Smithfield Foods Reaffirms Financial Position

In a statement to the press, Smithfield Foods Inc. has responded to rumours in the marketplace, which the company says are unfounded, by stating the following:

1. Given the recent turmoil in portions of the protein industry, the company feels it is important to reaffirm both its current liquidity and expectations to continue meeting its financial covenant requirements for its revolving credit facilities and other major sources of capital.
2. As of yesterday, September 25, 2008, Smithfield Foods had over $500 million in liquidity from committed lines of capital. The company is currently in compliance with all covenants and expects to be in compliance for all its major facilities through the fiscal year ending April 26, 2009.
3. The company has historically been active in the commodities markets as a management technique and is very comfortable with its current hedging positions which it expects to be favorable to the company's results in the current quarter.
4. The company has no significant debt payments due until late into calendar 2009.
5. The company accessed the capital markets in early July and as a result the company is on very sound financial footing.

With sales of $11 billion, Smithfield Foods is the leading processor and marketer of fresh pork and packaged meats in the United States, as well as the largest producer of hogs.

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