THE LAKE NORDEN PROJECT IS ONE OF THE LARGEST MIDWEST DAIRY PRODUCTION EXPANSIONS IN DECADES. ALL CALL FOR MORE COWS AND INCREASED SOUTH DAKOTA MILK PRODUCTION

October 26, 2001 (Lake Norden, SD)--Calling it one of the largest dairy production expansion projects in the Midwest in decades, Davisco Foods International today announced plans to invest $40 million to build a mozzarella cheese plant adjacent to its food ingredient plant in Lake Norden, S.D. The result will create 60 additional jobs at the new cheese plant, and dramatically increase the market for milk produced by area farmers by as much as 5 million pounds of milk per day. Land O'Lakes will market the cheese produced at the new plant, and partner with Davisco Foods International in milk procurement for the plant.

"This is a major investment for us at Davisco that represents an expanded partnership between the state of South Dakota, Lake Norden, Davisco, Land O'Lakes, our employees, and area milk producers," said Mark Davis, CEO of Davisco Foods International. "The expanded Lake Norden facility will give area farmers a steady and reliable market for milk and make it possible for Davisco to increase our overall cheese production capabilities. And the added value here is the whey produced at the cheese plant that we will process at our food ingredient plant to make our specialty whey protein isolates. We are very excited to move forward together with this innovative project."

"The project, and this partnership, will significantly enhance the region's dairy infrastructure and contribute to the long-term success of area producers," Land O'Lakes President and Chief Executive Officer Jack Gherty said. "We are at a point where critical mass and economies of scale are vital to dairy industry success. This new partnership and plant project address those issues."

"Today at a time when our farmers need to find new ways to market their products we are fortunate to have the opportunity to partner with a company that shares our commitment to keeping South Dakota agriculture strong," said South Dakota Governor William Janklow. "We have worked hard in South Dakota to create a favorable economic environment that makes it possible for Davisco Foods International to expand here in Lake Norden."

Davisco's existing Lake Norden facility currently processes whey, a by-product of cheese manufacturing, to produce specialized food ingredients, including whey protein isolates, which have numerous applications, such as sports and nutritional supplement drinks. The new plant will produce cheese using state-of-the art technology, and provide whey as the necessary raw material for the food ingredient plant. The new project will create 60 new jobs at the onset, and ensure that current operations at the food ingredient plant remain ongoing. The company currently has 90 employees at its Lake Norden facility.

Davisco Foods has operated the Lake Norden facility for 18 years. Construction on the new project will start early next year and take approximately 15-18 months to complete.

Davisco Foods International (www.daviscofoods.com) is a privately held, family-owned, dairy business headquartered in Le Sueur, MN. Operating five dairy processing plants (cheese, whey and other dairy-based food ingredients) in South Dakota, Minnesota and Idaho, Davisco produces more than 600,000 pounds of cheese daily, and is one of the largest suppliers of cheese to Kraft Foods.

Land O'Lakes, Inc. (www.landolakesinc.com) is a national, farmer-owned food and agricultural cooperative, with sales approaching $7 billion. Land O'Lakes does business in all fifty states and more than fifty countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the U.S.; services its international customers with a variety of food and animal feed ingredients; and provides farmers and local cooperatives with an extensive line of agricultural supplies (feed, seed, crop nutrient and crop protection products) and services.