As expected, tight livestock supplies contributed to reduced first quarter earnings for IBP, inc. (NYSE:IBP), company officials reported today. However, they also noted that improved market ready supplies of cattle are forecast for the next several months, while increased hog numbers are expected for the remainder of the year. Both factors should contribute to improving earnings.

Net earnings before unusual and extraordinary items and an accounting change for the first three months of 2001 totaled $20 million or $0.19 per diluted share compared to $60 million or $0.54 per diluted share during the same period last year. Net sales for the quarter totaled $4.1 billion, compared to $4.0 billion in 2000. Unusual items in the first quarter 2000 earnings included $31 million of pre-tax ($19 million net of tax) CBFA merger-related costs and an $11 million pre-tax ($7 million net of tax) bad debt provision.

First quarter 2001 earnings included a $12 million pre-tax credit to the company's stock options expense due to decreased stock value during the quarter. This change was recognized because "variable plan" accounting is required for certain stock options.

"The industry experienced reduced cattle numbers and weights during the quarter partly because of the extreme winter weather,'' Robert L. Peterson, IBP chairman and chief executive officer, said. ``However, we anticipate improved market conditions. Projections call for continued growth in cattle numbers during the spring and summer months. Meanwhile, greater hog supplies are expected in the last half of the year."

Operating earnings across IBP's fresh meat operations, which include Beef Carcass, Beef Processing, Pork and All Other Segments, during the first quarter were $47 million, down 55% from the $104 million recorded during the first quarter 2000. Net outside sales for these segments were $3.4 billion, up 3% from the $3.2 billion a year ago. Live cattle prices were 14% higher in the first quarter compared to the same period last year, while hog prices increased 6%. Commercial fed cattle slaughter was down 9% during the quarter. Hog slaughter was down 2%.

First quarter 2001 total export sales were down 5% compared to the same period a year ago. Export volumes for the period decreased 2%. The decline was primarily due to market changes in Japan and Korea, where IBP experienced a banner year in 2000. A surplus of beef and pork in storage, coupled with food safety concerns triggered by media coverage about cattle industry conditions in Europe have dampened sales there. While IBP's overall beef exports were down for the quarter, export sales for pork remained strong, increasing 24% for the first quarter compared to a year ago. IBP's export of cured and tanned hides also grew during the first three months of 2001. For the full year 2001, the U.S. Meat Export Federation forecasts overall U.S. red meat exports will exceed last year's levels.

The Foodbrands America segment, involved in the production of prepared foods, had operating earnings of $2 million during the quarter, compared to an operating loss of $29 million a year ago. The segment's results include a $7 million gain from the sale of 70% interest in the Platte County, Nebraska, ground meats facility to a smaller meat processor. Foodbrands' 2000 operating results included merger-related costs and additional bad debt expense totaling $42 million. Segment operating earnings for the first quarter 2000, before these adjustments, were $13 million. Foodbrands' lower 2001 results, in part, reflect the pressure of higher raw material costs. The results of IBP Foods also had a negative impact on Foodbrands America segment earnings with a $5 million operating loss, although it showed a positive comparison with the $11 million operating loss recognized in the first quarter 2000.

Operations begin next week at IBP's newest and largest case-ready meat plant. The Goodlettsville, Tennessee, facility will produce packaged cuts, such as steaks, roasts and chops that are ready for the retail grocer to place directly into the meat case. They are being sold to retail grocers under the company's new Thomas E. Wilson(TM) brand name. The facility, which will eventually employ 1,400 people, has more than double the capacity of IBP's other case ready operation, located in Council Bluffs, Iowa.

Construction of IBP's new pre-cooked meat plant at Council Bluffs, Iowa, remains on schedule. The new operation, scheduled to open during the summer of 2001, will produce fully cooked beef and pork roasts under the Thomas E. Wilson name that can be heated and served in minutes. Enthusiastic response from consumers and retailers in test markets underlie plans for a national rollout of the product line by end of 2001.

A May 14 trial date in Delaware Chancery Court has been set for IBP's lawsuit against Tyson Foods. IBP filed the suit in late March to force Tyson to honor its agreement to complete the $4.7 billion merger acquisition of IBP. A Delaware judge last week denied Tyson's motion to dismiss or stay the case, finding that Delaware has ``exclusive jurisdiction'' in the legal dispute between the two companies. Tyson had sought to have the matter tried in Arkansas, where the company's headquarters is based.

IBP is the world's leading producer of high quality fresh beef and pork, and supplies premium, fully prepared meats and other consumer-ready foods for the retail and foodservice industries. The company employs approximately 50,000 people.

Forward Looking Statements

Certain statements contained in this communication are "forward-looking statements", such as statements relating to future events, company performance or market conditions. Such statements include statements preceded by the words "forecast," "should," "expect," or "anticipate," or words of similar import. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Among the factors that may cause actual results to differ materially from those expressed in, or implied by, the statements are the following: (i) fluctuations in the cost and availability of raw materials, such as cattle and hog prices; (ii) changes in the availability and relative costs of labor; (iii) market conditions for finished products, including the supply and pricing of alternative proteins; (iv) effectiveness of advertising and marketing programs; (v) changes in regulations and laws, including changes in accounting standards, environmental laws, and occupational, health and safety laws; (vi) access to foreign markets together with foreign economic conditions, including currency fluctuations; (vii) the effect of, or changes in, general economic conditions; (viii) the effect of weather conditions; and (ix) adverse results from on-going litigation. IBP undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Due to pending litigation, IBP will not be having a conference call on first quarter earnings. The company intends to resume this practice as soon as possible.

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                      IBP, inc. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)

                                             March 31,    December 30,
                                               2001          2000
                                          ---------------------------
                                           (unaudited)
ASSETS

  CURRENT ASSETS:
    Cash and cash equivalents             $    14,749    $    29,970
    Accounts receivable, less allowance
      for doubtful accounts of $19,917 and
      $19,898                                 644,333        673,485
    Inventories                               943,268        873,544
    Deferred income tax benefits and
      prepaid expenses                         93,954         88,595
                                          ------------   ------------
        TOTAL CURRENT ASSETS                1,696,304      1,665,594

  Property, plant and equipment
    less accumulated depreciation
    of $1,124,129 and $1,089,775            1,681,524      1,630,774
  Goodwill, net of accumulated
    amortization of $228,485 and $221,160     953,956        961,340
  Deferred income tax benefits and
    other assets                              178,484        168,548
                                          ------------   ------------
                                          $ 4,510,268    $ 4,426,256
                                          ============   ============

LIABILITIES and STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Notes payable to banks                $ 1,012,000    $   775,000
    Accounts payable                          404,264        516,030
    Deferred income taxes and other
      current liabilities                     356,418        373,019
    Current portion of long-term debt           5,312         55,351
                                          ------------   ------------
        TOTAL CURRENT LIABILITIES           1,777,994      1,719,400
                                          ------------   ------------

  Long-term debt and capital lease
    obligations                               687,697        658,719
                                          ------------   ------------
  Deferred income taxes and other
    liabilities                               179,541        198,626
                                          ------------   ------------

  STOCKHOLDERS' EQUITY:
    Common stock at par value                   5,450          5,450
    Additional paid-in capital                443,581        443,388
    Retained earnings                       1,497,602      1,481,004
    Accumulated other comprehensive income    (19,678)       (11,261)
    Treasury stock                            (61,919)       (69,070)
                                          ------------   ------------
      TOTAL STOCKHOLDERS' EQUITY            1,865,036      1,849,511
                                          ------------   ------------
                                          $ 4,510,268    $ 4,426,256
                                          ============   ============



                      IBP, inc. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                 (In thousands, except per share data)
                              (unaudited)

                                                13 Weeks Ended
                                            --------------------------
                                                            Restated
                                              March 31,     March 25,
                                                 2001         2000
                                            ------------  ------------

Net sales                                   $ 4,126,637   $ 3,955,391
Cost of products sold                         3,951,104     3,720,079
                                            ------------  ------------
Gross profit                                    175,533       235,312
Selling, general and
  administrative expense                        124,342       129,495
(Gain) on sale of production facility            (6,897)         --
Nonrecurring merger-related expense                --          31,299
                                            ------------  ------------

EARNINGS FROM OPERATIONS                         58,088        74,518

Interest expense, net                            26,006        21,316
                                            ------------  ------------

Earnings before income taxes, accounting
  change and extraordinary item                  32,082        53,202

Income tax expense                               12,200        19,466
                                            ------------  ------------

Earnings before accounting
  change and extraordinary item                  19,882        33,736

Cumulative effect of change in
  accounting principle                             --          (2,429)

Extraordinary loss on early extinguishment
  of debt, less applicable taxes                   (633)      (15,037)
                                            ------------  ------------

NET EARNINGS                                $    19,249   $    16,270
                                            ============  ============

Earnings per common share:
  Earnings before cumulative effect of
    accounting change and extraordinary item$       .19   $       .29
  Cumulative effect of change in
    accounting principle                           --            (.02)
  Extraordinary item                               (.01)         (.14)
                                            ------------  ------------
  Net earnings                              $       .18   $       .13
                                            ============  ============

Earnings per common share - assuming dilution:
  Earnings before cumulative effect of
    accounting change and extraordinary
    item                                    $       .19   $       .29
  Cumulative effect of change in
    accounting principle                           --            (.02)
  Extraordinary item                               (.01)         (.14)
                                            ------------  ------------
  Net earnings                              $       .18   $       .13
                                            ============  ============

Dividends per share                         $      .025   $      .025
                                            ============  ============



                      IBP, inc. AND SUBSIDIARIES
                      SUPPLEMENTAL FINANCIAL DATA

                       (Unaudited, in thousands)

                                            13 Weeks Ended
                                       ----------------------------
                                         March 31,       March 25,
                                           2001            2000
                                       ------------   -------------

Capital expenditures                   $   104,100    $    75,663

Depreciation and
 amortization expense                  $    40,499    $    33,896

Amortization of
 intangible assets                     $     7,973    $     8,517

SEGMENT INFORMATION:

Net sales to unaffiliated customers:

 Beef Carcass                          $   252,550    $   282,088
 Beef Processing                         1,968,512      1,949,262
 Pork                                      558,808        573,384
 Foodbrands America                        770,920        708,471
 All Other                                 575,847        442,186
                                       ------------   -------------
                                       $ 4,126,637    $ 3,955,391
                                       ============   =============
Earnings from operations:

 Beef Carcass                          $    13,393    $    42,053
 Beef Processing                           (12,688)        13,319
 Pork                                       23,035         26,198
 Foodbrands America                          2,021        (29,119)
 All Other                                  23,302         22,510
                                       ------------   -------------
                                            49,063         74,961
Corporate                                    9,025           (443)
                                       ------------   -------------
                                       $    58,088    $    74,518
                                       ============   =============