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UNION RESPONDS TO MEGAFOODS' DUMPING OF CHIEF FINANCIAL OFFICER

 UNION RESPONDS TO MEGAFOODS' DUMPING OF CHIEF FINANCIAL OFFICER
 PHOENIX, Aug. 28 /PRNewswire/ -- The United Food and Commercial Workers International Union issued the following:
 After repeated complaints by the United Food & Commercial Workers Union to the SEC and investment community, MegaFoods revealed this week that it replaced its Chief Financial Officer, Jack Walker.
 Joe Campos, UFCW spokesperson said: "Replacing Walker doesn't address the fact that he's still a top officer and still owns property leased to Mega which he is supposed to develop. He still owes Mega a lot on his transactions with the company."
 Walker will be retained by Mega as its senior vice president for real estate. His CFO job will be assumed by J. Gary Jaffray Rhymes, formerly of Minneapolis (where Mega's underwriter, Piper Jaffray, is headquartered). "Mega's press release about Rhymes' appointment simply says that Walker will resume his duties as senior vice president, but does not mention that he is losing the CFO post," Campos said. "This is in character."
 UFCW had complained to the SEC and to stock analysts that Mega had not included in its prospectus any of the following information about Walker:
 -- that the RTC is suing him for $2.5 million over a failed loan from Lincoln Savings & Loan;
 -- that businesses in England which Walker used to run went into receivership and/or caused investors to lose millions of pound sterling.
 -- that Mega's controller, Lauri Pollitt, had extended Walker's $250,000 note to MegaFoods from 5 months to 20 months after its original due date. Pollitt was at the center of the record $332 million verdict over the audits she helped Price Waterhouse perform at United Bank. Wall Street Journal, Aug. 14, 1992, p. 1.
 MegaFoods Stores Inc. (NASDAQ: MEGF) recently completed its initial public offering at a price of $7 per share, in contrast to the $11 to $13 estimated earlier this year.
 UFCW is actively organizing Mega's 14 stores in Arizona, and picketing its two stores in Southern California.
 -0- 8/28/92
 /CONTACT: Joe Campos of the United Food and Commercial Workers Union, Local No. 99R, Phoneix, 602-997-8000/
 (MEGF) CO: United Food and Commercial Workers Union ST: Arizona IN: SU:


IH -- DC025 -- 4573 08/28/92 16:38 EDT
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Date:Aug 28, 1992
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