FOR IMMEDIATE RELEASE
July 25, 2002

Ellen Qualls
www.governor.state.va.us
(804) 786-2211, x2379


Toni R. Spigelmyer
SYSCO Corporation
(281)584-1458
Jill Lawrence
VEDP
(804) 371-0049
Sysco To Create 388 New Jobs In Warren County
-Governor Warner welcomes company's investment in the Commonwealth-


RICHMOND - Governor Mark R. Warner today announced that SYSCO Corporation intends to locate its first U.S. redistribution facility in Warren County, creating 388 jobs through a $53 million investment. Virginia successfully competed with Maryland, Pennsylvania, West Virginia and New Jersey for the project.

“I am pleased to welcome SYSCO Corporation and these new jobs to the Commonwealth,” said Governor Warner. “SYSCO will benefit from Warren County’s dedicated workforce and access to the Virginia Inland Port, which helps position the state as a major distribution hub.”

SYSCO (NYSE: SYY) is the largest food service marketing and distribution organization in North America. Generating sales of approximately $22.6 billion for calendar year 2001, the company provides products and services to approximately 400,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other food service operations. The SYSCO distribution network, supported by more than 46,000 employees, currently extends throughout the entire United States and Canada. For more information about SYSCO, visit www.sysco.com.

Subject to closing on the land acquisition, SYSCO plans to build an approximate 800,000 square-foot foodservice redistribution center. The site is located in the industrial corridor north of Interstate Highway 66 in Front Royal, Virginia. The Virginia redistribution warehouse will receive and redistribute food and food-related products to 14 SYSCO distribution centers in Connecticut, Maine, Maryland, Massachusetts, New York, Pennsylvania and Virginia for subsequent redistribution to restaurants and other foodservice locations. The Front Royal warehouse initially will include freezer, refrigeration and dry storage space, as well as cold docks and rail dock areas and will have future expansion capability of up to 1,200,000 square feet. Construction is planned to commence by mid to late September and the facility is expected to be operational by the fourth quarter of calendar 2003.
The facility is the first of several in a long-term project that eventually will encompass similar warehouses in SYSCO’s six regions throughout North America. SYSCO expects to increase transportation savings and improve storage and handling methods through the use of redistribution warehouses, which allow for more efficient supply chain delivery than current distribution methods to each of the various facilities.

“We are very optimistic about the prospects for our growth and development in Warren County,” said Kenneth J. Spitler, Executive Vice President of SYSCO. “The Virginia location was chosen because of the broad-based employee workforce available as well as the outstanding communities and quality of life amenities they offer potential employees. Also, the Commonwealth of Virginia and the Front Royal-Warren County officials have welcomed us to the area and have been instrumental in assisting us in the decision-making process.”

Governor Warner approved a $200,000 grant from the Governor’s Opportunity Fund to assist Warren County with the project. The company qualifies for rail access funding from the Virginia Department of Rail and Public Transportation and road access funding from the Virginia Department of Transportation. Northeastern Cooperative will also take advantage of Enterprise Zone tax credits administered by the Virginia Department of Housing and Community Development. The Virginia Economic Development Partnership, the Virginia Port Authority and the Front Royal-Warren County Economic Development Authority assisted Northeastern Cooperative with its decision. The Virginia Department of Business Assistance will provide workforce training services.

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

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