MODESTO, Calif. (October 15, 2007) – Foster Farms Dairy, based here, announced today that it has entered into a definitive agreement to acquire the conventional dairy business of Sacramento, Calif.-based Crystal Cream & Butter Company from owner company HP Hood LLC. Distribution operations will be part of the transaction, which will not include any production facilities or other assets. The acquisition is scheduled to be completed within 30 days. Upon completion of the transaction, production of Crystal’s conventional milk products, including cottage cheese and sour cream, will be moved to Foster Farms Dairy’s Modesto facility, a change that will add 35 production jobs at the facility and will increase the company’s weekly milk production by half a million gallons. The transaction will also add 55 drivers from Crystal’s Sacramento operations, along with 30 employees at various distribution facilities and 70 trucks to Foster Farms Dairy’s distribution fleet, and will expand the company’s reach to hundreds of new retail accounts throughout California. Foster Farms Dairy will maintain Crystal’s existing producer relationships and will continue to produce Crystal brand dairy products for distribution throughout Northern California. “With mutual roots in family farming, the fit between Foster Farms Dairy and Crystal Cream is outstanding,” said Foster Farms Dairy President Jeff Foster. “We will ensure that the upcoming transition is as seamless as possible, from continuing the support of local farmers to maintaining Crystal’s hometown brand presence in Sacramento. And, of course, we will maintain our commitment to producing the fresh, wholesome dairy products that are synonymous with both of our brands.” About Foster Farms Dairy Founded in 1939 on an 80-acre farm near Modesto, Calif., Foster Farms began producing dairy products in 1941. Today, Foster Farms Dairy produces a full line of dairy products and processes 3.0 million gallons of fresh milk weekly at its two plants (before acquisition). Foster Farms Dairy purchases milk from over 40 independent farmers in the San Joaquin Valley along with milk from their company owned farms. Foster Farms’ 6,500-head herd enjoys a natural, nutrient-rich diet free of the synthetic growth hormone rBST, open stalls, and even air-conditioning.