MGP Reports $1.8 M Net Second Quarter

ATCHISON - Feb 5/04 - SNS -- MGP Ingredients, Inc. reported U.S. $1,834,000, or 24 cents per share, net income on sales of $59,409,000 during the second quarter ending December 31, a substantial increase from the $48,000 realized on sales of $44,408,000 during the same quarter the previous year.

For the first six months of fiscal 2004, the company posted net income of $4,304,000, or 56 cents per share, on sales of $116,463,000. That compares to net income of $6,838,000, or 85 cents per share, on sales of $87,307,000 for the prior year’s first six months.

However, earnings for the first half of fiscal 2003 were principally due to $13 million in non-operating income ($7.9 million after the effects of income taxes) resulting from the recognition of insurance proceeds in excess of the net recorded costs of assets that were destroyed in the September 13, 2002 distillery explosion at the company’s Atchison, Kansas plant.

The company also said it will build a new $4.5 million expansion project at its Kansas City, Kansas, facility. Scheduled to be completed by September, 2004, the project is expected to approximately double production capacity for the company’s Wheatex® line of textured wheat proteins.

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