KFC Response Statement to Pilgrim's Pride Incident

LOUISVILLE, KY (Tuesday, July 20, 2004) - KFC finds the actions in the videotape appalling, wherever they have occurred. We do not tolerate animal abuse by any of our suppliers, under any circumstance.

We have notified Pilgrim's Pride that unless they can definitively assure us there are absolutely no abuses taking place, we will not purchase from this Moorefield, West Virginia facility. This facility is one of many suppliers to our Company and additionally supplies others in the fast food industry.

We have placed an inspector on-site at this facility, who has been trained by Dr. Temple Grandin, a world-renowned animal welfare expert, to monitor activity and ensure absolutely no animal abuse. We have been in contact with Pilgrim's Pride senior management and have been assured that an immediate and thorough investigation is currently underway. We have further been assured that Pilgrim's Pride will fire any individuals involved in this alleged activity.

Pilgrim's Pride subscribes to our strict Animal Welfare guidelines and has recommitted to us they are taking the necessary actions to ensure the humane treatment of animals at all of their facilities.

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