September 15, 2004

Penford Corporation Statement

Penford Corporation received a letter from the AFL-CIO on Monday, September 13, 2004, questioning the business affiliations of a member of its Board of Directors. Penford strongly believes that it has fully complied with the Clayton Act. If the Federal Trade Commission determines that it is appropriate to conduct an inquiry regarding the company's practices, Penford will cooperate fully.

It is important to understand that it is commonplace for striking unions to use such tactics to attempt to pressure management into a premature settlement. The union on strike at Penford's Cedar Rapids Iowa plant has been on strike since August 1, 2004.

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