Hormel HealthLabs, a wholly owned subsidiary of Hormel Foods Corporation (NYSE: HRL), has announced its intention to enter into an exclusive sales and marketing agreement with U.S. Food Corporation involving the NutriMil Plus brand of lactose-free products.

“The dairy substitute category is experiencing tremendous growth,” according to Dan McHugh, president of Hormel HealthLabs. “This agreement complements our existing product line and brings a successful retail dairy alternative to the foodservice segment for the first time on a national basis.”

Hormel HealthLabs is a recognized leader in the sales and marketing of flavorful foods for people with special dietary needs such as dysphagia, bowel problems, malnutrition and diabetes. Products are marketed to nursing homes and other health facilities.

“We are excited about this new relationship between U.S. Food Corporation and Hormel HealthLabs. Using the latest in scientific data and advanced technologies, we have developed the optimal ‘nutraceutical’ beverage product for the healthcare setting. Made with whey protein, NutriMil Plus provides the same amount of protein as regular milk without the saturated fat. NutriMil Plus, like all other NutriMil products, provides the ‘Real Taste of Fresh Milk’ in every glass. This great taste is a key to product acceptance,” said Jeff Shirkani, CEO of U.S. Food Corporation.

About U.S. Food Corporation

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Privately held U.S. Food Corporation, based in Carlsbad, Calif., is a product development, marketing and licensing company. The flagship brand is NutriMil, a proprietary whey protein, lactose-free milk beverage. Enriched with 14 vitamins and minerals, and 100% RDV of calcium in every 8 ounces, NutriMil can be found throughout the country in both refrigerated and shelf-stable packaging. NutriMil comes in three varieties: Low Fat, Fat Free and Chocolate. U.S. Food Corporation produces a line of “frozen premium desserts” including all the nutritional features and benefits of the milk beverage. The lactose-free NutriMil frozen dessert possesses the rich creamy taste of premium ice cream with little saturated fat, no cholesterol and a host of vitamins and minerals. For additional information, contact U.S. Food Corporation toll free at 1-877-688-7464, or visit the Web site at www.nutrimil.com.

About Hormel Foods Corporation

Hormel Foods Corporation, based in Austin, Minn., is a multinational manufacturer and marketer of consumer-branded food and meat products, many of which are among the best known and trusted in the food industry. The company enjoys a strong reputation among consumers, retail grocers, and foodservice consumers for products regarded for quality, taste, nutrition, convenience and value. (Items listed in bold throughout this release represent trademarks owned or licensed by Hormel Foods Corporation or its subsidiaries.) For more information about Hormel HealthLabs, visit our Web site at www.hormelhealthlabs.com or call 1-800-866-7757.