Rica Foods, Inc. (Amex: RCF) announced yesterday the results of operations for its third fiscal quarter of 2001. EPS amounted to ($0.05) diluted loss per share for the three months ended June 30, 2001, when compared to a $(0.02) diluted loss per share during the comparative period for fiscal 2000. However, revenues were substantially the same for the third quarter of fiscal 2001, resulting in $31,003,403, a 4.19% 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 nine months ended June 30, 2001, the Company's operations resulted in a $0.03 diluted earnings per share, compared to a $0.21 diluted earnings per share during the comparative period for fiscal 2000. Net sales for the nine months ended June 30, 2001 resulted in $95,624,791, a 2.62% increase when compared to the same period of fiscal 2000.

Results of operations for the nine months ended June 30, 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 nine months ended June 30, 2001 decreased by 22.31% when compared to the nine months ended June 30, 2000. BCCR attributes the economic slow-down in the United States, which accounted for 52.5% of total exported commodities during fiscal year 2000, as the primary reason for this decrease. 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 appears to be recovering. For example, the devaluation rate for the nine months ended June 30, 2001 was only 4.80%, the lowest since March 1994 according to the BCCR, while variations in the inflation rate during the same period have been within normal parameters.

During this recent economic slow down, the Costa Rican consumer's reduced purchasing power has directly 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 June 30, 2001 and 2000, operating expenses represented a 27.25% and 28.19% of total net sales, respectively. For the nine months ended June 30, 2001 and 2000, operating expenses represented a 27.04% and 26.50% of total net sales, respectively. For the three and nine months ended June 30, 2001, the Company interest and exchange rate loss increased, when compared to the same periods for fiscal 2000, due to increase in debt. There was also an increase in other income during fiscal 2001, due to gains in sales of non-productive assets. During the nine months ended June 30, 2001, the Company invested $8.55 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.

Following are the balance sheet as of June 30, 2001 and 2000, and results of operations for the three and nine months ended June 30, 2001 and 2000:

                      RICA FOODS, INC. AND SUBSIDIARIES
                         Consolidated Balance Sheets

                                               June 30, 2001   September 30,
                                                (Unaudited)        2000
    Assets

    Current assets:
     Cash and cash equivalents                  $  2,822,762   $  4,256,636
     Short-term investments                          185,061         86,557
     Notes and accounts receivable                11,355,375     11,187,031
     Due from related parties                      1,400,013         39,618
     Inventories                                  12,617,149     14,307,768
     Prepaid expenses                                992,808        557,519

    Total current assets                          29,373,168     30,435,129

    Property, plant and equipment                 47,401,196     45,425,881
    Long-term receivables-trade                      746,717        640,222
    Long-term investments                          4,861,671      3,965,385
    Other assets                                   4,467,308      4,010,364
    Cost in excess of net assets of
     acquired business                             2,382,973      3,705,392

    Total assets                                $ 89,233,033   $ 88,182,373


    Liabilities and Stockholders' Equity

    Current liabilities:
     Accounts payable                           $ 13,889,151   $ 16,161,076
     Accrued expenses                              4,088,907      3,862,659
     Notes payable                                16,037,733     12,878,147
     Current portion of long-term debt             5,793,698      5,680,190
     Due to stockholders                              74,634         76,657

    Total current liabilities                     39,884,123     38,658,729

    Long-term debt, net of current portion        23,379,421     21,820,905
    Due to stockholders                               15,660         16,409
    Deferred income tax liability                  2,163,673      2,899,511

    Total liabilities                             65,442,877     63,395,554

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

    Stockholders' equity:
     Common stock                                     12,865         12,855
     Preferred stock                               2,216,072      2,216,072
     Additional paid-in capital                   25,800,940     25,760,950
     Accumulated other comprehensive loss         (9,432,247)    (8,758,737)
    Retained earnings                              9,786,527      9,388,127

                                                  28,384,157     28,619,267
    Less:
     Due from stockholders                        (5,662,052)    (4,900,499)
     Treasury stock, at cost                        (268,394)      (268,394)

    Total stockholders' equity                    22,453,711     23,450,374

    Total liabilities and stockholders' equity  $ 89,233,033   $ 88,182,373


                      RICA FOODS, INC. AND SUBSIDIARIES
                    Consolidated Statements of Operations
                                 (Unaudited)


                            Three months ended         Nine months ended
                                 June 30,                   June 30,

                           2001          2000         2001          2000

    Sales             $ 31,003,403  $ 29,755,427 $ 95,624,791  $ 93,181,924
    Cost of sales       22,504,310    21,048,137   65,437,886    62,602,152

    Gross profit         8,499,093     8,707,290   30,186,905    30,579,772

    Operating expenses:
     Selling             4,787,792     4,718,249   14,402,777    14,013,274
     General and
      administrative     3,464,185     3,404,467   10,867,061     9,996,470
     Amortization of cost
      in excess of net
      assets of acquired
      business             196,884       266,147      590,652       687,680

    Total operating
     expenses            8,448,861     8,388,863   25,860,490    24,697,424

    Income from
     operations             50,232       318,427    4,326,415     5,882,348
      Other expenses
       (income):
       Interest expense  1,122,938     1,031,611    3,524,977     2,928,950
       Interest income    (304,911)     (378,722)    (851,684)     (725,221)
       Foreign exchange
        loss, net          472,512       388,092    1,682,017     1,083,167
       Miscellaneous, net (556,156)     (331,515)    (601,214)     (732,797)

      Other expenses, net  734,383       709,466    3,754,096     2,554,099

    Income (loss) before
     income taxes and
     minority interest    (684,151)     (391,039)     572,319     3,328,249
    Provision for
     income taxes         (107,929)     (143,594)          --       262,574

    Income (loss) before
     minority interest    (576,222)     (247,445)     572,319     3,065,675
    Minority interest       20,385        45,337       58,005       574,770

    Net income (loss)     (596,607)     (292,782)     514,314     2,490,905
    Preferred stock
     dividends              36,499        17,426      115,915       112,170

    Net income (loss)
     applicable to common
     stockholders        $(633,106)    $(310,208)    $398,399    $2,378,735

    Earnings (loss) per share:
     Basic earnings (loss)
      per share             $(0.05)       $(0.02)       $0.03         $0.21

     Diluted earnings (loss)
      per share             $(0.05)       $(0.02)       $0.03         $0.21

    Weighted average number
     of common shares
     outstanding:
      Basic             12,810,305    12,800,406   12,807,814    11,562,667

      Diluted           12,810,305    12,800,406   12,807,814    11,567,038


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 e-mail to mmarenco@ricafoods.com and rpiedra@ricafoods.com.