Event Brief of Q3 2006 Tyson Foods Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Ruth Ann Wisener, Tyson Foods, VP IR . John Tyson, Tyson Foods, Chairman . Wade Miquelon, Tyson Foods, CFO . Greg Lee, Tyson Foods, Chief Administrative Officer . Dick Bond, Tyson Foods, President, CEO . Diane Geissler, Merrill Lynch, Analyst . John McMillin, Prudential Equity Group, Analyst . Ken Zaslow, BMO Capital Markets, Analyst

. Pablo Zuanic, JPMorgan Chase, Analyst . Farha Aslam, Stephens, Inc., Analyst . Christine McCracken, FTN Midwest Research, Analyst

. Eric Katzman, Deutsche Bank, Analyst . Tim Ramey, D.A. Davidson & Co., Analyst . Jon Feeney, Wachovia Securities, Analyst

OVERVIEW

The Co. reported 3Q06 GAAP loss of $0.15 per share. FY06 GAAP loss per share is now expected to be in the range of negative $0.41 to negative $0.51, which is below TSN's previously announced guidance. For FY06, revenues are projected to be approx. $25.5b.

FINANCIAL DATA

A. Key Data From Call 1. 3Q06 GAAP loss per share = $0.15 per share.

2. FY06 expected revenues = approx. $25.5b. 3. FY06 expected GAAP loss per share = negative $0.41 to negative $0.51.

PRESENTATION SUMMARY

S1. Opening Comments (J.T.) 1. 3Q06 Overview: 1. The Co. reported that 3Q06 was tough. 1. TSN believes that it is not where it needs to be, but it is showing steady and gradual improvement.

2. The Co. believes that although it began seeing signs of improvement in market conditions this qtr., it will take some

time before it's reflected in its results. 3. TSN remains focused on the key elements of its strategy. 1. The Co. commented that it must increase the number of value-added products that provide opportunities for higher and more stable margins. 2. TSN continues to identify and implement income producing or cost-saving projects in its business, so it operates as efficiently as possible. 3. The Co. continues to look at the international opportunities.

2. Management Changes: 1. Dick Bond has taken over as TSN's CEO.

2. The Co. believes that the senior management team is making

progress. 3. TSN commented that Wade Miquelon joined the Co. in June. 1. Wade is helping the Co. support its strategy.

S2. 3Q06 Financial Results & FY06 Outlook (W.M.) 1. 3Q06 Overview:

1. The Co. reported a GAAP loss of $0.15 per share vs. GAAP

earnings of $0.36 per share in 3Q05 and a GAAP loss of $0.37

per share or $0.26 per share operating loss in 2Q06. 2. On a net debt basis, the debt-to-capital ratio was higher at 42.7% vs. 39% for 3Q05. 3. Net interest expense was $7.6m higher in 3Q06 vs. 3Q05, primarily due to: 1. Higher avg. net debt vs. 3Q05. 2. The impact of the negative difference between the interest

income and interest expense for the $750m CD the Co. will use to pay down its 7.25% senior note on 10/01/06. 4. Last week, Moody's made the decision to lower TSN's corporate rating from Baa3 by one notch to Ba1. 1. With this move, incremental annualized interest and the related costs associated with it will increase by approx. $5m before tax. 2. Of note, the Co. had amended its bank agreements based on updated forecasts and it is pleased to have 100% support from its banking partners. 5. No effect of the recent review of TSN's historical tax treatment of synthetic leases has been incorporated into its FY06 forecasts. 2. FY06 Financial Outlook: 1. GAAP loss per share is now expected to be in the range of negative $0.41 to negative $0.51 per share, which is below

TSN's previously announced guidance and reflects its actual

3Q06 results as well as its best estimates for 4Q06. 2. As a result, TSN guidance is as follows: 1. Revenues for FY06 are projected to be approx. $25.5b. 2. Interest, FX, and other charges are now expected to be in the range of approx. $235-240m.

3. Tax rate for FY06 is expected to be approx. 35%. 4. CapEx for FY06 is estimated to be $560m. 5. TSN's [going] numbers are expected to reduce significantly in FY07 as this was a major capital investment year with its: 1. Dakota City renovation. 2. Sherman, Texas case-ready plant. 3. New Discovery Center. 6. D&A is expected to be approx. $520m for FY06. 7. Weighted avg. shares will be approx. 346m.

S3. 3Q06 International Operations (G.L.) 1. 3Q06 Commodity Chicken:

1. Total export sales were $504m, 8% down vs. 3Q05. 1. This was mostly due to lower avg. leg qtr. sales prices. 2. Export volumes of commodity chicken were up 14% vs. 3Q05 and were up 12% over 2Q06. 3. ASP for leg quarters declined $0.17 per pound vs. 3Q05 and $0.04 per pound vs. 2Q06. 4. The Co. began 3Q06 with a significant level of leg qtr. inventory and early on made a concerted effort to aggressively reduce inventory. 5. Shipments during 3Q06 reduced inventories by 62% from 2Q06 levels.

6. As 3Q06 progressed, spot market prices escalated, but the Co.

was not able to fully realize price improvements due to its

sold-ahead position. 7. Sales bookings and shipments to TSN's primary destinations are good, and its inventories are at normalized levels. 8. As the Co. looks forward to 4Q06, the Co. anticipates that its realized sales price will be much improved with Aug. and Sept. being fully reflective of current market prices. 2. Fresh Meat: 1. Export sales of red meat products were $377m for 3Q06. 1. This represents a 4% increase vs. 3Q05 and was primarily driven by a 17% increase in volume. 2. 3Q06 continued the trend with strong pork exports with volumes up 7% vs. 3Q05.

3. Boxed pork exports were also up 7% vs. 3Q05, as demand remains

strong. 3. Market Access Issues: 1. The US government announced last Thursday that an agreement for resumption of beef trade with Japan had been finalized. 2. Under the 20-month [inbound] cattle protocol, the industry expects approx. 10% of the cattle population will be eligible for exports to Japan.

3. USDA negotiations with other countries that are still closed

to the US, such as South Korea and China, continue. 4. Tyson de Mexico: 1. Sales for 3Q06 were 2% below 3Q05, due to lower prices which offset a 7% increase in volume. 2. Chicken prices for 3Q06 were still encumbered by supply-side imbalances.

3. Lower sales prices for 3Q06 resulted in a small loss at the

operating income line. 4. At this time, the Co. does not see an improvement in the profitability from its Mexican operations until FY07 due to a continuation of weak market pricing. 5. Despite the lower-than-desired financial results, the Co. sees

improvements in its business in Mexico. 1. The Co. ran its business in 3Q06 with lower controllable costs than 1H06 and saw sales of value-added products increase by more than 16% over 2Q06. 2. The Co. continues to look for other opportunities to further enhance its position as the leader in value-added poultry

products in Mexico and to diversify its geographic presence. 5. China: 1. Domestic sales rose 44% against 3Q05, driven by increased

volume. 2. Sales to both the food service and retail channels have grown to levels that are higher than those experienced before the AI outbreaks. 3. The Co. continues to work to expand its presence in the retail channel by adding more outlets in the modern grocery industry. 4. TSN is in ongoing discussions with a leading local poultry co. for the establishment of a JV and does not anticipate gaining any approvals or closing the transaction before calendar 2007. 6. South America: 1. The Co. remains interested in continuing to grow its presence in the region and continues to offer its customers poultry products sourced in the region. 2. TSN would expect that export sales from these arrangements will reach in excess of 120m pounds for 2006.

S4. 3Q06 Operational Review (D.B.) 1. 3Q06 Highlights: 1. The Co. commented that while it made some progress in its Beef segment, overall 3Q06 results were disappointing, primarily strained by its Chicken segment. 2. The oversupply of protein in the marketplace, especially early in the qtr., affected all of TSN's segments.

3. The Co. reported that while energy and fuel costs impacted

3Q06 less than 2Q06, they were about $25.5m higher for 3Q06

and $137m higher for the first nine months of 2006 vs. FY05.

2. 3Q06 Chicken Segment: 1. The Co. had an operating loss of approx. $59m vs. a profit of $208m on an adjusted basis in 3Q05.

2. Pounds sold were up about 7% over 3Q05, as the Co. sold

through inventory buildups from previous quarters, resulting

in lower sales prices. 1. The Co. was able to reduce its …