Press Release

Statement by Smithfield Packing Co.

Smithfield, Va. (June 15, 2006) Joseph W. Luter, IV, President and COO of Smithfield Packing Company, announced today that the company will not appeal a decision by the U.S. Circuit Court of Appeals concerning union elections held at the company's Tar Heel, North Carolina, plant in 1993 and 1997. In both elections, Smithfield employees voted against unionization.

Luter said:
"Smithfield respects and accepts the court's judgment, even though we strongly disagree with the findings. We have argued strenuously that the allegations the union made concerning Smithfield's conduct during both elections were false. But we recognize that we have lost our case in court.

"When a new election is called, we will comply fully with the NLRB's remedies to assure a fair vote that represents the wishes of our plant's employees. We believe that our employees should have the right to choose whether to unionize, and we respect the choices they make. Unions, including the UFCW, represent employees at a number of our plants and have done so for years without labor conflict. The UFCW has unsuccessfully attempted to organize employees at this particular plant for over a decade.

"Since the UFCW has chosen this week to launch a nationwide 'anti-Smithfield' campaign, we must question the sincerity of the union's motives now. If the union's campaign succeeds, the people who will be hurt the most are the Smithfield employees that the union claims to want to help."

Here are the facts - about Smithfield and about the union's campaign: The union makes untrue allegations about conditions at Smithfield Packing plants. In fact, Smithfield plants meet the highest state and federal regulatory standards for worker safety and environmental responsibility.

The union claims that Smithfield intimidates and coerces workers to keep out unions. In fact, approximately 40% of Smithfield employees are already unionized. Smithfield supports employee choice, and the company welcomes an election that gives employees that choice.

At a time when Congress and state legislatures are debating whether to raise the minimum wage from $5.15, Smithfield already pays starting wages of $9.20 an hour. In sum, Smithfield Packing Company categorically denies the union's allegations. Smithfield will vigorously wage its own consumer education campaign to give people the facts about our company and our plants.

Smithfield Packing Co., headquartered in Smithfield, Va., operates 12 plants in Virginia, North Carolina, Maryland and Florida. The company employs more than 14,000 people. Its major brands include Smithfield, Gwaltney, Stadler, Esskay, Valleydale, Sunnyland and Lykes. Smithfield Packing is a wholly owned subsidiary of Smithfield Foods.

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