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CONAGRA ESTABLISHES EMPLOYEE EQUITY FUND AND AUTHORIZES STOCK BUYBACK FOR THE FUND

 CONAGRA ESTABLISHES EMPLOYEE EQUITY FUND AND AUTHORIZES
 STOCK BUYBACK FOR THE FUND
 OMAHA, Neb., July 23 /PRNewswire/ -- ConAgra Inc. (NYSE: CAG) today announced it is establishing a $700 million Employee Equity Fund (EEF), a newly formed trust, to pre-fund future stock-related obligations of the company's compensation and benefit plans. The EEF is a vehicle for supporting existing, previously approved employee plans which use ConAgra common stock and does not change those plans or the amounts of stock expected to be issued for those plans. The plans presently include incentive plans, stock purchase programs, savings plans, retirement plans and stock option plans and involve a substantial portion of present and future ConAgra employees.
 ConAgra will fund the EEF with $700 million of ConAgra common stock sold to the EEF. Half of this stock will be newly issued by ConAgra. ConAgra will purchase the other half in the open market with the proceeds from a $350 million public debt offering.
 Charles M. Harper, ConAgra's chairman and chief executive officer, commented, "I believe this is good news for our employees and our stockholders. The Employee Equity Fund reaffirms ConAgra's long-term commitment to motivating our employees through stock ownership and aligning employee interests with the interests of all shareholders. Buying back shares for the EEF is consistent with our long-standing policy to purchase shares for incentive programs, rather than issuing additional shares, so earnings per share won't be diluted."
 ConAgra's board of directors has authorized the purchase from time to time in the open market of ConAgra common shares up to a value of $350 million. Based on ConAgra's recent common stock price of about $27 per share, the company would purchase up to 13 million shares in the open market starting in the near future. These shares plus roughly the same number of newly issued shares will be sold to the EEF. ConAgra currently has about 232 million common shares outstanding.
 The EEF is not expected to have a negative effect on ConAgra's credit rating. The EEF also is expected to have a modest positive effect on earnings per share and return on common equity.
 The EEF will be administered by an independent trustee, and the First Boston Corporation is acting as ConAgra's financial advisor for the EEF.
 -0- 7/23/92
 /CONTACT: Walt Casey of ConAgra, 402-595-4154/
 (CAG) CO: ConAgra Inc. ST: Nebraska IN: FOD SU:


BB -- DV013 -- 2813 07/23/92 17:39 EDT
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Publication:PR Newswire
Date:Jul 23, 1992
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