Foodservice customers in the market area are currently being served
by SYSCO's operating company in Nashville, Tennessee, as well as
SYSCO broadline operations in Atlanta, Georgia; Charlotte, North
Carolina; Harrisonburg, Virginia; and Louisville, Kentucky.
Richard J. Schnieders, SYSCO's chairman, chief executive officer
and president, said, "The Knoxville fold-out will allow SYSCO to
provide more localized service to our customers in that market,
as well as in the markets of the existing SYSCO companies in Tennessee
and surrounding states. Our growth in that region has been consistently
strong, and with this new operation we expect to continue that trend."
Mr. Schnieders added that the Knoxville operation is the 17th
'fold-out' announced by SYSCO. The 'fold-out' concept involves the
construction of a new distribution facility in a marketplace that
contains an established sales base but is currently being serviced
from a distant SYSCO company.
In addition to the City of Knoxville, other organizations providing
assistance to SYSCO include the Tennessee Valley Authority, the
Knoxville Area Chamber Partnership, the state of Tennessee and Steven
W. Wright Co.
"We congratulate and wish SYSCO every success as they pursue growth
opportunities at this major new Knoxville facility," said John Bradley,
TVA Senior Vice President of Economic Development. "This is a win-win
for the company and community that results from a team effort by
our regional, state and local economic development entities."
Tennessee Economic and Community Development Commissioner Matthew
Kisber, said, "Sysco is a respected company within the food distribution
industry and we are pleased that they have made Tennessee a pick
for their new regional distribution center. Tennessee enjoys a positive
business climate right now, and this project is a reflection of
the momentum we've been building and the teamwork attitude that
has helped make us successful in attracting projects."
Mike Edwards, president and CEO of the Knoxville Area Chamber
Partnership, stated, "When we began to market this property, Mayor
Haslam and City Council asked us to focus on companies that would
provide a great corporate presence at the entrance to Knoxville
and great jobs and benefits in our community. SYSCO is the perfect
fit. The teamwork among the individuals and organizations that worked
to make this project happen has been outstanding."
SYSCO is the global leader in selling, marketing and distributing
food products to restaurants, healthcare and educational facilities,
lodging establishments and other customers who prepare meals away
from home. Its family of products also includes equipment and supplies
for the foodservice and hospitality industries. For the fiscal year
2005 that ended July 2, 2005, the company generated $30.3 billion
in sales. For more information about SYSCO visit the company's Internet
home page at www.sysco.com.
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995. They
include statements regarding continued growth in the Knoxville region,
and the expected location, benefits, operations and timing for completion
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, potential disruption of construction
timetables, and other risk factors detailed in SYSCO's Form 10-K
for the fiscal year ended July 2, 2005 filed with the Securities
and Exchange Commission. In addition, the decision to pursue the
Knoxville fold-out could be impacted by the results of the due diligence
that is currently underway, including geotechnical and environmental