Monfort Control of Trademark Upheld in Korea; Former Employee's Claims Rejected by Korean Examiner.

CHICAGO--(BUSINESS WIRE)--Nov. 3, 1999--

Monfort, Inc. of Greeley, Colo., has been confirmed as the rightful owner of trademark rights to the Monfort name in Korea after an exhaustive review by the Korean Industrial Property Office (KIPO).

Monfort had been embroiled in a lengthy dispute with former Monfort employee Gapsu Kim, who in 1992 deceptively filed in Korea for registration of the Monfort trademark in his own company's name, Monfort Korea, Inc.

The KIPO's ruling, which invalidates Gapsu Kim's claim to the Monfort trademark in Korea, states: "Gapsu Kim did not abide by his obligation to faithfully take care of Monfort, Inc.'s business... Such acts of Gapsu Kim...are against the doctrine of faithfulness... Also, Gapsu Kim's behaviors were improper because he was expecting to gain his own profits out of the trademark."

The KIPO's ruling finds that Gapsu Kim's actions in "registering an imitation mark" ... "disrupts fair and reliable business order." KIPO concludes that Gapsu Kim registered the mark "without proper authorization of Monfort, Inc. and the said mark (Monfort Korea) was an imitation mark which was registered with the intent of free-riding on the goodwill and intangible values of the cited mark (Monfort)."

"We placed our trust in an employee who took advantage of that trust," said David Levine, executive vice president of Monfort, Inc. "This thorough review by the KIPO has set the record straight and delivered a message that this type of business practice will not be tolerated, either in the United States or Korea."

While grateful to the KIPO for its thorough review of the case, Levine also expressed regret for the confusion and concern among Korean consumers that has resulted from Gapsu Kim's claims in this trademark dispute.

"Monfort has earned the highest reputation in the beef market in and outside America," said Levine. "We will be associated only with individuals who prove themselves trustworthy and will not allow them to take advantage of Monfort's many loyal customers."

Levine noted that Korea has been an important market for Monfort since the 1970s. In the early 90s, Monfort became the first U.S. beef company to establish an office in Korea. Today, Monfort supplies roughly 10 percent of all beef and more than 25 percent of American beef imported into Korea.

The KIPO decision is consistent with Monfort, Inc.'s position in a California lawsuit filed against Gapsu Kim and others. Monfort intends to vigorously pursue its legal remedies under United States law.