July 2, 2004

To our Neighbors, Business Associates and Customers:

On March 20, 2002 the offices of Mar-Jac Poultry, Inc. were searched by federal agents. We fully cooperated with the officers. At the time of the search, the affidavit reflecting the basis for the search was sealed by the federal judge in Virginia who issued the warrant at the request of the government.

Over one year later on May 4, 2003, CBS produced and aired a segment of 60 Minutes titled “Terrorist Hunter” in which a woman, later identified as Rita Katz, accused Mar-Jac and others of engaging in illegal activities including allegedly laundering money for terrorists. Within one month, Mar-Jac sued CBS, Ms. Katz and others for libel and slander. The lawsuit is still pending.

In October 2003, the search warrant affidavit which had been sealed by the court since March 2002 was unsealed at the request of Dow Jones & Co., publishers of The Wall Street Journal and with the assistance of the government which stated in court papers that unsealing the affidavit would not hinder its investigation and would assist “private litigants.” At that time, and continuing until today, the “private litigants” are Rita Katz, sued by Mar-Jac, and The Wall Street Journal - Europe, which has been sued by others in London for defamation.

Evidence - now known and submitted in court by both Ms. Katz and The Wall Street Journal - is that Rita Katz has been paid by The Wall Street Journal to be an expert consultant for their defamation case in London. Furthermore, Ms. Katz claims in her book - and the government has admitted in open court - that she was a paid government “informant” who assisted in providing information used by the government to generate the search warrant which was the basis to search Mar-Jac and others. Ms. Katz testified in court recently that she has been paid over $180,000 by the government.

Mar-Jac filed a civil suit against the government in November 2003 seeking return of all its records seized during the search in March 2002. Mar-Jac claimed in open court that the government’s agent, who swore under penalties of perjury that the affidavit was true, lied to the judge. Rather than fight Mar-Jac, the government returned all our records. During the course of this litigation the government filed in court some documents which Mar-Jac believed was another attempt to officially defame it (similar to the previous unsealing of the search warrant affidavit), and to assist private litigants.

Now, July 2004, over two years after Mar-Jac was searched, another round of adverse publicity has occurred as a result of the court unsealing the pleadings. Nothing new was disclosed. Mar-Jac contends that the government filed this document to cover up for its previous leaks to The Wall Street Journal. Mar-Jac has nothing to hide. Mar-Jac and its principals are all law-abiding American citizens. We have never supported any terrorists. We have challenged the government to admit that fact. Apparently, rather than do that - or giving us our day in court - it would rather try to deprive Mar-Jac of its ability to be a viable economic enterprise without affording it due process of law.

We appreciate your taking the time to read this rather lengthy account of the events leading to the damaging publicity we have received. Mar-Jac and its owners are totally innocent of any wrong-doing. Over the past 50 years, we have tried to build a reputation of honesty in our business dealings and love for the people we work with. Your loyalty and friendship are very important to us. If you have any concerns whatsoever, please let us know.

Sincerely,

Doug Carnes Vice President, Operations	Mahmoud Mohamed Vice President, Finance	Pete Martin Complex Manager
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