Bunge Buys Perdigao Assets

NEW YORK - Jul 13/05 - SNS -- Bunge Alimentos has bought Perdigao's soybean crushing and oil refining unit in Marau, in the Brazilian state of Rio Grande do Sul; and entered agreements to license the Perdigao's brands for seven years as well as supply the company with soybean meal for the next seven years.

The soybean crushing plant has a 1,000 MT daily capacity. It will continue its soybean refining and filling operations for the Perdigao and Borela brand names for the next 90 days. Once this period has elapsed, the plant will cease operations and its 68 employees relocated to other areas of the Company.

The real estate will remain with Perdigao, which will undertake a study as to how it can be used in the future. Perdigao will continue to operate the plant's silos, which have a storage capacity of 40,000 tons.

Bunge will license the Perdigao and Borela soybean oil brands for a seven-year period. Since oil refining is not part of Perdigao's core business, the Company has taken the decision to license the brands, transferring the activity to Bunge.

In light of Perdigao's decision to discontinue crushing activities in Marau, Bunge has contracted to supply soybean meal to Perdigao's animal feed plants in Catanduvas (SC), Marau and Gaurama (RS), also for a seven-year period.