Pilgrim’s Pride Corporation (NYSE: PPC), the largest chicken company in the United States and Puerto Rico, and the producer of poultry products in North America sold under the Pilgrim’s Pride and Wampler Foods labels, recently announced that the company has notified its lenders regarding the expectation of a significant loss in the fiscal fourth quarter ending September 27, 2008, based on preliminary results.

The anticipated loss is due to high feed ingredient costs, continued weak pricing and demand for breast meat, and the significant negative impact of hedged grain positions during the quarter. As a result, Pilgrim’s Pride does not expect to be in compliance with its fixed-charge coverage ratio covenant under its principal credit facilities as of the fiscal year ending September 27, 2008, but expects to be in compliance with all other covenants as of the end of the 2008 fiscal year.

The company’s management team has reached an agreement with the agents under its credit facilities to temporarily waive the fixed-charge coverage ratio covenant through October 28, 2008, and to provide continued liquidity under these facilities during this same period. The temporary waiver will be subject to the negotiation of a definitive written agreement with the lenders, and there can be no assurance that this negotiation will result in a waiver acceptable to Pilgrim’s Pride and its lenders.

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