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031143 H&H Clarifies Information Regarding Sabotaged Shipment

November 15, 2003

Mercedes, TX - H&H Foods has been victimized by recent events. In October 2003, an H&H Foods shipment was sabotaged by a criminal element. Thereafter, imprecise information in the public arena has called H&H Foods’ reputation into question. This statement is intended to correct certain incorrect impressions.

H&H Foods is cooperating fully with local and federal authorities with respect to their investigation into the sabotaged shipment and the recent discovery of an illicit substance in two boxes of H&H Foods ground beef at two Mississippi schools. The boxes were part of a shipment of meat under the USDA School Lunch Program, manufactured and shipped by H&H Foods through independent carriers to a distribution center in Mississippi. Although there is an ongoing investigation into the matter, H&H Foods is not under investigation regarding any aspect of this incident.

Neither H&H Foods nor its employees had anything to do with the drugs found at the Mississippi schools. The illicit substance was apparently placed inside the H&H Foods boxes after the shipment was taken by an independent carrier with the trailer doors sealed. The seal and product boxes were tampered with while the shipment was in transit and outside the control of H&H Foods. The illicit substance was discovered by law enforcement authorities and the driver of the initial carrier was taken into custody. After the authorities released the shipment to H&H Foods, the boxes were shipped with another independent carrier and delivered to the Mississippi distribution center.

The company has always maintained an impeccable reputation with USDA. Historically, H&H Foods has effectively implemented all federal and additional company programs to prevent product contamination and ensure food safety during all stages of their production, packaging, and shipping. In addition to internal quality control supervision, there are two federal regulatory agencies that continuously monitor the company’s production under the USDA School Lunch Program.

H&H Foods has not conducted a recall of any kind with respect to the load in question. Furthermore, a federal investigator recently confirmed that the company’s HACCP (Hazard Analysis and Critical Control Points) Program, a food safety program in place since 1997, satisfies all regulatory requirements. The company’s own investigation also found that all safety and security measures were in tact and never compromised.

For further information, please contact Andrew Guerra, President & Chief Operating Officer, H&H Foods, at (956) 565-6363 Ext. 415.

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