MGP Net Earnings Decline

NEW YORK - Feb 8/05 - SNS -- MGP Ingredients, Inc. reported a net income of U.S. $1,354.000 on sales of $61.164 million during the quarter ending December 31, 2004, down from a net of $1,834,000 on sales of $59.409 million during the same quarter the previous fiscal year.

This lifted the company's net income for the first half of fiscal 2005 to $1,645,000 on sales of $130.042 million, down sharply from net earnings of $4,304,000 on sales of $116.463 million during the first half of the previous fiscal year.

"Strong increases in sales of both fuel grade alcohol and food grade alcohol drove a 6% increase in distillery products sales in the second quarter," said Ladd Seaberg, president and chief executive officer.

"Results for our ingredients segment were mixed. The ongoing popularity of pet treats incorporating our Polytriticum(R) line of grain-based resins drove strong gains in that business; and we experienced a sequential quarter rebound in our Fibersym(TM) line of resistant starches, which had been trending downward concurrent with the slowing of the low-carb market. The low-carb slowdown continued to impact sales of our Arise(R) line of wheat protein isolates as well as our Wheatex(R) line of textured wheat proteins."

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