Attorney General's News Release

January 5, 2000

Nixon sues Smithfield to stop Murphy purchase; AG says acquisition would violate state corporate farming law

Nevada, Mo. — Attorney General Jay Nixon today asked for a court injunction to stop Virginia-based Smithfield Foods Inc. from acquiring the Missouri hog production assets and facilities of Murphy Family Farms, locatedin Vernon and Barton counties. Nixon said the acquisition by the nation's largest hog producer would violate Missouri law, which prohibits corporate farming.

"When we learned of this proposed acquisition, we asked Smithfield to explain how this purchase would not violate Missouri law," Nixon said. "Their answers have not been satisfactory, and it is clear that if they are allowed to proceed, Smithfield will be breaking state law by engaging in farming in Missouri. Therefore, we are asking the court to stop this acquisition."

According to a news release issued by Smithfield Foods, the corporation's shareholders voted last month to issue additional stock in connection with the acquisition of Murphy Family Farms, the nation's second largest hog producer.

Missouri law provides that no corporation, other than a family farm corporation, shall engage in farming or hold title to agricultural land. Murphy Family Farms qualifies as a family farm corporation under Missouri law and thus has been allowed to operate swine production facilities in Barton and Vernon counties. Smithfield Foods Inc. would be considered a corporation under Missouri law.

Nixon is asking the Vernon County Circuit court to grant a temporary restraining order and issue preliminary and permanent injunctions prohibiting Smithfield from acquiring Murphy's assets and facilities.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818