Del Monte Comments On Expected Fiscal 2001 Third Quarter and Full Year Results.

Business Editors

SAN FRANCISCO, CA--(BUSINESS WIRE)--March 21, 2001

Del Monte Foods Company (NYSE: DLM), today announced that adjusted earnings per share for the quarter ending March 31, 2001 are expected to range from $0.20 to $0.23. This compares with $0.23 in the prior year quarter and with the consensus of analyst estimates of $0.26, as reported by First Call. Adjusted earnings per share for the full fiscal year ending June 30, 2001 are now expected to range from $0.88 to $0.92. Adjusted EBITDA is expected to range from $40 million to $43 million for the third quarter and from $175 million to $179 million for the full fiscal year. The Company now expects that net sales for the third quarter will be approximately 4% to 6% higher than the prior year quarter and that net sales for the full year will be approximately 1% to 2% higher than in fiscal 2000. Adjusted earnings per share and EBITDA exclude special charges related to plant consolidation and other non-recurring items. The impact of the acquisition of S&W, discussed below, is not reflected in the expected results noted above.

This revised forecast results primarily from continued reduction of the trade inventory levels held by the Company's retail trade customers, a trend which may continue into next year and which is being broadly experienced across the industry.

"Del Monte, like other grocery manufacturers, has experienced reduced shipments as our trade customers significantly reduce their inventory levels," said Richard G. Wolford, Chairman and Chief Executive Officer. "This process became apparent in the fourth quarter of fiscal 2000, continued at a modest rate in the first half of this fiscal year, and appears to be occurring at a rate greater than we expected in the second half of this fiscal year. Ongoing, lower trade inventories represent an efficient industry model that will serve us well going forward. However, the process itself has a negative interim impact and has depressed short-term shipments despite our continued strong market shares and consumer purchases of our products."

The resulting lower sales volume has also affected the Company's ability to fully offset the previously disclosed $20 million increase in production costs.

On March 14, 2001, Del Monte announced the completion of its acquisition of the S&W business from Tri Valley Growers. The S&W acquisition is expected to be accretive to earnings per share and EBITDA beginning in fiscal 2002. This transaction is currently expected to be dilutive to fiscal 2001 adjusted earnings per share, discussed in the first paragraph above, by approximately $0.02 to $0.05. This dilution primarily reflects the initial transition costs associated with integrating this business into Del Monte's operational structure. The impact of the acquisition on adjusted EBITDA for fiscal 2001 is expected to be neutral to negative $2.2 million.

Del Monte will announce its definitive results for the third quarter on Thursday, April 26, 2001. The Company will host a live audio webcast to discuss the results and the Company's view of its business and prospects at 8:00 a.m. PST (11:00 a.m. EST) that day. The webcast can be accessed at www.delmonte.com.

Del Monte Foods Company, with net sales of $1.5 billion in fiscal 2000, is the largest producer and distributor of premium quality, branded processed fruit, vegetable and tomato products in the United States. The Del Monte brand was introduced in 1892 and is one of the best known brands in the United States. Del Monte products are sold through national grocery chains, independent grocery stores, warehouse club stores, mass merchandisers, drug stores and convenience stores. The Company also sells its products to the U.S. military, certain export markets, the foodservice industry and food processors. The Company operates twelve production facilities in California, the Midwest, Washington and Texas and seven distribution centers.

This press release contains forward-looking statements conveying management's expectations as to the future based on plans, estimates and projections at the time the company makes the statements. Forward-looking statements involve inherent risks and uncertainties and the Company cautions you that a number of important factors could cause actual results to differ materially from those contained in such statements. These factors include, among others: general economic and business conditions; competition; weather conditions; crop yields; raw material costs and availability; the loss of significant customers; changes in business strategy or development plans; availability, terms and deployment of capital; availability of qualified personnel; inability to increase prices; changes in, or failure or inability to comply with, governmental regulations, including, without limitation, environmental regulations; industry trends, including, without limitation, changes in buying and inventory practices by customers; production capacity constraints and other factors. These factors are described in more detail in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal year ended June 30, 2000. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.