Revenues Substantially the Same When Compared to Same Quarter FY 2000; Diluted Earnings Decrease From $0.04 to $(0.03) Loss

Rica Foods, Inc. (Amex: RCF) announced Friday (25 May) the results of operations for its second fiscal quarter of 2001. EPS amounted to ($0.03) diluted loss per share for the three months ended March 31, 2001, when compared to a $0.04 diluted earnings per share during the comparative period for fiscal 2000. However, revenues were substantially the same for the second quarter of fiscal 2001, resulting in $31,342,800, a 3.41% increase when compared to the same quarter of fiscal 2000. RICA is the parent company of Costa Rica's largest poultry producers Corporacion Pipasa, S.A. ("Pipasa") and Corporacion As de Oros, S.A. ("As de Oros"), covering approximately 70% of the Costa Rican market. For the six months ended March 31, 2001, the Company's operations resulted in an $0.08 diluted earnings per share, compared to a $0.25 diluted earnings per share during the comparative period for fiscal 2000. Net sales for the six months ended March 31, 2001 resulted in $64,621,388, a 1.89% increase when compared to the same period of fiscal 2000.

Results of operations for the six months ended March 31, 2001, were negatively impacted by adverse economic factors that have affected Costa Rica, as well as North and Central America. According to information issued by the Central Bank of Costa Rica ("BCCR"), commodity exports for Costa Rica for the six months ended March 31, 2001 decreased by 23.73% when compared to the six months ended March 31, 2000. This decrease was mainly due to the economic slow-down in the United States, which according to information issued by the BCCR, purchased 52.5% of total exported commodities during fiscal year 2000. According to information issued by the Ministry of Foreign Commerce of Costa Rica, other external factors that have negatively impacted the Costa Rican economy include increases in the international price of oil and a 33.17% decrease in international investments during fiscal 2000, which has continued through fiscal year 2001. However, the Costa Rican economy has recently experienced positive factors such as a devaluation rate of only 3.22% for the six months ended March 31, 2001, which has been the lowest since March 1994, according to information issued by the BCCR, while variations in the inflation rate during the same period have been within normal parameters.

The decrease in the Costa Rican consumer's purchasing power affected the overall demand for goods and services in Costa Rica, including the demand for the Company's products. In response, the Company has temporarily lowered the sale price of certain products, increased volume discounts, and shifted its product mix to include more lower-priced products which, in the aggregate, have contributed to lower sales revenue than were budgeted for the Company. Because of the present economic outlook in Costa Rica, Management expects these trends to continue in the near future.

For the three months ended March 31, 2001 and 2000, operating expenses represented a 27.43% and 27.57% of total net sales, respectively. For the six months ended March 31, 2001 and 2000, operating expenses represented a 26.94% and 25.71% of total net sales, respectively. For the three and six months ended March 31, 2001, the Company interest and exchange rate loss increased, when compared to the same periods for fiscal 2000, due to increase in debt. During the six months ended March 31, 2001, the Company invested $7.13 million in assets, mainly in the production area. During the rest of the fiscal year 2001, the Company plans to restructure its short-term debt to long-term debt, and also use proceeds of the planned placement of debt to cancel short-term debt.

Following are the balance sheet as of March 31, 2000 and 2001, and results of operations for the six months ended March 31, 2000 and 2001:

                      RICA FOODS, INC. AND SUBSIDIARIES
                         Consolidated Balance Sheets



                                                  March 31,     September 30,
           Assets                                    2001            2000
           ------                                ------------   ------------
                                                  (Unaudited)
                                                  -----------
    Current assets:
      Cash and cash equivalents                   $3,414,125     $4,256,636
      Short-term investments                         182,451         86,557
      Notes and accounts receivable               11,161,527     11,187,031
      Due from related parties                        43,958         39,618
      Inventories                                 14,008,089     14,307,768
      Prepaid expenses                               902,867        557,519
                                                ------------   ------------
        Total current assets                      29,713,017     30,435,129

    Property, plant and equipment                 47,996,003     45,425,881
    Long-term receivables-trade                      760,982        640,222
    Long-term investments                          4,781,066      3,965,385
    Other assets                                   4,699,540      4,010,364
    Cost in excess of net assets of
     acquired business                             2,579,857      3,705,392
                                                ------------   ------------
          Total assets                          $ 90,530,465   $ 88,182,373
                                                ============   ============

        Liabilities and Stockholders' Equity
        ------------------------------------
    Current liabilities:
      Accounts payable                          $ 16,882,157   $ 16,161,076
      Accrued expenses                             3,454,264      3,862,659
      Notes payable                               18,137,438     12,878,147
      Current portion of long-term debt            6,179,568      5,680,190
      Due to stockholders                             74,434         76,657
                                                ------------   ------------
        Total current liabilities                 44,727,861     38,658,729

    Long-term debt, net of current portion        20,012,421     21,820,905
    Due to stockholders                               15,897         16,409
    Deferred income tax liability                  2,154,872      2,899,511
                                                ------------   ------------
        Total liabilities                         66,911,051     63,395,554

    Minority interest                              1,336,445      1,336,445

    Stockholders' equity:
    Common stock                                      12,855         12,855
    Preferred stock                                2,216,072      2,216,072
    Additional paid-in capital                    25,760,950     25,760,950
    Accumulated other comprehensive loss         (8,931,638)    (8,758,737)
    Retained earnings                             10,419,633      9,388,127
                                                ------------   ------------
                                                  29,477,872     28,619,267

    Less:
    Due from stockholders                        (6,926,509)    (4,900,499)
    Treasury stock, at cost                        (268,394)      (268,394)
                                                ------------   ------------
        Total stockholders' equity                22,282,969     23,450,374
                                                ------------   ------------
        Total liabilities and
         stockholders' equity                   $ 90,530,465   $ 88,182,373
                                                ============   ============

    The accompanying notes to unaudited consolidated financial statements are
    an integral part of these balance sheets.



                      RICA FOODS, INC. AND SUBSIDIARIES
                   Consolidated Statements of Income (Loss)


                           Three months ended           Six months ended
                           -----------------           ------------------
                               March 31,                   March 31,
                               ---------                   ---------
                           2001          2000          2001         2000
                           ----          ----          ----         ----

    Sales              $31,342,800   $30,309,985  $64,621,388   $63,426,497
    Cost of sales       21,622,910    20,427,549   42,933,576    41,554,015
                       -----------   -----------  -----------   -----------
        Gross profit     9,719,890     9,882,436   21,687,812    21,872,482

    Operating expenses:
      Selling            4,834,839     4,678,825    9,614,985     9,295,025
      General and
       administrative    3,633,777     3,412,417    7,402,876     6,592,003
      Amortization of
       cost in excess
        of net assets
         of acquired
          business         127,621       266,147      393,768       421,533
                       -----------   -----------  -----------   -----------
                         8,596,237     8,357,389   17,411,629    16,308,561

    Income from
     operations          1,123,653     1,525,047    4,276,183     5,563,921
       Other expenses
        (income):
       Interest expense  1,302,023       963,674    2,402,039     1,897,339
       Interest income   (276,585)     (168,038)    (546,773)     (346,499)
       Foreign exchange
        losses, net        628,056       322,516    1,209,505       695,075
       Miscellaneous,
        net               (14,341)     (195,065)     (45,058)     (401,282)
                       -----------   -----------  -----------   -----------
                         1,639,153       923,087    3,019,713     1,844,633
                       -----------   -----------  -----------   -----------

    Income (loss)
     before
      provision for
       income taxes
        and minority
         interest        (515,500)       601,960    1,256,470     3,719,288
    Provision for
     income taxes        (173,826)        12,771      107,929       406,168
                       -----------   -----------  -----------   -----------

    Income (loss)
     before minority
      interest           (341,674)       589,189    1,148,541     3,313,120
    Minority interest       17,153        22,066       37,620       529,433
                       -----------   -----------  -----------   -----------

    Net income (loss)    (358,827)       567,123    1,110,921     2,783,687
    Preferred stock
     dividends              36,866        34,719       79,416        94,744
                       -----------   -----------  -----------   -----------

    Net income (loss)
     applicable to
      common
       stockholders     $(395,693)      $532,404  $ 1,031,505   $ 2,688,943
                       ===========  ============  ===========   ===========

    Earnings (loss)
     per share:
        Basic              $(0.03)         $0.04        $0.08         $0.25
                       ===========  ============  ===========   ===========
        Diluted            $(0.03)         $0.04        $0.08         $0.25
                       ===========  ============  ===========   ===========

    Weighted average
     number of common
      shares
        outstanding:
          Basic         12,854,321    12,800,297   12,854,321    10,966,660
                       ===========  ============  ===========   ===========
          Diluted       12,854,321    12,804,993   12,854,321    10,970,738
                       ===========  ============  ===========   ===========

    The accompanying notes to un-audited consolidated financial statements are
    an integral part of these statements.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more complete information concerning factors that could affect the Company's results, reference is made to the Company's registration statements, reports, or other documents filed with the Securities and Exchange Commission. For more information contact Rica Foods at (305) 477-1408, or email to mmarenco@ricafoods.com and rpiedra@ricafoods.com.