Tyson Outlines Achievements, Goals at Annual Meeting; Environmental, S

FAYETTEVILLE, Ark., Feb. 4 /PRNewswire-FirstCall/ -- Tyson Foods has generated an impressive list of accomplishments over the past three years and developed a strategic plan for further growth, Chairman and CEO John Tyson told shareholders today at the company's annual meeting.

Shareholders elected ten members to the Tyson Board of Directors, including five independent directors, and voted on several items during the meeting at Walton Art Center in Fayetteville, Arkansas. Workplace safety and environmental stewardship awards were given and the company recognized 15 Team Members as "Tyson Heroes."

In a presentation to shareholders, John Tyson noted that over the past three years the company has moved beef and pork up the value chain, increasing the company's mix of value-added products to 38%. The company has paid $1.4 billion in debt, reducing the company's debt to capital ratio from 59% to 43.9%. Tyson has also implemented a "one face to the customer" strategy that has led to new business opportunities and customers. In addition, the company's stock price has outperformed the S&P 500.

"All of our accomplishments over the past three years helped us generate record sales and earnings in fiscal 2004," Tyson said. In addition, the company has developed a five-year strategic plan "to further grow our business to become the premier branded protein company. Driving this plan is our new marketing campaign, 'Powered by Tyson' that was launched this past year to market our full range of chicken, beef and pork products under the Tyson brand.

"The first quarter of fiscal 2005 was extremely difficult for our company and we expect the second quarter to be equally as challenging, as we deal with more of the same market problems in our red meat business," Tyson said, "However, we continue to expect significant improvements in the second half of the year."

Interim Chief Financial Officer Dennis Leatherby reported that capital expenditures in fiscal 2005 are expected to be between $600 million to $650 million. "This reflects increased spending for our third case ready plant, our new R&D center, as well as other projects that will increase automation and support our value-added product growth."

Chief Administrative Officer and International President Greg Lee noted the company's fundamental long-term strategy "is to increase the amount of our portfolio of value-added products." This involves leveraging the company's strong customer base and product innovation capabilities, as well as brand and market leadership. "We expect new products to contribute as much as three quarters of a billion dollars in incremental revenue from the multi-protein categories we will enter or create over the next five years in consumer products and food service," he said.

President and Chief Operating Officer Dick Bond reported that the company "accomplished our 38% value-added product mix (in fiscal 2004) by developing 400 new products and our goal is to increase this mix to 40% in fiscal 2005 and 50% by 2009." He cited the sales growth of Tyson bagged and frozen chicken, case ready beef and pork, as well as bacon and fully-cooked ingredient meats.

During the business portion of the meeting, current members of the Tyson Board of Directors were elected for the upcoming year. They include Dick Bond, Lloyd Hackley, David Jones, Jim Kever, Jo Ann Smith, Leland Tollett, Barbara Tyson, Don Tyson, John Tyson and Albert Zapanta.

Shareholder votes on the following items were also reported: * The Annual Incentive Compensation Plan for Senior Executive Officers was approved. * An amendment and restatement of the Tyson Foods 2000 Stock Incentive Plan was approved. * The selection of Ernst & Young LLP as the company's independent auditor for the fiscal year ending October 1, 2005 was ratified. * Shareholder proposals regarding the reporting of political contributions and an environmental sustainability report were both defeated.

A major part of the meeting involved the recognition of Tyson Team Members, as well as contract poultry growers and independent livestock suppliers, who have made a positive difference in their operations or communities over the past year. [Visit the Tyson Web site http://www.tysonfoodsinc.com/ ]

More than 30 Tyson managers were honored for their workplace safety efforts. Some were inducted into the Chairman's Safety Circle, while others received Excellence in Safety awards. The Chairman's Award for Best Overall Safety was also given for the first time.

John Tyson presented seven national winners of Tyson's Environmental Stewardship Award. The honor recognizes contract growers and independent livestock suppliers who employ environmental stewardship and promote sound conservation practices in their operations.

"Tyson Heroes" were also honored. These are Team Members from all areas of the company who have gone "above and beyond the call of duty," providing inspiration for their fellow team members and making a difference in their communities. Their actions ranged from volunteering in their communities and helping people in need, to saving lives.

Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef, and pork and the second-largest food company in the Fortune 500. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(TM)" strategy. Tyson is the recognized market leader in the retail and foodservice markets it serves, providing products and service to customers throughout the United States and more than 80 countries. Tyson has approximately 114,000 Team Members employed at more than 300 facilities and offices in the United States and around the world.

Forward-Looking Statements

Certain statements contained in this communication may be "forward-looking statements" such as expectations for new products, those new products' contribution to incremental sales, expected results for the second quarter and full fiscal year, and projections on future capital expenditures. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Among the factors that may cause actual results to differ materially from those expressed in, or implied by, the statements are the following: (i) fluctuations in the cost and availability of raw materials, such as live cattle, live swine or feed grains; (ii) changes in the availability and relative costs of labor and contract growers; (iii) operating efficiencies of facilities; (iv) market conditions for finished products, including the supply and pricing of alternative proteins; (v) effectiveness of advertising and marketing programs; (vi) the ability of the Company to make effective acquisitions and successfully integrate newly acquired businesses into existing operations; (vii) risks associated with leverage, including cost increases due to rising interest rates; (viii) risks associated with effectively evaluating derivatives and hedging activities; (ix) changes in regulations and laws (both domestic and foreign), including changes in accounting standards, environmental laws and occupational, health and safety laws; (x) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (xi) adverse results from ongoing litigation; (xii) access to foreign markets together with foreign economic conditions, including currency fluctuations; and (xiii) the effect of, or changes in, general economic conditions. The Company wishes to caution readers not to place undue reliance on any forward- looking statements, which speak only as of the date made. Tyson undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.