CFP Holdings Inc. Reports Results for the Quarter Ended June 30, 2000.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--Aug. 3, 2000

CFP Holdings Inc., a leading developer, manufacturer and marketer of value-added meat and poultry products, today announced the following financial results for the quarter ended June 30, 2000.

                                 Quarter Ended
                                    June 30,
  ($ in millions)            1999              2000
                             ----              ----
  Sales                     $47.5             $50.4              6.1%
  Net Income (Loss)         $ 0.2             $(1.8)          (914.8%)
  EBITDA                    $ 6.4             $ 5.3            (17.9%)

The company reported a net loss for the quarter ended June 30, 2000, of $1.8 million compared to prior year's quarter net income of $0.2 million. EBITDA for the quarter ended June 30, 2000, was $5.3 million compared to $6.4 million for the quarter ended June 30, 1999.

"The company continues with its strong front-end performance, which is apparent in both net revenues and tonnage. We are very pleased with the six-percent quarter-over-quarter sales growth we have attained considering we had very strong 4th quarter sales, due to our having announced a price increase in Period 1 of Fiscal Year 2001," said William Del Chiaro, president and chief executive officer of CFP Holdings.

"However, our earnings performance this quarter has been severely impacted by increases in the cost of raw materials. While these increases were expected, the increased costs were higher than expected. To combat severely rising raw material costs we have done three things: We implemented a price increase in Period 1 (causing the year-end load) and after realizing that raw materials were higher than planned, implemented a second price increase in Period 3.

"Secondly, we aggressively developed and implemented a least cost formulation strategy, giving us purchasing flexibility without sacrificing quality. Third, we have retained New York Consulting Partners, specialists in manufacturing yield improvements, and they are at work with manufacturing and other operations management to improve the process and the profitability in our Pennsylvania plant, which was the most effected by the raw material increases.

"While we expect raw material costs to remain high through the 2nd quarter, we are confident that these three initiatives will put us in position to realize improved 3rd- and 4th-quarter results."

"EBITDA reached 5.3 million for the quarter ending June 30, 2000, compared to 6.4 million for the quarter ended June 30, 1999. The increase in the cost of raw materials far exceeded the $1.1 million decrease in year-on-year EBITDA. With the demand for beef strong both domestically and internationally, raw material costs are expected to remain high through our 2nd quarter," said Ronald J. Gallo, senior vice president and chief financial officer.

"Excluding the impact of raw material costs, EBITDA would have indexed at 111 to prior year. We continue to make improvements in operations and have implemented price increases, both of which we expect to be fully realized during the 2nd fiscal quarter. We remain very positive on the outlook of our business for Fiscal Year 2001."

Note: The company has scheduled a conference call for investors to discuss the quarterly results on Thursday, Aug. 3, 2000, at 1 p.m. ET. The dial-in number is 800/248-9412. Following the call, a recording of it will be available until Aug. 10, 2000. The replay numbers are 800/633-8284 / 858/812-6440, Reservation No. 15977372.

CFP Holdings Inc. is a leading developer, manufacturer and marketer of value-added meat and poultry products sold to the food service industry and manufacturers of packaged foods.

This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the company's expectations ("Cautionary Statements") are disclosed in the company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission and in this statement. All subsequent written and oral forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements.