Perdigao Forecasts Increased Year-End Sales - BRAZIL - Perdigao expects its retail sales of Chester(R) to be 6% higher than 2003. The Company has been steadily improving this succulent, tender and tasty meat product over the past few years. Starting prices for the consumer at the point of sale will be R$ 6.60 per kilo, depending on purchase conditions negotiated by each retailer.

This retail price is about 10% higher than last year, due to the increase in production and selling costs. Perdigao has invested R$ 3 million in marketing and an intense publicity campaign as a prelude to the arrival of the Chester(R) poultry brand on the supermarket shelves for the year-end holiday period - responsible for 90% of the brand's sales volume - as part of a campaign to enhance market penetration during this period.

The theme of this year's campaign is "Perdigao Chester: the secret of an unforgettable Christmas dinner" and part of the Company's main Secrets advertising campaign, which was launched at the beginning of last year.

THE SEASONAL GREETINGS LINES

Perdigao's year-end product mix also brings the Seasonal Greetings Lines, which includes Perdigao and Batavo Frozen Turkey brands - indispensable for year-end festivities. The forecasted price increase for these items is about 15% compared with last year.

Perdigao is forecasting sales of approximately six million birds (Chester(R) and turkey, combined), thus ensuring that it maintains the Company's leadership for special year-end poultry sales.

A special scheme has been implemented to meet demand for growth in sales and ensure the supply of Chester(R), the Seasonal Greetings Line, the Perdigao Frozen Turkey and Batavo Turkey throughout the country during the year-end holiday period.

Source: PRNewswire - 14th January 2005