To Our Employees:

I am pleased to report that the results of the testing process conducted by the Mexican government have confirmed that no virus, including the human strain of A(H1N1) influenza, is present in the pig herd at Granjas Carroll de Mexico (GCM), our joint venture farm in Veracruz, Mexico. These findings, which are consistent with our earlier communications to you, validate what we believed from the very beginning: that the recent subtype of H1N1 influenza virus affecting humans did not originate from GCM.

Furthermore, the CDC and other regulatory and scientific bodies have continued to confirm that you cannot get A(H1N1) influenza from eating pork or pork products, and none of the people affected had contact with pigs prior to getting sick. Our products remain completely safe to eat and handle.

The recent concern over the health and safety of people and animals at farms only helps emphasize how important it is to keep these facilities, both the ones we operate and those operated by others, as secure and environmentally sound as possible. For this reason, Smithfield takes extraordinary measures to maintain rigorous biosecurity procedures at all of our operations worldwide.

I would also like to take this moment to say how proud I am of the farms that our joint venture GCM operates in Mexico. Not only are those facilities state-of-the-art, but GCM designed, built and has continually upgraded its operations with the environment in mind. As part of this commitment to continuous improvement, GCM is currently testing composting at some of its Mexican farms and has voluntarily introduced biogas digesters to reduce emissions of greenhouse gases.

In addition, GCM has been well-recognized for its commitment to the surrounding communities through its CSR programs. As a result of these efforts, GCM earned the Mexican Center for Philanthropy's (CEMEFI) prestigious social responsibility award, or Empresa Socialmente Responsible (ESR), for three consecutive years. This is even more impressive as GCM was the first animal production company in Mexico to ever receive the ESR award. These operations are a true testament to the fact that no matter in which part of the world we operate, Smithfield strives to go beyond what is required in terms of compliance.

I realize that this has been an unsettling time for all of us in the pork industry and that some consumers have cut back on pork consumption. However, as the U.S. Secretary of Agriculture and many others stressed that pork is safe to eat, I am happy to report that we have seen an improvement in pork sales in our U.S. business. We expect this trend to continue.

I want to thank you all for continuing to keep your focus on what we do for a living and do so well - deliver an excellent and safe food product for our customers. Thank you.

Larry Pope
President and Chief Executive Officer
Smithfield Foods, Inc.

Smithfield Foods, Inc. reaffirmed that there is no evidence of the presence of A(H1N1) influenza in any of the company's swine herds or in its employees at any of its worldwide operations, including those in the United States.

The company issued this statement following the announcement by the Canadian Food Inspection Agency (CFIA) that officials have tentatively confirmed that swine from a herd in Alberta, Canada, have tested positive for H1N1. Further tests are underway to determine whether the virus in these animals is the A(H1N1) virus which is currently causing illness in humans. The company further noted that the Canadian report stated that Canadian health authorities believe that the swine herd may have contracted the H1N1 virus from contact with a worker at that farm.

In any case, Smithfield does not own or operate hog farms or pork processing plants in Canada, nor does it process Canadian raised hogs at any of the company's U.S. plants.

The company stressed that this is not a foodborne illness and the American food supply is safe and pork and pork products are safe.

"If it is true that the hogs were infected by human contact, it only underscores the need for proper biosecurity measures - as in any influenza situation - to protect against the spread of virus. We will continue to strictly follow rigorous biosecurity practices at all of our operations, including limiting farm access to essential personnel, preventing farm access to personnel who have recently returned from international travel, and following personal hygiene practices and procedures, such as frequent hand washing and the use of farm-specific clothing and footwear," the company stated.

To Our Employees:

The media continues to cover the global A(H1N1) influenza outbreak on a minute-to-minute basis, and while we would like to accommodate them and the public about the day-to-day status of the testing being conducted at our joint venture farm in Veracruz, it is physically impossible. Unfortunately, the testing and evaluation process takes time. Nevertheless, we have promised to keep you apprised of events, and therefore, in keeping with that commitment, here is the latest "news."

Due to a lack of any connection to swine, the World Health Organization has renamed this virus A(H1N1). In addition, the CDC and all other regulatory and scientific bodies have confirmed that you cannot get A(H1N1) influenza from eating pork or pork products, and there is no evidence that any of the people affected had contact with pigs.

We are pleased that the continuing coverage has included the affirmation by public health officials, government officials, including President Obama and others, that the A(H1N1) influenza virus is not transmitted by food and can only pass from human to human. I am also pleased to reconfirm that there is no evidence at this time that the hogs at Veracruz, or anywhere else, have been infected with A(H1N1) influenza.

This notwithstanding and so the public can have full confidence in the health of our Mexican pig herd, yesterday we submitted samples from our farm in Veracruz for further testing under the direction of Mexican governmental authorities, including genetic sequence analysis that will determine what, if any, strains of flu are present. The results will enable us to conclude with certainty that the A(H1N1) strain is not present in our hogs. These tests will take approximately twelve days.

Finally, I would like to reinforce that since A(H1N1) cannot be transmitted through food, these results – positive or negative – will not have any effect on the food chain. This virus spreads the same way that the seasonal flu does every year – through the coughs, sneezes, and germs of people that are infected. Pork and pork products, whether they come from Smithfield or anyone else, are and will continue to be safe.

We will continue to update you as we have more information.

Sincerely,

Larry Pope
President and Chief Executive Officer
Smithfield Foods, Inc.

To Our Employees:

Like you, I have been closely monitoring all aspects of the H1N1 influenza outbreak (this is the official name of the mis-named but widely quoted “swine flu” since it has been determined by health officials throughout the world that the illness is a mutation of a number of strains).  Unfortunately, the media and bloggers have jumped to conclusions based more on fear than fact and have sensationalized a serious illness.

As of this writing, there are still a number of facts about H1N1 that remain a mystery, including where the strain originated, how it is spreading, how far it will spread and when it will run its course.  Hopefully, answers to these questions will soon be resolved.  However, let me share with you some facts we do know at this time…namely, what Smithfield has done, is doing and will continue to do about keeping our workers and pigs healthy.

Earlier this week, when news of the virus first became public, we reported that we had found no evidence of the presence of the influenza virus in any of our pig herds or our employees at any of our worldwide operations, including those in the United States. Yesterday, we also announced that because so much attention was being given to the joint operation we run with a Mexican company in Veracruz (and it was believed by some that the initial outbreak of H1N1 flu originated with a little boy in La Gloria, a town not far from a farm that our joint venture partner operates in Mexico), we ran additional tests of pigs at that facility.  The results of these independent laboratory tests should be available in a few days and we will, of course, announce the results.  As you probably also have learned, Mexican health authorities, working with U.S. and health officials from other countries, have also inspected our farms in Veracruz and found no evidence of H1N1 flu at all. 

As we have always said, our first priority as a company is to ensure the health and safety of our herds and our employees so that consumers can trust our products.  Today, more than ever, and despite the fear generated by those who are not well-informed, I can assure you that consuming pork products is safe, and that Smithfield’s brands, in particular, still stand for the highest quality.    

It is an unfortunate fact of life these days that until more hard evidence is available from health officials, the public will continue to be bombarded by unfounded opinions, non-scientific statements and unrestrained internet media, rumor and speculation. Thus, it might be helpful to review some of the facts:   

• According to The Centers for Disease Control and Prevention (CDC), the H1N1 influenza virus is not transmitted by food, so you cannot get the disease from eating pork or pork products.  
• The CDC also stated that while the virus is contagious from humans to humans, it has not found any evidence to indicate that any of the illnesses resulted from contact with pigs, hence, the decision by the Government to rename the virus H1N1 makes sense and helps remove the “fear factor” from pork products.
• Secretary of Agriculture Tom Vilsack confirmed that there is no evidence at this time showing that swine have been infected with H1N1 influenza.

In addition to conducting the recent tests I mentioned above, let me remind you of our policy regarding the health of our pig herds and employees.  All of our herds at all of our operations, including at our joint ventures in Mexico and elsewhere, are tested regularly for instances of various bacteria and disease, including influenza.  We routinely administer flu vaccines to our herds in order to protect them from potential viruses and conduct monthly tests to examine the presence and identity of different flu strains.  At no point have any of these tests revealed this strain of the influenza virus in our herds in any country where our company operates.

As we have previously said, we are cooperating fully with health officials and aiding in their investigation into the source of the H1N1 outbreak, and have allowed exhaustive testing of our hogs to ensure that this virus has not infected our farms.  These actions were taken voluntarily by the Company. We will also continue to maintain rigorous safety procedures at all of our operations, including limiting farm access to necessary personnel, preventing access to personnel who have recently returned from international travel, and enforcing essential personal hygiene practices. 

I am hopeful that the cause of the outbreak is soon found.  Unfortunately, an epidemic such as this is difficult to contain, but we can pray that health officials and doctors around the world will find answers soon.  For us, it is particularly important to remain focused on our immediate responsibilities.  Every single one of us plays a critical role in demonstrating our uncompromising commitment to the safety of our products. 

Thank you for all of your efforts.  I will continue to update you as I can.

Sincerely,

Larry Pope
President and Chief Executive Officer
Smithfield Foods, Inc.

Dear Fellow Employee:

On February 17, 2009, Smithfield Foods announced a plan to consolidate and streamline the corporate structure and manufacturing operations of its pork group to improve operating efficiencies and increase utilization. The company expects the restructuring plan will result in annual cost savings of approximately $125 million by fiscal 2011. In addition, the initiative will reduce the number of independent operating companies to three from seven and the company will close six plants and transfer production to more efficient facilities.

The company's new pork group business model will enhance the strength of its independent operating company approach, while rationalizing manufacturing operations and taking advantage of synergies in key overhead areas such as sales, marketing, purchasing and information technology. Unfortunately, this restructuring comes with a cost to some of our employees. We expect that approximately 1,800 positions will be eliminated during this process. While some of these positions will be eliminated through natural attrition, there will still be positions permanently eliminated. I really feel badly for those employees who will be affected especially given the current state of the economy. We will work to help those who are impacted in order to ease their transition. While eliminating jobs is always difficult it also is part of the natural process of a maturing organization.

We are very excited about this restructuring plan. You should know that this decision was not made in reaction to the current economic environment that has been occurring for nearly a year. The plan will better align the company by enhancing operating efficiencies and increasing utilization rates to reduce our overall manufacturing and overhead structures, which will make Smithfield Foods a more competitive company. Previously, the company’s overall focus has been on growth based on opportunistic acquisitions of high-quality companies at distressed prices. Now we want to fully assimilate and integrate these enterprises, driving operating efficiencies and growing our high-margin packaged meats business.

The restructuring marks a historic step forward for the company, as we turn our attention to the future. We expect to be a stronger, more profitable company.

Sincerely,

Larry Pope
President and Chief Executive Officer
Smithfield Foods, Inc.