16.08.2005 16:13:00

SYSCO Selects Alachua, Florida as Site for Its Second Redistribution Center

SYSCO Corporation (NYSE:SYY), North America's largestfoodservice marketer and distributor, today announced that it hassigned a contract to purchase a 300-acre site in Alachua, Florida,upon which it will construct its second redistribution center (RDC).Construction will commence following the completion of SYSCO's duediligence.

The redistribution center is the second of as many as nine plannedfacilities that eventually will encompass similar SYSCO warehousesthroughout the United States as part of SYSCO's Supply ChainInitiative project. The first redistribution center, located in FrontRoyal, Virginia, began shipping products on February 14, 2005 and bythe end of 2005 will service 14 broadline distribution companieslocated in SYSCO's northeast region. The company's goal is to createsupply chain capabilities that increase value to suppliers, customersand SYSCO by utilizing more efficient planning and forecasting methodsand by leveraging technology systems to reduce operating and deliveryexpenses.

Following an extensive review of sites throughout the states ofFlorida and Georgia, a location on County Road 235A and County Road235 in Alachua was identified by SYSCO as the preferred site of theSoutheast RDC. The approximately 500,000 square-foot operation willinclude freezer, refrigeration, dry storage and office space and isexpected to be completed by the fall of 2006.

Kenneth J. Spitler, executive vice president of SYSCO andpresident of SYSCO's North American Foodservice Operations, said, "TheAlachua site was selected for a variety of reasons, including anavailable employee workforce, the quality of life the communityaffords to potential employees and the site's logistical accessibilityto Interstate 75 and railroad networks. Local community and governmentsupport and input for the project has been tremendous from the initialstages of confidentially identifying a site through to the conclusionof the selection process. On behalf of SYSCO I would like to thankAlachua Mayor Jean Calderwood, Brent Christensen and the entireGainesville Council for Economic Outreach, Alachua City Manager ClovisWatson, Jr., Jack P. Dyer and Waco Properties, Inc., as well as theStephen W. Wright Company which served as SYSCO's realtor in theproject."

Mr. Spitler also commented that site selection for SYSCO's thirdredistribution center, which will be located in the midwestern UnitedStates, is nearing completion. The building design phase for both theSoutheast RDC and Midwest RDC has been completed.

SYSCO is the largest foodservice marketing and distributionorganization in North America. The company reported sales of $30.3billion for the fiscal year 2005 that ended July 2, 2005. SYSCOprovides food and related products and services to approximately390,000 restaurants, healthcare and educational facilities, lodgingestablishments and other foodservice customers throughout the UnitedStates and Canada. For more information about SYSCO visitwww.sysco.com.

Certain statements made herein are forward-looking statementsunder the Private Securities Litigation Reform Act of 1995. Theyinclude statements regarding the timing and anticipated benefits ofthe national supply chain project and regional redistributionfacilities, including the Northeast, Southeast and Midwest regionaldistribution centers, industry growth and employment growth. Thesestatements involve risks and uncertainties and are based on currentexpectations and management's estimates; actual results may differmaterially. Those risks and uncertainties that could impact thesestatements include the risks relating to the foodservice distributionindustry's relatively low profit margins and sensitivity to economicconditions, SYSCO's leverage and debt risks, the risk of exposure toproduct liability claims, the risk of interruption of supplies due tolack of long-term contracts, severe weather, work stoppages orotherwise, construction timetables, management's allocation of capitaland the timing of capital purchases, the ability to control expensesand other risk factors detailed in SYSCO's Form 10-K for the fiscalyear ended July 3, 2004 filed with the Securities and ExchangeCommission.

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