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OPERATIONS SHUTDOWN CONTINUES AT SYLVAN FOODS HOLDINGS' MOONLIGHT MUSHROOMS SUBSIDIARY FOLLOWING THIRD UNION VOTE

 SARVER, Pa., Nov. 26 /PRNewswire/ -- Sylvan Foods Holdings, Inc. (NASDAQ: SYLN) today announced that its Moonlight Mushrooms, Inc. subsidiary is continuing the shutdown of its operations following the Nov. 24 rejection by unionized employees of a package of proposed wage and benefit cost reductions which Moonlight's management said were necessary to restore the company's profitability.
 The 378 to 357 vote followed previous rejections of cost reduction proposals by members of Local 8025 of the United Steelworkers of America on Oct. 17 and Nov. 3. According to Moonlight officials, the shutdown began on Nov. 2 and should be completed by no later than the middle of January 1994. It will result in the elimination of approximately 965 jobs at the Worthington, Pa., mushroom farm.
 Sylvan Foods Holdings, Inc. said the amounts of the charges and other costs arising out of the shutdown are not currently available and it declined to estimate the impact that the shutdown will have on the company's profitability. However, Moonlight experienced a $9.9 million loss in the first quarter of 1993 in connection with the required adoption of an accounting standard covering postretirement medical benefits and it has recorded operating losses since the middle of the 1992 calendar year.
 Sylvan Foods Holdings, Inc. is the leading worldwide producer and distributor of mushroom spawn and other spawn related products and services and the third largest domestic grower and marketer of fresh mushrooms.
 -0- 11/26/93
 /CONTACT: Bill Mooney of Sylvan Foods, 412-295-3910/
 (SYLN)


CO: Sylvan Foods Holdings, Inc.; Moonlight Mushrooms, Inc. ST: Pennsylvania IN: FOD SU:

CD-MP -- PG002 -- 7907 11/26/93 09:39 EST
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Publication:PR Newswire
Date:Nov 26, 1993
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