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Smithfield Foods to Launch a OneYear Test of Subwayreg Deli Meats and...

Smithfield Deli Group, a division of Smithfield Foods, the leading processor of fresh pork and processed meats in the U.S., announced today that it has entered into a licensing agreement with Subway Restaurants to launch a line of Subway-branded deli meats and cheeses in the U.S. Beginning this month, Smithfield Deli Group will launch a one-year test of Subway-branded premium deli meats and cheeses to be offered within the full-service deli counter at mass retailers and grocery stores nationwide.



Customers who visit Subway's8217;s restaurants for its delicious and healthy offering will now be able to buy fresh Subway deli meats and cheeses at their local grocery store and retailer. Subway-branded deli meats and cheeses will include fresh, great-tasting, and premium selections of Bologna, Virginia Ham, Genoa Salami, Pepperoni, Oven Roasted Turkey, Roast Beef, Swiss Cheese, Provolone Cheese, and White American Cheese.These selections will be available in early February 2007 at Pathmark grocery stores in the New York and New Jersey metropolitan areas.The program will expand to other mass retailers and grocery stores throughout the first half of the year.



's8220;Smithfield Deli Group is committed to producing the same high-quality, delicious, fresh, and healthy products as are offered at Subway restaurants nationwide,'s8221; said Richard Goodman, Senior Vice President of Smithfield Deli Group.



's8220;We are thrilled to bring Subway Restaurants and Smithfield Foods together,'s8221; said Michael Stone, President and CEO of The Beanstalk Group, Subway's8217;s exclusive licensing agency. 's8220;As both companies are respected leaders in their industries, we are confident that consumers will embrace the opportunity to purchase Subway's8217;s deli meats and cheeses from their hometown grocery store.'s8221;



About Smithfield Foods, Inc.

Smithfield Foods has delivered a 24 percent average annual compounded rate of return to investors since 1975. With sales of $11 billion, Smithfield is the leading processor and marketer of fresh pork and processed meats in the United States, as well as the largest producer of hogs. For more information, visit www.smithfieldfoods.com.



About Subway®

Now in its 42nd year, the Subway restaurant chain is the world'ss largest submarine sandwich franchise, with more than 26,800 locations in 86 countries. The Subway chain is the second largest fast-food chain in the world, surpassing McDonald's8217;s ® number of locations throughout the United States, Canada, Australia and New Zealand. Headquartered in Milford, Connecticut and with regional offices in Amsterdam, Beirut, Brisbane, Miami and Singapore the Subway restaurant chain was co-founded by Fred DeLuca and Dr. Peter Buck in 1965. The Subway brand is ranked as the number one franchise opportunity in Entrepreneur magazine's8217;s 2007 's8220;Annual Franchise 500®'s8221; listing 's8211; the 15th time in 19 years that the chain has achieved this honor.



About The Beanstalk Group

The Beanstalk Group, with approximately 100 employees, is the world'ss leading brand licensing agency and consultancy. With offices in New York, Dearborn (MI), Bentonville (AR), Los Angeles, and London, Beanstalk provides clients with a complete solution for their brand licensing needs. Offering a unique combination of category expertise, award winning creativity, and superior client service, Beanstalk has consistently set new industry standards for leveraging licensing as a powerful tool that enhances the popularity and profitability of corporate brands. The Beanstalk Group is part of Omnicom's8217;s Diversified Agency Services network. For more information, please visit www.beanstalk.com.



For Further Information:

Harry Tillman

Smithfield Deli Group

(757) 357-1696

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