TORONTO, March 2, 2005 (PRIMEZONE) -- Food Safe International, Inc., the 'Company,' or (Pink Sheets:FSIJ), soon to be renamed Produce Safety and Security International, Inc., commented today regarding the Food Industry conference being held tomorrow March 3, 2005 at the Cornell Club in New York City. FSIJ believes that the Company's new management intends to have a seat at the nation's $600 billion food industry which has averaged over 500 M&A transactions a year for the past five years. Among the most active buyers are private equity firms whose track records show notable successes.
This conference will be led by food industry specialist David Frost and produced by the Capital Roundtable(tm), an educational organization focused exclusively on the private equity community. FSIJ intends to obtain additional answers from the conference for its shareholders to such frequently asked questions as -- How important is it in food deals to buy right? What are current norms for valuations? How do experienced buyers value brands? Relatively speaking, is operating leverage as important as financial leverage in the food industry? And, what industry trends are important? Natural and organic foods, ethnic foods, and diet foods are growing at twice the rate of other food categories as consumers search for healthier, more convenient, and better tasting foods. Restaurants and club stores are pioneering new brands and new convenience foods. Is it better to invest in growth-oriented new food-service brands moving into supermarkets, or instead in mature, under-managed corporate orphans? Are big food corporations buyers or sellers or both? What metrics do they use in selling or buying businesses? Wal-Mart is the world's largest retailer and also a leading retailer of food, targeting market shares of 30% or more in the food categories it handles. How do insiders evaluate customer concentration when Wal-Mart, Safeway, Kroger, or Sysco account for as much as 50% of sales in some cities?
What are the differences between companies and deals in the food industry, and those in other industries that private equity firms look at? Do firms that specialize exclusively in the food industry out-perform those that have a more generalist strategy? How do insiders define the food industry? Are agribusiness and distribution and even biotech companies part of the mix? What are the differences between domestic deals and cross-border and international deals? What opportunities do the experts see in investing in China and South America and Asia?
FSIJ intends to evaluate its forward thinking business plan and inform its shareholders regarding transaction trends by segment -- retailers, manufacturers, distributors and restaurants, Key industry and operating trends, Dealing with auctions and finding exclusive deal flow, Evaluating or recruiting management, Best practices and competing versus cooperating with other funds, Growing and exiting deals, Key contacts and sources of industry information, Contacts with other equity investors and advisors.
Speakers at the conference include, David W. Frost, Managing Partner, Frost & Partners, Daniel Almagor, One Equity Partners LLC, Alain Bankier, Managing Partner, Saveur Food Group LLC, Maureen A. Brille, Head of Private Capital, Egon Zehnder International Inc., Robert Brown, Director, Swander Pace Capital, Kristin Daley, Principal, Kurt Salmon Associates, John K. Giannuzzi, Managing General Partner, Sherbrooke Capital LLC, Marc Goldberg, Senior Advisor, Wasserstein & Co. LP, Herman "Bing" Graffunder, CEO, Fairmont Foods, J. Robert Hall, Partner, Ardale Enterprises LLC, Christopher B. Harned, Managing Director, Cypress Group LLC, Erica Kuhlmann, Managing Dir.--Food & Agribusiness, Harris Nesbitt Corp., Mart Laius, Principal & Managing Director, Steven Goldsmith Group, Scott R. LaRue, Managing Director, Piper Jaffray & Co., Joseph Rhodes, Partner, Charterhouse Group Inc., David W. Schoeder, Principal, Food Partners LLC, R. Adam Smith, Managing Partner, Circle Peak Capital Management LLC.
According to FSIJ's current President & CEO, Jason Wong, "Our Board of Directors authorized a four-for-one stock split on February 28, 2005, effected in the form of a stock dividend for shareholders of record on March 4, 2005. For every one share of the Company's common stock held on the record date, the holder will receive four shares. The additional shares resulting from the split will be distributed. We are positioning for FSIJ's new acquisitions and appointment of Mr. Clarence 'Bill' Karney as the new President & CEO. Over the next few weeks FSIJ intends to announce its new corporate office locations, name change, trading symbol change and a new website.
About Food Safe International (Produce Safety and Security International, Inc.)
Food Safe intends to eliminate food safety and sanitation issues and provide methods to improve procedures to minimize risk and liability. Food is one of the most mobile commodities traded internationally. Consumers are asking more questions and demanding answers. Whether the commodity is spices (insect contamination), beef (E. coli), strawberries (Hepatitis A, salmonella), fish (mercury) or any of thousands of foods traded globally, consumers and buyers are demanding new standards of quality, safety and nutritional value. Protecting people from food borne illness is Food Safe's number-one priority. Food Safe's comprehensive program is a proactive approach to food safety. Spurred into action by food crises in the global beef industry, there is an international consensus that producers and food industry stakeholders require a reliable methodology and technology for verifying food production and food safety.
Safe Harbor Forward-Looking Statements
Statements contained in this release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are made based on information available as of the date hereof, and the company assumes no obligation to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties and the company's actual results may differ from these forward-looking statements. Such risks and uncertainties include but are not limited to demand for the company's products and services, our ability to continue to develop markets, general economic conditions, our ability to secure additional financing for the company and other factors that may be more fully described in reports to shareholders and periodic filings with the Securities and Exchange Commission.