Pierre Foods Receives Final Approval of its Debtor-In-Possession Financing

CINCINNATI, Ohio, Aug. 13 /PRNewswire/ -- Pierre Foods, Inc. (the "Company" or "Pierre") today announced that the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") granted final approval of the Company's $35 million debtor-in-possession (DIP) credit facility. The facility is being provided by certain funds managed by Oaktree Capital Management L.P. The Company previously received interim approval of the DIP credit facility from the Bankruptcy Court on July 16, 2008.

The DIP financing and cash generated from operations will be used to continue to pay vendors and employees, as well as to provide operational and financial stability as Pierre proceeds with its financial restructuring. The Company is currently in compliance with all of the terms and conditions of the DIP credit agreement.

"We are pleased to have received final Court approval of our DIP credit facility," said Norbert Woodhams, Chief Executive Officer of Pierre Foods. "Our DIP financing allows us to continue providing uninterrupted service for our customers while honoring our obligations to vendors and suppliers. We believe that with final approval of our DIP financing we have the necessary capital to continue to run our operations while we pursue discussions with our creditors and focus on our emergence from bankruptcy."

Mr. Woodhams concluded, "We thank all of our loyal customers, committed vendors and dedicated employees for their ongoing support as we work through our financial restructuring."

As previously announced, the Company and its subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware on July 15, 2008. The Pierre Foods, Inc. case has been assigned case number 08-11480. Additional information about Pierre's restructuring is available at the Company's website www.pierrefoods.com or via the Company's restructuring information line, 888-733-1437. For access to Court documents and other general information about the Chapter 11 cases, please visit www.kccllc.net/pierre.

About Pierre Foods, Inc.

Pierre has enjoyed a dynamic history dating back over 60 years to 1946. The company's foundation is built on its committed employees, key customer relationships, trust, and providing the best products available. Today Pierre Foods is a leading manufacturer, marketer and distributor of high-quality, differentiated food solutions, focusing on pre-cooked and ready-to-cook protein products, compartmentalized meals, and hand-held convenience sandwiches. Pierre is headquartered in Cincinnati, Ohio.

Forward Looking Statements

In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "expects," "anticipates," "estimates," and similar expressions identify forward-looking statements. These statements reflect Pierre's expectations at the time this release was issued and are not guarantees of future performance or future events, but instead involve various risks and uncertainties. Actual events and results may differ materially from those described in the forward-looking statements. Among the factors that could cause material differences are the ability of Pierre to develop, prosecute, confirm and consummate a plan of reorganization with respect to its Chapter 11 petitions, the ability of Pierre to operate its business in the ordinary course during bankruptcy, the potential adverse impact of the Chapter 11 petitions on Pierre's operations, management and employees, the company's ability to continue to comply with the terms and provisions of the debtor-in-possession credit facility and related bankruptcy court order, increases in the price of raw materials, particularly beef, pork, chicken, and cheese, a decline in meat consumption or in the consumption of processed foods, outbreaks of disease among cattle, chicken or pigs, changes in applicable governmental regulations, such as the USDA's Commodity Reprocessing Program, work stoppages or interruptions and other risks detailed from time to time in Pierre's periodic SEC reports. Pierre undertakes no obligation to update or revise any forward-looking statement.