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PILGRIM ANNOUNCES IMPROVED OPERATING RESULTS AMID DISCUSSIONS WITH LENDERS

 PITTSBURG, Texas, Nov. 25 ~PRNewswire~ -- Pilgrim's Pride Corporation (NYSE: CHX) today announced that unseasonably higher domestic poultry prices and favorable costs during the fall months, combined with recent substantial increases in poultry prices in Mexico, have resulted in improved operating results and increased operating cash flow during its fiscal quarter which began Sept. 27, 1992.
 However, due to weak poultry prices throughout much of its fiscal year ended Sept. 26, 1992, and the inability to complete its previously announced refinancing plan before year end, Pilgrim's Pride is seeking waivers of non-compliance with certain financial covenants in loan agreements with its major secured lenders. Pilgrim's Pride and such lenders are in discussions regarding such waivers and amendments to its current loan agreement, which if completed, would extend its revolving credit facility from May 1, 1993 to Oct. 4, 1993. In view of such discussions, Pilgrim's Pride will omit payment of cash dividends on its Common Stock.
 "Cash flow from operations has been and continues to be sufficient to fund operations and meet all principal and interest payments as they become due and we are optimistic that the desired waivers and amendments will be obtained although there can be no assurance regarding these matters," said Lonnie A. "Bo" Pilgrim, chairman and CEO.
 Pilgrim's Pride Corporation is the fifth largest producer of poultry products and the 22nd largest egg producer in the United States, producing more than 1.1 billion pounds of dressed poultry and 41 million dozen table eggs annually. Pilgrim's Pride employs more than 10,500 persons internationally and operates processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, Oklahoma and Mexico.
 Products are sold under the "Pilgrim's Pride" label to supermarkets, wholesale clubs, and food service customers. The company's primary domestic distribution is through retailers and restaurants in Central, Southwestern and Western United States and through the food service industry nationally.
 -0- 11~25~92
 ~CONTACT: Cliff Butler, chief financial officer of Pilgrim's Pride Corporation, 903-856-7901~
 (CHX)


CO: Pilgrim's Pride Corporation ST: Texas IN: FOD SU:

PS -- NY025 -- 3882 11~25~92 11:53 EST
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Publication:PR Newswire
Date:Nov 25, 1992
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