Meat Industry INSIGHTS Newsletter

971108 JP Foodservice Announces Acquisition of Outwest

November 4, 1997

COLUMBIA, Md - JP Foodservice, Inc. and Outwest Meat Company of Las Vegas, Nevada announced that on October 30, 1997 JP and Outwest signed a definitive agreement and closed on JP's acquisition of Outwest. Outwest, a foodservice distributor specializing in meats, serves the Las Vegas and Reno markets with sales of $62 million for the fiscal year ended December 31, 1997. Outwest was owned by John Beuchat who will continue as President of the Outwest division of JP.

Commenting on the transaction, Jim Miller, Chairman, President and Chief Executive Officer of JP, stated, "The combination of Outwest with Valley Foods, JP's existing presence in the Las Vegas market, will accelerate our already strong position in one of the fastest growing markets in the country. Outwest's outstanding reputation as a meat specialist will broaden our product offering to existing customers and expand relationships with Outwest's customer base."

John Beuchat, President of Outwest, stated, "We are excited by the opportunity to join forces with JP and we are looking forward to working with JP/Valley Foods in the Las Vegas and Reno markets. We will enhance JP's local meat expertise and utilize the strengths of both organizations to better serve our customers."

JP is a leading distributor of food and related products to restaurants and institutional foodservice establishments in the Mid-Atlantic, Midwestern and Northeastern regions of the United States as well as in Las Vegas, Nevada. JP markets and distributes 30,000 national, private label and signature brand items to over 34,000 foodservice customers, including restaurants, hotels, casinos, healthcare facilities, cafeterias and schools, and employs over 3,500 foodservice professionals. JP's diverse customer base encompasses both independent and chain businesses, including Old Country Buffet, Perkins Family Restaurants, Subway, Eurest Dining Services, Pizzeria Uno and Ruby Tuesday.

The statement in this press release regarding management's expectations concerning the transaction constitute a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include the sensitivity of the Company's business to national and regional economic conditions, the effects of inflation and deflation in food prices, the highly competitive markets in which the Company operates and the Company's ability to implement a successful acquisition program. The Company's current Report on Form 8-K filed with the Securities and Exchange Commission on April 23, 1997 discusses some of the important factors that could cause JP's actual results to differ materially from those in such forward-looking statements.

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