Del Monte Foods Bringing Major Soup Production to Its Mendota, Illinois Facility.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 30, 2003

$25 Million Investment to Transform Mendota Plant into Key Year-Round Operation

Company Expects Significant Operating Synergies and Supply Chain Improvements

Del Monte Foods Company (NYSE: DLM) today announced plans to reconfigure its newly acquired Midwest soup operations to improve efficiencies, reduce costs and support growth.

The $25 million investment in its existing Mendota, Illinois facility will provide soup production capabilities that mirror those in Del Monte's plant in Pittsburgh, Pennsylvania, giving the company two modern soup operations serving its trade customers. This investment will expand the capabilities of the Mendota seasonal vegetable facility, transforming it into a major year-round source of supply for private label soup products, and is expected to create 100 new jobs. Necessary plant and warehouse construction is now underway to achieve the targeted enhancements in customer service and production efficiencies by fall 2003.

"We expect this supply chain improvement to help us better serve our customers, reduce costs and provide support for the growth of the private label soup business," said Richard G. Wolford, Chairman and CEO of Del Monte Foods. "Locating this soup production in one of Del Monte's key facilities capitalizes on the excellent work force in the Mendota area as well as one of our key distribution centers in Rochelle, Illinois. Additional synergies will be realized at the Mendota plant as it builds on its long-standing role as a key seasonal operation.