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SYSCO Plans to Open Redistribution Center in Alachua

GAINESVILLE, Fla., August 16, 2005—SYSCO Corporation (NYSE: SYY) officially announced today that the company intends to build its new redistribution center in the City of Alachua.

Alachua County was selected from several potential sites in north Florida and south Georgia.

The facility will serve existing SYSCO distribution centers throughout Florida and will be located on land currently owned by WACO Properties, Inc., near the intersection of County Roads 235 and 235A.

SYSCO was initially attracted to Alachua because of its proximity to the north central Florida distribution center base and the willingness of the local community to make the project a success.

“We are proud and pleased to learn that another quality corporation has chosen an enduring economic partnership with the City of Alachua. In addition to the enhanced employment opportunities they bring, and the substantial contributions they will provide to the City’s tax base, they provide a diversification of the economic climate in Alachua. This is the third major corporation in the past few years that has decided to cast their lot with us, which is a reflection of our climate of openness and reasoned, sustainable growth and diversification, and the fact that the City of Alachua welcomes this growth for the betterment of all its citizens,” was the reaction of Alachua City Manager Clovis Watson, Jr.

The Gainesville Council for Economic Outreach (CEO) was instrumental in bringing together officials from SYSCO Corporation, the City of Alachua and WACO Properties, Inc., in order to address the needs of the proposed distribution center. Citing the need for confidentiality throughout the site selection process, the company had withheld its name from CEO and public officials until today.

“We’re thrilled to learn that what we suspected all along is true, that this project involves yet another Fortune 500 corporation that wishes to do business in Alachua County. That speaks volumes about our community and the outlook for its continued success,” said Brent Christensen, President and Chief Executive Officer of CEO, the economic development arm of the Gainesville Area Chamber of Commerce. “SYSCO will bring 300 well-paying jobs to our community, allowing for our area citizens to continue to climb the career ladder right here in Alachua County.”

When completed in the fall of 2006, the facility will be approximately 500,000 square feet in size and will include freezer, refrigeration, dry storage and office space. The redistribution center is the second of as many as nine planned facilities that eventually will encompass similar SYSCO warehouses throughout the United States as part of SYSCO's Supply Chain Initiative project.

The first redistribution center, located in Front Royal, Virginia, began shipping products on February 14, 2005 and by the end of 2005 will service 14 broadline distribution companies located in SYSCO's northeast region. The company's goal is to create supply chain capabilities that increase value to suppliers, customers and SYSCO by utilizing more efficient planning and forecasting methods and by leveraging technology systems to reduce operating and delivery expenses.

Kenneth J. Spitler, executive vice president of SYSCO and president of SYSCO's North American Foodservice Operations, said, "The Alachua site was selected for a variety of reasons, including an available employee workforce, the quality of life the community affords to potential employees and the site's logistical accessibility to Interstate 75 and railroad networks. Local community and government support and input for the project has been tremendous from the initial stages of confidentially identifying a site through to the conclusion of the selection process. On behalf of SYSCO I would like to thank Alachua Mayor Jean Calderwood, Brent Christensen and the entire Gainesville Council for Economic Outreach, Alachua City Manager Clovis Watson, Jr., Jack P. Dyer and Waco Properties, Inc., as well as the Stephen W. Wright Company which served as SYSCO's realtor in the project."

SYSCO is the largest foodservice marketing and distribution organization in North America. The company reported sales of $30.3 billion for the fiscal year 2005 that ended July 2, 2005. SYSCO provides food and related products and services to approximately 390,000 restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers throughout the United States and Canada. For more information about SYSCO visit www.sysco.com.

Founded in 1991, the Council for Economic Outreach is the economic development arm of the Gainesville Area Chamber of Commerce. It serves as the primary economic development organization for Alachua County and its nine municipalities.

SYSCO Corporation Rankings, Fortune Magazine (March 8, 2004):

#1 for Innovativeness
#1 for Employee Talent
#1 for Use of Corporate Assets
#1 for Social Responsibility
#1 for Quality of Management
#1 for Financial Soundness
#1 for Long-Term Investment Value
#1 for Quality of Products/Services

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