Directors were elected to one-year terms yesterday at IBP’s annual meeting, company officials reported.

Those elected to serve on the company’s board of directors include Robert L. Peterson, IBP chairman and chief executive officer; Richard L. Bond, IBP president and chief operating officer; Eugene D. Leman, chief executive officer of IBP Fresh Meats; John S. Chalsty, senior advisor to Credit Suisse Boston; Dr. Wendy L. Gramm, former chairman of the Commodity Futures Trading Commission; John J. Jacobson, president of TransAm Trucking, Inc.; Dr. Martin A. Massengale, president emeritus of the University of Nebraska; and Joann R. Smith, former assistant secretary of the U.S. department of agriculture. Approximately 97% of the shares voted were in favor of their election to the board.

The company also reported that approximately 81% of the shares voted approved the fiscal year 2001 performance-based bonus program of the chairman and chief executive officer; the president and chief operating officer; and the chief executive officer of FOODBRANDS AMERICA, Inc. Foodbrands, a unit of IBP, is involved in the production of value-added food products.

Peterson made a presentation during the meeting, covering such topics as consumer trends and IBP’s financial results for 2000 and the first quarter of 2001. In addition, he noted that compressed margins experienced earlier this year have reversed in the past two months and, as a result, the company anticipates strong second quarter results. The improved dynamics of recent months are expected to carry into the second half of the year and the company remains comfortable with its previously published range of $1.80 to $2.20 earnings per share for the year. IBP operating earnings before pushdown accounting adjustments for 2001 year-to-date through the second week of May are estimated at $114 million compared to $113 million during the same period in 2000.

Peterson also addressed major IBP initiatives during the annual meeting, such as the company’s new Thomas E. Wilson(TM) line of products. Fresh, case-ready cuts of beef and pork, such as steaks, roasts and chops, are now being produced at two IBP plants and sold through hundreds of retail outlets. The newest and largest case-ready plant, in Goodlettsville, Tennessee, began production in late April. Meanwhile, a new cooked meats plant is under construction in Council Bluffs, Iowa. Once operational this summer, it will produce fully cooked, Thomas E. Wilson(TM) beef and pork roasts that can be heated and served in minutes. Plans are underway for a national rollout of these products by the end of 2001.

The trial involving IBP’s lawsuit against Tyson Foods concluded Friday, May 25, in Delaware Chancery Court. IBP has asked the court to compel Tyson to honor its agreement and complete the acquisition of the company. Vice Chancellor Leo E. Strine has indicated he intends to rule on the matter by June 20.

Earlier today, IBP’s Board of Directors declared a cash dividend of $.025 per share of common stock for the second quarter of 2001. The dividend will be payable on July 16, 2001, to shareholders of record on June 15, 2001.

IBP is the world’s leading producer of high quality fresh beef and pork, and supplies premium, fully prepared meats and other consumer-ready foods for the retail and foodservice industries. The company employs approximately 52,000 people.

Forward Looking Statements

Certain statements contained in this communication are “forward-looking statements”, such as statements relating to future events, company performance or market conditions. Such statements include statements preceded by the words “forecast,” “should,” “expect,” or “anticipate,” or words of similar import. 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 cattle and hog prices; (ii) changes in the availability and relative costs of labor; (iii) market conditions for finished products, including the supply and pricing of alternative proteins; (iv) effectiveness of advertising and marketing programs; (v) changes in regulations and laws, including changes in accounting standards, environmental laws, and occupational, health and safety laws; (vi) access to foreign markets together with foreign economic conditions, including currency fluctuations; (vii) the effect of, or changes in, general economic conditions; (viii) the effect of weather conditions; and (ix) adverse results from on-going litigation. IBP undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.