SYSCO's FreshPoint Subsidiary Acquires Produce Suppliers Piranha Prod

    Business Editors/Food Writers

    HOUSTON--(BUSINESS WIRE)--Jan. 24, 2005--SYSCO Corporation (NYSE:SYY) today announced that its FreshPoint produce subsidiary has agreed to acquire Piranha Produce Inc., and has also completed the acquisition of Nashville Tomato Inc. Terms of the transactions were not disclosed.
    Headquartered in Modesto, Calif., Piranha Produce is a full-line fresh fruit and vegetable foodservice distributor and supplies foodservice customers throughout northern and central California. Jeff Sacchini and Glenn Davis will remain as president and executive vice president, respectively, of the operation.
    Nashville Tomato, headquartered in Nashville, Tenn., is a regional tomato packager and distributor to foodservice operations throughout Tennessee, Missouri, Kentucky, North Carolina, South Carolina, Georgia, Mississippi, and Alabama. Gus Grote and Eddie DeMoss will remain as president and executive vice president, respectively, of the operation.
    Richard J. Schnieders, SYSCO's chairman and chief executive officer, said, "This announcement further solidifies the commitment SYSCO has made to extend our specialty produce offerings and distribution reach since the acquisition of FreshPoint in 2000. The growth opportunities for the specialty produce market, as well as the synergies that our produce operations provide to SYSCO's traditional broadline operations, make this strategic expansion beneficial and value-adding to both SYSCO and our customers."
    Brian M. Sturgeon, vice president of SYSCO and president of FreshPoint, added "Piranha Produce and Nashville Tomato have excellent reputations for customer service and product offerings, as well as exceptional management and employees. These acquisitions continue to expand FreshPoint's distribution coverage as the preferred produce supplier for foodservice operators across North America."
    FreshPoint Inc., headquartered in Houston, is the largest specialty produce distributor in North America and is a wholly owned subsidiary of SYSCO Corporation.
    SYSCO is the largest foodservice marketing and distribution organization in North America, providing food and related products and services to approximately 400,000 restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. The company generated sales of $29.3 billion for the fiscal year 2004 that ended July 3, 2004. SYSCO's operations are located throughout North America and include broadline companies, specialty produce facilities, custom-cut meat operations, Asian foodservice distribution, hotel supply operations and chain restaurant distribution. For more information visit the company's home page at www.sysco.com.

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CONTACT: SYSCO Corporation, Houston John M. Palizza, 281-584-1308

KEYWORD: CALIFORNIA TEXAS TENNESSEE INDUSTRY KEYWORD: TRANSPORTATION TRAVEL RESTAURANTS FOODS/BEVERAGES RETAIL MERGERS/ACQ SOURCE: SYSCO Corporation

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