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030123 Schnucks to Use Electron Beam Processing

January 16, 2003

San Diego, CA - SureBeam Corporation announced that consumers can now buy SureBeam processed fresh ground beef and frozen beef patties at Schnuck Markets, Inc. in the St. Louis metropolitan area which includes Missouri and Illinois. Schnuck Markets is the first retailer in this key metro area to offer these two ground beef products processed with SureBeam Corporation's revolutionary electron beam technology, a process that uses ordinary electricity to safely eliminate the threat of dangerous bacteria from food products. It is also the first retailer in the nation to launch these two products simultaneously.

"Schnucks prides itself on being an industry leader," stated Dianna Pasley, Schnuck Markets Food Safety Director. "In the aftermath of recent food recalls, it's important that we look for alternative ways to protect our food supply."

Schnucks is selling two SureBeam processed fresh ground beef products in 93% and 80% lean in one- pound packages and two frozen beef patty products in 90% and 80% lean. The products are available in 74 out of their total of 102 store locations.

"It's great to have Schnucks offering SureBeam fresh and frozen ground beef to its customers," said Larry Oberkfell, SureBeam's Chairman, President and CEO. "This market leader is providing consumers with a safer choice."

Similar to a microwave oven, SureBeam technology uses electricity as an energy source to irradiate harmful bacteria such as E. coli, Listeria, and Salmonella. The SureBeam patented system is based on proven electron beam technology that destroys dangerous bacteria, much like thermal pasteurization does to milk.

Schnuck Markets entry into the market brings to over 2,000 the total number of stores in the Midwest, Northeast, Mid-Atlantic and Southern states offering SureBeam processed fresh ground beef. This is in addition to the thousands of supermarkets providing SureBeam processed frozen hamburger patties, which are also provided through home delivery, direct mail and food service.

Schnuck Markets, Inc. currently operates 102 stores and 93 pharmacies in Missouri, Illinois, Indiana, Wisconsin, Tennessee and Mississippi. This includes five stores that operate as Logli Supermarkets and a stand-alone Sentry Drug store. Schnuck Markets, Inc. is currently ranked 83rd in the Forbes Magazine listing of the nation's "Top 500 Private Companies".

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