For More Information Contact: Joe Whatley
205.533.1994

February 18, 2004

ALABAMA JURY SIDES WITH CATTLE RANCHERS IN
$1.28 BILLION DOLLAR VERDICT AGAINST MEATPACKER IBP/TYSON FOODS
8 YEAR LEGAL BATTLE ENDS PACKING INDUSTRY'S CONTROL OVER THE MARKET

Montgomery, AL - A federal jury in Montgomery, Alabama returned a $1.28 billion dollar verdict today in favor of cattle ranchers against the largest beefpacker in the 8 year court case of Pickett, et al v. Tyson Fresh Meats, Inc. (United States District Court, Middle District of Alabama Case No. CV-96-A-1103-N).

The class action of cattle ranchers represented by the Birmingham law firm Whatley Drake & Kallas LLC and other lawyers, brought suit under the 1921 Packers and Stockyards Act (PSA). The Act applies to meatpackers, prohibiting them from undertaking any "unfair, unjustly discriminatory, or deceptive practice or device."

The cattle ranchers argued that the use of captive fed cattle supply - the procuring, supplementing, and maintaining of a guaranteed inventory of cattle for slaughter at known or reasonably calculable levels - limits Tyson's presence in the cash market. Tyson no longer had to venture into the market and bid a competitive price to meet all of its requirements. The evidence showed that Tyson procures captive supply cattle for slaughter with the purpose or the effect of depressing the cash market price paid for fed cattle, in violation of the PSA.

Tyson argued it did not use captive supplies to manipulate or downwardly depress the cash market. Their argument was undermined by the testimony of Tyson Vice-President of Cattle Procurement, Bruce Bass, who testified that the Company's inventory of cattle affected the price it pays for cattle. Tyson has dramatically diminished its market participation, while relying on captive supplies for more than half of all its cattle at times.

Joe Whatley, an attorney for the plaintiffs, said "This historic verdict will not only allow cattle producers to recover significant damages but also, and more importantly, will restore fairness to the market in the future. The verdict is only actual damages suffered with no punitive damages. The case will now move to the next phase for the Judge to enter injunctive relief against Tyson's illegal conduct."

Whatley continued, "In this country, we have to start paying people a fair amount for their hard work. We cannot continue the trend toward becoming a nation of Wal-Marts and McDonalds."

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