Performance Food Group Reports $0.35 Second Quarter Net EPS from Continuing Operations

-- Net EPS from continuing operations increased 35% versus prior year quarter to $0.35 per share diluted

-- Street sales increased 6% versus prior year quarter

Performance Food Group (Nasdaq/NGS:PFGC) today announced resultsfor the second quarter ended July 1, 2006.

"We are pleased with our 35% increase in net earnings per share inthe quarter and we continue to be optimistic about the year," said BobSledd, Chairman and CEO. "We are aggressively implementing ourstrategy to grow higher margin street business while maintaining ourfocus on improving productivity by leveraging new technologies andstandardization programs and implementing our procurement initiatives.Our efforts yielded solid progress in the growth of street business.Overall sales declined slightly, reflecting our previously announcedexit of certain lower margin multi-unit business and a slowing ofsales in certain industry segments. In addition to our focus ongrowing street business, we are actively pursuing attractiverestaurant chain opportunities. In the prior year quarter, werecognized a significant gain on the sale of our fresh-cut segment,which enabled us to return over $400 million of proceeds to ourshareholders."

Consolidated net sales from continuing operations in the secondquarter were approximately $1.4 billion, a decrease of approximately1%, compared to the prior year quarter. Inflation for the quarter wasnominal. Net earnings from continuing operations for the secondquarter amounted to approximately $12.2 million, which was unchangedcompared to the same quarter in the previous year. Net earningsinclude the impact of stock compensation expense of approximately $0.9million after tax for the quarter, or approximately $0.03 per sharediluted. Net earnings per share from continuing operations increasedapproximately 35% to $0.35 per share diluted, compared to $0.26 pershare diluted in the prior year quarter, on approximately 27% fewershares outstanding. Excluding stock compensation expense, net earningsper share from continuing operations in the second quarter amounted toapproximately $0.38 per share diluted.

Consolidated net sales from continuing operations for the firstsix months of 2006 were approximately $2.9 billion, an increase ofapproximately 1% from the prior year period. Inflation was nominal forthe same period. Net earnings from continuing operations in the periodincreased approximately 5% to $17.8 million compared to approximately$16.9 million in the prior year period. Net earnings include theimpact of stock compensation expense of approximately $1.4 millionafter tax for the period, or approximately $0.04 per share diluted.Net earnings per share from continuing operations increasedapproximately 42% to $0.51 per share diluted, compared to $0.36 pershare diluted in the same period in the previous year, onapproximately 27% fewer shares outstanding. Excluding stockcompensation expense, net earnings per share from continuingoperations in the period amounted to approximately $0.55 per sharediluted.

On June 28, 2005, the Company completed the sale of its fresh-cutsegment to Chiquita Brands International, Inc. Accordingly, netearnings during the second quarter of 2005 included the gain on thesale of the fresh-cut segment. All amounts pertaining to the Company'sfresh-cut segment are accounted for as discontinued operations.

"Sales in our customized segment increased approximately 4% duringthe second quarter compared to the prior year quarter," added Mr.Sledd. "Sales growth during the quarter was driven by growth withexisting customers. The customized segment experienced deflation ofapproximately 2% in the quarter.

"In the broadline segment, we maintained our momentum in growinghigher margin street business, however, sales in broadline decreasedby approximately 4% in the second quarter versus the prior yearquarter and were impacted by our exit of lower margin multi-unitbusiness during late 2005 and the first quarter of 2006. Our highermargin street sales increased approximately 6% over the prior yearquarter. Inflation amounted to approximately 1% in the quarter.Results in the broadline segment were also impacted by the investmentin our expanded street sales force and by higher fuel costs, offset inpart by favorable trends in insurance costs. We are pleased with thecontinued positive change in our mix of higher margin street sales inbroadline."

Mr. Sledd concluded, "Our balance sheet remains exceptionallystrong with a debt to capital ratio of less than 1% at the end of thesecond quarter, excluding $130 million of interests in accountsreceivable sold under an accounts receivable purchase facility. Freecash flow was approximately $7.4 million during the second quarter,compared to a use of free cash of approximately $0.5 million in theprior year quarter. Based on current business trends, we expect netearnings per share to be in the range of $0.32 to $0.36 per sharediluted for the third quarter of 2006. For the 2006 year, we expectnet earnings per share to be in the range of $1.22 to $1.30 per sharediluted, which reflects our anticipated stock compensation expense forthe year of approximately $5.0 to $5.5 million, or approximately $0.09to $0.10 per share. Excluding the impact of stock compensationexpense, our net earnings per share projection for the year isapproximately $1.31 to $1.40 per share diluted."

Performance Food Group markets and distributes more than 66,000national and private label food and food-related products toapproximately 44,000 restaurants, hotels, cafeterias, schools,healthcare facilities and other institutions. For more information onPerformance Food Group, visit www.pfgc.com.

Certain statements made herein are forward-looking statementsunder the Private Securities Litigation Reform Act of 1995. Thesestatements involve risks and uncertainties and are based on currentexpectations and management's estimates; actual results may differmaterially. The risks and uncertainties which could impact thesestatements include, but are not limited to, general economicconditions; the Company's ability to achieve projected operationalefficiencies and increase sales; the relatively low margins andeconomic sensitivity of the foodservice business; the Company'sreliance on major customers; the ability to identify and successfullycomplete acquisitions of other foodservice distributors; the Company'sability to successfully develop, produce and market new products andmanagement of the Company's planned growth, all as detailed from timeto time in the reports filed by the Company with the Securities andExchange Commission.
Performance Food Group Company
Unaudited Financial Highlights

(In thousands, except net earnings per
common share) Three Months Ended
----------------------------------------------------------------------

July 1, 2006 July 2, 2005
------------ -------------
Net sales from continuing operations $1,448,027 $1,456,735

Earnings from continuing operations,
net of tax $12,168 $12,246
Earnings from discontinued operations,
net of tax - 10,591
Gain on sale of fresh-cut segment, net of
tax 13 180,958
------------ -------------
Net earnings $12,181 $203,795

Weighted average number of shares outstanding:
Basic 34,191 46,955
Diluted 34,797 47,608

Earnings per common share:
Basic earnings per common share-
continuing operations $0.36 $0.26
Basic earnings per common share-
discontinued operations - 0.23
Gain on sale of fresh-cut segment - 3.85
------------ -------------
Net earnings $0.36 $4.34

Diluted earnings per common share-
continuing operations $0.35 $0.26
Diluted earnings per common share-
discontinued operations - 0.22
Gain on sale of fresh-cut segment - 3.80
------------ -------------
Net earnings $0.35 $4.28



Performance Food Group Company
Unaudited Financial Highlights

(In thousands, except net earnings per
common share) Six Months Ended
----------------------------------------------------------------------

July 1, 2006 July 2, 2005
------------- -------------
Net sales from continuing operations $2,917,520 $2,879,542

Earnings from continuing operations,
net of tax $17,842 $16,929
Earnings from discontinued operations,
net of tax - 19,603
(Loss) gain on sale of fresh-cut segment,
net of tax (18) 180,958
------------- -------------
Net earnings $17,824 $217,490

Weighted average number of shares outstanding:
Basic 34,298 46,913
Diluted 34,858 47,505

Earnings per common share:
Basic earnings per common share-
continuing operations $0.52 $0.36
Basic earnings per common share-
discontinued operations - 0.42
Gain on sale of fresh-cut segment - 3.86
------------- -------------
Net earnings $0.52 $4.64

Diluted earnings per common
share-continuing operations $0.51 $0.36
Diluted earnings per common
share-discontinued operations - 0.41
Gain on sale of fresh-cut segment - 3.81
------------- -------------
Net earnings $0.51 $4.58


Performance Food Group Company
Condensed Consolidated Balance Sheet (Unaudited)
July 1, 2006
(In thousands)


Assets July 1, 2006 Dec. 31, 2005
----------------------------------------------------------------------
Cash and cash equivalents $ 98,658 $ 99,461
Accounts and notes receivable, net,
including retained interest in securitized
receivables 186,830 190,481
Inventories 283,881 303,073
Other current assets 28,554 29,188
Current assets from discontinued operations 3,108 10,115
----------------------------------------------------------------------
Total current assets 601,031 632,318
----------------------------------------------------------------------
Property, plant and equipment, net 268,813 255,816
Goodwill, net 356,597 356,597
Other intangible assets, net 49,346 51,213
Other assets 17,439 16,346
----------------------------------------------------------------------
Total assets $ 1,293,226 $ 1,312,290
======================================================================

Liabilities and Shareholders' Equity
-------------------------------------
Checks in excess of deposits $ 93,110 $ 100,335
Trade accounts payable 256,195 258,791
Current installments of long-term debt 572 573
Other current liabilities 126,590 122,885
Current liabilities from discontinued
operations 5,811 6,540
----------------------------------------------------------------------
Total current liabilities 482,278 489,124
----------------------------------------------------------------------
Long-term debt, excluding current
installments 2,961 3,250
Deferred income taxes 44,441 43,399
Shareholders' equity 763,546 776,517
----------------------------------------------------------------------
Total liabilities and shareholders'
equity $ 1,293,226 $ 1,312,290
======================================================================


Performance Food Group Company
Condensed Consolidated Income Statement (Unaudited)
July 1, 2006
(In thousands, except net earnings per common share)

Three Months Ended
July 1, 2006 July 2, 2005
----------------------------------------------------------------------

Net sales $1,448,027 100.0%$1,456,735 100.0%
Cost of goods sold 1,254,824 86.7% 1,267,343 87.0%
----------------------------------------------------------------------
Gross profit 193,203 13.3% 189,392 13.0%
Operating expenses 171,673 11.8% 167,441 11.5%
----------------------------------------------------------------------
Operating profit 21,530 1.5% 21,951 1.5%
----------------------------------------------------------------------
Other income (expense):
Interest income 390 377
Interest expense (370) (1,540)
Loss on sale of receivables (1,862) (1,235)
Other, net 66 264
----------------------------------------------------------------------
Other expense, net (1,776) -0.1% (2,134) -0.1%
----------------------------------------------------------------------
Earnings before income taxes from
continuing operations 19,754 1.4% 19,817 1.4%
Income taxes 7,586 0.6% 7,571 0.6%
----------------------------------------------------------------------
Earnings from continuing operations,
net of tax 12,168 0.8% 12,246 0.8%
----------------------------------------------------------------------
Earnings from discontinued
operations, net of tax - 10,591
Gain (loss) on sale of fresh-cut
segment, net of tax 13 180,958
----------------------------------------------------------------------
Total earnings (loss) from
discontinued operations, net
of tax 13 191,549
----------------------------------------------------------------------
Net earnings $ 12,181 $ 203,795
----------------------------------------------------------------------

Weighted average common shares outstanding:
Basic 34,191 46,955
Diluted 34,797 47,608
----------------------------------------------------------------------

Earnings per common share:
Basic net earnings per common share:
Continuing operations $ 0.36 $ 0.26
----------------------------------------------------------------------
Discontinued operations - 0.23
Gain on sale of fresh-cut segment - 3.85
----------------------------------------------------------------------
Total earnings from discontinued
operations - 4.08
----------------------------------------------------------------------
Net earnings $ 0.36 $ 4.34
----------------------------------------------------------------------

Diluted net earnings per common share:
Continuing operations $ 0.35 $ 0.26
----------------------------------------------------------------------
Discontinued operations - 0.22
Gain on sale of fresh-cut segment - 3.80
----------------------------------------------------------------------
Total earnings from discontinued
operations - 4.02
----------------------------------------------------------------------
Net earnings $ 0.35 $ 4.28
----------------------------------------------------------------------


Six Months Ended
July 1, 2006 July 2, 2005
----------------------------------------------------------------------

Net sales $2,917,520 100.0%$2,879,542 100.0%
Cost of goods sold 2,537,063 87.0% 2,510,234 87.2%
----------------------------------------------------------------------
Gross profit 380,457 13.0% 369,308 12.8%
Operating expenses 348,205 11.9% 337,931 11.7%
----------------------------------------------------------------------
Operating profit 32,252 1.1% 31,377 1.1%
----------------------------------------------------------------------
Other income (expense):
Interest income 862 502
Interest expense (724) (2,513)
Loss on sale of receivables (3,499) (2,241)
Other, net 153 303
----------------------------------------------------------------------
Other expense, net (3,208) -0.1% (3,949) -0.1%
----------------------------------------------------------------------
Earnings before income taxes from
continuing operations 29,044 1.0% 27,428 1.0%
Income taxes 11,202 0.4% 10,499 0.4%
----------------------------------------------------------------------
Earnings from continuing
operations, net of tax 17,842 0.6% 16,929 0.6%
----------------------------------------------------------------------
Earnings from discontinued
operations, net of tax - 19,603
Gain (loss) on sale of fresh-cut
segment, net of tax (18) 180,958
----------------------------------------------------------------------
Total earnings (loss) from
discontinued operations, net
of tax (18) 200,561
----------------------------------------------------------------------
Net earnings $ 17,824 $ 217,490
----------------------------------------------------------------------

Weighted average common shares outstanding:
Basic 34,298 46,913
Diluted 34,858 47,505
----------------------------------------------------------------------

Earnings per common share:
Basic net earnings per common share:
Continuing operations $ 0.52 $ 0.36
----------------------------------------------------------------------
Discontinued operations - 0.42
Gain on sale of fresh-cut segment - 3.86
----------------------------------------------------------------------
Total earnings from discontinued
operations - 4.28
----------------------------------------------------------------------
Net earnings $ 0.52 $ 4.64
----------------------------------------------------------------------

Diluted net earnings per common share:
Continuing operations $ 0.51 $ 0.36
----------------------------------------------------------------------
Discontinued operations - 0.41
Gain on sale of fresh-cut segment - 3.81
----------------------------------------------------------------------
Total earnings from discontinued
operations - 4.22
----------------------------------------------------------------------
Net earnings $ 0.51 $ 4.58
----------------------------------------------------------------------

Performance Food Group Company

2006 Compared to 2005
Second Quarter
Segment Disclosure
Total
Corporate & Continuing
2006 Broadline Customized Intersegment Operations
----------------------------------------------------------------------
Second Quarter
Net external sales $863,463 $584,564 $ - $1,448,027
Intersegment sales 101 53 (154) -
Total sales 863,564 584,617 (154) 1,448,027
Operating profit 21,123 7,891 (7,484) 21,530
Operating profit
margin 2.45% 1.35% - 1.49%
Interest expense
(income) 5,858 1,571 (7,059) 370
Loss (gain) on sale of
receivables 2,454 735 (1,327) 1,862
Depreciation 4,670 1,559 79 6,308
Amortization 845 - - 845
Capital expenditures 11,596 1,697 167 13,460


Total
Corporate & Continuing
2005 Broadline Customized Intersegment Operations
----------------------------------------------------------------------
Second Quarter
Net external sales $895,853 $560,882 $ - $1,456,735
Intersegment sales 78 54 (132) -
Total sales 895,931 560,936 (132) 1,456,735
Operating profit 22,197 6,096 (6,342) 21,951
Operating profit
margin 2.48% 1.09% - 1.51%
Interest expense (income) 3,964 377 (2,801) 1,540
Loss (gain) on sale of
receivables 2,269 758 (1,792) 1,235
Depreciation 4,358 1,268 75 5,701
Amortization 904 - - 904
Capital expenditures 3,974 15,819 20 19,813


Total assets by reportable segment and a reconciliation to the
condensed consolidated balance sheets were as follows:

July 1, 2006 Dec. 31, 2005
---------------------------------------------------
Broadline $848,483 $858,211
Customized 236,084 250,397
Corporate & Intersegment 205,551 193,567
Discontinued Operations 3,108 10,115
---------------------------------------------------
Total Assets $1,293,226 $1,312,290
---------------------------------------------------

Note: 2005 segment disclosure has been reclassified to reflect the
reallocation of certain corporate costs to the broadline segment
to be consistent with the 2006 presentation.


Performance Food Group Company

2006 Compared to 2005
Six Months YTD
Segment Disclosure
Total
Corporate & Continuing
2006 Broadline Customized Intersegment Operations
----------------------------------------------------------------------
Six Months YTD
Net external sales $1,731,949 $1,185,571 $ - $2,917,520
Intersegment sales 269 120 (389) -
Total sales 1,732,218 1,185,691 (389) 2,917,520
Operating profit 31,326 15,764 (14,838) 32,252
Operating profit
margin 1.81% 1.33% - 1.11%
Interest expense
(income) 10,901 2,959 (13,136) 724
Loss (gain) on sale of
receivables 5,011 1,559 (3,071) 3,499
Depreciation 9,022 3,129 159 12,310
Amortization 1,706 - - 1,706
Capital expenditures 22,655 2,633 213 25,501


Total
Corporate & Continuing
2005 Broadline Customized Intersegment Operations
----------------------------------------------------------------------
Six Months YTD
Net external sales $1,755,897 $1,123,645 $ - $2,879,542
Intersegment sales 303 116 (419) -
Total sales 1,756,200 1,123,761 (419) 2,879,542
Operating profit 33,880 11,862 (14,365) 31,377
Operating profit
margin 1.93% 1.06% - 1.09%
Interest expense
(income) 7,863 644 (5,994) 2,513
Loss (gain) on sale of
receivables 5,045 1,501 (4,305) 2,241
Depreciation 8,641 2,432 150 11,223
Amortization 1,811 - - 1,811
Capital expenditures 9,236 29,017 106 38,359


Total assets by reportable segment and a reconciliation to the
condensed consolidated balance sheets were as follows:


July 1, 2006 Dec. 31, 2005
---------------------------------------------------
Broadline $848,483 $858,211
Customized 236,084 250,397
Corporate & Intersegment 205,551 193,567
Discontinued Operations 3,108 10,115
---------------------------------------------------
Total Assets $1,293,226 $1,312,290
---------------------------------------------------

Note: 2005 segment disclosure has been reclassified to reflect the
reallocation of certain corporate costs to the broadline segment
to be consistent with the 2006 presentation.

Performance Food Group Company
Non-GAAP Reconciliations

Projected 2006 EPS Reconciliation Excluding Impact of Stock
Compensation Expense

Estimated Diluted EPS
---------------------------
Low High
---------------------------
Estimated full year 2006 diluted EPS $1.22 - $1.30
Add: Projected stock compensation expense (1) 0.09 - 0.10
---------------------------
Adjusted estimated full year 2006 diluted
EPS to exclude stock compensation expense $1.31 - $1.40
===========================

(1) Amount calculated as estimated pre-tax expense of $5.0 - $5.5
million, a projected tax rate of 38.5% and a projected weighted
average shares of approximately 35.0 million.

Impact of Stock Compensation on Diluted EPS


Three Months Ended July 1, 2006 Net Earnings Shares EPS
------------------------------- -------------------------------
Amounts reported for diluted EPS from
continuing operations $12,168 34,797 $0.35
Stock compensation, net of tax (2) 909
-------------------------------
Adjusted diluted EPS from continuing
operations excluding impact of stock
compensation $13,077 34,797 $0.38
===============================

(2) Amount calculated using continuing operations effective tax rate
of 38.4%.


Six Months Ended July 1, 2006 Net Earnings Shares EPS
----------------------------- ----------------------------
Amounts reported for diluted EPS from
continuing operations $17,842 34,858 $0.51
Stock compensation, net of tax (3) 1,430
----------------------------
Adjusted diluted EPS from continuing
operations excluding impact of stock
compensation $19,272 34,858 $0.55
============================

(3) Amount calculated using continuing operations effective tax rate
of 38.6%.

Performance Food Group Company
Non-GAAP Reconciliations


Free Cash Flow


Quarterly Q2 2006 Q2 2005
--------- ------------------------
Net income from continuing operations $12,168 $12,246
Add back:
Stock compensation expense 1,478 295
Amortization expense 845 904
Amortization of deferred issue costs 82 187
Depreciation expense 6,308 5,701
Subtract:
Capital expenditures (13,460) (19,813)
------------------------
Free Cash Flow $7,421 $(480)
========================


Year-to-Date Q2 2006 YTD Q2 2005 YTD
------------ -------------------------
Net income from continuing operations $17,842 $16,929
Add back:
Stock compensation expense 2,329 314
Amortization expense 1,706 1,811
Amortization of deferred issue costs 160 375
Depreciation expense 12,310 11,223
Subtract:
Capital expenditures (25,501) (38,359)
--------------------------
Free Cash Flow $8,846 $(7,707)
==========================