020721 Pilgrim's Pride to Consolidate Turkey Division

Pittsburg, TX - Pilgrim's Pride Corporation announced that it expects its third fiscal quarter ending June 29, 2002 earnings to be in the range of $0.02 - $0.05 per share versus the $0.27 - $0.32 per share previously indicated. The primary factors resulting in the lowered earnings guidance were higher than previously anticipated negative effects related to the previously disclosed outbreak of low-pathogenic avian influenza which affected its Eastern Turkey Division and currency-translation devaluation losses in its Mexican Operations. The Company is evaluating the effect this quarter's results will have on their remaining outlook for fiscal 2002 and intends to provide revised earnings guidance in its regularly scheduled quarterly conference call set for July 17, 2002.

The Company also announced that it will consolidate production volumes from its Harrisonburg, Virginia, turkey processing plant into the company's turkey processing plant in Hinton, Virginia over the next several months. The plant closing will not have a material financial impact on the Company's financial results as it was contemplated in the purchase accounting amounts previously recorded by the Company.

"This plant consolidation is being made in order to improve operating efficiencies and reduce costs in the Company's turkey operations and was part of the synergies identified by the Company when making the acquisition of these operations a year and a half ago," stated David Van Hoose, the Company's Chief Executive Officer, President and Chief Operating Officer.

Pilgrim's Pride Corporation is the second largest poultry producer in the United States; the third largest in chicken and fifth largest in turkey, and second largest chicken company in Mexico. Pilgrim's Pride employs more than 24,500 persons and operates processing and further processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, North Carolina, Pennsylvania, Virginia, West Virginia and Mexico.

Products are sold under the "Pilgrim's Pride" and "Wampler Foods" labels to foodservice, retail and frozen entree customers. The company's primary distribution is through retailers and restaurants throughout the United States and in the Northern and Central regions of Mexico and to the foodservice industry nationwide in both countries.

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com