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Performance Food Group Announces Customer Agreement With O'Charley's Inc.

Posted on: Friday, 13 July 2007, 15:08 CDT

Performance Food Group (Nasdaq/NGS:PFGC) announced today that the Company has entered into an agreement with O'Charley's Inc. to be the exclusive distributor for O'Charley's and Stoney River restaurants.

Performance Food Group anticipates the new business roll-out will be completed in the fourth quarter of 2007 and will add approximately $200 million in annualized revenue. The Company currently expects to incur startup costs in the third and fourth quarters of this year as a result of the added business.

"We anticipated the addition of new business in our customized segment in the second half of 2007, and we are pleased to announce this agreement with O'Charley's Inc.," commented Steven L. Spinner, president and chief executive officer of Performance Food Group. "O'Charley's is recognized for its emphasis on fresh high quality foods. Performance Food Group is known for its customized distribution capabilities, including handling perishables and other specialized needs. Clearly it's a great opportunity for both companies."

Gregory L. Burns, chairman and chief executive officer of O'Charley's Inc. added, "When we decided to evaluate our supply chain alternatives, we wanted to select the best in breed. We believe that Performance Food Group will be a valued business partner in servicing our distribution needs."

Performance Food Group markets and distributes more than 68,000 national and private label food and food-related products to over 41,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. For more information on Performance Food Group, visit www.pfgc.com.

For more information on O'Charley's Inc., please visit www.ocharleysinc.com.

Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and are based on current expectations and management's estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include, but are not limited to, general economic conditions, including consumer spending trends; the Company's ability to achieve projected operational efficiencies and increase sales, particularly higher margin street sales; the Company's ability to add new customers, particularly in its customized segment; the relatively low margins and economic sensitivity of the foodservice business; the Company's reliance on major customers; the ability to identify and successfully complete acquisitions of other foodservice distributors; the Company's ability to successfully develop, produce and market new products and management of the Company's planned growth, all as detailed from time to time in the reports filed by the Company with the Securities and Exchange Commission.

Source: Business Wire

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