Tyson Foods, Inc. (NYSE: TSN), today reported $0.03 diluted loss per share for the second fiscal quarter ended March 31, 2001, compared to $0.16 diluted earnings per share in the same quarter last year.

Second quarter charges totaling $0.02 per share were related to expenses associated with the terminated acquisition of IBP, inc. Additionally, previously announced charges totaling approximately $0.05 per share were incurred related to the sale of certain swine assets, the product recall and the on-going effect of severe winter weather. Excluding these charges, second quarter earnings would have been approximately $0.04 per share.

Second quarter sales were $1.83 billion compared to $1.79 billion last year, an increase of 2.0 percent with a 2.1 percent increase in volume. Gross profits for the second quarter were $216.3 million compared to $297.3 million in the same quarter last year with gross margin at 11.8 percent compared to 16.6 percent last year.

Diluted earnings per share for the six months of fiscal 2001 were $0.09 compared to $0.41 in the same period last year. Earnings for the six months of fiscal 2001 decreased $71.8 million to $20.9 million compared to $92.7 million from the same period last year. Sales for the six months of fiscal 2001 and the same period last year were $3.57 billion.

John Tyson, chairman, president and CEO, said, "The second quarter has been one of the toughest in our history due to the lingering winter weather effects combined with the on-going low prices for breast meat. We continue to see a shift in our mix toward value-added products that has resulted in revenue gains in each of our business segments. Our focus on growing market share in those products will pay off in the future. Looking ahead to the third quarter, we expect to see improving markets, improving costs and seasonal volume increases."

The Company presently identifies segments based on the products offered and the nature of customers. This results in the following reported business segments: Food Service, Consumer Products, International, Swine and Other. The Company measures segment profit as gross profit less selling expenses. Information on segments is as follows (in millions):

     Second Quarter Segment Review

                            Sales by Segment             Segment Profit

                           Three Months Ended          Three Months Ended

                       March 31,       April 1,      March 31,    April 1,
                          2001           2000          2001         2000

    Food Service         $819.9         $813.1         $18.0        $49.9
    Consumer Products     582.1          562.7          14.0         39.3
    International         181.7          171.1          (0.4)        19.8
    Swine                  39.5           38.3           1.9          6.5
    Other                 204.3          205.6          43.7         40.9
    Total              $1,827.5       $1,790.8         $77.2       $156.4

Food Service second quarter sales increased 0.8 percent compared to the same period last year, with a 9.4 percent increase in average sales prices primarily due to a change in product mix, offset by a 7.8 percent decrease in volume. Segment profit for Food Service decreased $31.9 million from the same period last year primarily due to weather-related effects combined with higher grain and energy costs and product mix changes.

Consumer Products second quarter sales increased 3.4 percent compared to the same period last year, with a 2.6 percent increase in average sales prices and a 0.8 percent increase in volume. Segment profit for Consumer Products decreased $25.3 million from the same period last year primarily due to weather-related effects combined with higher grain and energy costs and product mix changes. In addition, this segment experienced operating inefficiencies and inventory losses related to the previously announced product recall.

International second quarter sales increased 6.2 percent compared to the same period last year, with a 12.2 percent increase in volume partially offset by a 5.3 percent decrease in average sales prices. Segment profit for International decreased $20.2 million from the same period last year due to weather-related effects combined with higher grain and energy costs and product mix changes. Of the $20.2 million decrease, $12.0 million is related to Tyson de Mexico, which, in addition to higher energy costs, experienced operating inefficiencies following last year's outbreak of Exotic Newcastle disease.

Swine second quarter sales increased 3.1 percent over the same period last year, with a 4.5 percent increase in volume partially offset by a 1.1 percent decrease in average sales prices. Segment profit for Swine decreased $4.6 million from the same period last year primarily due to market changes.

Other second quarter sales decreased 0.6 percent from the same period last year primarily due to a decrease in Prepared Foods sales. Other consists primarily of the Specialty Products group, the Prepared Foods group, the chicken breeding stock subsidiary and other corporate operating activities.

     Six Months Segment Review

                           Sales by Segment              Segment Profit

                           Six Months Ended             Six Months Ended

                       March 31,       April 1,      March 31,    April 1,
                          2001           2000          2001         2000

    Food Service       $1,621.9       $1,637.9        $ 54.8       $119.5
    Consumer Products   1,110.8        1,100.4          52.1         92.4
    International         369.1          358.7           2.1         44.1
    Swine                  77.6           70.4           1.9          5.5
    Other                 391.4          402.1          86.4         62.0
    Total              $3,570.8       $3,569.5        $197.3       $323.5

Food Service six months sales decreased 1.0 percent compared to the same period last year, with a 7.9 percent decrease in volume offset by a 7.5 percent increase in average sales prices primarily due to a change in product mix. Segment profit for Food Service decreased $64.7 million from the same period last year primarily due to weather-related effects combined with higher grain and energy costs and product mix changes.

Consumer Products six months sales increased 0.9 percent compared to the same period last year, with a 1.3 percent increase in volume partially offset by a 0.3 percent decrease in average sales prices. Segment profit for Consumer Products decreased $40.3 million from the same period last year primarily due to weather-related effects combined with higher grain and energy costs and product mix changes. In addition, this segment experienced operating inefficiencies and inventory losses related to the previously announced product recall.

International six months sales increased 2.9 percent compared to the same period last year, with a 5.5 percent increase in average sales prices partially offset by a 2.5 percent decrease in volume. Segment profit for International decreased $42.0 million from the same period last year due to weather-related effects combined with higher grain and energy costs and product mix changes. Of the $42.0 million decrease, $21.2 million is related to Tyson de Mexico, which, in addition to higher energy costs, experienced operating inefficiencies following last year's outbreak of Exotic Newcastle disease.

Swine six months sales increased 10.2 percent over the same period last year, with a 7.6 percent increase in average sales prices and a 2.5 percent increase in volume. Segment profit for Swine decreased $3.6 million from the same period last year primarily due to market changes.

Other six months sales decreased 2.7 percent from the same period last year primarily due to a decrease in Prepared Foods sales. Other consists primarily of the Specialty Products group, the Prepared Foods group, the chicken breeding stock subsidiary and other corporate operating activities.

    The unaudited results are as follows:

                            CONSOLIDATED CONDENSED
                             STATEMENTS OF INCOME
                     (In millions except per share data)

                               Three Months Ended        Six Months Ended
                              March 31,   April 1,     March 31,   April 1,
                                 2001       2000          2001       2000

    Sales                     $1,827.5    $1,790.8     $3,570.8    $3,569.5
    Cost of Sales              1,611.2     1,493.5      3,093.7     2,959.1
    Gross Profit                 216.3       297.3        477.1       610.4
    Expenses:
      Selling                    139.1       140.9        279.8       286.9
      General and
       administrative             45.7        56.5         89.3        92.2
      Amortization                 8.5         8.6         16.9        17.1
    Operating Income              23.0        91.3         91.1       214.2
    Other Expense (Income):
      Interest                    28.8        29.8         55.3        58.5
      Foreign currency
       exchange                   (0.1)       (0.8)         0.9        (0.2)
      Other                        4.3         1.1          4.1         2.7
    Income (Loss) Before
     Income Taxes and
     Minority Interest           (10.0)       61.2         30.8       153.2
    Provision (Benefit)
     for Income Taxes             (3.5)       21.8         10.7        54.6
    Minority Interest             (0.5)        3.7         (0.8)        5.9
    Net Income (Loss)            $(6.0)      $35.7        $20.9       $92.7

    Diluted Earnings (Loss)
     Per Share                  $(0.03)      $0.16        $0.09      $ 0.41
    Diluted Average Shares
     Outstanding                 221.4       225.7        222.6       227.0
    Dividends Per Share:
        Class A                 $0.040      $0.040       $0.080      $0.080
        Class B                 $0.036      $0.036       $0.072      $0.072

    Sales Growth (Decline)        2.0%       (2.7%)        0.0%       (2.6%)
    Margins: (Percent of
     Sales)
    Gross Profit                 11.8%       16.6%        13.4%       17.1%
    Operating Income              1.3%        5.1%         2.6%        6.0%
    Income (Loss) Before
     Income Taxes and
     Minority Interest           (0.5%)       3.4%         0.9%        4.3%
    Net Income (Loss)            (0.3%)       2.0%         0.6%        2.6%

    Effective Tax Rate           35.4%       35.6%        34.7%       35.6%


                            CONSOLIDATED CONDENSED
                                BALANCE SHEETS
                    (In millions except per share amounts)

    Assets                                     March 31, 2001  Sept. 30, 2000
    Current Assets:
      Cash and cash equivalents                    $ 83.5           $42.9
      Accounts receivable, net of allowance         502.5           508.0
      Inventories                                   958.5           965.1
      Other current assets                           58.6            47.3
    Total Current Assets                          1,603.1         1,563.3
    Net Property, Plant and Equipment             2,092.3         2,140.9
    Excess of Investments over Net Assets
     Acquired                                       921.6           936.8
    Investments and Other Assets                    254.0           200.0
    Total Assets                                 $4,871.0        $4,841.0

    Liabilities and Shareholders' Equity
    Current Liabilities:
      Notes payable                                 $81.8           $61.6
      Current portion of long-term debt              73.1           122.7
      Trade accounts payable                        327.4           333.3
      Accrued compensation and benefits             121.6           103.7
      Other accrued liabilities                     266.0           251.5
    Total Current Liabilities                       869.9           872.8
    Long-Term Debt                                1,447.6         1,356.8
    Deferred Income Taxes                           366.7           384.8
    Other Liabilities                                48.1            51.1
    Shareholders' Equity:
      Common stock ($.10 par value)
       Class A-authorized 900 million shares:
       Issued 138 million shares at 3-31-01
        and 9-30-00                                  13.8            13.8
       Class B-authorized 900 million shares:
       Issued 103 million shares at 3-31-01
        and 9-30-00                                  10.3            10.3
       Capital in excess of par value               734.6           734.7
       Retained earnings                          1,719.6         1,715.7
       Other accumulated comprehensive loss         (17.6)           (4.7)
                                                  2,460.7         2,469.7
       Less treasury stock, at cost-
        18 million shares at 3-31-01
         and 16 million shares at 9-30-00           314.6           284.5
       Less unamortized deferred compensation         7.4             9.7
    Total Shareholders' Equity                    2,138.7         2,175.5

    Total Liabilities and Shareholders' Equity   $4,871.0        $4,841.0


                            CONSOLIDATED CONDENSED
                           STATEMENTS OF CASH FLOWS
                           For the Six Months Ended
                                (In millions)

                                                March 31, 2001  April 1, 2000
    Cash Flows from Operating Activities:
      Net income                                     $20.9          $92.7
      Adjustments to reconcile net income
       to cash provided by operating activities:
        Depreciation                                 130.8          126.7
        Amortization                                  16.9           17.1
        Amortization of deferred compensation          2.3            ---
        Provision for doubtful accounts                0.7           28.4
        Foreign currency exchange                      0.9           (0.2)
        Minority interest                             (0.8)           5.9
        Deferred income taxes                        (15.9)         (18.4)
        Loss on dispositions of assets                 3.9            3.0
        Decrease in accounts receivable                5.9           67.9
        Decrease in inventories                        0.6            1.2
        Decrease in trade accounts payable            (5.9)         (53.4)
        Increase in accrued compensation
         and benefits                                 17.9            8.5
        Net change in other current assets
         and other current liabilities                (6.6)          19.5
    Cash Provided by Operating Activities            171.6          298.9
    Cash Flows from Investing Activities:
      Additions to property, plant and equipment    (106.8)         (94.3)
      Proceeds from disposition of assets             24.3            1.7
      Investment in note receivable                  (66.5)           ---
      Net change in other assets and liabilities       4.2           (4.1)
    Cash Used for Investing Activities              (144.8)         (96.7)
    Cash Flows from Financing Activities:
      Net change in notes payable                     20.2          (43.9)
      Proceeds from long-term debt                   109.2           82.9
      Repayments of long-term debt                   (69.0)        (172.2)
      Purchases of treasury shares                   (30.1)         (50.5)
      Dividends                                      (17.0)         (17.4)
      Other                                            ---            1.0
    Cash Provided by (Used for) Financing
     Activities                                       13.3         (200.1)
    Effect of Exchange Rate Change on Cash             0.5           (1.1)
    Increase in Cash and Cash Equivalents             40.6            1.0
    Cash and Cash Equivalents at Beginning
     of Period                                        42.9           30.3
    Cash and Cash Equivalents at End of Period       $83.5          $31.3

Tyson Foods, Inc., headquartered in Springdale, Arkansas, is the world's largest fully integrated producer, processor and marketer of chicken and chicken-based convenience foods, with 68,000 team members and 7,000 family farmers in more than 100 communities. Tyson has operations in 18 states and 16 countries and exports to 79 countries worldwide. Tyson is the recognized market leader in almost every retail and foodservice market it serves. Through its Cobb-Vantress subsidiary, Tyson is also a leading chicken breeding stock supplier. In addition, Tyson is the nation's second largest maker of corn and flour tortillas under the Mexican Original® brand, as well as a leading provider of live swine.

Forward-Looking Statements

Certain statements contained in this communication are "forward-looking statements,'' such as statements relating to growing market share and third quarter expected performance. 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 feed grain costs; (ii) changes in the availability and relative costs of labor and contract growers; (iii) market conditions for finished products, including the supply and pricing of alternative proteins; (iv) effectiveness of advertising and marketing programs; (v) the ability of the Company to make effective acquisitions and successfully integrate newly acquired businesses into existing operations; (vi) risks associated with leverage, including cost increases due to rising interest rates; (vii) risks associated with effectively evaluating derivatives and hedging activities; (viii) changes in regulations and laws, including changes in accounting standards, environmental laws, occupational, health and safety laws; (ix) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (x) adverse results from ongoing litigation; (xi) access to foreign markets together with foreign economic conditions, including currency fluctuations; and (xii) the effect of, or changes in, general economic conditions. The Company wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Tyson undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Financial information, such as this news release, as well as other historical data and current Company information can now be accessed from the Company's web site on the internet at http://www.tyson.com.