Dakota Beef Announces First 100% Organic Facility
Dakota Beef responds to Mad Cow Crisis

Chicago, Illinois - October 14, 2003 - Dakota Beef Company, LLC today announced the acquisition of the company's first of three planned processing facilities in Howard, South Dakota. The 20,000 square-foot plant, originally owned by Minneapolis-based Ellis Meats, is expected to finalize organic certification by International Certification Services, Inc. and begin limited production of 100 % certified organic beef in the Spring of 2004.

We believe this purchase makes Dakota Beef the largest 100% organic beef processor in the country, explained Mr. Scott Lively, president and CEO of the company. The plant has the capacity to process more than 80 head of cattle a day, delivering approximately 70,000 lbs. of 100% organic beef products daily.

Dakota Beef will spend the next 90 days meeting with investment bankers and various financial institutions, while investigating the purchase of two additional plants by the end of this year.

The Howard facility closed during the 1990s, when Ellis Meats consolidated operations to their Pipestone, MN plant. At the time, the company processed ground beef and steaks for two national restaurant chains and provided more than 40 jobs to the local economy.

Meat science and food safety has greatly advanced since this plant ceased operations, says Mr. Lively. We are taking advantage of these new technologies by investing in the highest quality, state-of-the-art equipment available to deliver the safest and freshest organic beef products to consumers. Spearheading the retrofit is QED, a meat processing technology company whose system utilizes the most advanced food safety standards in the world.

While the majority of the production schedule is devoted to Dakota Beef's private label customers, the Howard facility will also be available to other organic beef companies. This will allow Dakota Beef to get full value from the Howard facility while improving the organic beef market nation-wide, Scott added.

Dakota Beef is working with International Certification Services, Inc., (Medina, ND) for their organic certification in both the required USDA National Organic Program and the voluntary Farm Verified Organic international label program.

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