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News Release

SYSCO to Expand Foodservice Distribution Reach With New North Carolina Facility

 HOUSTON, Jan. 26, 2005 (PRIMEZONE) -- SYSCO Corporation (NYSE:SYY), North America's largest foodservice marketer and distributor, today announced plans to broaden its industry-leading distribution coverage with the construction of a "fold-out" facility in North Carolina. SYSCO has tentatively selected a site on U.S. Highway 70 By-Pass Frontage Road, which is located in Selma, North Carolina, in Johnston County. Due diligence is currently underway, including geotechnical and environmental studies.

 The new company is expected to be operational in the first quarter of calendar year 2006 and will serve restaurants, hospitals, schools, colleges, retirement homes, hotels and other foodservice operations in north central North Carolina and southern Virginia. The complex will include approximately 395,000-square-feet of refrigerated, frozen and dry warehouse space, as well as administrative offices. Initially the company will employ about 345 and the employee base is expected to reach approximately 600 by 2010, depending on sales growth. Foodservice customers in the area currently are being served principally by a SYSCO operating company in Charlotte.

 Richard J. Schnieders, SYSCO's chairman and chief executive officer, said, "The 'fold-out' concept of building new facilities in an area with an established sales base that has been served by a distant SYSCO company has been integral to the success of SYSCO's internal growth strategies and enabled us to provide more localized service to customers in those areas. The vibrant growth we have seen in foodservice in the Raleigh market area will support another facility, allowing us to expand our distribution capabilities and favorably impact the communities in that region."

 Instrumental in selecting this location were the State of North Carolina Department of Commerce, Johnston County Economic Development, Johnston County Board of Commissioners, Town of Selma, The Lewis Group and Stephen W. Wright Company. "This site was chosen because of the available outstanding workforce, the lifestyle and amenities afforded by the community and the willingness of the city, county and state officials to assist in securing economic development incentives and other assistance," said Jack D. Carlson, SYSCO's vice president, real estate and construction.

 SYSCO is the largest foodservice marketing and distribution organization in North America, providing food and related products and services to approximately 400,000 restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. SYSCO's operations, supported by 46,300 associates, are located throughout the United States and Canada and include broadline companies, specialty produce and custom-cut meat operations, Asian cuisine foodservice distributors, hotel supply operations, chain restaurant distribution subsidiaries and a subsidiary that specializes in supplying internationally located chain restaurants. For more information about SYSCO visit the company's Internet home page at www.sysco.com.

 The SYSCO Corporation logo is available at: http://media.primezone.com/prs/single/?pkgid=747

 Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding industry growth, employment growth and the location of any 'fold-out'. These statements involve risks and uncertainties and are based on current expectations and management's estimates; actual results may differ materially. Those risks and uncertainties that could impact these statements include the risks relating to the foodservice distribution industry's relatively low profit margins and sensitivity to economic conditions, SYSCO's leverage and debt risks, the risk of exposure to product liability claims, the risk of interruption of supplies due to lack of long-term contracts, work stoppages or otherwise, the inability to find attractive 'fold-out' locations, construction timetables, and other risk factors detailed in SYSCO's Form 10-K for the fiscal year ended July 3, 2004 filed with the Securities and Exchange Commission.

 CONTACT:
 SYSCO Corporation, Houston
 John M. Palizza, Assistant Treasurer
 (281) 584-1308

 



 
 
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