Articles in this document:

· BRAZIL: First-half profits up for Perdigão

· Perdigao's Sales Grow by More Than 80% in the Second Quarter

BRAZIL: First-half profits up for Perdigão

29 July 2008 | Source: just-food.com

Brazilian meat and dairy group Perdigão has closed its first half with an increase of 20.8% in operating profit.

EBIT was up to BRL$225.7m (US$143.5m) from $186.8 for the same period last year.

The company posted an $830.8m net loss. In the first six months of 2007, Perdigão had a $133.5m net profit. Adjusted net profit for the first half of 2008 was at $153.5m.

Net sales between January and June rose 73.4% on the same period of 2007, to $5.29bn from $3.05bn.

Perdigão made over $2bn worth of investments in the first six months of 2008.

Last month the company announced plans to build a powdered milk processing plant in the state of Rio Grande do Sul.

The facility will be Perdigao's second unit in Três de Maio, where it already runs a site that produces mozzarella.

just-food.com

Perdigao's Sales Grow by More Than 80% in the Second Quarter

Acquisitions are among the factors that have guaranteed growth during the period

SOURCE Perdigao S.A.

Last update: 5:36 p.m. EDT July 28, 2008

via MarketWatch

SAO PAULO, Brazil, July 28, 2008 /PRNewswire-FirstCall via COMTEX/ -- Perdigao closed the second quarter 2008 with gross sales of R$ 3.3 billion, 81.2% more than the same period in 2007. Growth reflects the increase in sales in both volume and revenues in the domestic and export markets. In addition to these factors, performance was also driven by the consolidation of the results from the acquisition of Eleva/Cotoches, among others, as well as outsourced production agreements signed with other dairy product processors.

Exports reported an increase of 45.4% in meat volume and 64% in total revenues, reaching R$ 1.3 billion. The growth in international demand for animal protein (poultry and pork) from Brazil has sustained the positive performance in overseas markets. This is despite the continuing appreciation of the Real against the US dollar during the quarter and the increase in principal commodity prices well above levels recorded in the comparative period for 2007.

Domestic market revenues for the quarter increased year-on-year by 93.9%, reporting a total of R$ 1.99 billion. Sales volumes of dairy products increased 338.9% and by 30.5% in the case of meats. Performance in this market was driven by acquisitions, new partnerships -- instrumental in enhancing milk output, and the expansion of the Company's business in the margarine and other processed product segments, resulting in a 185.4% increase in sales volumes.

The improvement in the Company's operations in meat and dairy products, allied to sales performance, has been conducive in achieving good operating results. EBITDA reached R$ 233.2 million, 40.3% more than for the comparative period last year.

Gross profit increased from R$ 411.2 million to R$ 624.6 million, equivalent to a year-on-year increase of 51.9%. Net adjusted income reported growth of 44.7% to R$ 102.5 million before the effect for the amortization of goodwill arising from the acquisition of some major operating assets.

In May, Perdigao fully recognized goodwill of R$ 1.5 billion (the difference between book and market value), accruing from the acquisitions of Eleva, the margarine businesses and the Batavia business still not controlled by the Company. This generated a tax benefit of R$ 501.3 million in addition to a net negative non-recurring effect in the quarter of R$ 984.3 million.

Sao Paulo, July 28 2008.

For more information, contact:

Investor Relations Department

acoes@perdigao.com.br

(55) (11) 3718-5465

SOURCE Perdigao S.A.

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