Tyson Net Income Down

NEW YORK - Jan 30/06 - SNS -- Tyson Foods, Inc. reported net income of U.S. $38 million on sales of $6,454 million during the first quarter ending December 31, compared to a net of $48 million on sales of $6,452 million during the same three month period of the previous fiscal year.

In reporting its quarterly numbers, Tyson Foods noted pretax earnings for the first quarter of fiscal 2005 included $12 million received in connection with vitamin antitrust litigation, a gain of $8 million from the sale of the Company's remaining interest in Specialty Brands, Inc. and $3 million of costs related to a prepared foods plant closing. The combined effect increased diluted earnings per share by $0.03.

The Company also today announced it will amend its Annual Report on Form 10-K for the fiscal year ended October 1, 2005, which will be filed in February 2006 and will result in an increase to net income of $19 million or $0.05 per diluted share.

Restated earnings for fiscal 2005 were $372 million, compared to $403 million in fiscal 2004. Restated pretax earnings for fiscal 2005 included $33 million of costs related to a legal settlement involving the Company's live swine operations, $14 million of costs for plant closing, $8 million of losses related to Hurricane Katrina, $12 million received in connection with vitamin antitrust litigation and a gain of $8 million from the sale of the Company's remaining interest in Specialty Brands, Inc.

Additionally, earnings included a non-recurring income tax net benefit of $15 million. That includes the reversal of tax reserves, partially offset by an income tax charge related to the repatriation of foreign income. Also, in fiscal 2005 the Company recognized a tax-exempt actuarial gain of $55 million, for which the Company erroneously recorded income tax expense of $19 million. The Company's restated fiscal 2005 results reduce the income tax provision accordingly.

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