These facilities will comprise a state-of-the-art poultry complex with the capacity to process 1.25 million birds per week for the retail chill pack market. At full capacity, the complex will employ approximately 1,500 people, will require 130 contract growers, and will be equipped to process and sell 6.7 million pounds per week of dressed poultry meat at full production.

Sanderson Farms said it will invest about $126.5 million in the new North Carolina complex, and anticipates that associated contract growers will invest an additional $98 million in poultry production facilities.

The Company expects work to begin this summer, with initial operation of the new complex scheduled to begin during the fourth fiscal quarter of 2009.

According to Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc., the selection of these sites followed a thorough due diligence process and approval by the Company's Board of Directors.

"We are grateful for the cooperation from the economic development and governmental officials in the City of Kinston, Lenoir County and the State of North Carolina," said Mr Sanderson.

"We believe this expansion will enhance our ability to drive revenues and earnings, and allow us to continue our record of building long-term value for our shareholders. We believe the additional capacity of 1.25 million birds per week represented by the new complex will provide new marketing opportunities for the Company in the fresh retail market. We are pleased that our recent financial performance has put us in a position to continue to grow our Company."