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SYLVAN FOODS HOLDINGS, INC.'S MOONLIGHT MUSHROOMS SUBSIDIARY NOTIFIES WORKERS OF POSSIBLE PLANT CLOSING

 SARVER, Pa., Sept. 8 /PRNewswire/ -- Sylvan Foods Holdings, Inc. (NASDAQ: SYLN) today announced that its Moonlight Mushrooms, Inc., subsidiary, located in Worthington, Pa., provided notice of plant closing to its 965 employees as required by the federal Worker Adjustment and Retraining Notification Act.
 Management recently requested that discussions with Local 8025 of the United Steelworkers of America commence as soon as practicable to find ways to reduce costs. Nov. 1, 1993, has been identified as the target for reaching a new agreement, or modifying the existing collective bargaining agreement, which expires Aug. 2, 1994. Without modification of the current wage and benefit structure, Moonlight intends to discontinue its operations. Due to the nature of production operations, work force reductions would be expected to proceed over a three-month period. 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 has recorded operating losses since the middle of the 1992 calendar year.
 Gary Walker, president of Moonlight, said that he is "optimistic that a new agreement, or changes to and an extension of the existing agreement, will be reached before any significant work force reductions occur." Moonlight is one of Sylvan's two mushroom production subsidiaries.
 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- 9/8/93
 /CONTACT: Bill Mooney of Sylvan Foods, 412-295-3910/
 (SYLN)


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


KC-ML -- PG010 -- 9856 09/08/93 13:14 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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