FOR IMMEDIATE RELEASE

March 26, 2002

JENNIFER BOES, 302.672.6811

(Dover, Del.) - Governor Ruth Ann Minner announced today that a major food company plans to open a vegetable processing facility near Bridgeville, Del. The facility would generate more than $3.5 million in annual income for local farmers.

Pictsweet Frozen Foods, a division of United Foods, Inc., expects to complete construction on a $3 million processing plant on Cannon Road, north of Route 18, by 2003. The 18,000 square foot facility would process between 9,000 and 10,000 acres of locally grown vegetables annually.

Governor Ruth Ann Minner said, "This is a major advancement for our agricultural community. Growing Delaware’s vegetable processing industry will provide our farmers with a significant opportunity to increase profits. I am very pleased that we have been able to attract two new processing plants to Delaware already this year."

In January 2002, the Minner Administration announced that Michigan-based Kenny, Inc. would begin operations at a new pickle grading facility in Bridgeville this July. Kenny has contracted with more than 14 local growers to provide more than 870,000 bushels of produce for the upcoming growing season. This represents approximately $3.2 million in farm income.

Pictsweet’s Bridgeville plant would handle the washing, grading, and hydrocooling of lima beans, peas and sweet corn for shipment to the company’s Tennessee processing plant. There, they will be frozen and packaged for shipment to customers around the country.

Wesley F. Eubanks, Vice President of Operations for Pictsweet Frozen Foods, said, "The combination of climate, good soils, irrigation, and quality growers is the main attraction for locating this facility in Delaware. The dedication to lima bean production by the state is also very important to the long term viability of an operation such as this."

The new facility would operate from June through October, initially creating approximately 10 part-time and three full-time positions. Pictsweet anticipates that it will begin harvesting lima beans in Delaware this summer, using a subcontractor to process the vegetables. Pictsweet will work with area growers to harvest approximately 2,000 acres of produce, resulting in more than $640,000 in new income for Delaware farmers this year.

In 2001, Delaware farmers produced more than 55,000 acres of vegetables, generating approximately $60 million in cash farm income.

Michael T. Scuse, Secretary of the Delaware Department of Agriculture, said, "I am extremely pleased that Pictsweet has chosen Delaware for their company's expansion. By coming to Delaware, they will help our farmers diversify their production and increase their profitability. Delaware's farmers and I look forward to working with such an outstanding company."

The Delaware Economic Development Office has been working to bring Pictsweet to Delaware since 2001 as part of its initiative to grow Delaware’s vegetable production industry.

John D. Wik, Director of the Delaware Economic Development Office, said, "The University of Delaware’s agricultural research is helping to position Delaware as a leader in vegetable production. This provides a strong incentive to processing companies like Pictsweet which are looking to locate in regions that have the ability to consistently produce a quality product."

The University of Delaware received $145,000 from the Delaware Department of Agriculture in January 2002 to improve and enhance Delaware’s vegetable processing industry. The funds were awarded from a United States Department of Agriculture (USDA) block grant.

Ed Kee, University of Delaware Extension Vegetable Crops Specialist says, "Pictsweet has been working with the University on vegetable crop production issues since 1996. Thanks to this interaction, company officials became very familiar with local growers, the region’s vegetable production, and the University's research programs. Their positive impression of our agricultural assets made Delaware a strong contender when Pictsweet began its search for new sources of supply."

Sussex County Planning officials assisted PictSweet in finding an ideal location for the processing plant. Robert L. Stickels, Sussex County Administrator, said, "Agriculture remains the backbone of our economy in Southern Delaware. The best way to ensure that farming will remain strong is to assist our farmers in being profitable."

United Foods, Inc. is a major food processing, marketing and distribution company headquartered in Bells, Tennessee. The same family that owns and manages it today founded the company more than 50 years ago.