Provena Foods Inc.'s (Amex: PZA) sales were up 34% in the second quarter and 32% in the first half of 2001. The Company had a net loss of $98,634 for the 2nd quarter and $88,768 for the 1st half compared to net losses of $387,763 and $620,693 a year ago. The meat division accounted for the increased sales and reduced losses.

Provena Foods Inc. will forego its quarterly dividend which would have been paid September 30, 2001 to shareholders of record September 10, 2001, paying no dividend in the 3rd quarter of 2001.

    CONDENSED STATEMENT    Three Months Ended          Six Months Ended
       OF OPERATIONS             June 30,                   June 30,
        (Unaudited)         2001          2000         2001          2000

    Net Sales          $ 7,905,495     5,892,722   15,644,176    11,820,122

    Cost of Sales        7,237,991     5,790,469   14,062,144    11,314,014

    Gross Profit           667,504       102,253    1,582,032       506,108

    Operating
     Expenses:
     Distribution          290,359       274,912      614,362       554,324
     General and
      administrative       392,598       320,158      830,235       698,294

    Operating Income       (15,453)     (492,817)     137,435      (746,510)

    Interest expense,
     net                  (174,401)     (185,898)    (368,765)     (346,740)
    Other Income, net       44,420        34,438      103,362        61,557

    Loss before income
     taxes                (145,434)     (644,277)    (127,968)   (1,031,693)

    Income tax benefit     (46,800)     (256,514)     (39,200)     (411,000)

    Net earnings         $ (98,634)     (387,763)     (88,768)     (620,693)

    Earnings per
     share:  Basic         $ (0.03)        (0.13)       (0.03)        (0.21)

             Diluted       $ (0.03)        (0.13)       (0.03)        (0.21)

    Weighted average
     number of shares
     outstanding:
             Basic       3,056,878     2,997,118    3,050,416     2,989,335

             Diluted     3,056,878     2,997,118    3,050,416     2,989,335