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Press Release

Smithfield Foods Selects RolloverSystems Automatic Rollover Platform

CHARLOTTE, N.C. (March 14, 2006) -- Smithfield Foods, Inc. (NYSE: SFD), one of the nation's leading producers of pork and processed meats, has chosen RolloverSystems to provide rollover services, including EGTRRA-mandated automatic rollovers, to its 50,000 employees.

Starting immediately, eligible employees of Smithfield Foods whose account balances fall within the $1,000-5,000 range specified by EGTRRA "safe harbor" provisions will have their retirement plan balances automatically rolled over to a qualified IRA if they do not make an affirmative distribution choice. Retirement accounts are only subject to automatic rollover after eligible plan participants have been notified and given time to make a decision.

The RolloverSystems service is unique in that it provides a comprehensive, choice-based voluntary rollover program before employee retirement accounts are automatically transferred to a safe harbor IRA. Employees fill out one electronic form and receive up to five competitive IRA offers from top investment companies on the RolloverMarket™ Network. The process takes less than 10 minutes to complete online or by phone.

The EGTRRA automatic rollover provisions, fully enacted in March 2005, recognize the need for employers to keep their retirement plan rosters as lean as possible and prevent small-balance accounts from building up due to regular employee turnover. At the same time, the automatic rollover rules are intended to curb the high cash out rates for smaller balances and help American workers keep more of the dollars invested in qualified retirement accounts.

The selection of RolloverSystems by Smithfield Foods indicates an important shift toward standardizing automatic rollover programs, as organizations realize how costly and cumbersome it is to keep terminated employees in the company’s 401(k) and pension plans. The RolloverSystems relationship indicates how larger employers and their plan service providers can benefit by partnering with a company that offers an open, flexible, technology-driven rollover program.

"Many companies see no value in keeping terminated employees in company retirement plans," said Reginald Bowser, founder and CEO of RolloverSystems. "So our services aim to make rollovers as easy as possible for plan sponsors, providers and participants. We've signed up more than 600 automatic rollover clients in the past few months, and we are very excited now to offer our services to the employees of Smithfield Foods."

"Our firm is very aware of the cost of keeping former employees on the plan books," said Mary Fisher, Corporate Benefits Manager of Smithfield Foods, "but just as importantly we want to reduce the number of retirement plan cash outs. RolloverSystems connects us to a great list of safe harbor IRA providers and will help more of our people stay on track with their retirement savings."

RolloverSystems now provides its automated rollover service to more than two million employees through relationships with employers and retirement plan service providers. The company handles rollover transactions for 401(k) and other qualified plans, including 403(b) and government 457 plans.

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