Monday, 2 April 2001

Suiza Foods Settles West Lynn Creamery Investigation

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Monday, 2 April 2001

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

CONTACT: Cory M. Olson, Vice President and Treasurer of Suiza Foods
Corporation, 214-303-3645; or Larry Rasky of Rasky/Baerlein Group,
617-443-9933, ext. 308, for Suiza Foods Corporation/

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