Perdigao S.A. (OTC Bulletin Board: PDGOY), one of Brazil's food companies, today reported first half 2000 net income up 7.4 percent to R$ 11.3 million. Consolidated sales came to R$ 934.7 million, representing growth of 14.8 percent under Corporate Law.

The performance drivers for the half were a 23.1 percent increase in the volume of meat sales, and even higher sales of other processed products such as ready-to-eat dishes (pastas, pizzas, etc.) that have become increasingly significant factors in Perdigao's financial results.

"Despite our favorable numbers, the Company's results for the six months were held in check by lower prices, especially in the export markets, and higher costs for our main raw materials -- corn and soybeans -- which remained at levels above those of last year, squeezing margins of the sector", Chief Financial Officer Wang Wei Chang said.

Total investments during the six-month period reached R$ 126.2 million, directed mainly to the Buriti Project, in Rio Verde, Goias state, to the acquisition and expansion of Frigorifico Batavia, and modernization and enlargement of the Lages plant in Santa Catarina state, where frozen ready-to-eat pasta production lines are being installed.

Domestic and Export Market

Perdigao's sales in the domestic market during first half grew by 24.7% compared to the previous year, reaching R$ 702.4 million. Sales volume in the meat segment increased 25.8% to 208,100 tons. The growth derived mainly from new investments in Perdigao's industrial units in the South of Brazil, and by the acquisition of Batavia in April 2000.

Sales in the frozen ready-to-eat pasta segment grew 210% compared with the first half of 1999, demonstrating the growth potential of high added value products.

The Company's continuing market share gains were attributed to investments in improving and diversifying its product mix. AC Nielsen reported that for the May-June period, Perdigao attained leadership in specialty meats, with a market share of 22.7%.

During the April-May period, Perdigao ranked second in the frozen meats segment with 32.5% of the market. In ready-to-eat dishes and frozen pastas, a market in which Perdigao has been operating for only two years, the Company's market share gained 400 basis points during the April-May period, rising from 29.5% to 33%, thanks to the launch of dishes such as spinach lasagna, "rondellini", and pizzas, among others.

Total export volume increased 18.7% during first half, although revenues declined 7.5% as a consequence of changes in the market since the devaluation of the Real, when exports denominated in US Dollars began to suffer price decreases.

Mr. Chang said the recovery in prices over the last months was still minimal, although he foresees a substantial recovery during the next period.

(Note: Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995.)
Perdigao S.A. is a leading Brazilian producer and processor of high quality poultry and pork products, and has a Level I ADR Program in the US.

PERDIGAO S.A. CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE, 30 2000 AND 1999

In thousand of Brazilian Reais, by Corporate Law


BALANCE SHEET
2000 1999

ASSETS 1,935,104 1,651,111

Current Assets 836,189 746,815

Cash and banks 4,239 9,532

Temporary cash investments 404,518 356,761

Trade accounts receivable 122,239 108,836

Inventories 257,500 222,612

Other receivables 47,693 49,074

Noncurrent Assets 229,282 237,671

Securities 176,075 213,476

Other receivables 53,207 24,195

Permanent Assets 869,633 666,625

Investments 5,976 480

Property, plant and equipments 824,258 637,055

Deferred charges 39,399 29,090

LIABILITIES 1,935,104 1,651,111

Current liabilities 890,960 670,926

Bank loans, export advances
and debentures 707,231 531,559

Suppliers 105,458 67,345

Payroll and related charges 61,217 51,720

Others 17,054 20,302

Long-term liabilities 495,019 487,647

Bank loans, export advances
and debentures 388,292 420,176

Taxes and benefit obligations 15,592 8,452

Reserves for contingencies 91,135 59,019

Minority interest 14,831 --

Shareholders' Equity 534,294 492,538

Capital stock 415,433 415,433

Capital reserves 108,251 66,739

Retained earnings 10,610 10,366



PERDIGAO S.A. CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE, 30 2000 AND 1999

In thousand of Brazilian Reais, by Corporate Law

CONSOLIDATED STATEMENTS OF INCOME

2000 1999

Gross Sales 934,655 813,976

Domestic sales 702,369 563,051

Exports 232,286 250,925

Sales deductions (134,099) (100,382)

Net sales 800,556 713,594

Cost of sales (626,046) (494,101)

Gross profit 174,510 219,493

Operating Expenses (146,256) (132,869)

Selling (130,013) (117,761)

Administrative (12,964) (12,006)

Management compensation (3,279) (3,102)

Operating income before financial expenses 28,254 86,624

Financial expenses, net (19,849) (77,052)

Other operating results 3,888 846

Income from operations 12,293 10,418

Nonoperating income 4,003 (1,627)

Income before taxes 16,296 8,791

Provision for taxes (5,066) 1,687

Income before minority interest 11,230 10,478

Minority interest 22 --

Net income 11,252 10,478

EBITDA 53,575 108,735