in the United States, not France. The world looks to American genetics because they are structurally correct, faster growing, and very lean-meat oriented. We have the intellectual capital to help foreign ranchers cut short the learning curve.”

Citing the pending Chinese deal as a prototype of his franchise plan, Funk said, “They'll receive complete training that covers all operational phases from conception to consumption.”

Although the cost to open a franchise “has not been determined,” Funk said, “it won't be a heavy price on the front end.

“What we're looking for is enough money to pay for the training and personnel needed for an effective launch. It's a matter of finding the right people to represent you who have the same ambition and value system.”

In addition to China, markets where Limousin breeding could flourish, include Brazil, Argentina, Australia, Indonesia and Russia, as well as some Eastern European and South American countries.

“Europe has a lot of potential because Mad Cow disease has made it difficult for them to export their product. We are exempt from the disease and our genetics are as reputable or better than the original breed from France.

“As more health-conscious consumers turn to lean beef, the prospects for the industry are bright,” Funk said. “After the Black Angus and Hereford, Limousin cattle have become the third highest registered breed in the United States.”

Limousin cattle, which take their name from a region in central France, were introduced into the United States in 1967 and have steadily gained in numbers and acceptance with ranchers and meat packers.

To date, three United States supermarket chains, Price Mart, Snyders IGA and Mennards, distribute Express Ranch's “Premium Beef” brand.

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