Embrex Signs Contract With Brazil's Second Largest Chicken Producer - US - The In Ovo Company(SM), today announced it has signed a leasing agreement with Perdigao S.A. (NYSE: PDA), the second largest broiler chicken producer in Brazil.

Per the agreement, Perdigao will convert all broiler hatcheries as well as one breeder hatchery from manual chick inoculation to Embrex's automated Inovoject(R) vaccination system over the next six months.

"Perdigao is a very innovative poultry producer and we look forward to working closely with them to automate the inoculation process in its hatcheries," said Brian Hrudka, Embrex's Vice President, Latin America and Vice President, Global Marketing. "This contract was supported by results from comprehensive commercial trials run in their hatcheries proving the benefits that the Inovoject(R) system could bring to their operations. With the Inovoject(R) systems, the efficiency of Perdigao's hatcheries, especially the new state-of-the-art hatchery in Rio Verde, will rival the efficiency of any hatchery in the world."

Benefits of the Inovoject(R) system include:

• Early protection against disease
• Reduced chick stress because post-hatch chick handling is reduced
• Precise, uniform injection of eggs
• Reduced contamination because needles are individually sanitized after each injection
• Easy system maintenance and repair due to its modular design
• 24/7 customer service and support from Embrex professionals both in the hatchery and via telephone

"Brazil represents one of the most successful poultry producing nations in the world and high quality production has been a major factor in Brazil's tremendous growth in broiler exports, especially to Europe. Perdigao is a leader in Brazil's long tradition of adopting modern, state-of-the-art technologies and its acceptance of the Inovoject(R) system has been a careful and steady process that is important for both our companies," said Randall L. Marcuson, President and Chief Executive Officer of Embrex. "With the addition of Perdigao, we now have nearly a dozen customers in Brazil and we look forward to further adoption of the Inovoject(R) system by the innovative producers operating there."

Brazil is the second largest industrialized broiler producing country in the world producing approximately 3 billion broiler birds annually.

Source: Embrex - 6th January 2004