Suiza Foods Settles West Lynn Creamery Investigation

Settlement Related to West Lynn Creamery's Activities Prior to Suiza's

Acquisition



Suiza Will Take One Time Charge of $7.5 Million Against Fourth Quarter 2000

Earnings



Apr 02, 2001, 01:00 ET from Suiza Foods Corporation

    DALLAS, April 2 /PRNewswire/ -- Suiza Foods Corporation (NYSE:   SZA), the
 nation's leading dairy processor and distributor, today announced that it has
 reached a settlement with the U.S. Attorney for the District of Massachusetts
 in connection with the investigation of a rebate program conducted by West
 Lynn Creamery ("WLC") prior to the time Suiza acquired the stock of WLC in
 June 1998.  The settlement will require the payment by WLC of $7.2 million to
 the government.  As previously described in Suiza's September 30, 2000 10-Q,
 this investigation related to the payment of rebates by WLC to certain
 customers who did not include these rebates as income on their federal income
 tax returns.  Under the settlement, WLC will plead guilty to one charge of
 conspiracy to impede the collection of taxes by the Internal Revenue Service
 during the period from 1992-1997.
     "All of the rebate payments at issue occurred before Suiza acquired West
 Lynn Creamery," said Michelle Goolsby, Executive Vice President and General
 Counsel of Suiza Foods.  "As the U.S. Attorney's office has confirmed, the
 rebate payments at issue were discontinued prior to Suiza's acquisition of
 WLC.  Neither the investigation nor the conduct at issue was disclosed to us
 when we acquired this company.  Accordingly, we will seek recourse against
 former owners on behalf of our shareholders.  We are pleased to have concluded
 this investigation and are confident that this matter will not have any future
 impact on our business."
     In accordance with generally accepted accounting principles, Suiza has
 taken a $7.5 million charge, which includes $300,000 of expenses relating to
 the settlement, in the fourth quarter of 2000.  As a result of this one time
 non-recurring accrual, fourth quarter 2000 net income and diluted earnings per
 share after all non-recurring items have been reflected as $28.4 million and
 $0.95, respectively in the company's Form 10-K to be filed today with the SEC.
 These results compare to $33.4 million in net income after non-recurring items
 and diluted earnings per share after non-recurring items of $1.09, as reported
 on February 15, 2001.
     In its earnings release on February 15, 2001, Suiza also reported fourth
 quarter net income and diluted earnings per share before non-recurring items
 of $33.0 million and $1.08 respectively.  These results, before non-recurring
 items, remain unchanged.
     Suiza Foods Corporation, based in Dallas, Texas, is the nation's leading
 fluid dairy processor and distributor, producing a full line of
 company-branded and customer-branded products.
     The statement in this press release regarding any future impact on our
 business is a "forward-looking statement" and it is made pursuant to the safe
 harbor provision of the Securities Litigation Reform Act of 1995.  This
 statement involves risks and uncertainties that may cause results to differ
 materially from the statement set forth in this press release.  The company's
 ability to generate operating results in accordance with its expectations
 depends on a variety of economic, competitive and governmental factors, many
 of which are beyond the company's control and which are described in Suiza's
 filings with the Securities and Exchange Commission, including its Annual
 Report on Form 10-K for the quarter and year ended December 31, 2000.  The
 forward-looking statement in this press release speaks only as of the date of
 this release.  Suiza expressly disclaims any obligation or undertaking to
 release publicly any updates or revisions to such statement to reflect any
 change in its expectations with regard thereto or any changes in the events,
 conditions or circumstances on which any such statement is based.
 
 

SOURCE Suiza Foods Corporation
    DALLAS, April 2 /PRNewswire/ -- Suiza Foods Corporation (NYSE:   SZA), the
 nation's leading dairy processor and distributor, today announced that it has
 reached a settlement with the U.S. Attorney for the District of Massachusetts
 in connection with the investigation of a rebate program conducted by West
 Lynn Creamery ("WLC") prior to the time Suiza acquired the stock of WLC in
 June 1998.  The settlement will require the payment by WLC of $7.2 million to
 the government.  As previously described in Suiza's September 30, 2000 10-Q,
 this investigation related to the payment of rebates by WLC to certain
 customers who did not include these rebates as income on their federal income
 tax returns.  Under the settlement, WLC will plead guilty to one charge of
 conspiracy to impede the collection of taxes by the Internal Revenue Service
 during the period from 1992-1997.
     "All of the rebate payments at issue occurred before Suiza acquired West
 Lynn Creamery," said Michelle Goolsby, Executive Vice President and General
 Counsel of Suiza Foods.  "As the U.S. Attorney's office has confirmed, the
 rebate payments at issue were discontinued prior to Suiza's acquisition of
 WLC.  Neither the investigation nor the conduct at issue was disclosed to us
 when we acquired this company.  Accordingly, we will seek recourse against
 former owners on behalf of our shareholders.  We are pleased to have concluded
 this investigation and are confident that this matter will not have any future
 impact on our business."
     In accordance with generally accepted accounting principles, Suiza has
 taken a $7.5 million charge, which includes $300,000 of expenses relating to
 the settlement, in the fourth quarter of 2000.  As a result of this one time
 non-recurring accrual, fourth quarter 2000 net income and diluted earnings per
 share after all non-recurring items have been reflected as $28.4 million and
 $0.95, respectively in the company's Form 10-K to be filed today with the SEC.
 These results compare to $33.4 million in net income after non-recurring items
 and diluted earnings per share after non-recurring items of $1.09, as reported
 on February 15, 2001.
     In its earnings release on February 15, 2001, Suiza also reported fourth
 quarter net income and diluted earnings per share before non-recurring items
 of $33.0 million and $1.08 respectively.  These results, before non-recurring
 items, remain unchanged.
     Suiza Foods Corporation, based in Dallas, Texas, is the nation's leading
 fluid dairy processor and distributor, producing a full line of
 company-branded and customer-branded products.
     The statement in this press release regarding any future impact on our
 business is a "forward-looking statement" and it is made pursuant to the safe
 harbor provision of the Securities Litigation Reform Act of 1995.  This
 statement involves risks and uncertainties that may cause results to differ
 materially from the statement set forth in this press release.  The company's
 ability to generate operating results in accordance with its expectations
 depends on a variety of economic, competitive and governmental factors, many
 of which are beyond the company's control and which are described in Suiza's
 filings with the Securities and Exchange Commission, including its Annual
 Report on Form 10-K for the quarter and year ended December 31, 2000.  The
 forward-looking statement in this press release speaks only as of the date of
 this release.  Suiza expressly disclaims any obligation or undertaking to
 release publicly any updates or revisions to such statement to reflect any
 change in its expectations with regard thereto or any changes in the events,
 conditions or circumstances on which any such statement is based.
 
 SOURCE  Suiza Foods Corporation