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PAPETTI'S AGREES TO CONSENT ORDER

 MINNEAPOLIS, Dec. 23 /PRNewswire/ -- Michael Foods, Inc. (NASDAQ-NMS: MIKL) announced today that Papetti's Hygrade Egg Products, Inc. has entered into a Consent Order. Under the order, Papetti's will refrain from producing extended shelf-life liquid whole egg products by a process patented by North Carolina State University (NCSU). These patents are licensed to Michael Foods. Michael Foods and NCSU had recently filed a motion for Preliminary Injunction with the United States District Court for the District of New Jersey. Earlier the court found that Papetti's was infringing the NCSU patents. Discovery for damages as a result of the infringement is now being sought by Michael Foods.
 Papetti's claims it has begun using a new process which does not infringe the NCSU patents. Court directed discovery relating to this process will allow Michael Foods to determine if Papetti's is in fact able to produce quality, extended shelf-life liquid eggs without infringing the NCSU patents. Following the discovery period, Michael Foods and NCSU will advise the court and Papetti's within 30 days as to whether they believe the alleged new process still infringes the patents in question. Michael Foods intends to vigorously protect its proprietary processes and products.
 The ultrapasteurization process patented by NCSU has been used by Michael Foods to product Easy Eggs(R) since late 1988, and to give extended refrigerated shelf-life to Simply Eggs(TM) -- Michael Foods' new reduced cholesterol liquid whole eggs.
 Simply Eggs were introduced in May 1992 and recently attained national retail distribution. The company is also pursuing efforts to gain acceptance with foodservice and industrial customers. Retail promotion involves significant advertising costs, making is unlikely that anticipated sales will achieve profitability until retail, foodservice and industrial volume substantially increases. The company continues to explore all opportunities to reduce processing and other costs relating to Simply Eggs.
 Michael Foods is a diversified food processor and distributor with particular interests in egg products, refrigerated grocery products, frozen and refrigerated potato products, specialty dairy products and refrigerated soups and salads. Principal subsidiaries include M.G. Waldbaum Company, Crystal Farms Refrigerated Distribution Company, Northern Star Co., Kohler Mix Specialties and Sunnyside Vegetable Packing, Inc.
 -0- 12/23/92
 /CONTACT: Mark D. Witmer of Michael Foods, 612-546-1500/
 (MIKL)


CO: Michael Foods, Inc.; Papetti's Hygrade Egg Products, Inc. ST: Minnesota IN: FOD SU:

KH -- MN011 -- 9689 12/23/92 16:15 EST
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Publication:PR Newswire
Date:Dec 23, 1992
Words:390
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